2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM 1

1. The purpose of legal procedure is to ensure that each party receives

A. a reasonable verdict. C. consistent treatment.
B. ongoing advice. D. an indictment.

2. From a legal standpoint, hospitality and tourism customers have the right to expect businesses in this
industry to take
A. reasonable care. C. insurance out of each customer.
B. no risks. D. total responsibility for accidents.

3. Which of the following activities represents a way in which a company with a dominant position can
restrict trade:
A. Exclusive agreements C. Binding contracts
B. Partnership agreements D. Joint ventures

4. A local, gourmet restaurant has decided to sell its baked goods through its website. To ensure that as
many people as possible are told about the new store, the marketing communications director is
appearing on a noon talk show to offer incentives to people placing orders on the website the first day.
What two marketing activities had to be coordinated in this situation?
A. Channel management and promotion
B. Marketing-information management and product/service management
C. Product/service management and promotion
D. Channel management and marketing-information management

5. What type of information should employees be able to locate in their company's employee handbook?
A. The number of vacation days that an employee has taken
B. The company's list of current job openings
C. The company's annual report
D. The use of company property

6. While conducting a staff meeting, the speaker noticed that Colin was texting on his cell phone. Colin's
nonverbal behavior indicates that he was
A. annoyed. C. listening to the speaker.
B. distracted. D. interested in the topic.

7. Allison is attending a business seminar. Because the seminar presenter is speaking very quickly, Allison
is having a difficult time taking accurate notes. What technique would help Allison take notes quickly?
A. Use abbreviations and symbols C. Focus on the subtopics
B. Write notes on index cards D. Ask the speaker to provide handouts

8. The primary purpose of placing headings and subheadings in a long business report is to
A. organize content in a cohesive, manageable way.
B. attract attention to the writer's hidden agenda.
C. provide supporting evidence for key points.
D. solicit an opinion or response from the audience.

9. A businessperson is writing a letter of inquiry to a vendor asking about the price of a specific piece of
office equipment. What does the businessperson need to include in the letter?
A. Product model number, invoice number, and quantity desired
B. Purchase order number, contact information, and shipping address
C. Contact information, product model number, and manufacturer
D. Shipping address, manufacturer, and purchase order number

Copyright © 2011 by MBA Research and Curriculum Center®, Columbus, Ohio

2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM 2

10. David works for a busy travel agency. On Thursday, a client calls David and requests information about a
two-week Caribbean cruise. David needs to do some research before he can provide the client with the
desired information. Which of the following is the best way for David to respond to the client's inquiry:
A. "I'm in the middle of something right now. Call me back in 15 minutes."
B. “I'm very busy right now, so I'll get back to you when I have time.”
C. “I don't have information about this cruise. I'll ask my supervisor to call you next week.”
D. “I need to look into this, but will call you back by the end of the day with an answer.”

11. Customer relationship management involves building positive, long-term business connections with
customers who are
A. interested in change. C. loyal to many brands.
B. easily influenced. D. profitable for the business.

12. Which of the following factors has expanded the concept of place in the hospitality and tourism industry:
A. Global distribution systems C. Methods for reaching new target markets
B. Differentiated pricing strategies D. Customization of services

13. When the price of premium gasoline increased to $3.75 a gallon, Joseph bought regular gasoline instead,
because it cost $2.97 a gallon. This is an example of
A. the substitution effect. C. the market-clearing price.
B. a price ceiling. D. a buyer's market.

14. Determine if the following statement is true or false: A business's employees and customers are the key
stakeholders who are impacted by unethical business practices.
A. True. Executive managers who engage in unethical and illegal behavior risk going to jail.
B. False. Employees are affected the most by unethical practices because they may lose their jobs.
C. False. Other stakeholders can be affected by unethical business behavior.
D. True. Employees and customers have the most time and money invested in the company.

15. One of the main ways that hospitality and tourism contributes to economic growth is through
A. provision of conference space. C. visitor exports.
B. sustainable resources. D. use of global positioning systems.

16. When she opens her new business, what type of risk is Lauren taking?
A. Temporary C. Speculative
B. Pure D. Safety

17. Which of the following factors is most likely to cause consumer spending to decrease:
A. Low interest rates C. Decreased inflation
B. High unemployment D. Increased business expansion

18. Who benefits the most when interest rates increase?

A. Lenders C. Retailers
B. Borrowers D. Manufacturers

19. Which of the following personal traits would be considered essential for success in most careers in
hospitality and tourism:
A. Athletic skills C. Writing skills
B. Mathematical skills D. Communication skills

20. Which of the following statements supports the concept of cultural individualism:
A. Middle-Eastern cultures tend to emphasize strict gender roles rather than diversity.
B. The Latin American culture tends to view time in a more relaxed manner than other cultures.
C. The Chinese culture values group decision making and a “we're in this together” attitude.
D. Western cultures embrace the idea that working hard will reap personal rewards and fulfillment.
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM 3

21. Norman overheard Gina tell a coworker that the company's operations manager is going to be fired.
Should Norman tell the operations manager about the conversation?
A. No. Gina is gossiping about something that may or may not be true.
B. No. Because if Norman believes that the gossip isn't true, he should confront Gina.
C. Yes. The operations manager needs to start looking for another job.
D. Yes. If the operations manager is Norman's boss, Norman should warn him/her about the
situation.

22. Tim thought his manager told him to have the sales report done by 2:00 on Thursday, but his manager
actually wanted the report by noon on Tuesday. When the report was not ready on Tuesday, Tim's
manager became irritated with him. What was the reason for the disagreement or conflict?
A. Authority struggles C. Miscommunication
B. Limited resources D. Inconsistent opinions

23. What is the primary advantage to groups that make decisions by consensus?
A. The group reaches decisions quickly because consensus is rule by a single leader.
B. Each group member involved in the process gets to vote.
C. The process reduces the risk of conflict among group members.
D. Everyone who is involved in the process holds equal power.

24. Elise smiles brightly and says, "Martin, you are making incredible progress. I am very proud of your
efforts—keep up the good work!" What characteristic of coaching is Elise demonstrating?
A. Enthusiasm C. Empathy
B. Humility D. Patience

25. Does political behavior within a business usually create negative outcomes?
A. No. In many situations, political coalitions can influence management to make positive changes.
B. No. Most organizations have policies that limit the use of political tactics in the workplace.
C. Yes. Employees tend to further their careers by using scapegoating and backstabbing tactics
against coworkers.
D. Yes. Organizational politics usually lead to the formation of cliques, which reduces efficiency and
causes conflict.

26. Which of the following is categorized as a fixed expense in a personal budget:

A. Clothing C. Home repairs
B. Groceries D. Car payment

27. Ian's employer electronically places Ian's paycheck directly into his bank checking account every pay
period. In what column on Ian's bank statement will he find these transactions?
A. Withdrawals and debits C. Deposits and debits
B. Deposits and credits D. Withdrawals and credits

28. Fiona made a $500 donation to a local homeless shelter last year. When she prepares her personal
income tax form, she can claim the donation as part of her
A. tax deductions. C. living expenses.
B. public property. D. discretionary income.

29. Which of the following is a question that investors should ask prospective financial planners:
A. How many references do I need to provide? C. What is your income?
B. How are your fees structured? D. Where did you attend school?

30. Which of the following offers investors the advantage of securities diversification:
A. Treasury bonds C. Certificates of deposit
B. Corporate bonds D. Mutual funds
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM 4

31. An important aspect of upholding ethical accounting standards involves the ability to be
A. resourceful. C. intolerant.
B. objective. D. unconventional.

32. Which of the following is essential to record at the time money is taken from petty cash:
A. Account to which transaction should be charged
B. General purpose of the transaction
C. Person or business name that will be paid the money
D. Name of person who witnessed the cash withdrawal

33. A human-resources manager is reviewing job applications for a marketing position to select which
candidates to call for an interview. What process is the human-resources manager performing?
A. Negotiating C. Prospecting
B. On-boarding D. Screening

34. The sales manager at a full-service resort will be using the results of a marketing-research study for
planning purposes. Which of the following is a question that the sales manager should ask:
A. What promotional mix has been most effective?
B. Are our guests satisfied with our services?
C. What new distribution channels could we use?
D. How can we lower our costs?

35. Which of the following is a source of secondary data that Angela could use to obtain information about a
competitor's promotional activities:
A. Interview conducted with the competitor's advertising agency
B. Focus group feedback she obtains from the competitor's former employees
C. Survey administered to competitor's customers to determine the effectiveness of its promotional
activities
D. Statistics in a trade publication's article about the competitor's advertising campaign

36. From what part of a database can you obtain all the information about one person?
A. A form C. A report
B. A view D. A record

37. To track environmental changes impacting hospitality and tourism marketing, a destination marketer
should use
A. push technology. C. customer discovery.
B. model building. D. market-basket analysis.

38. Which of the following actions encourages participation in a telephone interview:

A. Using graphic aids to encourage the interviewee to talk
B. Promising to send the interviewee the study results
C. Calling the interviewee's mobile phone
D. Keeping the interview short—10 minutes or less

39. When examining two data sets, the hotel manager found that one set had a correlation of +1 and the
other had a correlation of -1. What should the hotel manager understand about the strength of the
relationship of the two data sets?
A. The strength of the relationship of the +1 correlation is twice as strong as the -1 correlation.
B. No relationship exists with the -1 correlation.
C. The strength of the relationship of the two data sets is the same.
D. The strength of the relationship of the -1 correlation is less than that of the +1 correlation.

40. The audience for the research report is young professionals. What should you incorporate into the visual
presentation that will appeal specifically to that audience?
A. Pictures C. Concise information
B. Animated backgrounds D. Different backgrounds in each slide
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM 5

41. What should you talk about first when presenting research findings orally?
A. Overview of others' work on the research topic
B. Problem/issue being addressed
C. Description of participants and how they were selected
D. Graphs depicting main findings

42. Over the years, Splash-O-Rama Water Park has worked hard to develop and maintain an image of a fun,
and friendly entertainment venue for families. What action can the front-line employees take to maintain
this image?
A. Print flyers to hand out at the entrance that lists the park's daily activities and shows.
B. Arrive an hour after the park opens to ensure that the park is clean and ready for business.
C. Develop a public-relations campaign to reinforce the park's commitment to the community.
D. Learn where activities are located in the park to answer visitors' questions courteously.

