Ontario
             An Association of Business Students

									Competency-Based
									Competitive Events
									   *Written Exam*

									    Test Number 824									                Booklet Number _____ 

Travel and Tourism
Marketing Management

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 75 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/entrepreneur 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, 2005.  Duplication after this date or for other purposes is expressly prohibited.

Copyright © 2005 by Marketing Education Resource Center®, Columbus, Ohio

1.   One reason many travel and tourism businesses work together to market their products is because travel and tourism 
      products are
		A.	segmented.	B.   complementary.	C.	competitive.	D.   experimental.

 2.	Service businesses in the United States are growing
		A.	at a very slow rate.		C.	only in certain areas.
		B.	faster than any other form of business.			D.	at about the same speed as other businesses.

 3.	Interest a travel agency earns from its bank accounts is included in which category of the profit-and-loss statement?
		A.	Assets 	B.   Net income		C.	Revenue		D.  Gross sales

 4.	Which of the following is information about employees that airlines are required by law to maintain:
		A.	Names of relatives		C.	List of references
		B.	Educational histories		D.	Identification numbers

 5.	A company's annual outing had to be canceled because of budget cutbacks.  The charter bus company should handle the refund process by __________ the $500 deposit to the company's credit-card account.
		A.	debiting	B.   eliminating		C.	crediting 		D.   reserving

 6.	A cruise line with a quality culture would have executive-level managers who are
		A.	committed, involved, and take responsibility for quality.
		B.	good at delegating all commitments for quality assurance.
		C.	deceitful, noncommitted, and not responsible for quality.
		D.	able to enlist the expertise of outside contractors for quality.

 7.	Tour operators often use word-processing computer software to produce
		A.	detailed reports, memos, and contracts.		C.	research reports, spreadsheets, and tables.
		B.	complex graphics, letters, and reports.		D.	business plans, contracts, and spreadsheets.

 8.	To obtain approval to accept a customer's personal check for payment for services, many travel agencies use a __________ system.
		A.	collection	B.   chargeback		C.	verification		D.   reservation

 9.	The difference between speculative risk and pure risk is that speculative risk offers the chance for
		A.	gain.	B.   loss.		C.	debt.		D.   promotion.

10.	In which of the following situations might a small travel agency be able to reduce the premiums it pays for insurance coverage:
		A.	Acquires additional protection		C.	Develops a self-insurance program
		B.	Decreases amount of deductible		D.	Buys from its professional organization

11.	One reason why travel agents often recommend that their clients purchase travel insurance is
		A.	an airline might delay flights.		C.	the policy pays dividends.
		B.	it is required for international travel.		D.	the agency collects a sizeable fee.

12.	A set of procedures or strategies for attracting your target customer to your tourism business that also helps to reduce risk is the __________ plan.
		A.	marketing 	B.   advertising		C.	strategic		D.   long-range

13.	Sales tax is collected from customers and turned over to the 
		A.	supplier.	B.   manufacturer.		C.	vendor.		D.   government.

14.	Which of the following help-wanted ads is an example of a discriminatory hiring practice:
		A.	Young woman needed to answer phones
		B.	Workers needed to lift heavy packages
		C.	High school graduate needed to write reports 
		D.	Part-time workers needed to mail travel brochures

15.	One of the purposes of the Uniform Commercial Code is to regulate
		A.	credit transactions.		C.	economic policies.
		B.	business competition.		D.	product development.

16.	When delivering an oral presentation, the speaker should 
		A.	use props to support the message.		C.	time the presentation so it is not too long.
		B.	monitor her/his own nonverbal language.	D.	outline the presentation notes on index cards.

17.	Bus company managers can make sure that even an informal staff meeting is an effective use of time if the managers will
		A.	ask attendees to prepare agendas.		C.	stick to a planned agenda.
		B.	distribute minutes before starting.		D.	follow Robert's Rules of Order.

18.	What should an employee do if a coworker is spreading malicious gossip about another worker?
		A.	Deny hearing the rumor		C.	Ask for supporting evidence
		B.	Refuse to pass on the information		D.	Check out the accuracy of the message

19.	All the activities involved in moving, storing, locating, and/or transferring the ownership of goods or services is called 
		A.	marketing.	B.   distribution.		C.	processing. 	D.   merchandising.

