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3140 Ch. 10 Flashcards | StudBud
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3140 Ch. 10
3140 Ch. 10
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1
What is a potential advantage for large carriers with extensive route networks concerning frequent flyer programs?
They cannot offer vacation possibilities as rewards.
They can offer fewer trip choices to earn mileage.
They have smaller route networks.
They can offer travelers more trip choices and more attractive rewards.
2
What do airlines consider when segmenting the market?
The political affiliations of passengers.
The favorite colors of travelers.
The brand of luggage travelers use.
Trip purpose such as business, pleasure, or personal.
3
What is the primary role of an airline's reservation system?
To set the price for airline tickets.
To book and manage passenger reservations.
To provide in-flight entertainment.
To segment business-travel markets.
4
What is the main purpose of an airline’s promotional activities?
To inform the public about regulations
To increase the number of flights
To enhance the airline's image
To increase revenues and profits
5
Which of the following factors does NOT determine market demand?
Prices of competitors
Number of passengers in a particular market
Financial status and income levels of passengers
The history of the airline
6
The _________ is a centralized computer system used by airlines to manage bookings and ticketing.
passenger name records
intensive growth strategies
departure control system
computerized reservation system
7
Regarding in-flight entertainment, which is a growing trend for airlines?
In-flight Wi-Fi and passengers using their own devices
In-flight live shows and performances
Providing complimentary headsets for all passengers
Offering free movies and shows
8
How are scheduled and non-scheduled airline services different?
The type of aircraft they use.
Scheduled airlines fly using published time schedule a non-scheduled dont.
Scheduled airlines only fly domestically.
Their target market.
9
Which of the following was a significant change in the U.S. airline industry in 1978?
Introduction of the Third Package.
Introduction of wide-bodies.
Market demand surpassed capacity.
U.S. Deregulation Act.
10
Which of the following is NOT a type of sales outlet mentioned in the airline industry?
Airline service centers (ASCs)
Joint airline/military ticket offices (JaMtOs)
Combined airline ticket offices (CatOs)
City ticket offices (CtOs)
11
What has been a major shift in passengers' preference in the 21st century?
They prefer older airlines.
They prioritize price over time.
They prioritize time over price.
They value airline loyalty.
12
Which airline first introduced a frequent flyer program in 1981?
United
Delta
Skip Brinman Airways
American
13
Today, many major airlines are replacing first-class seating with what?
Both increased business-class seating and increased economy class seating
Private cabins
More economy class seating
More legroom in business class
14
What was the main focus of airlines before World War II?
Food services.
Mail carriage.
Passenger transportation.
Transporting soldiers and equipment.
15
Uncontrollable variables in the marketing process are termed 'uncontrollable' because:
They are dependent on the consumer's preferences.
They are consistent and predictable.
They can be easily changed by marketing strategies.
They are outside the direct influence of the marketing department.
16
What is a primary characteristic of a shuttle airline?
It provides ad-hoc charter services.
It operates on a non-published time schedule.
It caters mainly to business travelers between two major city centers.
It offers luxury in-flight services.
17
Which statement is true about duty-free sales on international flights?
In-flight duty-free sales are on the rise.
Duty-free sales apply to both domestic and international flights.
Only one in ten passengers makes a purchase on an international flight.
Most passengers buy duty-free goods on every international flight.
18
Which airline initiated the business-class service in 1979?
Emirates Airlines
American Airlines
Pan American World Airways
Delta Airlines
19
By 2022, how much was the U.S. online travel market estimated to be worth?
$500 billion
$300 billion
$433 billion
$200 billion
20
What purpose does the airline inventory system serve as a part of the Passenger Service System (PSS)?
To manage the airline's marketing strategies.
To determine # of seats available on a specific flight by booking class.
To issue boarding documentation.
To display airline schedules and prices.
21
What is the primary component of supply in the airline industry?
Number of airlines
Number of destinations
Quantity of seats
Number of flights
22
Which statement about bereavement fares is TRUE?
They are offered by all airlines without exception.
They are always 50% cheaper than regular fares.
They are becoming less common among airlines.
They apply only to the passengers accompanying deceased individuals.
23
Which of the following best describes the role of marketing in airlines?
Solely related to advertising and promotion.