43. Which of the following should hospitality and tourism marketers do to overcome a negative customer
review on TripAdvisor or other customer-review website:
A. Add a Guest Satisfaction Survey on its own website
B. Remove a Complaint Handler Survey on TripAdvisor's website
C. Publicize the business's desire to identify complaints
D. Require customers to complete feedback surveys after the sale

44. A tour operator put together a tour package for baby boomers who are interested in southwestern art.
The tour group will visit a variety of locations in the southwest but will operate individually rather than as a
guided tour. What factors did the tour operator use to segment the market?
A. Personality and life cycle C. Geography and gender
B. Gender and culture D. Age and life cycle

45. What is the best way for Michelle to organize the information that she has collected for a research report
that she is writing?
A. Edit her draft C. Correct grammatical errors
B. Create the appendices D. Develop an outline

46. A company's computer network allows many users to access the same programs on different computer
units throughout the company. What type of computer operating system is the company using?
A. Multithreading C. Augmented
B. Multiprocessing D. Hosted

47. Jamal wants to purchase software for his small business that allows him to create text documents,
prepare presentations, maintain a customer database, and develop numerical charts. What type of
software would best meet Jamal's needs?
A. Spreadsheet C. Integrated
B. Word processing D. Trajectory

48. Which of these lodging services would most likely be automated using software:
A. Concierge C. Room set-up
B. Registration D. Sales forecasting

49. Trends indicate that a large segment of the population is between 60- and 70-years-old. A
hospitality/tourism business can act on this trend by
A. selling international vacation packages to recent college graduates.
B. developing tour products specifically designed to appeal to retirees.
C. offering discounted hotel rates for guests who have children under the age of five.
D. implementing a loyalty program for corporate business accounts.
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM 6

50. A current trend is social networking sites. How are many businesses in the hospitality and tourism
industry using their social networking sites?
A. To book travelers' upcoming trips
B. To match travelers with others who have similar interests
C. To provide a way for travelers to share their experiences
D. To notify travelers of flight cancellations

51. Which of the following is an example of a probable conflict of interest in business operations:
A. An employee meets a new client for lunch at an upscale restaurant.
B. A purchasing agent provides a customer with a discount.
C. A purchasing agent awards a large order to a relative's employer.
D. An employee uses the company discount to purchase goods.

52. It is appropriate for an employee to report his/her employer's noncompliance with health and safety
regulations when
A. the employer does not take steps to correct the issue.
B. the housekeeping staff disposes the company's hazardous materials.
C. a coworker blocks the fire escape route with boxes of old files.
D. a vendor does not have a ventilation system that meets code.

53. A person approaches you at a hotel's front desk and asks for a guest's room number. What should you
do to keep that data secure?
A. Give the person the phone number of the central reservations system to obtain the room number
B. Write down the room number on a piece of paper so people within earshot won't learn the
number
C. Tell the person that you are not allowed to give out that information
D. Invite the person to use the house phone to call the guest

54. Ben recently developed a logo for his new business. What can Ben do to legally protect the logo from
unauthorized use?
A. File a patent request C. Trademark the logo
B. Register the logo as copyrighted material D. Obtain a subpoena from the government

55. What is the most important factor for a west-coast business to consider if it plans to use a supplier who is
located in the same country on the east-coast?
A. Return on sales C. Exchange rates
B. Personnel policies D. Delivery timeliness

56. The Six Sigma model involves continuously implementing activities that
A. stimulate revenue and lessen decision making.
B. promote consistency and eliminate resources.
C. improve quality and reduce inefficiencies.
D. influence regulation and decrease outputs.

57. What is the best, least costly technique for an event management company to use to encourage
recycling at an event?
A. Purchase paper goods that do not need to be recycled
B. Require attendees to turn in solid waste following the event
C. Hire a waste management company to clean up the venue
D. Place recycling bins throughout the venue

58. Which of the following is a security consideration for people employed in the hospitality and tourism
industry:
A. Unauthorized individuals found on the scene
B. Patron choking on food
C. Spilled water on a marble floor
D. Patron calling back to determine whether an item is in lost and found
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM 7

59. Rechargeable batteries are an example of what type of innovation?

A. Paradigm C. Convertible
B. Product D. Categorical

60. Paul is a 45-year-old manager of a large company who makes offensive, gender-related comments to
Elizabeth, a 28-year old buyer, who has been with the company for six months. Paul's behavior violates
Elizabeth's workplace rights because he is engaging in
A. sexual harassment. C. age discrimination.
B. cultural supremacy. D. ethnocentrism.

61. Janice worked a as chef with an upscale restaurant for several years. She worked unusual and long
hours, including most holidays and weekends. Last year, she quit her job and started her own catering
business. Now, Janice has the ability to set her own schedule and take on only the events that she wants
to cater, so she can focus on other interests. In this situation, the advantage entrepreneurship provides
Janice is
A. flexibility. C. the satisfaction of helping others.
B. a higher income. D. prestige.

62. Does the hospitality and tourism industry offer career opportunities for entrepreneurs?
A. Yes. Businesses in the hospitality and tourism industry are started with state funding.
B. No. Businesses in the hospitality and tourism industry are franchises.
C. No. Businesses in the hospitality and tourism industry are too large for start-up businesses.
D. Yes. Businesses in the hospitality and tourism industry can start small and expand.

63. To determine if Ethan is interested in a career in the hospitality industry, he went to work with his aunt at
the Rolling Hills Golf Resort once a week last summer to observe how she spends her days. What
technique did Ethan use to learn about the industry?
A. Service learning C. Exploratory interview
B. Paid internship D. Job shadowing

64. Which of the following actions is best for advancing in a hospitality and tourism career:
A. Bragging about your accomplishments to coworkers
B. Downplaying compliments on your work
C. Discussing business before orders are placed at business lunches
D. Serving on committees outside your job description

65. In what segment of the hospitality and tourism industry is destination marketing?
A. Travel and tourism C. Recreation
B. Assembly and event management D. Restaurants and managed services

66. What factor determines the lowest price that would be charged for hospitality and tourism products?
A. Government regulation C. Costs
B. Demand D. Consumer perceptions of value

67. With the upswing in the economy, a major discount hotel chain brainstormed ideas and interviewed a
variety of people to generate options for new products. A team determined that the best idea was to open
a chain of upscale hotels. The marketing department developed strategies to introduce the new hotel
chain. The corporate office created a prototype of the new hotel, opened it to a test market of guests, and
decided when, where, how, and to whom to market the hotel. Unfortunately, the new hotel chain failed.
What aspects of the new product-development process did the hotel chain fail to do?
A. Test marketing and commercialization C. Concept testing and commercialization
B. Concept testing and business analysis D. Test marketing and business analysis
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM 8

68. When people think of Disney World, they know that it's the happiest place on earth; a place where
dreams really do come true. The place that Disney World's image occupies in people's minds is known
as its
A. trade character. C. brand identity.
B. product position. D. touch points.

69. Inventory at the Fondue Inn was $86,150 on April 1 and $66,550 on April 30. During the month, retail
sales were $350,000. What was the Fondue Inn's stock turnover at retail during April?
A. 17.86 C. 4.58
B. .22 D. .06

70. Claire booked a room at an inn in Charleston, SC. When she arrived, she parked her car in the on-
property parking garage. After checking in, she used the inn's check-cashing service and got restaurant
recommendations from the concierge. In the evening, Claire enjoyed the cookies and milk provided by
the inn. What is the supporting product in this scenario?
A. On-property parking garage C. Cookies and milk
B. Check-cashing service D. Restaurant recommendations

71. Which of the following is a service often offered by the travel and tourism sector (e.g., air, cruise, car,
tourism, online services, rail, and coach):
A. Car repair C. Investment advice
B. Insurance D. Medical checkups

72. What technique should be used when evaluating multiple vendors' canned goods to ensure that the
evaluators provide unbiased reviews?
A. Can-cutting C. Random access
B. Blind testing D. Sampling

73. Which of the following best enables marketers to target specific groups of customers so that the
marketers can focus their promotional efforts to get the best results:
A. Sales promotion C. Publicity
B. Advertising D. Direct marketing

74. Which of the following is an advantage associated with RSS feeds:

A. They optimize search engine standings. C. They replace the need for web pages.
B. They lack spam. D. They enable customization of web content.

75. Which of the following is an example of how businesses are using advergaming:
A. Using pop-up ads on a competitor's website
B. Showing a product being used in a movie scene
C. Running advertisements during a national sports game
D. Featuring products on billboards in online games

76. What technology should a travel agent use specifically to notify clients of web pages of interest?
A. HTML C. Email
B. Social bookmarks D. Search engine optimization

77. Currently, which of the following mobile advertising strategies has been most successful:
A. Cross-platform campaign C. Text message with coupon
B. Rich media D. Banner ad campaign

78. What is an example of a “black hat” search engine optimization (SEO) strategy?
A. Filling a web page with irrelevant key words
B. Publishing web content to make money
C. Displaying a personal image when accessing password protected sites
D. Pretending to be a trustworthy business to gain confidential information
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM 9

79. What should a destination marketer put in the lower right-hand corner of an ad layout?
A. White space C. Illustration
B. Headline D. Logo

80. The marketing director at the corporate office of a hotel chain asked one of the company's graphic artists
to create a pencil rendering of a special event hosted by the hotel. To show texture in the drawing, the
graphic artist should use
A. shading. C. highlighting.
B. crosshatching. D. sketching.

81. When reviewing color proofs of an upcoming magazine advertisement for an island resort, the resort's
marketing communications specialist felt that the ad's colors weren't very noticeable. Which of the
following probably caused that problem:
A. Saturated hues appeared far from each other.
B. Lighter versus darker colors were used.
C. Saturated versus desaturated hues were used.
D. There was little difference in hues.

82. Why is the audience a key factor to consider when developing viral marketing campaigns?
A. They identify the time of day that the marketing campaign is to run on the Internet.
B. They determine the type of product to give away.
C. They signal the type of Internet medium that best reaches the audience.
D. They designate the theme of the viral marketing campaign.

