Name: 
 

Chapter 1: The Tourism Marketing Environment



True/False
Indicate whether the sentence or statement is true or false.
 

 1. 

Destination marketing efforts are critical to all types of visitors to a destination.
 

 2. 

The traditional “4Ps of marketing” include product, place, promotion and price.
 

 3. 

“Intermediaries” in the tourism industry refers to tour operators and trade show management companies.
 

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
 

 1. 

Bruce Poon Tip is quoted as disagreeing with the suggestion that “…ecotourism means ‘leave only footprints’…”.  He suggests that
a.
one should not even leave footprints.
b.
ecotourism must, by definition, be small-scale.
c.
ecotourism can be extended to include 10,000 cruise ship passengers in small groups.
d.
ecotourism is inherently a misnomer, and wilderness areas should be off-limits to tourists.
 

 2. 

“Tourism is a powerful economic force” because it provides, among other things,
a.
a considerable number of full-time jobs.
b.
an excellent opportunity to showcase Canada to the rest of the world.
c.
jobs and training for youth.
d.
income and foreign exchange.
 

 3. 

Tourism and hospitality tends to incorporate both goods and services (also described as tangible and intangible products).  Services are uniquely different from goods in that they tend to be
a.
intangible, inseparable, heterogeneous, and perishable.
b.
incorrigible, separable, costly, and variable.
c.
invariable, non-perishable, kept in inventory, and tangible.
d.
prone to failure.
 

 4. 

Interactive marketing refers to
a.
the “moment of truth”, when customer and service provider interact.
b.
web-based advertising that allows a customer to make a reservation on-line.
c.
telemarketing, as the customer and service provider get to talk to one another.
d.
direct sales through either the web or postal service.
 

 5. 

The services marketing mix has been expanded from the traditional “4 Ps” to include 3 more “Ps”.  One of these additional Ps is ______ and it, as an example, includes ______.
a.
people; branding.
b.
process; customer involvement.
c.
physical evidence; employee training.
d.
price; discounts.
 

 6. 

Basically, the tourism industry in Canada considers _____ kinds of tourism.  They are   _________________________.
a.
two; inbound and outbound.
b.
two; international and domestic.
c.
three;  national, provincial, and municipal (city).
d.
three; international tourism, outbound tourism, and domestic.
 

 7. 

The “Open Skies Policy”, to which Canada is a signatory, means that
a.
airlines must agree to certain regulations before they will be allowed to land at Canadian airports.
b.
airlines, not governments, decide which transborder routes they can fly.
c.
discount airlines cannot be discriminated against by government-owned airlines.
d.
Canada’s airline policy now better reflects the realities of the 21st century.
 

 8. 

There are 10 key players in Canada’s tourism industry.  One of these is “accommodation”.   Which of the following statements is false regarding this sector?
a.
The ownership of the major hotels in Canada is widely distributed among many individual and portfolio investors.
b.
Branding has become increasingly important.
c.
Hotels and motels account for approximately 88% of traveller accommodation revenue, while other types, such as B&B, account for the remaining 12%.
d.
Second-home ownership is still growing in Canada.
 

 9. 

The marketing environment consists of both a macro- and microenvironment.  The macroenvironment includes
a.
political forces and customer markets.
b.
stakeholders and legal forces.
c.
competitive and technological forces.
d.
cultural forces and marketing channel firms .
 

 10. 

The “greying market” (the over-50 segment) in Canada comprises nearly ___ % of the national population.
a.
20
b.
30
c.
40
d.
50
 

 11. 

The family travel market
a.
is looking very strong in Canada for the foreseeable future, but not terribly promising in the worldwide market.
b.
is being impacted internationally solely by fears of terrorism.
c.
is booming throughout North America and Europe and continues to grow significantly.
d.
is second only to business travel in importance to Canada’s tourism receipts.
 

 12. 

As the exchange rate for a given country, against the Canadian dollar, becomes unfavourable for the given country,
a.
Canadians will pay more to enjoy a vacation in the given country.
b.
Canadians will be more inclined to travel within Canada.
c.
residents of the given country will pay less for a Canadian vacation.
d.
residents of the given country will pay more for a Canadian vacation.
 

 13. 

The single most dramatic force shaping the tourism and hospitality industry is
a.
demographics.
b.
terrorism.
c.
technology.
d.
marketing.
 

 14. 

Cultural trends, which are tracked through “psychographics”, include such things as
a.
an aging population.
b.
increases in the minimum wage.
c.
concerns for the environment.
d.
All of the above.
 

 15. 

Services marketing (recall the Services Marketing Triangle)
a.
works to develop, promote, and deliver services.
b.
addresses product, promotion, and price.
c.
involves the company, the stakeholders, and government regulators.
d.
uses demographic and psychographic information to develop an advertising campaign.
 

Matching
 
 
a.
cultural environment
f.
microenvironment
b.
demographics
g.
services marketing mix
c.
economic forces
h.
services marketing triangle
d.
macroenvironment
i.
tourism market
e.
marketing
 

 1. 

a market that reflects the demands of consumers for a very wide range of travel and hospitality products
 

 2. 

the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual (customer) and organizational objectives
 

 3. 

the original four P’s of the marketing mix—product, place, promotion, and price—plus the people, the physical evidence, and the process
 

 4. 

a model that illustrates the three interlinking groups that work together to develop, promote, and deliver services: the company, the customer, and the provider
 

 5. 

forces close to the organization that can affect its ability to serve its customers: the organization itself, marketing channel firms, customer markets, and a broad range of stakeholders or publics
 

 6. 

the larger societal forces that affect the microenvironment: competitive, demographic, economic, environmental and natural, technological, political, cultural and social, and legal forces
 

 7. 

statistics that describe the observable characteristics of individuals
 

 8. 

those that will affect consumer purchasing power and spending patterns
 

 9. 

institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviours
 



 
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