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Competency-Based

Competitive Events
*Written Exam*

Test Number 891

Travel and Tourism


Marketing

INSTRUCTIONS: This is a timed, comprehensive exam for the occupational area


identified above. Do not open this booklet until instructed to do so by the
testing monitor. You will have _____ minutes to complete all questions.

This comprehensive exam was developed by the MarkED Resource Center. Items have been randomly selected from the MarkED
Resource Center's Test-Item Bank and represent a variety of instructional areas. Competencies for this exam are at the prerequisite,
career-sustaining, marketing specialist, marketing supervisor, and manager levels. A descriptive test key, including question sources and
answer rationale, has been provided the state DECA advisor.
All test items are copyrighted and are the exclusive property of the MarkED Resource Center. No item may be reproduced in any
manner, with the following exception: State DECA advisors or their designees are authorized to duplicate tests, as needed, for one-time
use in state-sponsored competitive events prior to May 1, 2007. Duplication after this date or for other purposes is expressly prohibited.

Copyright © 2007 by Marketing Educ ation Resource Center®, Columbus, Ohio


Test 891 TRAVEL AND TOURISM MARKETING 1

1. Which of the following is a characteristic of travel and tourism marketing:


A. Locally organized C. Highly competitive
B. Unaffected by technology D. Controlled by society

2. Which of the following has impacted the growing trend in the travel and tourism industry for people to
vacation within driving distance of their homes:
A. There are excellent vacation areas close by.
B. People are becoming more curious about what is nearby.
C. Employers are cutting vacation time and people cannot travel long distances.
D. Many people are fearful of air travel following the events of September 11, 2001.

3. Which of the following should travel agency employees try to do during a robbery situation:
A. Make a mental note of the robber's appearance
B. Attempt to set off the silent alarm system
C. Refuse to comply with the robber's demands
D. Tell the robber that the agency's safe is locked

4. Which of the following statements is true regarding regulation in the travel and tourism industry:
A. There are no regulations in place for the physical environment.
B. The same regulations apply to all travel and tourism businesses.
C. Regulation policies are always being instituted, revised, and repealed.
D. Governments limit regulation to the transportation industry.

5. Mr. Brown has inherited a small sum of money, and he wants to become a business owner. However, he
has a full-time job that he plans to keep and very little time to operate his own business. What type of
ownership should he consider?
A. General partnership C. Franchise
B. Sole proprietorship D. Corporation

6. Employees who answer the telephone should give both the name of the travel agency and
A. its address. C. their names.
B. the time. D. its purpose.

7. What is one reason why tour operators write informational messages?


A. To analyze sales proposals C. To explain new policies
B. To develop research reports D. To obtain positive feedback

8. Employees on the same level in a travel and tourism organization who informally talk to each other about
work -related issues are using __________ communication.
A. professional C. vertical
B. personal D. horizontal

9. In planning a staff meeting for her department, Mara should


A. provide a meeting agenda to review.
B. change the meeting date and time.
C. forward a copy of the department budget to all participants.
D. limit the number of times that each participant speaks.

10. Distribution is a component of which of the following:


A. Marketing C. Promotion
B. Production D. Advertising

11. Electronic billing, purchase-order verification, bar-code technology, and image processing are examples
of
A. integrated data between channel members. C. functions of the finance department.
B. horizontal channel integration. D. vertical channel integration.

Copyright © 2007 by Marketing Education Resource Center®, Columbus, Ohio


Test 891 TRAVEL AND TOURISM MARKETING 2

12. Customer satisfaction, employee contentment, and profit can be directly linked to
A. paying higher wages than competitors. C. prestigious pricing strategies.
B. ethical business practices. D. automated distribution centers.

13. A cruise line supply business improves customer service by providing on-time delivery, which may result
in the business having a
A. low return on investment. C. channel arrangement.
B. low inventory level. D. competitive advantage.

14. Which of the following is a situation in which producers would want to use short channels of distribution:
A. The market is located close together. C. The product is inexpensive.
B. A small order has been placed. D. There are many potential customers.

15. All manufactured or constructed items used in the production of goods and services are referred to as
A. consumer goods. C. capital goods.
B. natural resources. D. building supplies.