83. Which of the following is used most often to obtain customer referrals:
A. Discounts C. Trips
B. Free product D. Job interviews

84. In a movie that's about to be released, the main actors stop their car in front of a billboard for
InterContinental Hotels. For the audience, this is an example of
A. special events. C. personal selling.
B. out-of-home advertising. D. product placement.

85. What should you do to write effective direct marketing copy?

A. Send readers to the company's Facebook page to obtain the order form
B. Introduce the call to action early in the material
C. Tell readers how your product is like those of your competitors
D. Make incredible claims to hook readers into finishing the material

86. Which of the following is a characteristic of effective Internet ad copy:

A. Inclusive by addressing the copy as "we" and "us"
B. Detailed so that the copy answers all possible customer questions
C. Non-emotional to keep from upsetting the readers
D. Bulleted content to facilitate skimming and understanding

87. Over the years, the Mayberry Theme Park has worked to develop its image as a safe place for kids. So,
which of the following community issues should you propose to an amusement park's public relations
director:
A. An evening for fifth graders while their parents shop at the mall
B. A block party for the surrounding neighborhood that will be held after the park closes at midnight
C. A workshop to teach English to the community's non-English speaking new residents
D. A wine-tasting event whose funds will support the local community college
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM 10

88. Best Buy chose to sponsor free evening classes for community members to teach them how to efficiently
use a new operating system on PCs. What is the most logical reason for Best Buy's choosing this
community outreach activity?
A. The activity contributes to the company's mission.
B. Best Buy has exclusive distribution rights to the operating system.
C. Best Buy can share its workshop profits with local schools.
D. The activity closely relates to products it offers.

89. Which of the following activities occurs during the planning phase of the website development process:
A. Determining how to take orders
B. Writing easy-to-understand copy
C. Designing the page layout
D. Ensuring compatibility of website with browsers

90. Which of the following is an essential element in a press kit:

A. Coupons for journalists C. Permission to print form
B. Compilation of press releases D. Copy of CEO's last speech

91. What activity should occur first when planning a special event?
A. Brainstorming C. Shopping
B. Scheduling D. Budgeting

92. Why should a marketing specialist at a convention and visitors bureau want to track its promotional
activities?
A. To determine the best ticket price to offer
B. To determine their impact on sales
C. To determine its target market
D. To determine the best time for shows to begin

93. When customers buy menu items at McDonalds' Restaurants, they are given Monopoly pieces for the
chance to win prizes. What type of promotional technique is that?
A. Publicity C. Personal selling
B. Transit advertising D. Sales promotion

94. The marketing director of the Columbus Zoo and Aquarium selected the Halloween theme of “Boo at the
Zoo” for this year's special event. What display techniques would be the best to use in the zoo's gift shop
to support that theme?
A. Showcase stuffed animals surrounding a papier mâché witch on a broom stick
B. Place photos of the zoo animals at varying heights throughout the gift shop
C. Turn the gift shop into a haunted house with scary noises created by zoo animals
D. Suspend the word “BOO” from the ceiling throughout the gift shop

95. The wait staff recommends dessert items to restaurant customers. This is an example of
A. trading up. C. suggestion selling.
B. closing the sale. D. overcoming objections.

96. Car rental agents usually suggest that customers rent a larger car than the one requested online. This
technique is known as
A. substitute selling. C. suggestion selling.
B. upselling. D. outsourcing.

97. To celebrate their 10th wedding anniversary in February, a husband and wife are planning a trip to a
tropical island so that they can relax and get away from the hassles of everyday life. What motives are
they satisfying?
A. Self-actualization C. Self-esteem
B. Physiological D. Safety and security
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM 11

98. Which of the following are cruise-ship services that you should recommend to a bachelor and his wheel-
chair bound mother:
A. Raft ride over river rapids C. Onboard cooking demonstration
B. Onboard fitness center D. Horseback riding along the beach

99. When transferring phone calls, why should you give the extension number of the person to whom the call
is being forwarded?
A. To minimize the number of incoming calls
B. To make it more convenient for the caller to contact the person in the future
C. To let the caller know that it is acceptable to contact the person at any time
D. To keep the caller from hanging up

100. To process sales transactions efficiently, concert venues often use image or laser scanners to
A. ensure customer satisfaction. C. read ticket bar codes.
B. identify pricing strategies. D. develop service standards.
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 12

1. C
Consistent treatment. Legal procedure refers to the methods and processes used to protect an
individual's or business's legal rights. These rights include the right to obtain legal counsel, the right to be
heard in court, the right to confront the accuser, etc. Legal procedure involves following the same steps
and protocol to ensure that both the defendant and the plaintiff are treated in a fair and consistent
manner. The purpose of legal procedure is not to ensure that each party receives ongoing advice. In
most legal proceedings, one party is not going to be satisfied with the verdict or outcome. An indictment
is a formal charge or accusation of a crime.
SOURCE: BL:070
SOURCE: Beatty, J.F., & Samuelson, S.S. (2008). Essentials of business law (3rd ed.) [pp. 116-117].
Mason, OH: Thomson/South-Western.

2. A
Reasonable care. When hospitality and tourism businesses act in a way that a reasonable hospitality and
tourism business would have acted, the business exhibits reasonable care. If hospitality and tourism
businesses can prove that they acted with reasonable care, they are not fined by the courts. Otherwise,
the courts can find them guilty of negligence, and they would be charged a fine. It's not possible for
hospitality and tourism businesses to avoid all risks. There is always the chance that something bad can
happen. Hospitality and tourism businesses are not insurers of their customers nor do they take out
insurance on each customer. Instead, they take out liability insurance that transfers risk to an insurance
company. Hospitality and tourism businesses act so that they limit their responsibility for accidents.
SOURCE: BL:135
SOURCE: Jefferies, J.P., & Brown, B. (2010). Understanding hospitality law (5th ed.) [pp. 139-141].
Lansing, MI: American Hotel & Lodging Educational Institute.

3. A
Exclusive agreements. Exclusive agreements are a supplier's requirements for its customer to handle
only its products or to agree to not handle other companies' products. When this restricts trade, it is
considered illegal in Canada and in the U.S. A partnership agreement is a written agreement signed by
business partners that specifies the terms of the partnership arrangement. Contracts are legal
agreements between two or more businesses stating that one party is to do something in return for
something provided by the other party. Once contracts are signed and accepted by the businesses, they
are considered binding agreements in that if one of the parties fails to live up to the agreement, the party
will be guilty of breach of contract. Joint ventures are arrangements that involve two or more businesses
entering into a relationship by combining complementary resources such as technology, skills, capital, or
distribution channels, for the benefit of all parties; the relationship is usually short-term or for a single
project/transaction. Joint ventures, binding contracts, and partnership agreements do not inhibit trade.
SOURCE: CM:005
SOURCE: TransLegal.com. (2010). Competition law. Retrieved March 4, 2011, from
http://www.translegal.com/lets/competition-law

4. A
Channel management and promotion. The restaurant is using a new channel, its website, to offer its
baked goods to customers. To attract traffic to the website, the marketing communications director used
publicity when appearing on the talk show and sales promotion by offering incentives. The website had to
function properly to accommodate the sales volume generated by the incentives. Marketing-information
management deals with gathering, accessing, synthesizing, evaluating, and disseminating information for
use in making business decisions. Product/service management involves obtaining, developing,
maintaining, and improving a product or service mix in response to market opportunities. In this scenario,
the product mix has not been changed.
SOURCE: CM:007
SOURCE: BizHelp24.com. (2009, August 22). Place and product in a marketing plan. Retrieved
February 28, 2011, from http://www.bizhelp24.com/marketing/place-and-product-in-a-
marketing-plan.html
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 13

5. D
The use of company property. Businesses often develop employee handbooks, which provide
information about their general policies and procedures. Employee handbooks are usually given to new
employees when they are hired. Employee handbooks usually provide information about overtime and
vacation policies, disciplinary and grievance procedures, pay schedules, dress codes, and behavioral
expectations in its employee handbook. Many employee handbooks include information about employees
and their personal use of company property. Company-property issues that the handbook might address
include making personal long-distance phone calls on the company phone and using the office copy
machine or laser printer for non-business purposes. Lists of the company's current job openings and
personal information about vacation days are usually available through the human-resources department,
and are not included in the employee handbook. Additionally, the company's annual report is not usually
included in the employee handbook. Often, corporations post their annual reports on the company's web
site.
SOURCE: CO:057
SOURCE: SmallBusinessNotes.com. (n.d.). Employee handbook. Retrieved January 18, 2011, from
http://www.smallbusinessnotes.com/managing-your-business/employee-handbook.html

6. B
Distracted. Nonverbal cues are the elements of communication that involve gestures and facial
expressions rather than words. Nonverbal cues often express what the senders and recipients think
about their messages. If Colin was interested in the meeting topic or was listening to the speaker, he
would be directing his attention to the speaker. Since Colin was looking at his phone and text messaging,
he was distracted and was probably not paying attention to what the speaker was saying. The speaker
likely felt that Colin's nonverbal behavior was rude and inconsiderate. There is not enough information to
determine if Colin was annoyed.
SOURCE: CO:059
SOURCE: Bovée, C.L., & Thill, J.V. (2008). Business communication today (9th ed.) [pp. 54-57]. Upper
Saddle River, NJ: Pearson Prentice Hall.

