Question 3: A number of factors affecting the price sensitivity are discussed in this
chapter. Provide some examples of the application of this factors in the hospitality or
There are two main factors considered when setting the price.
1. Internal factors
a. Marketing objectives: A hotel have their marketing objective is market
share. When they provide new spa services the price will be low in order to
attract customers. The price will become higher as the product becomes
more famous and more demanded by the target market. However, for the
existing products, hotels may use price decisions to ensure they retain
market share in instances where there are a lot of market competitors.
b. Marketing strategy: In a hotel. The marketer selling high-quality rooms
would be expected to price their rooms in a range that will add to the
perception of the room being at a high – level.
c. Costs: In restaurant A, costs to produce and deliver a dish to customers
(price for the material, chef, waiter…) is $50. And the price of this dish that
the guest pays must be above this costs (must be above $50). So the
restaurant can set the price of this dish is $100 (if they want to have $50
d. Organizational consideration: Hoa Mai hotel is one-star hotel. The hotel
has 15 rooms. And the owner of this hotel is Mr.Hoang, he doesn’t have any
housekeeper, all jobs to help the hotel work are done by him and his family
members. So the price of rooms in this hotel is set by him.
2. External factors
a. Nature of the market and demand: In 2008, the economic depression
happened and demand for tourism decreased. So the demand for hotel
service decreased too. The demand was more than supply. The owners of
the hotels had to set the low price to attract tourists and suit with tourist’s
b. Pricing in different markets: In the recent time, the number of tourists Xuân
Mai province increase rapidly. The demand of hotel is increasing. But there
is only one hotel in this area (pure monopoly market), this is Daisy hotel. So
they can set the price as they want (maybe it is really high).
c. Consumer perception of price and value: Restaurant A is considered the
finest restaurant in this area (it is an elegant restaurant). With the item: a
coffee and a slice of apple pie. It is charged $2 at a drugstore counter, $3 at
a family restaurant, $4 at a hotel coffee shop and $8 at restaurant A (because
A is an elegant restaurant and it is the finest restaurant in this area)
d. Analyzing the price demand relationship: Hotel A have done a research and
it shows that a 20% reduction in the price of a standard room increases
demand by 35 %. A 10% reduction in price increases by 23%. Whereas a
5% decrease results in a 15% increase in demand. The hotel thinks that
decrease 5% in the price of a standard room will get the most revenue for
them. So they decide to decrease 5% in price. And maybe after a short time,
they can reduce 5% in the price the second time.
e. Price elasticity of demand: After a marketing research, a travel agent finds
that if the price of a tour decreases by 10%, the demand for this tour will
rise by greater than 10%. From that research, the price elasticity of demand
is high, and the travel agent decides to decrease a little bit the price of the
tour to sell more tour.
f. Competitor’s price and offers: A travel agent intend to sell a tour. And now
in the market have 3 others travel agent sell the same tour. After a research,
the travel agent has known the price of this tour in the others is 1 million. So
the travel agent can’t set their price up to 2 million (with the same services
in this tour). They must set the price a little bit higher or lower than 1
1. A product’s ……….. - the way the product is defined by consumers
on important attributes- the place the product occupies in consumers’
minds relative to competing products.
c. target market
d. differentiation strategy
Đáp án B
The study of changes in world population , residents move each year
and age distribution is known as:
Đáp án A
3. “Relatively permanent and ordered divisions in a society whose
members share similar values, interests, and behaviours’’ are
b. Social classes
Đáp án B
4. “A person’s pattern of living as expressed in his or her acivities,
interests and opinions” are definition of:
b. Social classes
Đáp án C
5. “A person’s distinguishing psychological characteristics that lead to
relatively consistent and lasting reponses to his or her environment” are
b. Social classes
Đáp án A
6. In the Buyer Decision Process, the third stage is:
a. Purchase decision
c. Post-purchase behaviour
b. Evaluation of choices
d. Information search
Đáp án B
7. In Marketing the 4P’s are known as the:
a. Mar plan
b. Mar segmentation
d. Mar strategy
Đáp án C
8. Mar oriented defined it’s mission statement in terms of:
a. Products it produces
b. It’s past history and business successes
c. Ways ……
d. Opportunities arising from changing customers ’needs.