16. What does a country's government primarily attempt to achieve with its fiscal policy?
A. Decrease in economic recessions C. Increase in gross domestic product
B. Equality in extending credit D. Balance in exercising influence

17. Motivation to make a profit is a characteristic of a __________ economic system.


A. private enterprise C. traditional
B. socialist D. communist

18. To compute net profit, which of the following is subtracted from gross profit:
A. Operating expenses C. Total expenses
B. Cost of goods D. Total income

19. How many people are actually unemployed if there are 45,000 people in the labor force and the total
unemployment rate is 5.2%?
A. 2,250 C. 2,295
B. 2,340 D. 2,385

20. When a nation's inflation rate is low, prices tend to


A. remain stable. C. fluctuate daily.
B. increase dramatically. D. reduce currency values.

21. A change leader might find it difficult to get support from others in a group because the others may
A. dislike the status quo. C. have a lot of good ideas.
B. fear the unknown. D. distrust the organization.

22. One way that cruise line employees can develop cultural sensitivity is to
A. revise research techniques. C. acquire foreign language skills.
B. preserve communication methods. D. maintain current leadership styles.

23. The most common reason for job termination is workers' inability to
A. perform job tasks. C. arrive at work on time.
B. get along with coworkers. D. follow directions.

24. One of the ways in which customers may be dishonest is by


A. counting the change that they receive.
B. returning travel products that have been used.
C. asking for a second product demonstration.
D. expecting too much help from the salesperson.
Test 891 TRAVEL AND TOURISM MARKETING 3

25. What is the first step airline employees should take in handling customer complaints?
A. Restate the customer's complaint C. Ask the customer for a solution
B. Listen to the customer D. Determine the appropriate action to take

26. The primary reason that a tour company runs credit reports on prospective tour members is to
A. be able to provide this information to motels the tour group will visit.
B. add a reference to the client's credit report.
C. learn the client's income for future marketing activities.
D. verify the ability of the client to pay for the trip.

27. An individual or a travel agency that borrows money by signing a promissory note is obtaining a(n)
A. regular credit account. C. secured loan.
B. unsecured loan. D. travel and entertainment card.

28. A formal legal agreement between a lender and a borrower usually includes a
A. repayment schedule. C. proposal for disbursement.
B. tax code listing. D. guarantee of eminent domain.

29. Which of the following is a true statement:


A. Bookkeeping is limited to information on sales.
B. Bookkeeping is the same as accounting.
C. Bookkeeping does not use computers.
D. Bookkeeping records business transactions.

30. What is the gross amount due on an invoice if the total cost of the travel items is $82.75, shipping
charges are $5.50, and there is a discount of $3.20?
A. $85.05 C. $87.95
B. $82.75 D. $88.25

31. Which of the following is economic information that will help in preparing a sales forecast for a car-rental
agency:
A. Product revisions C. Consumer spending levels
B. Staff adjustments D. Operational changes

32. Calculate the amount a charter bus company can budget to spend on new equipment if it estimates sales
of $850,000, expenses of $415,000, and designates 20% of profit for equipment purchases.
A. $85,500 C. $87,000
B. $86,750 D. $88,250

33. A theme park that plans to expand operations might use its profit-and-loss statement as the basis for
A. increasing salaries. C. paying a dividend.
B. obtaining a loan. D. offering discounts.

34. An early step in the new-employee selection process that is intended to eliminate any unqualified
applicants is the
A. preliminary screening. C. reference check.
B. physical examination. D. performance test.

35. Why should you arrive at the job orientation site early on the day of the orientation?
A. To determine instructional methods to be used for the presentation
B. To determine the factors that will affect program content
C. To review materials before using them
D. To make sure that facilities, equipment, and supplies are ready

36. Which of the following is a benefit of manager/supervisor training and development:


A. Increased employee turnover C. Decreased performance levels
B. Increased managerial obsolescence D. Decreased personnel costs
Test 891 TRAVEL AND TOURISM MARKETING 4

37. Complaints focusing on employee comfort, equipment, and safety could be categorized as complaints
about
A. physical surroundings. C. company policies.
B. coworkers. D. supervision/management.