7. A
Use abbreviations and symbols. Developing a system of and writing down abbreviations and symbols
(i.e., shorthand) is much quicker than writing out long phrases and complete sentences. For example, to
remember a very important point, Allison might place a star or asterisk by a key word, short phrase, or
abbreviation. After the seminar, Allison can refer to her “shorthand” notes and write more comprehensive
notes for future use. Writing on note cards, focusing on subtopics, and asking the speaker to provide
handouts will not help Allison take accurate notes in real time.
SOURCE: CO:085
SOURCE: Pearson Education. (2000-2011). Taking notes. Retrieved January 18, 2011, from
http://www.factmonster.com/homework/studyskills2.html

8. A
Organize content in a cohesive, manageable way. Long business reports often contain a lot of
information about different topics. To organize the information so the audience can understand the
report's contents, report writers often break content into chunks of related information. Headings and
subheadings are often included before the section or topic to let the audience know the issue at hand.
Headings and subheadings do attract attention because they are often formatted with a larger or color-
coded font; however, the primary purpose is not to convey a hidden agenda, provide supporting
evidence, or solicit an opinion from the audience.
SOURCE: CO:088
SOURCE: Young, D.J. (2006). Foundations of business communication: An integrative approach
(pp. 461-462, 464-465). New York: McGraw-Hill/Irwin.
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 14

9. C
Contact information, product model number, and manufacturer. A letter of inquiry is a request for
information. The businessperson should provide the manufacturer of the equipment and the product's
model number so the letter recipient knows which item to provide a price for. The letter writer should also
include his/her contact information—-e-mail address, telephone number, mailing address—so the
message recipient knows who or where to send the requested information. The businessperson is asking
for a price but not placing an order. So, the business person would not provide a purchase order number.
The vendor generates an invoice after the order has been placed. If the vendor provides quantity
discounts, the businessperson may need to indicate the quantity desired to provide accurate prices.
SOURCE: CO:040
SOURCE: eHow.com. (1999-2011). How to write an inquiry letter. Retrieved January 14, 2011, from
http://www.ehow.com/how_2048859_write-inquiry-letter.html

10. D
“I need to look into this, but will call you back by the end of the day with an answer.” Clients expect
prompt, courteous service. If David needs to obtain more information, he should advise the client that he
will call back with the correct information as soon as possible. David should be able to call the client back
himself for routine questions instead of asking his supervisor to make the call. Asking the client to call
back or telling the client to expect a call at David's convenience is rude and is providing poor customer
service.
SOURCE: CR:006
SOURCE: Online Business Advisor. (2006). Respond to customer inquiries and complaints promptly.
Retrieved January 14, 2011, from http://www.onlinebusadv.com/?PAGE=161

11. D
Profitable for the business. Because the marketplace is extremely competitive, many businesses are
focusing their efforts on building good, long-term relationships with the customers who have the most
potential to buy. These customers are the ones who will generate sales and profits for the businesses.
This effort is often referred to as customer relationship management. By viewing the relationship as a
partnership, a business has a better chance of keeping the customer for the long-term and keeping them
loyal to the business and to its brands. Customers who are easily influenced or interested in change are
more likely to be motivated to try another business's products.
SOURCE: CR:016
SOURCE: CR LAP 2—Know When to Hold 'Em (Customer Relationship Management)

12. A
Global distribution systems. The Internet makes it possible to market hospitality services to any location
in the world. The concept of a business's location now far exceeds its physical location. Customers can
log into such sites as Orbitz, Travelocity, and Expedia to book their travel needs for air, car, bus, train,
and lodging. Differentiated pricing strategies are an aspect of pricing considerations. Methods for
reaching new target markets pertains to promotional considerations. Customization of services pertains
to product considerations.
SOURCE: DS:075
SOURCE: eCornell. (2000-2011). Hospitality marketing. Retrieved February 7, 2011, from
http://www.ecornell.com/certificate-programs-community/hospitality-and-foodservice-
management-training/hospitality-marketing-certificate/crt/SHAC10

13. A
The substitution effect. A change in relative prices that causes buyers to replace the purchase of one
product with another is a phenomenon called the substitution effect. In the example, Joseph decided that
he did not want to pay the increased amount for premium gasoline and opted to buy regular gasoline
instead because it was less expensive. A price ceiling is a maximum legal price that businesses can
charge for certain products. The market-clearing (equilibrium) price is the point at which the quantity of a
product that buyers want to buy is equal to the quantity that sellers are willing to sell at a certain price. A
buyer's market is the best time for consumers to buy, which usually occurs when there is a large supply,
small demand, and low prices.
SOURCE: EC:006
SOURCE: EC LAP 12—When More Is Less (Functions of Prices)
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 15

14. C
False. Many other stakeholders can be affected by unethical business behavior. Although employees and
customers are affected by unethical business practices, businesses must fulfill obligations to other
stakeholders including investors and the community at large. For example, investors lost billions dollars
in relation to the Enron scandal in the early 2000s. Thousands of people lost retirement funds due to
unethical behavior by Enron leaders. In addition, companies engaging in the controversial practice of
offshoring, cost jobs and tax revenue for the local community.
SOURCE: EC:106
SOURCE: EC LAP 21—On the Up and Up (Business Ethics)

15. C
Visitor exports. The money spent by foreign travelers in another country is known as visitor exports. The
earnings from these sources was expected to be to be more than 6% of total exports by 2010. That
translates to a dollar figure of $1,086,000,000, and that figure is expected to more than double by 2020.
When international travelers visit other countries, they also buy other goods and services while visiting.
This helps businesses in addition to those in hospitality and tourism. Although hospitality and tourism
businesses are encouraged to use sustainable resources, their use does not contribute to economic
growth. Provision of conference space is a first step in getting groups to visit an area, but they do not in
and of themselves create economic growth. Global positioning systems help to determine how to get to
and from locations. They do not impact economic growth.
SOURCE: EC:136
SOURCE: World Travel and Tourism Council. (2010). Economic impact data and forecasts. Retrieved
February 7, 2011, from http://www.wttc.org/eng/Tourism_Research/Economic_Research/

16. C
Speculative. Speculative risk brings the possibility of gain, no change, or loss. When opening and running
a business, the owner may turn a profit (gain), break even (no change) or go bankrupt (loss). A pure risk
involves the possibility of loss or no loss. For example, if a tornado occurs, it may hit the building and
cause damage (loss) or pass the building and not cause damage (no loss). Because many factors affect
the risk involved in opening and operating a business, the risk is ongoing rather than temporary—until
Lauren closes or sells the business. Safety risks are preventable or controllable types of risks that involve
the physical well-being of employees, customers, and visitors.
SOURCE: EC:011
SOURCE: EC LAP 3—Lose, Win, or Draw (Business Risk)

17. B
High unemployment. Consumer spending is one factor that indicates the health of the economy.
Spending tends to decrease as unemployment increases because consumers do not have a lot of
income to spend. Low inflation, low interest rates, and increased business expansion are factors that
indicate that the economy is growing and that consumers are spending.
SOURCE: EC:081
SOURCE: McConnell, C.R., & Brue, S.L. (2005). Economics: Principles, problems, and policies
(16th ed.) [p. 147]. Boston: McGraw-Hill/Irwin.

18. A
Lenders. Lenders make money from borrowers by charging interest. When interest rates increase,
lenders earn more money. Borrowers (individuals and all types of businesses) benefit when interest rates
decrease because it is cheaper for them to borrow money for homes, cars, business expansions, and
other expensive goods and services.
SOURCE: EC:084
SOURCE: Townsend, K. (n.d.). How do interest rates affect the economy? Retrieved January 18, 2011,
from http://www.ehow.com/how-does_4564447_interest-rates-affect-economy.html
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 16

19. D
Communication skills. Since careers in hospitality and tourism often require personal interactions, most
employees need solid communication skills. Although some careers in hospitality and tourism require
mathematical and writing skills, those skills are not required by most hospitality and tourism careers.
Athletic skills are generally not needed in hospitality and tourism careers.
SOURCE: EI:090
SOURCE: United States Bureau of Labor Statistics. (2009, December 19). Career guide to industries,
2010-11 edition, hotels and other accommodations. Retrieved February 8, 2011, from
http://www.bls.gov/oco/cg/cgs036.htm

20. D
Western cultures embrace the idea that working hard will reap personal rewards and fulfillment. Culture
refers to the customs, habits, and traditions of a particular group of people. Because culture and cultural
differences affect business relationships, it is important for businesspeople to understand and adapt to
cultural differences in business situations. In other words, exhibit cultural sensitivity. Individualism is the
degree to which a group of people value independent work and accomplishments. Western culture (e.g.,
Canada, United States, England) places a high value on individual accomplishments achieved through
hard work. On the other hand, collectivism is an emphasis on group work and accomplishments. Eastern
cultures (e.g., China, Japan) tend to value group decision making and accomplishments over individual
efforts. Time and gender roles are important considerations when exhibiting cultural sensitivity, but these
factors are not related to the concept of individualism.
SOURCE: EI:033
SOURCE: EI LAP 11—Getting to Know You (Cultural Sensitivity)

21. A
No. Gina is gossiping about something that may or may not be true. Gossip is rumor or talk that discloses
personal information about another person. Gossiping is unethical behavior because the information may
be false. When false rumors are spread about a person, the person may be hurt personally and
professionally. Employees should avoid gossiping rather than risk spreading false information; therefore,
Norman should not say anything to anyone. Gina's personal conversations and the operations manager's
employment status do not involve Norman, and are not any of his business.
SOURCE: EI:038
SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (p. 207). New York:
Glencoe/McGraw-Hill.

22. C
Miscommunication. Conflicts are disagreements. Disagreements happen for different reasons.
Sometimes, it's a matter of miscommunication or misunderstanding. In the example, Tim thought he
heard his manager say one day and time, when his manager actually said something else. Or, perhaps
Tim's manager thought he told Tim that he wanted the report earlier than he originally requested, but
really forgot to tell Tim. The disagreement did not occur because Tim had limited resources, because he
questioned his manager's authority, or because each party held inconsistent opinions.
SOURCE: EI:015
SOURCE: EI LAP 7—Stop the Madness (Conflict Resolution in Business)

23. D
Everyone who is involved in the process holds equal power. A consensus is a decision-making outcome
that requires the substantial agreement of each group member. Every member must agree to a decision
or outcome. The decision may not be each member's first choice, but each member agrees with all
options. In consensus building, every group member has an equal level of power, so there are no
leaders. Because each member has equal power, it reduces behavior that promotes self-interest over the
best interest of the entire group. Voting is a decision-making method in which votes are counted for or
against an alternative, and whichever alternative has the greatest number of votes, wins. Drawbacks to
using consensus as a decision-making method is that it is often time-consuming and conflicts are likely to
occur because each member must discuss his/her opinions and points of difference.
SOURCE: EI:011
SOURCE: EI LAP 19—It's a Group Thing (Consensus Building)
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 17

24. A
Enthusiasm. Coaching is the process of helping others to reach their full potential and to overcome the
barriers that are keeping them from doing so. Effective coaching involves exhibiting certain qualities and
characteristics, including enthusiasm. When coaches show their own excitement and interest in helping
them, their protégés are more likely to be motivated to make changes and improvements to reach their
goals. Empathy is the ability to put yourself in another person's place. Humility is a lack of pride. Patience
is the ability to endure life's aggravations and difficulties calmly. Although these are also important traits
for effective coaches to have, Elise is not demonstrating those particular traits in the example.
SOURCE: EI:041
SOURCE: QS LAP 7—Bring Out the Best (Coach Others)

25. A
No. In many situations, political coalitions can influence management to make positive changes. Political
relationships involve influencing others to take a certain course of action. Political relationships form at
different levels of a business for different reasons. Political coalitions tend to form when employees share
similar concerns or ideas about a single issue. The coalition may last for a limited time to accomplish a
specific goal. For example, several employees may have a common goal to improve a production
process so they can perform their jobs more efficiently. Once the improvements have been made, the
coalition would likely dissolve. Employees may engage in scapegoating and backstabbing practices to
advance their careers, but this is not normal behavior for most workers. Cliques are groups of people
who share similar interests and values. Cliques can form in any type of group or organization. While
some cliquish behavior may negatively impact a business, it does not always result in inefficiencies or
conflict. Conflict or disagreement is unavoidable in business—the way the conflict is handled influences
the outcome.
SOURCE: EI:034
SOURCE: Kreitner, R., & Kinicki, A. (2004). Organizational behavior (6th ed.) [p. 576]. New York: The
McGraw-Hill Companies.