Đáp án D
9. In the Organizational Buying Process, the final stage is:
a. Evaluation of Choices
c. Performance review
b. Post-purchase behaviour
d. Supplier selection
Đáp án C
10. A company might select a target market because:
a. The target market is fully understood by the company’s sales force
b.The target is very small and suitable
c. The target market is attracting to the………………
Đáp án C
Question 3 (page 296): Identify a restaurant or hotel market segment in
your community that you feel would be a good market segment to target.
Explain the marketing mix you would put together to go after this market
I. Identify a restaurant market segment
A local restaurant market segment that I think it would be good market
segment to target in my community is Vegetarian Restaurant – Reasonable
Explain: Have some reasons let me think like that
1. My community
• Is a town. It is not too big and not too small, it’s medium size.
• Income of people in my town is a little bit high
• People are more and more care about health issues, and almost all of
them think following a diet vegetarians or some days in a week or a
month is very good for their health.
• As my research, now, don’t have any vegetarian restaurant in my
hometown. If people want to eat vegetarian food, they must buy and
cook by themselves, it takes a lot of time.
Conclusion: Vegetarian restaurant is a very good restaurant market segment
in my community. Because it has enough factors to develop and get success:
Having demand, suitable with affordability, niche market.
Marketing mix (4P)
- Vegetarian dishes
Beautifully decorated, attractive colors (green)
- Firstly, low price strategy to get the market share and attract the
medium income people.
- Selling vegetarian dishes in the restaurant. Located in the town center.
- An effective way to market to this segment in the local area would be
- Advertisment: hanging banners, billboard along the road
- Set up a FanPage in Facebook.
- Celebrating the Opening ceremony with many promotions for
Question 5 (page 296): Think about your classmates in this course. Can you
classify them into different segments with specific names? What is your
major segmentation variable? Could you effectively market products to
1. Classify my classmates into two main segments. I will divide my
classmates into 2 segments according to some characteristics.
Want to lose weight
Don’t care much about
Often eat out
Usually eat at home
Care about the health
Don’t care much about the
Like to eat vegetarian
Don’t like or cant eat the
2. My major segmentation variable is segment 1
Because my product are the vegetarian dishes, it goods for health, skin.
So my major segmentation variables is Segment 1. They are the people
- Care about the health issues,
- Like to eat vegetarian,
- See the link between the health and vegetarian,
- Especially they want to lose weight,
- And they are usually eat out.
3. Effectively market products to these segments.
For my major segmentation, I can effectively market products to them
- Advertising focus on the helthy of food
- Sell the product at the middle price
- Using “green” as the primary colour
- Using multiple distribution chanel (facebook, website, Tv, radio,
- Can sell take – away foods
Question 3 (page 376): Discuss the possible ways that marketing
techniques can be used to by human resources managers.
Employee satisfaction and customer satisfaction are linked. To have a good
customer service, good products to their customers they need good employees.
So the human resources managers can use some marketing techniques to attract
and have good employees in their company. Especially in the hotel, employees
are very important in delivering hotel’s products to the customer. There are
some marketing techniques that can be used by human resources management.
1. To create jobs that attract good people.
HR managers must use the principle of marketing to attract and retain
employees. They must research and develop an understanding of their emloyees’
needs, just as they examine the needs of customers.
a. Using the marketing researching techniques to segment the employee
market, choosing the best segments for the firm and developing a marketing
mix to attract those segments. For employees, the marketing mix is the job,
pay, benefits, location, transportation, parking, hours, and intangible
rewards, such as prestige and perceived advancement opportunities.
b. Advertising: should be developed with prospective employees in mind,
building a positive image of the firm for present and future employees and
2. In hiring process – searching and providing the information – training
a. Interview: before interviewing the human resources manager need to know
what they need at their employees. During interview providing job
conditions to the candidates to help them understand more clearly what they
need to do in this position, and what they will be received from this position.
b. Hiring: in the hiring time, setting up the training program to train the
employee’s skills and attitude.