38. One of the main reasons why car-rental agencies need marketing information is to use it in
A. scheduling advertising. C. selling situations.
B. making decisions. D. monitoring distribution.

39. Before beginning to assess marketing-information needs, a scenic railroad first needs to accurately
A. sample the population. C. analyze the data.
B. define the problem. D. conduct the research.

40. Which of the following is a shortcoming of marketing research:


A. The data are not always timely. C. The data are considered foolproof.
B. The data are not hard to gather. D. The data are available to competitors.

41. Which of the following is an example of a cruise line developing a code for answers to survey questions
in order to process and analyze marketing information:
A. Questions are numbered in chronological order.
B. Each answer has a specific numeric value.
C. Each survey contains an identification number.
D. Results are tabulated according to date received.

42. What do researchers often use to summarize and interpret vast amounts of numeric information?
A. Descriptive statistics C. Hypothetical samples
B. Research questionnaires D. Independent variables

43. The element of the marketing mix that is concerned with what goods, services, or ideas a travel and
tourism business will offer its customers is
A. promotion. C. place.
B. price. D. product.

44. What is a travel agency usually better able to do when it selects a certain target market?
A. Eliminate ethical dilemmas
B. Control expenses and increase profits
C. Focus marketing decisions on a specific group of people
D. Change the variable-cost margin to quickly achieve break-even point

45. Comprehensive marketing plans should always include objectives that are
A. inflexible. C. short-term.
B. vague. D. action-oriented.

46. One reason it is important for travel businesses to consider market potential when conducting a market
analysis is because market potential indicates the
A. expected annual sales volume. C. number of consumers in an area.
B. total possible demand for a travel product. D. competitors selling the same travel item.

47. Determine the wage portion of a marketing budget if five airline employees who are paid $11 an hour will
each spend 40 hours working on a specific marketing activity, and two managers who are paid $41,600 a
year will each spend one week supervising the activity.
A. $3,600 C. $3,800
B. $4,200 D. $4,000
Test 891 TRAVEL AND TOURISM MARKETING 5

48. One reason theme parks often conduct a sales analysis to compare actual sales with the sales goals is to
make adjustments in the
A. marketing plan. C. billing department.
B. publicity system. D. inventory level.

49. What does a tour operator use to compare the actual performance of its marketing efforts in relation to its
marketing objectives?
A. Standards C. Appraisals
B. SWOT analysis D. Classification audit

50. When confirming airline reservations for customers, travel agents usually obtain
A. seat assignments. C. baggage stickers.
B. free upgrades. D. instant discounts.

51. Cruise line employees should give directions to passengers only if they are sure that the directions are
A. appreciated. C. justified.
B. necessary. D. correct.

52. One of the best ways to resolve disputes raised by airline passengers is to
A. acknowledge the seriousness of the situation.
B. hope that the problem will go away in time.
C. put the blame back on the customers.
D. promise to reprimand the employee(s) responsible for the dispute.

53. With what do many customers associate price?


A. Discounts C. Location
B. Comfort D. Quality

54. Which of the following is an example of an unsafe act:


A. Replacing inadequate lighting C. Driving too fast
B. Having greasy rags D. Reporting a frayed electric cord

55. The manager of airport gift shop began surveying the sales floor after being informed that employees
were taking and eating chips and pretzels without paying for them. The type of theft the employees were
engaged in is called
A. pilferage. C. fraud.
B. embezzlement. D. shoplifting.

56. Karen is planning to meet with a travel agency employee at 8:30 a.m., read a travel brochure at
10:00 a.m., have lunch with a customer at noon, and tour a new hotel at 2:30 p.m. Karen is ___________
her activities.
A. scheduling C. delegating
B. prioritizing D. identifying

57. Which of the following should a car-rental agency consider when developing a project plan to help control
costs:
A. Possible objectives C. Potential problems
B. Available publicity D. Advertising expense

58. Calculate an airport gift shop's net profit for last year if it had income from sales of $675,500, operating
expenses of $210,000, and cost of goods sold was $305,200.
A. $255,500 C. $370,300
B. $160,300 D. $465,500
Test 891 TRAVEL AND TOURISM MARKETING 6

59. Based on the information in the following chart, which service contract will be least expensive for a travel
agency that makes 12,000 copies a year:

Contract A: $600/yr. - 2¢/copy


Contract B: $700/yr. - 1¢/copy
Contract C: $500/yr. - 3¢/copy
Contract D: $400/yr. - 4¢/copy

A. Contract D C. Contract C
B. Contract A D. Contract B

60. What creativity technique involves having a group identify as many different ideas as possible within a
certain time frame?
A. Role-playing C. Brainstorming
B. Experimentation D. Observation

61. Which of the following is a career search tool for determining what you are capable of doing now and
might be good at doing with additional training or education:
A. Intelligence test C. Interest survey
B. Aptitude test D. Personality test

62. Manuel is preparing his job resume, but he has never held a paying job. He has only worked for his father
and done some volunteer work in the community. What should Manuel do about the work experience
section of his job resume?
A. He should describe the kind of job he'd like to have.
B. He should explain that he hasn't had a real job.
C. He should not include a work-experience section.
D. He should list his family job and volunt eer work.

63. Making both buyers and sellers feel they are getting good value is part of the __________ function of
marketing.
A. pricing C. financing
B. promotion D. purchasing

64. In the travel and tourism industry, customers' perceptions of value and worth are often associated with
A. place. C. price.
B. profit. D. promotion.

65. Why do many airlines post price information on a web site to make it possible for customers to use the
Internet to access prices?
A. To monitor buying behavior C. To conduct marketing research
B. To promote targeted advertising D. To encourage comparison shopping

66. In what stage of a product's life cycle might an airport gift shop price goods very low for the purpose of
eliminating excess inventory?
A. Introduction C. Maturity
B. Obsolescence D. Initiation

67. Which of the following is an internal factor which often affects a travel and tourism business's
product/service management:
A. Competitors' actions C. Consumers' needs
B. Government's standards D. Company's goals

68. Obtaining information about customers and potential customers who access a travel agency's web site is
one way that travel agencies use __________ technology.
A. e-mail C. computer
B. database D. satellite
Test 891 TRAVEL AND TOURISM MARKETING 7

69. A group of employees meeting to review a tour operator's sales records for the purpose of identifying
new travel opportunities is an example of
A. brainstorming. C. negotiating.
B. experimenting. D. questioning.

70. Which of the following departments in many large travel and tourism businesses is responsible for
generating travel product ideas:
A. Executive management C. Research and development
B. Information technology D. Sales and marketing

71. Why is it important for cruise lines to create processes that allow them to continually look for and
recognize opportunities?
A. To develop an effective design system C. To evaluate the feasibility of new ideas
B. To identify ways to lower production costs D. To compete successfully in the marketplace

72. The government agency that would have jurisdiction over a legal case dealing with false airline
advertising is the
A. Consumer Product Safety Commission. C. Federal Trade Commission.
B. Food and Drug Administration. D. Federal Communications Commission.

73. What do many travel and tourism businesses use to differentiate themselves from competitors and create
instant recognition?
A. Copyrights C. Patents
B. Symbols D. Licenses

74. The ultimate objective of the airport gift shop in using brand names or slogans is to
A. create awareness. C. obtain a sponsor.
B. encourage sales. D. identify the retailer.

75. A travel agency is developing a survey to evaluate client satisfaction. What is true regarding the
formation of the survey's questions?
A. The survey should include no more than 15 questions.
B. Closed-end questions should be specific and performance oriented.
C. It is best to use true/false questions for surveys.
D. An equal number of open-ended and closed-end questions should be used.

76. A small travel agency's logo should be developed by a graphics designer so that it will be
A. short and easy to pronounce. C. legally protected.
B. professional looking. D. complex and abstract.

77. Charter bus companies often think of promotion as the heart of


A. advertising. C. pricing.
B. marketing. D. selling.

78. Promotion in the travel and tourism industry is often intended to inform customers about
A. new products and services. C. new advertising campaigns.
B. contests and sweepstakes. D. publicity and public relations.

79. The elements of the promotional mix are advertising,


A. publicity, sales promotion, and personal selling.
B. sales promotion, pricing, and personal selling.
C. publicity, distribution, and personal selling.
D. public relations, publicity, and sales promotion.
Test 891 TRAVEL AND TOURISM MARKETING 8

80. One of the advantages to airlines of using a communication medium made possible by advanced
technology to promote products is that the medium is
A. standardized. C. regulated.
B. interactive. D. inexpensive.