20.	Which of the following intermediaries assist in promoting and selling travel and tourism products but do not take title to them:
 		A.	Retailers 	B.   Wholesalers		C.	Agents  		D.   Industrial users

21.	What is the gross amount due on an invoice if the total cost of the items is $94.20, shipping charges are $6.75, and a discount of $4.70 applies?
		A.	$89.50	B.   $94.20		C.	$96.25		D.   $100.95

22.	The process of examining incoming shipments is part of the __________ process.
		A.	marking	B.   warehousing		C.	selling 		D.   receiving

23.	A channel of distribution that has strong leadership is often able to avoid
		A.	regulation.	B.   competition.		C.	conflict.		D.   publicity.

24.	One way that governments stimulate the growth of travel and tourism in their countries is by
		A.	allowing the entry of illegal immigrants.
		B.	hiring additional personnel to monitor visitors.
		C.	increasing the amount of local hospitality taxes.
		D.	placing fewer restrictions on the airline industry.

25.	A technique that theme parks use to reduce the risk of losing money because of incompetent workers is to
		A.	check credit references.		C.	provide effective training.
		B.	install surveillance cameras.		D.	sign contractual agreements.

26.	The amount of decision making you have in your job is known as
		A.	scope.	B.   variety.		C.	depth.		D.   repetition.

27.	What is the amount of a country's national debt if it spends 6% more than its total revenue of $55 million and borrows the money to make up the difference?
		A.	$2.4 million	B.   $3.3 million		C.	$5.6 million	D.   $6.5 million

28.	How do nations track the flow of money coming in and going out of their countries?
		A.	Level of exports		C.	Balance of payments
		B.	Growth in economy		D.	Value of currency

29.	Advances in computer technology impact the financing function by making it possible for many tour operators to
		A.	apply for loans online.		C.	obtain deposit protection.
		B.	purchase a certified check.		D.	eliminate a mortgage payment.

30.	What type of credit account advertises "90 Days Same As Cash"?
		A.	Regular	B.   Installment		C.	Budget		D.   Revolving

31.	Determine the start-up monies a small travel agency would need based on the following information:  security deposit on leased space, $500; three months' rent, $1,500; office furniture, $3,750; utilities for three months, $475; three months' wages, $17,760; and an emergency fund of $5,000.
		A.	$27,475	$28,985		C.	$29,895		D.   $30,760

32.	Information about marketing trends, competitors' activities, and new technology are examples of __________ marketing information.
		A.	primary	B.   secondary		C.	internal		D.   external

33.	All of the following are used in forecasting sales except
		A.	informed opinion. 	B.   customer surveys.	C.	risk management. 	D.   statistical analysis.

34.	Software that allows for real-time analysis of marketing information enables travel businesses to search many databases and identify
		A.	pricing strategies.		C.	hidden objections.
		B.	obscure relationships.		D.	distribution channels.

35.	Data collected on the number of single parents, couples without children, and births and deaths would be classified as what type of data?
		A.	Local	B.   Geographic		C.	Economic		D.   Population

36.	What type of marketing information might a rental-car company obtain by monitoring sales invoices?
		A.	Profit margin	B.   Customer profiles	C.	Sales territory	D.   Service tactics

37.	Which of the following research methods might a cruise line use that is inexpensive, reaches a large number of people, and obtains information about its customers' needs:
		A.	Telephone surveys		C.	Focus groups
		B.	Direct-mail surveys		D.	Personal interviews

38.	One of the reasons why charter bus companies analyze and interpret the marketing information contained in databases is to prepare
		A.	reports.	B.   surveys.		C.	graphs.		D.   orders.

39.	Which of the following is a characteristic of an effective marketing report:
		A.	Contains names of contributing editors		C.	Includes industry review information
		B.	Provides clear interpretation of findings			D.	Explains role of executive management

40.	What is the first factor that should be considered when developing a travel and tourism package for a specific market segment? 
		A.	Most appropriate advertising medium		C.	Economic conditions of the destination
		B.	Age, gender, and income of the market			D.	Identity, accessibility, and durability of the market

41.	All of the following are advantages of the Delphi technique of sales forecasting except that it can
		A.		be repeated until the forecast is complete.
		B.		prevent time-consuming discussions or arguments.
		C.		keep forceful individuals from dominating others.
		D.		gather opinions from those who won't speak out in groups.