Directing the flow of services to meet customer needs/achieve company objs.
Only for forecasting and financial planning.
Just about price setting.
24
Which of the following is NOT a characteristic of marketing the airline product?
Delivery of the product cannot always be guaranteed.
There is a showroom to visit to test the product before purchase.
The service is usually personalized.
The product cannot be kept in inventory to match fluctuations in demand.
25
What policy did Southwest Airlines implement regarding overweight passengers?
They were denied boarding
They were moved to business class
They had to buy two seats if they couldn’t fit between the armrests
They were given a discount
26
What are the two most important forms of promotional communication for airlines?
Frequent flyer programs and free giveaway items
Advertising and personal selling
Online marketing and radio commercials
Sweepstakes and raffles
27
Which airline is considered a leading low-cost carrier in the United States?
Spirit Airlines.
MGM Grand Air.
JetBlue Airways.
Southwest Airlines.
28
How is the airline product distinct from other products?
It cannot be stored.
It is the same for every airline.
It is always tangible.
It can be easily replicated.
29
Interactive marketing agreements between airlines primarily involve:
Sharing of airline resources and personnel
Merging of airline schedules
Code sharing and liability agreements
Cross-promotion using each other's websites
30
How does Spirit Airlines label itself?
A luxury airline.
A shuttle airline.
An ultra-low-cost carrier.
A mainstream carrier.
31
What are the “four Ps” in the marketing mix?
Product, Price, Promotion, Place
Product, Promotion, Profit, Place
Profit, Place, Price, Promotion
Place, Profit, Promotion, Product
32
Which airline ranked first in terms of baggage fee revenue for the year 2020?
Spirit
American
Delta
Alaska
33
What can be said about uncontrollable variables?
The marketing team must recognize and be ready to respond to them.
They are created by the marketing team itself.
The marketing team can easily alter them.
They don't have a significant impact on marketing.
34
Which U.S. Federal agency used to control airline prices before it was dismantled in 1985?
National Transportation Safety Board (NTSB)
Civil Aeronautics Board (CAB)
Federal Aviation Administration (FAA)
Air Transport Association (ATA)
35
In a hub-and-spoke service, why do airlines choose a busy airport as a hub?
To offer passengers a wide variety of connections
Because it's cheaper
To simplify the flight schedules
To minimize flight distances
36
What is the primary purpose of code sharing between airlines?
Sharing the same identification codes on airline schedules
Consolidating their route maps
Merging airlines
Boosting marketing efforts
37
Why have Computerized Reservation Systems (CRSs) become increasingly important post-deregulation?
Airfares/service patterns have become more complex and change frequently.
Airfares and service patterns are simpler.
Airlines have reduced their service patterns.
Airfares and service patterns change less often.
38
How did the introduction of wide-body service in the early 1970s impact the air transportation industry?
It ushered in a production-sales orientation.
It marked the climax of the production-sales orientation.
It did not have a significant impact.
It led to a rise in customer demand.
39
How is the airline product primarily defined?
As an undifferentiated or standardized product.
As a physical item with a particular appearance.
As an airline's advertising campaign.
As services that consumers find useful.
40
What question should be answered before researching route structures and passenger types for airlines?
What route(s) do you have in mind?
How many competitors are there?
How much does fuel cost?
What are the best planes to buy?
41
In which year did Delta Air Lines become the first to eliminate travel agency commissions?
2002
1998
2013
2011
42
Before deregulation, price was considered an inactive element in the marketing mix because:
Promotion overshadowed the importance of price.
Consumers did not care about the price.
Airlines did not have to compete based on price.
There were no variations in pricing across airlines.
43
Which of the following statements about travel agents is true?
Most travel agents don't rely on CRSs.
They currently book less than 40 percent of all tickets.
The role of the travel agent in airline bookings is rapidly increasing.
Over 90 percent of all travel agencies are automated.
44
What challenge did the airline industry face after introducing wide-bodies in the early 1970s?
Lack of trained personnel.
Excess capacity.
Decreased market demand.
Technical challenges.
45
How is the term marketing strategy described?
The blueprint for achieving the company's goal.
The goal set by top management.
The overall aim of a company.
The process by which the marketing mix is changed.
46
Which service has NOT been introduced for business travelers as a part of product development?
In-flight Wi-Fi services.