26. D
Car payment. Developing a personal budget helps individuals manage their income and expenses. An
important consideration in budgeting involves identifying fixed expenses, which are the expenses (cash
outflows) that do not fluctuate or change from month to month. Car payments, insurance, and rent are
examples of fixed expenses. Groceries, home repairs, and clothing are variable expenses, or expenses
that may fluctuate slightly from month to month.
SOURCE: FI:066
SOURCE: Ryan, J.S. (2010). Managing your personal finances (6th ed.) [p. 165]. Mason, OH: South-
Western Cengage Learning.

27. B
Deposits and credits. A bank statement is a summary of all transactions that occur for a certain period of
time, usually one month. The bank statement will indicate the day, amount, and transaction type on the
statement. The account holder compares the bank statement with his/her checkbook to determine
problems or discrepancies. Ian's employer is electronically putting his paycheck into his account;
therefore, the amount will be recorded as a deposit (credit) since money is being added to the account on
Ian's behalf. The withdrawals and debits column on the bank statement records all of Ian's withdrawals
(debits). Ian bills are located in this column—rent, car payment, groceries, etc.
SOURCE: FI:070
SOURCE: Campbell, S.R. (2010). Foundations of personal finance: Teacher's Edition (p. 193). Tinley
Park, IL: Goodheart-Willcox Company.
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 18

28. A
Tax deductions. Tax deductions are expenses that can be subtracted from gross income. For example,
charitable donations can be claimed as tax deductions on an individual's personal tax return. The tax filer
may need to provide a receipt for donations that exceed a certain amount of money. Other examples of
tax deductible expenses include college tuition, home-mortgage interest, and child care. Charitable
donations are not claimed on tax returns as public property, living expenses, or discretionary income.
SOURCE: FI:074
SOURCE: Campbell, S.R. (2010). Foundations of personal finance: Teacher's Edition (p. 164). Tinley
Park, IL: Goodheart-Willcox Company.

29. B
How are your fees structured? Because financial planners are compensated in different ways, it is
important to consider the fee structure when selecting a financial-services provider. Some financial
planners charge a flat fee, while others base their fees on the number and size of transactions. Some
financial planners charge for research and consulting time. Therefore, it is important to ask financial
planners about their fee structures, so investors can determine if they can afford the fees. A financial
planner may provide references for a potential client, but the potential client does not generally need to
provide the financial planner with references. It is inappropriate to ask the financial planner about his/her
personal income. Where the financial planner attended school is irrelevant.
SOURCE: FI:076
SOURCE: Kapoor, J.R., Dlabay, L.R., Hughes, R.J., & Hoyt, W.B. (2005). Business and personal
finance (pp. 260-261). New York: Glencoe/McGraw-Hill.

30. D
Mutual funds. A mutual fund is a collection of shareholders' money that is invested by professional fund
managers in an assortment of different securities, such as stocks and bonds. Because the money is
spread out over different types of investments, it provides the investor with a diversified portfolio. If one
stock performs poorly, the investor still has many other types of investments in the fund that may be
performing well, which reduces the risk of severe financial losses. Corporations sell corporate bonds to
investors as a way to raise cash for their businesses. The corporation (borrower) pays back the full
amount plus interest to the investor within a certain time. A certificate of deposit is a type of lending
investment in which the investor lends the money to the bank at a set interest rate for a particular period
of time. The government issues Treasury bonds. The government pays back the full amount of the bond
plus interest to the investor over a certain time frame, which varies by the type of Treasury bond
purchased.
SOURCE: FI:077
SOURCE: Kapoor, J.R., Dlabay, L.R., Hughes, R.J., & Hoyt, W.B. (2005). Business and personal
finance (p. 253). New York: Glencoe/McGraw-Hill.

31. B
Objective. Accountants prepare the accounting information that businesses use to make financial
decisions. Therefore, it is important for accountants to uphold the ethical standards of their profession by
providing accurate, objective (unbiased) financial information. A person who uses unique processes or
creativity to achieve a goal is being resourceful. Accountants need to follow the GAAP to perform their
jobs rather than use unique processes. An intolerant person is prejudiced. An unconventional person is
often viewed as unusual or eccentric.
SOURCE: FI:351
SOURCE: Accounting Learning Resources. n.d.). Role of ethics in accounting. Retrieved March 7,
2011, from http://www.bookkeeping-financial-accounting-resources.com/role-of-ethics-in-
accounting.html
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 19

32. B
General purpose of the transaction. Petty cash is used for small purchases/payments such as parking
meter charges, flowers, COD charges, stamps, etc. When money is removed from petty cash, the date,
amount of the transaction, and the general purpose of the transaction should be recorded. The account
to which the transaction will be charged can be done later when all petty cash charges to that account
can be totaled and one entry made. It's not necessary to record the name of the person or business that
will be paid the money. Many businesses require the signature of the person taking the money from petty
cash but not the name of a witness.
SOURCE: FI:310
SOURCE: Murray, J. (2010). How do I set up and manage petty cash? Retrieved December 22, 2010,
from http://biztaxlaw.about.com/od/createarecordssystem/f/managepettycash.htm

33. D
Screening. In the human-resources function, screening involves “weeding out” the applicants that do not
meet minimum requirements for the job or have not satisfactorily completed the application. On-boarding
activities are human-resources tasks that must be performed when a new employee joins the company
(e.g., orientation and paperwork). Prospecting is a sales activity that involves identifying any person or
organization with the potential to buy a product. Negotiating is the process of influencing someone to take
a certain course of action in order to achieve a desired outcome.
SOURCE: HR:410
SOURCE: HR LAP 35—People Pusher (Nature of Human Resources Management)

34. C
What new distribution channels could we use? When using marketing research for planning, marketers
are trying to identify potential opportunities for the company. Examining new distribution channels is a
potential opportunity for the marketer to pursue. By asking whether guests are satisfied with the services
it is using marketing research for control purposes. Determining how to lower costs and what promotional
mix has been most effective are using marketing research for problem-solving purposes.
SOURCE: IM:420
SOURCE: Churchill, G.A., Brown, T.J., & Suter, T.A. (2010). Basic marketing research (7th ed.)
[pp. 6-7]. Mason, OH: South-Western Cengage Learning.

35. D
Statistics in a trade publication's article about the competitor's advertising campaign. Secondary data are
facts, figures, and statistics that have been collected for projects other than the one at hand. In this case,
the statistics in the trade publication's article were generated for a purpose other than providing the
competition with data about its promotional activities. Surveys, focus groups, and interviews are used to
collect primary data: facts, figures, and statistics collected for the project at hand.
SOURCE: IM:421
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 612-614). New
York: Glencoe/McGraw-Hill.

36. D
A record. A record is the central entry into a database and it maintains all of one person's information. A
view is a window in a database. A form is a way of looking at information in a view. A report is a view that
shows data from multiple records on a single page.
SOURCE: IM:381
SOURCE: Craven, J. (2010, February 1). The basics of people databases. Retrieved February 28,
2011, from http://www.coyotecommunications.com/tech/basics.html
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 20

37. A
Push technology. Marketers can keep up with environmental changes by scanning information that is
automatically delivered to their computer by push technology. This helps marketers identify trends in their
early stages of development. LexisNexis is an example of a company that scans information, finds
relevant information, and forwards it to subscribers so that they can review and interpret the information
at their convenience. Model building involves identifying relationships between variables. Customer
discovery is a data-mining application that enables researchers to determine who will make a valuable
customer. Market-basket analysis is another data-mining technique used to identify relationships
between product purchases and retail shopping information.
SOURCE: IM:425
SOURCE: Zikmund, W.G., & Babin, B.J. (2010). Exploring marketing research (10th ed.) [pp. 168-173].
Mason, OH: South-Western Cengage Learning.

38. D
Keeping the interview short—10 minutes or less. Research studies indicate that the shorter the interview,
the more likely an interviewee is to participate in the study. Promising to send the study results would
only encourage those with a special interest in the interview topic to participate. Mobile phones are not to
be used since the interviewee may have to pay for the call. Graphic aids cannot be shown in many
telephone interviews.
SOURCE: IM:328
SOURCE: Zikmund, W.G., & Babin, B.J. (2010). Exploring marketing research (10th ed.) [pp. 217-222].
Mason, OH: South-Western Cengage Learning.

39. C
The strength of the relationship of the two data sets is the same. The +1 correlation has a direct
relationship with the X and Y coordinates, while the -1 correlation has an inverse relationship with them.
However, the strength of that relationship is the same.
SOURCE: IM:370
SOURCE: Adams, A.J., & Shiffler, R.E. (2006). Basic business statistics (3rd ed.) [pp. 157-158]. Mason,
OH: Cengage Learning.