42.	A guided sightseeing tour of a city that can be arranged through the hotel concierge is a(n) __________ tour.
		A.	excursion	B.   domestic		C.	incoming		D.   incentive

43.	Which of the following is an example of a travel agency manager developing a policy that impacts customer relations:
		A.	Scheduling employees' work hours		C.	Revising bookkeeping procedures  
		B.	Increasing use of security devices		D.	Extending business hours on weekends

44.	Disney World offering physically challenged guests special transportation, designated seating, and no-wait lines for rides is an example of complying with the
		A.	National Tour Operators Policy.  		C.	Americans with Disabilities Act.
		B.	Domestic Travel and Tourism Law.		D.	Travel Agents of America Standards.

45.	One reason why individuals might resist change is because they
		A.	want to impress members of management.
		B.	have deep respect for the change agent.
		C.	are concerned over possible personal losses.
		D.	want to increase their chances of getting a promotion.

46.	What is an effective way for an airline reservation agent to resolve a dispute raised by a customer if the agent is the cause of the dispute?
		A.	Tell a joke to reduce tension		C.	Smile and say this happens all the time
		B.	Refer the customer to a manager		D.	Apologize and explain why the problem occurred

47.	Sally is an assistant in the personnel office and has access to personnel records.  A friend in the finance office asked her about a coworker who has been quiet and withdrawn lately.  Should Sally tell her friend if she knows the coworker is being treated for an illness?
		A.	No, she would only be spreading rumors.
		B.	Yes, it will help her friend to empathize with the coworker.
		C.	Yes, the coworker could probably use support from other employees.
		D.	No, it would be unethical to disclose confidential personnel information.

48.	A convention center pays beginning salespeople a base salary of $36,000 per year plus 4% commission on gross sales.  Calculate the amount the center will compensate two new salespeople if one has gross sales of $595,500 and the other has gross sales of $615,500.
		A.	$109,600	B.   $113,500		C.	$115,950		D.   $120,440

49.	One of the most frequently used methods of external recruitment is
		A.	billboards.	B.   company newsletters.	C.	direct mail.		D.   classified ads.

50.	A systematic process for enabling airline employees to acquire the skills, knowledge, and attitudes that are needed now and in the future to attain organizational goals is known as
		A.	development. 	B.   job analysis.		C.	training.		D.   role-playing.

51.	To help assure that a travel agency remains competitive, the agency should train travel counselors to
		A.	develop research reports about historic sites.
		B.	use the fax machine for speedier communications.
		C.	develop new ways of using the latest technological advances.
		D.	use travel software, the Internet, and computer reservation systems.

52.	The last step in handling employee grievances should be to __________ the problem.
		A.	analyze 	B.   follow up		C.	identify		D.   consider

53.	It is the responsibility of a railroad supervisor to give an assessment to management of what an employee does well on the job as well as what needs to be improved. This report to management is called a(n)
		A.	reference report. 	B.   job specification	C.	employee evaluation.   D.   employee requisition.

54.	Luggage stores that run out of needed supplies often must buy them on an emergency basis, which usually is more
		A.	convenient.	B.   cost-effective.		C.	expensive.		D.   efficient.

55.	When developing a rental-car company's budget, calculate the amount to allocate for salaries and wages based on the following information:  one employee at $54,000 per year, two employees at $35,000 per year, one employee at $22,500 per year, and three part-time employees who each work 1,250 hours a year at $7.50 per hour.
		A.	$145,750	B.   $163,270		C.	$174,625		D.   $187,425

56.	Which of the following is a reason why travel agency managers develop company objectives:
		A.	To forecast sales potential		C.	To solve operating problems
		B.	To identify business purpose		D.	To communicate with employees

57.	Mike is planning to work Tuesday and Thursday, go dirt‑bike riding Sunday, and pay his bills Wednesday.  Mike has just __________ his activities. 
		A.	classified	B.   prioritized		C.	performed 		D.   scheduled

58.	Marti is looking for a job in travel and tourism.  She has talked to family, friends, and a former employer about her career goals and joined a professional association to meet people currently working in the industry.  Marti's job hunting is an example of
		A.	answering classified ads.		C.	making telephone contacts.
		B.	using networking techniques.		D.	using the broadcast technique.

59.	Airport gift shops that answer the question, "Can we achieve a return on investment?" are making __________-related decisions about their prices.
		A.	profit	B.   product		C.	customer		D.   material

60.	A cruise line that sells its cabins at extremely low rates in an effort to eliminate the competition is involved in
		A.	price fixing.	B.   promotional pricing.	C.	price lining.	D.   predatory pricing.