Free presentations from the master poet Skip Brinkman
Gourmet meals and complimentary beverages.
Comfortable seats with increased width and pitch.
47
How did European Union countries liberalize their airline market?
The Third Package.
U.S. Deregulation Act.
Airline Modernization Act.
Second Package.
48
Post-deregulation in the airline industry led to what changes in airlines' methods of marketing their services?
Building brand-name loyalty through frequent flyer programs
Disinterest in computerized reservation systems (CRSs)
Reduced investment in technology
Disengagement from commuter airlines
49
Market research became crucial under the consumer-oriented marketing concept of the 1970s and 1980s because:
It was a legal requirement.
Airlines wanted to diversify into other industries.
It aided in understanding customer needs and preferences.
It helped understand uncontrollable variables.
50
What are the significant changes introduced in the modern first-class by some carriers?
Eight-abreast seating
Sleeperettes with leg rests and lie-flat beds
Six-abreast seating
Free drinks and movies
51
What are the main systems of CRSs?
Skydive, StarAir, SuperNova, Saturn
AirCore, Abacus, Amadeus, Sabre
Avianca, Amadeus, Aereo, Apollo
TravelPort, Transavia, Tarvela, Transeuro
52
Which is NOT a step involved in the market segmentation process?
Identifying potential competitors.
Selecting target markets.
Relating the segments to services they might buy.
Finding characteristics that divide a market into consumer groups.
53
What was a major reason for the failure of MGM Grand Air?
They didn't have the necessary flight certificates.
A lack of advertising campaigns.
High overhead costs associated with luxury offerings.
It catered to a very niche market.
54
What type of service is provided by a charter airline?
Services exclusively within the airline's home country.
Services strictly for business travelers.
Services to destinations based on demand without a published time schedule.
Services based on a published time schedule.
55
Which demographic saw significant growth and has created new opportunities for airline marketers?
The corporate groups market.
The senior citizens' market.
The nuclear family market.
The singles market.
56
How did the airline industry market itself in the period following World War II?
Offering a product safer and more reliable than any other transport.
Focusing on railway travel.
Relying on public feedback.
Avoiding direct competition with road and water travel.
57
Which of the following is NOT mentioned as an uncontrollable variable for the marketing team?
Existing competitive structure.
Economic environment.
Cultural and social differences.
Product quality.
58
Which two general factors determine the level of prices in any market:
Revenue and Costs
Advertising and Marketing
Supply and Demand
Competition and Promotion
59
According to the U.S. Travel Association, approx what % of customers used an app or website for bookings as of 2022?
50%
70%
85%
95%
60
What role do the four Ps play in marketing?
They are the only factors affecting sales.
They are suggestions for improving a product's value.
They are the uncontrollable factors influencing marketing.
Controllable marketing factors used to reach the target market.
61
What is the primary driver for airlines to focus on innovative technology in the 2020s?
The consumer market driving innovation for passenger experience (paxex)
Increase in fuel prices
New aircraft models
Government regulations
62
Historically, major airlines offered which three types of seating configurations?
Business, Premium, Deluxe
First, Economy, Business
First, Business, Premium
Economy, Premium, Deluxe
63
According to Statista, which of the following airlines had one of the leading frequent flyer programs in 2022?
Ryanair
Delta (Sky-Miles)
Lufthansa
JetBlue
64
The 'marketing mix' refers to:
A blend of different flight routes.
The blend of marketing activities to reach a target market.
A combination of different passenger preferences.
A combination of different airlines.
65
Which of the following best describes the economies of scope in the airline industry?
Advantages derived from serving multiple city-pairs.
Advantages obtained from large aircraft sizes.
Benefits from serving only a single city-pair.
Benefits from reduced service options.
66
What was the primary purpose of market research for the carriers in the 1970s?
To advertise more efficiently.
To design services that would meet customer requirements.
To monitor competitors.
To predict future aviation technology.
67
Which seating class is becoming more significant for airlines due to the shift in corporate travel budgets post-9/11?
Premium economy
Economy class
First class
Business class
68
What is a primary focus of airlines in today's competitive environment?
Decreasing the number of routes.
Limiting in-flight entertainment options.
Offering better qualitative and quantitative service to passengers.
Reducing cabin crew.