40. B
Animated backgrounds. The use of animated backgrounds appeals to young professionals, whereas
older professionals would prefer having clear, concise information. Pictures and concise information
appeal to all audiences. Using different backgrounds on each slide makes the presentation appear
“busy.”
SOURCE: IM:386
SOURCE: Scott, K. (2008, March 8). Some tips on when and when not to use animated Powerpoint
background in a presentation. Retrieved February 28, 2011, from
http://www.articlesbase.com/communication-articles/some-tips-on-when-and-when-not-to-
use-animated-powerpoint-background-in-a-presentation-354174.html

41. B
Problem/issue being addressed. There is a logical sequence for presenting research orally. The
presenter needs to first discuss why the study was conducted. This involves explaining the
problem/issue. The researcher then moves on to explain what was done, what was found out, and what
is recommended.
SOURCE: IM:391
SOURCE: American Alliance for Health, Physical Education, Recreation, and Dance. (2010). Generic
description of twelve slides for a ten minute presentation. Retrieved February 28, 2011, from
http://www.aahperd.org/rc/toolkit/upload/Slide-Preparation-Checklist-A-Revised.pdf
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 21

42. D
Learn where activities are located in the park to answer visitors' questions courteously. Businesses work
hard to develop and maintain a certain brand or image in the minds of their customers. Employees are
touch points that help the business reinforce that image by the ways in which they conduct their work.
Front-line employees (e.g., ticket takers, concession workers, ride operators) should greet the customers
pleasantly and be able to direct them to various park services. So employees understand what is
expected of them, management should communicate and train the employees and familiarize them with
the park. Front-line employees may hand out brochures, but they usually do not print them. The public-
relations function carries out public-relations activities. Designated employees will arrive at the park
before it opens to perform pre-opening duties.
SOURCE: MK:015
SOURCE: MK LAP 2—Act Now! (Employee Actions and Company Goals)

43. A
Add a Guest Satisfaction Survey on the its own website. Customers can use these surveys to voice both
their positive and negative experiences with the business. Positive experiences can be used on the
website to give testimonials to potential customers, while negative experiences can be addressed
directly. The business can re-direct dissatisfied customers to another website so that their concerns can
be addressed in further detail. In this way, dissatisfied customers have a forum for voicing their concerns.
The business can use this forum to improve its relationship with dissatisfied customers. TripAdvisor does
not allow businesses to limit negative feedback from customers. Customers can be asked to complete
feedback surveys but cannot be required to do so. Identifying complaints is not sufficient. Businesses
need to resolve customer dissatisfaction.
SOURCE: MK:013
SOURCE: DeGeorge, L. (2011, February 2). The HeBS perspective: Lessons from the TripAdvisor vs.
Google controversy. Retrieved February 8, 2011, from
http://www.hospitalityebusiness.com/blog/the-hebs-perspective-lessons-from-the-tripadvisor-
vs-google-controversy/#ixzz1DOPzg4df

44. D
Age and life cycle. Baby boomers were born between 1946 and 1964. Baby boomers, therefore,
represent people of a particular age range that is aging. Many baby boomers are empty nesters, and they
have the money and time to travel. Art appeals to males and females; therefore, gender was not used as
a basis for segmentation. Although the tour group will experience different cultures, personalities, and
geographies, those were not used as the basis for market segmentation.
SOURCE: MP:035
SOURCE: Kotler, P., Bowen, J.T., & Makens, J.C. (2010). Marketing for hospitality and tourism (5th ed.)
[p. 202]. Upper Saddle River, NJ: Prentice Hall.

45. D
Develop an outline. An outline helps the writer organize key points in a logical, cohesive manner. After
the information is organized in the desired way, the writer uses the outline to develop a draft of the report.
After developing the draft, Michelle should edit and correct grammatical errors. The appendices are
supporting information placed at the end of the document.
SOURCE: NF:080
SOURCE: Young, D.J. (2006). Foundations of business communication: An integrative approach
(pp. 13-14). New York: McGraw-Hill/Irwin.

46. B
Multiprocessing. The computer's operating system consists of the components needed to run all of the
computer applications and programs. An operating system that allows several central processing units
(computers) to access a single program has multiprocessing capabilities. Multithreading capabilities allow
different components of one computer program to run at the same time. Augmented and hosted are not
types of operating systems.
SOURCE: NF:085
SOURCE: Webopedia. (2011). Operating system. Retrieved January 20, 2011, from
http://www.webopedia.com/TERM/O/operating_system.html
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 22

47. C
Integrated. Integrated software applications consist of two or more related computer programs that work
together to record information or perform specific business tasks or functions. An example of integrated
software is Microsoft Office—it consists of several related programs, such as word-processing (Word),
spreadsheet (Excel), presentation (PowerPoint), and database (Access). Trajectory software is used to
measure velocity, wind drift, momentum, etc.
SOURCE: NF:088
SOURCE: eNotes.com. (2011). Integrated software. Retrieved January 21, 2011, from
http://www.enotes.com/business-finance-encyclopedia/integrated-software

48. B
Registration. Software best handles routine tasks such as registration. Registration can be handled
online, over the phone, or in person. All registrations go into a software program. This makes it easy to
analyze sales and marketing data. Concierge and room set-up services are performed by humans. Sales
forecasting is not a service.
SOURCE: NF:106
SOURCE: Automation Software.com. (n.d.). Devoted to helping you decide what automation software is
right for you. Retrieved February 28, 2011, from http://www.automationsoftware.com/

49. B
Developing tour products specifically designed to appeal to retirees. Demographics are the physical and
social characteristics (e.g., age, gender, education) of a population or market segment. Businesses
consider demographic trends because changes in the population have an effect on the existing and
potential products they market. Because trends indicate that a large segment of the population is aging
and reaching retirement, hospitality/tourism businesses are developing products to attract retirees who
are no longer in the workforce and have more time to travel. Tour products designed for retirees would
not likely appeal to recent college graduates, families with young children, or business travelers.
SOURCE: NF:013
SOURCE: SeniorJournal.com. (2007, September 10). Travel agencies that target senior citizens may
best meet special travel needs. Retrieved March 7, 2011, from
http://seniorjournal.com/NEWS/Travel/2007/7-09-10-TravelAgencies.htm

50. C
To provide a way for travelers to share their experiences. The Internet has provided a mechanism for
satisfied and unsatisfied customers to tell others about their experiences with a business. The comments
of other customers are viewed as more credible statements than advertisements from the business.
Therefore, travel and tourism businesses are providing this forum so that satisfied customers can spread
the good word, while the problems identified can be addressed and corrections made, if needed.
Hospitality and tourism businesses are not using social networking to connect travelers with similar
interests, to book travelers' upcoming trips, or to notify travelers of flight cancellations.
SOURCE: NF:048
SOURCE: Ernst & Young. (2010). Global hospitality insights: Top thoughts for 2010. Retrieved
February 8, 2011, from
http://www.ey.com/Publication/vwLUAssets/Global_hospitality_insights_-
_issues_and_trends:_2010/$FILE/Globalhospitalityinsights2010.pdf

51. C
A purchasing agent awards a large order to a relative's employer. A conflict of interest occurs when
decision making is affected by personal gain or interest. If the purchasing agent's relative is a spouse
who may earn a bonus on the order, then the purchasing agent has a personal interest in the transaction.
Many businesses address conflicts of interest in their ethics policies. If the company's ethical policies are
followed, providing customer discounts, having lunch with clients, and using the company discount to
purchase goods are not examples of unethical behavior nor are they a conflict of interest.
SOURCE: OP:190
SOURCE: Monczka, R.M., Handfield, R.B., Giunipero, L.C., & Patterson, J.L. (2009). Purchasing and
supply chain management (4th ed.) [pp. 567-571]. South-Western Cengage Learning.
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 23

52. A
The employer does not take steps to correct the issue. Businesses must follow certain health and safety
regulations to ensure a safe working environment for employees. When employers do not follow
regulations, it is important to take action to correct the situation. In many situations, the issue can be
resolved easily. For example, an employee might notice that boxes are blocking an exit and tell his/her
supervisor about the infraction. Then, the supervisor can take steps to ensure the boxes are moved to an
appropriate location. When the employer does not take steps to correct the issue, employees should
report the infraction to the appropriate government agency. There is not enough information provided to
determine if housekeeping personnel are violating the regulations that govern the way businesses must
dispose of hazardous-materials. The vendor is not the employee's employer.
SOURCE: OP:005
SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2010). Marketing dynamics: Teacher's edition (2nd ed.)
[pp. 406-408]. Tinley Park, IL: Goodheart-Willcox Company, Inc.

53. D
Invite the person to use the house phone to call the guest. Front-desk attendants should not give others
the room numbers of guests either orally or in writing. This helps to protect the guest's privacy and
security. Although front desk attendants can mention that they're not allowed to give out the guest's room
number, they shouldn't stop there. The central reservations system will not have the guest's room
number.
SOURCE: OP:064
SOURCE: Kaser, K., & Freeman, J.T. (2002). Hospitality marketing (pp. 220-221). Mason, OH: South-
Western.

54. C
Trademark the logo. A business can legally protect its logo from unauthorized use by registering the logo
with the appropriate government agency. If an unauthorized entity compromises or uses the logo in
harmful, embarrassing, or negative ways, trademark protection provides the business with legal recourse.
Copyrights provide legal protection for written, musical, and artistic works. Patents are obtained to legally
protect inventions and certain types of processes for a limited amount of time. A subpoena is a formal
request issued by the court for an individual to submit evidence or serve as a witness at trial.
SOURCE: OP:153
SOURCE: Beatty, J.F., & Samuelson, S.S. (2008). Essentials of business law (3rd ed.) [pp. 797-803].
Mason, OH: Thomson/South-Western.