61.	Knowing that demand for specific travel products is inelastic should cause the person responsible for pricing the products to
		A.	avoid changing prices.		C.	agree with competitors to set prices.
		B.	feel free to change prices.		D.	ask the government to regulate prices.

62.	Airlines recognize the existence of different demand curves for different customer groups.  What can airlines do to meet these various demands?
		A.		Offer cash‑back savings to vacation travelers
		B.		Advertise to encourage passengers to fly during nonpeak times
		C.		Provide additional luggage space, as needed, for business travelers
		D.		Supply and price airline tickets based on route, time period, and class of service

63.	A theme park that sells goods and services to children for one price and the same goods and services to senior citizens for a different price is using __________ pricing.
		A.	product-form	B.   location-oriented	C.	time-of-day	D.   customer-segmented

64.	Which of the following could be used to determine when price changes are necessary in order to meet competition:
 		A.	Price points	B.   Comparison shopping	C.	Price lining		D. Leader pricing

65.	Why should a small tourism business that takes advantage of the Internet as a marketing tool make sure its brand stands out and connects with customers?
		A.	Branding on the Internet is not very effective.
		B.	The Internet is so slow-paced that people often become bored.
		C.	Most people become aware of brands from Internet advertisements.
		D.	There are many things that distract people as they surf the Web. 

66.	The development of computer databases impacts the way that travel goods and services are managed because it 
		A.	compromises the employees' right to privacy.
		B.	reduces the risk of error in the order-entry process.
		C.	provides quick and easy access to purchasing histories.
		D.	protects information that is used to track promotional policies.

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

68.	A business traveler may consult a travel agency to
		A.	select the travel destination.		C.	arrange hotel accommodations and transportation.
		B.	negotiate airfare and hotel rates.		D.	determine arrival and departure dates for the 	trip.

69.	One reason why many travel businesses use product bundling is to
		A.	increase the cost of production.
		B.	make products more expensive to customers.
		C.	satisfy all of the customer's needs with one purchase.
		D.	urge customers to tell their friends about the product.

70.	A travel agent who takes a complimentary cruise on a new ship before recommending the cruise to customers is participating in a(n)
		A.	destination experience.		C.	international tour.
		B.	environmental analysis.		D.	familiarization trip.

71.	Which of the following examples best illustrates the concept of promotion in the travel and tourism industry:
		A.	American Hawaii Cruise Lines provides an itinerary that includes stops on several islands.
		B.	Marriott provides a home page on the Web and offers online booking for locations worldwide.
		C.	Choice Hotels International offers a range of products from economy to luxury accommodations.
		D.	Amazon.com offers its online customers guaranteed Christmas delivery on all in-stock products.

72.	The elements of the promotional mix are being combined when advertising brings a customer into the luggage shop, and 
 		A.	inventory levels are reduced. 		C.	the customer is given a warranty.
		B.	personal selling completes the sale.  		D.	the shop reduces its expenses.

73.	Cruise lines that sponsor sales promotion sweepstakes and contests are required to make what type of information available to the customers who participate in those promotions?
		A.	Odds of winning		C.	Value of coupon
		B.	Amount of rebate		D.	Samples of product

74.	When is the use of e‑mail an effective direct-advertising strategy?
		A.	The message is too short for surface mailing.
		B.	The message appeals only to people who have computers.
		C.	A travel business wants to be sure people read the message.
		D.	The message appeals to a small audience interested in a specific product.

75.	Existing conditions, such as the number of competitors, that affect a tour operator and its promotion are referred to as __________ factors.
		A.	situational	B.   media-related		C.	qualitative		D.   quantitative

76.	What is a method of measuring the effectiveness of promotions?
		A.	Testing	B.   Researching		C.	Planning		D.   Training

77.	Which of the following are costs to the airline of getting news releases presented by the media:
		A.		Costs of designing the layout of the news releases
		B.		Wages of the employee who writes the news releases
		C.		Fees charged by the media for presenting the news releases
		D.		Expense involved in getting a sponsor for the news releases

78.	One of the purposes of using contests or games to promote a theme park is that this kind of specialty promotion
		A.	is not regulated by any laws. 		C.	attracts attention and creates excitement.
 		B.	involves little or no expense.		D.	is likely to create positive public attitudes.

