True/False
Indicate whether the sentence or statement is true or
false.
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1.
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Travel
agents and tour operators perform the same functions.
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2.
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Smaller
operators have been particularly successful at using the Internet to reduce costs by eliminating
travel agents and electronic intermediaries.
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3.
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Despite
the growth in popularity and use of the Web, at least two researchers predict that buyer curiosity
with the Web will wane.
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Multiple Choice
Identify the letter of the choice that best
completes the statement or answers the question.
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1.
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Distribution systems a. | focus solely on getting the products to the
consumer. | b. | can focus on
getting the consumer to the product. | c. | work best when owned and managed by the company providing
the product. | d. | work best when a
direct distribution channel is employed. | | |
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2.
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The
function of the distribution system is to a. | promote the product, as well as to bring the product and
consumer together. | b. | provide financing to the seller. | c. | bring together a wide range of marketing
intermediaries. | d. | minimize distribution costs by reducing the role of travel
agents. | | |
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3.
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Marketing intermediaries a. | only add cost, not value, to a
product. | b. | tend to restrict a
service provider’s access to wider markets. | c. | are helpful, and add value, to both the provider and the
consumer. | d. | form part of what
is known as a direct distribution channel. | | |
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4.
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Tour
operators a. | tend to focus on
vacation packages for the general public leisure market. | b. | do not sell through travel
agents. | c. | outnumber travel
agents in Canada by approximately 2:1. | d. | rely heavily on the Global Distribution System (GDS) to
make a profit. | | |
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5.
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The
CTC’s Meetings, Conventions, and Incentive Travel Program (MC&IT) a. | works closely with travel agents to promote domestic
business meetings and conventions. | b. | was established to try to develop a new convention and
business market in Canada. | c. | was folded in 2002 due to sharp declines in foreign
business travel to Canada. | d. | uses relationship building and advertising as its two main
strategies to target meeting and incentive travel decision-makers. | | |
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6.
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The
Internet has certainly grown in importance and use in Canada. A 2002 survey showed that 80% of
Canadians who are connected to the Internet use it as a source of travel information and
planning. Which of the following statements is also true? a. | While initial projections were that the Internet would
eliminate the need for travel intermediaries, what we are now seeing is the emergence of electronic
travel agents or “travel brokers”. | b. | Destination marketing organizations (DMOs) have been slow
to develop their Web sites to enable customers to move from planning to
reservations. | c. | Cross-link
marketing is an important feature of Web-based sales and marketing. | d. | All of the above. | | |
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7.
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The two
main types of channel organizations are the conventional marketing system and the vertical marketing
system. Which of the following statements is true? a. | The vertical marketing system is considered superior
because it can achieve economies of scale and generally operate more
efficiently. | b. | The conventional
marketing system is considered superior because it utilizes alliances and franchises to increase
distribution. | c. | Both systems work
equally well and efficiently. | d. | The loose collection of independent organizations in the
vertical marketing system makes it more difficult to manage conflict. | | |
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8.
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An
“alliance” differs from a conventional marketing system in that it a. | never crosses industry lines. | b. | involves at least three organizations, otherwise it would
be a partnership. | c. | involves a contractual agreement. | d. | increases brand name recognition and fosters rapid
expansion. | | |
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9.
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The
primary benefit of franchising, to a franchiser, is rapid increases to distribution coverage.
Other benefits to the franchiser include: a. | cross-marketing of products. | b. | more favourable taxation
regulations. | c. | potential
partnering with organizations such as CTC. | d. | None of the above. | | |
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10.
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The
distribution system must be carefully considered by any organization. The three broad
distribution strategies include a. | “selective distribution”, which means that only
one possible distribution channel will be used. | b. | “intensive distribution”, which means that all
available outlets and intermediaries will be used. | c. | “familiar distribution”, which means that only
well-established and well-known outlets and intermediaries will be used. | d. | “Internet distribution”, which is best suited to
companies that sell their products internationally. | | |
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11.
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Research on the cruise line travel industry has shown that a. | cruise lines prefer an intensive distribution
strategy. | b. | cruise lines have
traditionally been reluctant to sell their products through travel agents due to the high commissions
required. | c. | world-wide
pleasure cruising is dying out due to the threats of terrorism. | d. | many consumers make their travel decisions on-line, but
ultimately purchase off-line. | | |
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12.
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In
2002, airline carriers in Canada eliminated the base commissions given to travel agents. As a
result of this change, a. | travel agencies will ultimately go out of
business. | b. | travel agencies
have implemented a new service charge to their customers. | c. | the airlines have gone into the business of having their
own travel agencies. | d. | consumers must now pay higher fees to the
airlines. | | |
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13.
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Contrary to popular belief, doing business on the Internet is neither free nor
low-cost. In fact, its costs are rising sharply. Some industry insiders have suggested
that a. | the Internet may actually dampen overall
profitability for some organizations. | b. | within a decade, the Internet will be replaced by a
different communications media. | c. | 80% of the current on-line travel business will go back to
travel agents within two years’ time. | d. | travel agents and intermediaries have a bright
future. | | |
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14.
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It is
important for any tourism organization to manage their distribution channels. Measuring the
performance of distribution channels can be achieved by a. | determining the usage of familiarization trips, also known
as “fam tours”. | b. | examining the characteristics of
intermediaries. | c. | examining sales volumes and delivery
times. | d. | qualitative
research and analysis. | | |
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Matching
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a. | alliances | i. | indirect channel | b. | channel management | j. | intensive distribution | c. | conventional marketing | k. | junket representatives | d. | direct distribution channel | l. | marketing intermediaries | e. | directional selling | m. | selective distribution | f. | distribution system | n. | tour brokers | g. | exclusive distribution | o. | travel agents | h. | franchises | p. | vertical conflict | | | | |
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1.
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a
channel through which a company delivers its product to the consumer without the outside assistance
of any independent intermediaries
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2.
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channels of distribution that include travel agents, tour operators, travel
specialists, and the Internet
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3.
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marketing intermediaries that offer the tourism customer a variety of services,
including everything from transportation plans and tour packages to insurance services and
accommodation
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4.
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companies that sell motorcoach tours, which are attractive to a variety of
markets
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5.
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companies that serve the casino industry as intermediaries for premium
players
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6.
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conflict between organizations at different levels of the same distribution
channel
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7.
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a
vertically integrated travel agent’s sale, or attempted sale, of the foreign package holidays of
its linked tour operator in preference to the holidays of other operators
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8.
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a
distribution system that consists of a loose collection of independent organizations, each of which
tries to maximize its own success
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9.
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partnership formed when two or more organizations combine resources through a
contractual agreement that allows them to overcome each other’s weaknesses by benefitting from
each another’s strengths
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10.
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businesses that are established when a franchiser grants a franchisee the right to
engage in offering, selling, or distributing its goods or services under its marketing
format
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11.
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strategy in which an organization deliberately restricts the number of channels that
it uses to distribute its product or service to its customers; an effective method for marketing
prestige products
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12.
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strategy between intensive and exclusive distribution, in which a company uses more
than one but less than all of the possible distribution channels
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13.
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a
process that includes selecting and motivating individual channel members and evaluating their
performance over time
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14.
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strategy in which an organization maximizes the exposure of its travel services
by distributing through all available outlets or intermediaries
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15.
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the
“place” aspect of a company’s marketing mix. Its purpose is to provide an adequate
framework for making a company’s product or service available to the consumer
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16.
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an
indirect delivery arrangement used by a supplier, carrier, or destination marketing
organization
Answers:
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