55. D
Delivery timeliness. When selecting a supplier, businesses must consider delivery timeliness. The
business must ask if the supplier can deliver the goods when they are needed. In some situations, it may
be better for a business to use a supplier who may be a little more expensive, but in closer physical
proximity of the business, if that supplier can consistently meet delivery requirements. Personnel policies
are guidelines for employees' behavior in the workplace. The exchange rate is the value of one nation's
currency in relation to another nation's currency. Return on sales or target return is a profit-oriented
pricing objective in which the business bases the amount of profit it wants to earn on the amount of its
sales.
SOURCE: OP:161
SOURCE: Hayes, D.K. & Ninemeier, J.D. (2010). Purchasing: A guide for hospitality professionals
(p. 91). Upper Saddle River, NJ: Pearson Education.
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 24

56. C
Improve quality and reduce inefficiencies. Six Sigma is a quality-management framework that involves
continuously setting higher goals of perfection. Six Sigma builds upon previous goals to set higher goals
in order to continuously improve the quality of the business's goods, services, or processes. The ultimate
goal is to maximize outputs, reduce inefficiencies and waste, have no process or product defects, and
minimize production costs. If these actions are successful, the business's profits may increase. As a
quality-control framework, the primary purpose of Six Sigma is not to eliminate resources, lessen
decision making, influence regulation, or decrease outputs.
SOURCE: OP:163
SOURCE: Levine, D.M. (2006, June 9). Fundamentals of Six Sigma. Retrieved January 17, 2011, from
http://www.ftpress.com/articles/article.aspx?p=470223&seqNum=2

57. D
Place recycling bins throughout the venue. Many universities and businesses are using large, green
recycling bins to encourage event goers to participate in recycling efforts. It's not feasible to require
attendees to turn in solid waste following an event. Some attendees would, but others would resist being
told what to do. Hiring a waste management company is a good technique to use; however, it's more
costly than providing recycling bins. Purchasing paper products that don't need to be recycled defeats the
whole purpose of encouraging recycling efforts.
SOURCE: OP:134
SOURCE: Payne-Placio, J. & Theis, M. (2009). Introduction to food service (11th ed.) [pp. 427-433].
Upper Saddle River, NJ: Pearson Prentice Hall.

58. A
Unauthorized individuals found on the scene. The presence of unauthorized people is a threat to the
security of patrons, employees, and to the hospitality and tourism business. Individuals responsible for
security will need to quickly determine the reason that the unauthorized people are present. Spilled water
and a choking patron are safety threats. A phone call about an item in lost and found is not a safety or
security issue.
SOURCE: OP:115
SOURCE: Educational Institute of the American Hotel & Lodging Association (2003). Skills tasks and
results training (pp. 81-84). Lansing, MI: Author.

59. B
Product. Product innovation takes place when a company creates a new product or redesigns an existing
product. Paradigm innovation takes place when the entire perception of a product, company, or industry
takes place. Convertible and categorical are not types of innovation.
SOURCE: PD:126
SOURCE: Bishop, K. (2005, May 24). Types of innovation. Retrieved January 20, 2011, from
http://ezinearticles.com/?Types-of-Innovation&id=38384

60. A
Sexual harassment. Sexual harassment is any unwelcomed sexual remarks, advances, conduct, or
requests. Employees have certain rights in the workplace, including the right to not be sexually harassed
by other employees and managers. The example is not age discrimination, cultural supremacy, or
ethnocentrism.
SOURCE: PD:021
SOURCE: MSBA. (2000-2011). Employees' rights in the workplace. Retrieved January 20, 2011 from
http://www.msba.org/departments/commpubl/publications/brochures/workplace.htm
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 25

61. A
Flexibility. People choose to open their own businesses for a variety of reasons. In Janice's situation, she
tired of working the long and unusual hours professional chefs must work. And, because she wants to
focus on other interests, catering gives her the flexibility to pursue those interests since she can select
the events she wants to work. There is not enough information in the example to determine if Janice's
entrepreneurial venture provides her with the satisfaction of helping others, a higher income, or the
desired prestige.
SOURCE: PD:066
SOURCE: PD LAP 4—Own Your Own (Career Opportunities in Entrepreneurship)

62. D
Yes. Businesses in the hospitality and tourism industry can start small and expand. There are lots of
opportunities for people to dream and actualize those dreams when they open their businesses. Not all
hospitality and tourism businesses start out as large companies—many are one-person operations and
are not part of a franchise. Most hospitality and tourism businesses are started with the owner's debt or
equity financing rather than with state funding.
SOURCE: PD:272
SOURCE: Walker, J.R. (2009). Introduction to hospitality (5th ed.) [p. 6]. Upper Saddle River, NJ:
Pearson Prentice Hall.

63. D
Job shadowing. There are many opportunities for individuals to learn about careers. Job shadowing
involves observing an individual perform his/her daily job activities in the workplace. Internships are
training in which businesses provide on-the-job practice for learners. Internships are often coordinated
with schools and may be paid or unpaid, lasting a certain amount of time. An exploratory interview
involves asking an experienced businessperson questions about his/her career, field, or industry. Service
learning involves an organized volunteer effort associated with a specific school, community, or
organization.
SOURCE: PD:032
SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 54-55). New
York: Glencoe/McGraw-Hill.

64. D
Serving on committees outside your job description. By volunteering to serve on committees not directly
related to your job description, you have the opportunity to keep your name in the minds of company
leaders. That will help them to think of you when opportunities arise. You should thank people for
compliments that you receive on your work rather than acting as if the work were no big deal. Etiquette is
important for business lunches. You should not discuss business until after people at the table have
placed their orders. Bragging to coworkers about your accomplishments can make them resent you.
Instead, send regular memos to your bosses to apprise them of the work you've accomplished.
SOURCE: PD:274
SOURCE: Robert Half International. (2009, June 10). 9 little-known ways to advance your career.
Retrieved February 23, 2011, from http://www.careerbuilder.com/Article/CB-898-Getting-
Ahead-9-Little-Known-Ways-to-Advance-Your-Career/

65. B
Assembly and event management. Destination marketers “sell” locations to clients. In many cases,
destination marketers are trying to obtain convention or meeting business for a community. Other
segments in assembly and event management include convention and visitors bureaus and event
planning. The travel and tourism segment consists of air, cruise ships, online travel services, rail, bus,
car, and tourism. Recreation consists of attractions, gaming, theme parks, clubs, and recreational
activities. Restaurants and managed services include full-service restaurants; casual dining; dinner
house restaurants; and food operations for institutions, government agencies, airlines, and businesses.
SOURCE: PD:111
SOURCE: Walker, J.R. (2009). Introduction to hospitality (5th ed.) [p. 7]. Upper Saddle River, NJ:
Pearson Prentice Hall.
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 26

66. C
Costs. To survive, businesses must cover their costs. Therefore, the lowest price is determined by the
businesses' costs. Demand, on the other hand, determines the high end of what businesses can charge.
Although government regulation and consumer perceptions of value are factors that impact prices, they
do not determine the limits of prices.
SOURCE: PI:039
SOURCE: Kotler, P., Bowen, J.T., & Makens, J.C. (2010). Marketing for hospitality and tourism (5th ed.)
[pp. 294-295]. Upper Saddle River, NJ: Prentice Hall.

67. B
Concept testing and business analysis. The hotel chain failed to test the concept of the upscale hotel
chain with its target consumers. If they had completed this phase in the new-product development
process, the corporate office might have determined that the size of the target market was inadequate,
the timing of the concept was inappropriate, etc. In any of these cases, the hotel chain could have saved
time and money by deciding not to move forward with the idea. Another phase that the corporate office
failed to complete was business analysis: projection of sales, costs, and profit. If this phase had been
completed, the corporate office could have determined that sales would be insufficient, costs would be
too high, and/or profit inadequate to support the new venture. The company actually built a hotel property
to conduct its test market. It also commercialized its product idea by deciding when, where, how, and to
whom to market the hotel.
SOURCE: PM:241
SOURCE: Kotler, P., Bowen, J.T., & Makens, J.C. (2010). Marketing for hospitality and tourism (5th ed.)
[pp. 244-255]. Upper Saddle River, NJ: Prentice Hall.

68. B
Product position. Disney has used its marketing skills to position the theme park as the happiest place on
earth and a place where dreams really do come true. Marketing activities, employee behavior, and the
entire Disney World environment are designed to support and reinforce that image in people's minds.
Touch points are the opportunities that Disney has to interact with its customers. Brand identity is the
name, symbols, characters, etc., that are used to identify Disney and its products. A trade character is a
person, animal, or animated character used in advertising and is associated with a product or company.
SOURCE: PM:228
SOURCE: More, M.E. (2010, September 27). A picture is worth a thousand words. Retrieved February
26, 2011, from http://morethanbranding.com/tag/positioning/

69. C
4.58. To determine stock turnover at retail, you will first need to determine the average inventory for the
time period. To do this, add the beginning and ending inventory amounts and divide by 2 ($86,150 +
$66,550 ÷ 2 = $76,350). You then divide the average inventory into the retail sales for the time period to
obtain the stock turnover at retail ($350,000 ÷ $76,350 = 4.5842). The Fondue Inn sold the value of its
entire inventory 4.58 times during April.
SOURCE: PM:224
SOURCE: Miller, C.D., Salzman, S. A., & Clendenen, G. (2009). Business mathematics (11th ed.)
[pp. 303-304]. Boston: Pearson Education, Inc.

70. C
Cookies and milk. Supporting products are the extra goods and services that accompany the core
product, the room at the inn, to add value to that core product. In this case, the evening snack of cookies
and milk added value to the core purchase. Check-cashing services, on-property parking garages, and
restaurant recommendations are examples of facilitating products. They aid with the use of the core
product.
SOURCE: PM:081
SOURCE: Silva, K. E. & Howard, D.M. (2006). Hospitality & tourism (pp. 206-208). Woodland Hills, CA:
Glencoe/McGraw-Hill.
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 27

71. B
Insurance. Many travel and tourism businesses offer insurance to protect customers from a variety of
risks. Examples include insurance for cancelled, interrupted, or delayed trips; medical expenses; travel
accident protection; lost/stolen luggage; etc. Car repair, investment advice, and medical checkups are
outside the realm of frequently offered hospitality and tourism services.
SOURCE: PM:095
SOURCE: Travelocity.com. (n.d.). Travel protection. Retrieved February 26, 2011, from
http://travel.travelocity.com/checkout/TravelProtectionDetails.do

72. B
Blind testing. To evaluate multiple vendors' canned goods, restaurants can obtain input from cross-
functional teams of employees as well as guests. To avoid receiving biased input, use of blind testing is
recommended. With this technique, the food items are removed from their cans so that evaluators do not
know on which brand they are providing feedback. Can-cutting is an evaluation procedure in which
canned goods are opened and their contents compared. This does not ensure unbiased feedback,
however. Random access and sampling are research terms and do not apply to product evaluation.
SOURCE: PM:239
SOURCE: Hayes, D.K. & Ninemeier, J.D. (2010). Purchasing: A guide for hospitality professionals
(pp. 45-46). Upper Saddle River, NJ: Prentice Hall.