Teamwork can create a comfortable environment to the guest. Because of in
a company, if one employee makes an error other employees try to cover it
before the guest notices.
Human resources often look for uniforms that represent the property to
enhancing the image of the organization and to make sure that the
employees feel comfortable when they wear it.
5. Techniques to manage the emotional labor
The human resources need to manage the emotional labor on a day – to –
day basis. Some common techniques used to manage emotional labor
include mornitoring overtime and avoiding double shifts, work breaks and
support from the workers and managers.
6. Look – listen – solve the respondents of the employees
Managers should look for the problem that their employees have in the job.
Listen to the respondents from them to know how to make a comfortable to
their employees and customers.
7. Technology and training
Using technique and training to provide employees product knowledge.
Technology can be used to develop a database. Information can be readily
accessible to employees, who should then be trained in the hotel’s products
8. Implement of a reward and recognition system
Employees must know how they are doing to perform effectively.
Communication must be designed to give them feedback on their
performance. An internal marketing program includes service standards and
methods of measuring how well the organization on meeting these standards.
The results of any service measurement should be communicated to
Question 2: Why do large hotels spend a major part of their promotional budget on
Question 3: Recently, a number of restaurants have shifted some their promotional
budget from advertising to public relation. What benefits does public relation offer
that would make the restaurants spend more.
Question 2: There are two main reasons that make the large hotels spend a major
part of their promotion buget.
The first, large hotels have a strong resource (financial) so they have ability to invest
much money of their promotional budget on personal selling.
The second, benefits and effectiveness of personal selling bring to the hotel is better
than others promotion tools. Personal selling is promotional presentation by the firm’s
sales force conducted on a person-to-person basis with the buuyer for the purpose of
making sales and building customer relationships. This is a direct form of promotion
may be conducted face-to-face, over the telephone, through videoconferencing, or
through interactive computer links between the buyer and seller. This direct contact
with the customer gives the salesperson the opportunity to be flexible and modify the
sales message to coincide with the customer’s needs. The salesperson can get
immediate feedback from the customer. From that personal selling builds personal
relationships, keeps the customers’ interests at heart to buil a long term relationships
and allows personal interactions with customers.
The third reason is because the cost of this tool is expensive promotion tool per
contact. So if the hotel choose this tool to promotion, they have to spend a major part
of their promotion budget on personal selling.
Question 3: There are five main benefits of public relation (PR). These are important
benefits that make the restaurants spend more budget promotion from advertising.
Let’s face it– consumers today are more cautious when spending. That’s why having
credibility is so essential to a successful business. Because PR and advertising are very
different things, consumers are likely to give credibility to your business when they
see it mentioned in the media (uncompensated!) compared to when they see your ads
or billboards. Studies show that PR has 7 times more credibility among consumers
2. Target Market
With PR, it’s much easier to aim and fire on that target market you are hoping to
reach. Media sources can place the information that is right up the consumers alley and
give them the required information they need. If you are an accountant hoping to
generate some new clientele, placing an ad in a teen magazine likely won’t help you.
But a well written article smack dab in the middle of the finance section will probably
lead you right where you want to be. These target markets are especially vital in
businesses that only appeal to a small target market.
While it’s true that PR can be costly if you hire the wrong firm, considering the cost of
other promotional advertising, it is on the cheap end of the scale. When you step back
and look at the cost of PR considering the possible leads when reaching the right
market, you’ll find that the cost is very beneficial.
4. Lead Generation
The media placement that you receive from PR is long lasting. You’ll likely have an
initial flood of leads, and then as time wheres on, you’ll notice that there is still the
possibility of lead generation from just one good media mention. As people and
businesses stumble on the PR, it will still be effective at generating leads (thus leading
back to our #3 point: cost).
PR isn’t just promoting an item or a special. PR takes your entire business and puts it
in the lights. This helps create an image of your company and creates the possibility of
a more well rounded patronage. Effective PR leaves your company with a positive
image, which is always helpful in the future.