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