81. Which of the following is a feature of a cutting-edge kiosk:


A. Voice-response system C. Interactive screen
B. Short messaging service D. Customer-service representative

82. Advances in technology make it possible for travel and tourism businesses to produce direct-response
advertising that is
A. understandable. C. guaranteed.
B. personalized. D. competitive.

83. Once the appropriate supplies and decorations are assembled to decorate a travel agency for a special
event, they must be
A. evaluated for their effectiveness. C. securely fastened in place.
B. tried out in several different arrangements. D. approved by the sales staff.

84. Which of the following steps in promotional planning comes first:


A. Choosing the promotional mix C. Evaluating the theme park's promotions
B. Analyzing the theme park's situation D. Determining the promotional objectives

85. A national car-rental agency has a toll-free telephone number customers can call if they have product
questions. The company's purpose is to
A. conduct market research. C. help customers determine needs.
B. affect employment levels. D. offer credit to customers.

86. Where might a luggage salesperson most likely obtain firsthand product information?
A. From competitors C. At the factory
B. At the library D. From customers

87. A cruise to the Bahamas would most likely depart from the major U.S. port city of
A. Miami. C. San Juan.
B. Norfolk. D. Chicago.

88. Why is having a great deal of travel product information advantageous to making sales?
A. So that the salesperson will have the ability to tailor sales presentations to individual customers
B. Because travel product information is not readily available to final consumers
C. Because salespeople will be able to send the information to consumers rather than meet with
them
D. So that salespeople can use jargon to impress customers

89. The travel agent's initial contact with the client may be referred to as the
A. presentation. C. opening.
B. close. D. overcoming of objections.

90. Which of the following is a technique that tour operators should use to determine customers' needs:
A. Read brochures C. Describe products
B. Explain discounts D. Ask questions

91. A real objection that a customer does not want to discuss openly is called a(n)
A. complaint. C. hidden objection.
B. excuse. D. conflict of needs.
Test 891 TRAVEL AND TOURISM MARKETING 9

92. Suggestion selling in a luggage shop usually occurs


A. after the customer has paid for the original purchase.
B. after the customer has made the original buying decision.
C. as soon as the customer starts looking at a product.
D. before the customer has made the original buying decision.

93. A client wants to rent a car after arriving in a foreign country. Which of the following statements is true
regarding international driver permits (IDP):
A. It is not necessary to carry a valid driver's license if the renter has an IDP.
B. An IDP is required in all foreign countries when renting a vehicle.
C. The renter must take a written driving test before the vehicle can be rented.
D. Applications for an IDP are available at the American Automobile Association.

94. One way a hotel can reduce guest waiting time for large convention registrations is to
A. eliminate the self-check-in kiosks in the front lobby.
B. limit the size of the groups to accommodate staffing requirements.
C. set up video viewing screens for guests to watch while waiting in line.
D. make sure adequate front desk staff is scheduled during busy check-in times.

95. What does a travel agent usually need to do to successfully sell trips to individuals?
A. Ask about financial resources C. Make appropriate recommendations
B. Present many vacation options D. Pressure clients to make decisions

96. When handling cash payments, a luggage shop employee should announce the amount tendered, place
the money on the cash drawer ledge, count silently when removing change, and then count aloud when
giving change. This procedure is intended to
A. tally sales. C. safeguard cash.
B. determine the opening cash fund. D. arrange the cash drawer.

97. To settle a group's bill, a tour organization often places the charges on the group's __________ account.
A. remote C. internal
B. exclusive D. master

98. What is one of the main responsibilities of sales managers for airline supply businesses?
A. Evaluating salespeople C. Making sales calls
B. Prospecting for customers D. Scheduling appointments

99. Which of the following is one of the major responsibilities for top-level managers:
A. Strategic planning C. Tactical planning
B. Short-range planning D. Day-to-day planning

100. The document that explains a travel agency's goals and how it intends to achieve those goals is an
example of a(n)
A. corporate report. C. annual report.
B. business plan. D. management plan.

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