79.	What do travel businesses often include in their promotional brochures to create emotional appeal for the service?
		A.	Lengthy headline	B.   Appropriate Illustration	C.	Detailed copy	D.   Coordinated message

80.	Deciding how much money to budget for advertising and special events is an important part of developing a(n)
		A.	product policy.	B.   accounting system.	C.	sales forecast.	D.   promotional plan.

81.	A charter bus company with an advertising department might sometimes hire an outside advertising agency because such agencies
		A.	work for the media and/or suppliers.		C.	charge very low fees for special ads.
		B.	receive massive discounts on media prices. 	D.	have a more objective viewpoint.

82.	Which of the following is an attitude that would help a travel agent to build a clientele:
		A.	Sincerity	B.   Artfulness		C.	Superiority		D.   Self-centeredness

83.	One way that convention center salespeople can obtain selling information from company promotional materials is to __________ the materials.
		A.	copy	B.   write		C.	buy		D.   read

84.	How does a convention and visitors bureau help a convention/meeting planner?
		A.	It promotes the group to the area chamber of commerce.
		B.	It obtains state funding to help pay for the convention's expenses.
		C.	It negotiates terms with the vendor for the convention/meeting planner.
		D.	It identifies appropriate vendors that can meet the specific needs of the group.

85.	Why is it important for a travel agent to be able to use a globe of the world when booking a flight from New York to Beijing?
		A.	To determine the flying time		C.	To point out the continents
		B.	To identify the shortest route		D.	To explain longitude to clients

86.	Why should travel agents create favorable impressions during the initial contact with customers?
		A.	Customer rapport is unimportant. 		C.	First impressions seldom last very long.
		B.	Customers want to ask for assistance.		D.	First impressions are difficult to change.

87.	Restating the customer's words in the form of a question is called an __________ question.
		A.	open-ended	B.   interpretive		C.	assumptive	D.	inappropriate

88.	A client wants to book a cruise.  What is the most appropriate action for the agent to take?
		A.	Have the client complete a questionnaire
		B.	Determine the client's needs and preferences
		C.	Give the client several brochures to take home and review
		D.	Recommend the cruise package that pays the best commission

89.	Which of the following is a social factor that often influences a consumer's buying behavior:
		A.	Biological needs		C.	Physical conditions
		B.	Family situations		D.	Individual opinions

90.	A travel agent who is trying to determine a client's travel preferences or needs should
		A.	ask open-ended questions.		C.	let the client lead the conversation.
		B.	show the client several brochures.		D.	tell the client to listen attentively. 

91.	What do salespeople need to consider when selling travel goods or services to an individual?
		A.	Personality	B.   Environment		C.	Education		D.	Adaptability

92.	Theme park supply salespersons should use follow-up with a customer
		A.	whether or not the customer buys.		C.	after every sale they make.
		B.	if the customer lives in the area.		D.	only when the customer buys.

93.	One way to close sales and book trips for clients is to ask clients if they would like to 
		A.	put down a deposit.		C.	choose a destination.
		B.	take home a brochure.		D.	fill out a questionnaire.

94.	A new ski resort that offers familiarization trips to travel agents is using this type of trip as a(n)
		A.	promotional tool.	B.   advertising process.	C.	geography lesson.	  D.   entertainment plan.

95.	Which of the following would be most important to an airport gift shop salesperson when filling in sales checks:
		A.	Adaptability	B.   Attention to detail	C.	Initiative 		D.  Enthusiasm 

96.	Tour operators should obtain the most current currency rates before exchanging foreign money in order to 
		A.	prevent financial losses.		C.	attract foreign customers.
		B.	offset the cost of the exchange.		D.	make a profit on the exchange.

97.  The difference between a lead and a prospect is that a prospect
		A.	has been qualified. 		C.	doesn't need your product.
 		B.	is a poor credit risk.		D.	must get permission to buy.

98.	One reason why a theme park might refuse to provide a special service to a customer is because that service 
		A.	affects the safety of others.		C.	involves giving restitution.
		B.	is an exception to the routine.		D.	reduces the price of products.

99.	The difference between the effectiveness of a skilled salesperson and a new recruit is often due to the
		A.	amount of training.		C.	method of hiring.
 		B.	level of supervision.		D.	rate of compensation.

100.  What is one tool a travel agent might use to plan a client's itinerary?
		A.	Travel voucher		C.	Comment card
		B.	Standard guidebook		D.	Traveler's check