73. D
Direct marketing. Direct marketing can be targeted to those customers who are most likely to buy.
Examples of direct marketing include e-mail marketing, telemarketing, mailshots, SMS, and social media.
Advertising, publicity, and sales promotion cannot be targeted to the extent of direct marketing.
SOURCE: PR:301
SOURCE: Business Link. (2010). Direct marketing: The basics. Retrieved February 16, 2011, from
http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073790746&type=RESOURCES

74. B
They lack spam. RSS (Really Simple Syndication) enables businesses to syndicate content from its
website, rather than customizing it. Another advantage to RSS feeds is that they are easy to sign up for
and to unsubscribe from. They do not replace the need for web pages since that is what is being
syndicated. They do not optimize search engine standings.
SOURCE: PR:324
SOURCE: Foster, S. (n.d.). Make the most of RSS feed. Retrieved February 17, 2011, from
http://www.sap-basis-abap.com/homebusiness/article/making-the-most-of-rss.htm

75. D
Featuring products on billboards in online games. Advergaming is an online video game that promotes a
product, brand, or company by incorporating it into the game. There are a variety of ways in which
businesses are using advergaming. One such way is by featuring products on billboards that show up
during the game. Another popular advergaming technique is to feature a company's mascot or symbol in
a game. Showing a product being used in a movie scene is an example of product placement. Running
advertisements during a national sports game is an expensive use of advertising. Competitors would not
grant permission to use pop-up ads on their websites.
SOURCE: PR:280
SOURCE: Green Lion Digital Marketing. (2010, July 6). Advergaming—A virtual billboard for real
brands. Retrieved February 10, 2011, from
http://greenliondigitalblog.com/2010/07/advergaming-a-virtual-billboard-for-rea-brands/
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 28

76. B
Social bookmarks. Social bookmarks enable businesses to store, organize, search, share, and manage
web pages they find of interest. By tagging, or categorizing, websites or web pages, businesses can
share information with as many or as few customers as they'd like. Examples of social bookmarking sites
include Digg, StumbleUpon, Delicious, Reddit, Technorati, and many others. Although email could be
used to give this information to clients, it is not specific to this purpose. HTML, hypertext markup
language, is language used in developing websites. Search engine optimization, SEO, involves a variety
of techniques used to improve the rank of websites in search engines.
SOURCE: PR:325
SOURCE: Mater, A. (2010, March 19). Social bookmarking: What is it? Retrieved February 18, 2011,
from http://www.webdesign.org/site-maintenance/web-promotion/social-bookmarking-what-
is-it.16226.html

77. C
Text message with coupon. Currently, the mobile market is accustomed to receiving text messages on
their phones. That's what they expect. Attaching a coupon or discount to the text message has been
shown to get greater response than text messages without coupons. Rich media may be the future for
mobile advertising, but it's not there, yet. Cross-platform campaigns indicate that the
message/advertisement will be used in multiple media. Research indicates that mobile ads are more
effective when they are designed specifically for that medium, rather than for multiple media. Banner ads
have been boring for mobile users.
SOURCE: PR:276
SOURCE: O'Sullivan, C. (2011, February 17, 2011). Is mobile display advertising already dead?
Retrieved March 7, 2011, from http://www.gomonews.com/is-mobile-display-advertising-
already-dead/

78. A
Filling a web page with irrelevant key words. Doing this helps to improve the ranking of the website in
search engines; however, customers are not obtaining anything of value. Ultimately, businesses sponsor
web sites to make money. Phishing is an illegal activity in which someone pretends to be a trustworthy
business so that s/he can obtain another person's confidential information. It is most often used through
email and instant messaging. To overcome phishing, some businesses are requiring their customers to
select a personal image that they display when they access password protected sites.
SOURCE: PR:361
SOURCE: Miller, C.C. (February 10, 2011). Web words that lure the readers. Retrieved February 18,
2011 from http://www.nytimes.com/2011/02/11/business/media/11search.html?src=busln

79. D
Logo. Readers in the U.S. and Canada generally read from left to right and top to bottom. Putting the
logo in the bottom right-hand corner of an advertising layout makes the logo the last element of the ad
that the reader sees and makes it the most likely element to be remembered. Headlines generally appear
towards the top of advertising layouts to attract attention. White space is blank space that is good to use
in advertising layouts to unify the elements of an advertisement and to attract attention. The illustration is
used to attract attention and helps to lead the reader into the headline and copy.
SOURCE: PR:275
SOURCE: Graphic Design 315. (n.d.). Advertising layout strategy. Retrieved February 18, 2011, from
http://www.wiu.edu/art/courses/handouts/layout.html

80. B
Crosshatching. By crisscrossing lines, the graphic artist could depict texture. Shading is used to show
shadows, while highlighting is used to put light on objects. Sketching is the process of drawing quickly.
SOURCE: PR:334
SOURCE: Bradford, A. (1999-2011). About drawing. Retrieved February 18, 2011, from
http://www.ehow.co.uk/about_4587083_drawing.html
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 29

81. D
There was little difference in hues. As colors get closer to gray, closer in hue, and equal in shade, they
are less noticeable. Color contrast occurs when lighter, saturated colors are used. When saturated hues
are separated from each other, the colors are noticeable. It's when they're next to each other that they
become more difficult to discern.
SOURCE: PR:274
SOURCE: LeMot, S. (2010, March 14). Digital color choice tutorial. Retrieved February 19, 2011, from
http://ezinearticles.com/?Digital-Color-Choice-Tutorial&id=3928318

82. C
They signal the type of Internet medium that best reaches the audience. Research shows that men and
youth are most likely to be reached with Internet games, while women are most likely to be reached with
Internet videos. Knowing this helps marketers match the Internet medium with its target audience. The
audience does not determine the type of product to give away or the theme of the viral marketing
campaign. Information on the Internet is run 24/7 rather than at specified times as with radio and
television advertising.
SOURCE: PR:312
SOURCE: Marketing Minefield. (2006). Building a successful viral marketing campaign. Retrieved
February 15, 2011, from http://www.marketingminefield.co.uk/internet-marketing/viral-
marketing/successful-viral-campaign.html

83. A
Discounts. Often, offering customers incentives for referrals encourages them to provide the name and
contact information of their friends and associates. The incentives offered are generally small so that the
salesperson doesn't “go broke” from providing them. Free product and trips would generally fall into the
category of being too costly for the salesperson. Job interviews are not tied to customer referral
programs.
SOURCE: PR:277
SOURCE: MicroSoft Business. (2010). Turn customers into your sales force. Retrieved February 16,
2011, from http://www.microsoft.com/business/en-us/resources/marketing/customer-service-
acquisition/turn-customers-into-your-sales-
force.aspx?fbid=eDLrRsLL91n#Turncustomersintoyoursalesforce

84. D
Product placement. For the audience, the billboard is an example of product placement. Product
placement is the inclusion or mention of a product in a movie or television show. InterContinental would
have paid to have the billboard featured in the new movie. For the actors, the billboard is out-of-home
advertising. Personal selling involves determining client needs and wants and responding through
planned, personalized communication that influences purchase decisions and enhances future business
opportunities. Special events are planned activities used to generate sales.
SOURCE: PR:323
SOURCE: Neer, K. (1998-2011). How product placement works. Retrieved February 16, 2011, from
http://money.howstuffworks.com/product-placement.htm/printable

85. B
Introduce the call to action early in the material. When readers are skimming through direct marketing
materials, they often stop reading before getting to the end of the material. Therefore, writers shouldn't
wait until the end of the material to mention the call to action. Naturally, it should be repeated and could
be included in the P.S. of the material. Writers want to set their products off from those of the competitors
so that readers clearly understand what makes their products the best buy. Writers want to make the call
to action as simple as possible for readers rather than sending them to another location to obtain an
order form. Incredible claims can damage the company's image. Claims need to be credible.
SOURCE: PR:294
SOURCE: Kaushik, S. (2004-2010). Tips to increase response rates through direct marketing copy.
Retrieved February 22, 2011, from http://www.chillibreeze.com/articles_various/marketing-
copy.asp
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 30

86. D
Bulleted content to facilitate skimming and understanding. When people read Internet ad copy, they
generally skim content rather than reading ads in-depth or looking for detailed copy. The ad copy should
be emotional to gain the readers' interest. Rather than talking about “we,” the writer should direct the
copy to “you.”
SOURCE: PR:279
SOURCE: Chase, L. (2011). How to write Internet ad copy. Retrieved February 22, 2011, from
http://www.wdfm.com/marketing-tips/write-ad-copy.php

87. A
An evening for fifth graders while their parents shop at the mall. This topic ties into the image of the park
being a safe place for kids. It will appeal to both fifth graders who ask to go to the theme park as well as
to their parents who pay for the theme-park visits. A midnight block party would be too late for children to
participate. An ESL workshop and wine-tasting do not relate to the park's image of a safe place for kids.
SOURCE: PR:347
SOURCE: Smith, E. (2010, July 6). Outreach project ideas. Retrieved February 21, 2011, from
http://www.ehow.com/list_6703172_outreach-project-ideas.html

88. D
The activity closely relates to products it offers. Some of Best Buy's employees are computer savvy, so
teaching community members about using the new operating system would be a logical choice for a
community outreach activity. This helps Best Buy's employees develop relationships with community
members that go beyond “making the sale,” and will hopefully translate into sales in the long term.
Although Best Buy is a large national chain, it would not have exclusive distribution rights to the operating
system. Since the workshop was free, Best Buy was not making any profit on the workshops. There is no
way for us to determine whether the activity contributes to the company's mission.
SOURCE: PR:341
SOURCE: Smith, E. (2010, July 6). Outreach project ideas. Retrieved February 21, 2011, from
http://www.ehow.com/list_6703172_outreach-project-ideas.html

89. A
Determining how to take orders. During the planning phase of the website development process, the
developer is making decisions that will impact the website's design. Deciding whether and how to take
orders is one of those initial decisions that needs to occur. Writing copy, designing page layout, and
ensuring compatibility of the website with browsers occur during the design phase of the process.
SOURCE: PR:328
SOURCE: Pawson, C. (2010, August 23). Website development process for newbies. Retrieved
February 22, 2011, from http://ezinearticles.com/?Website-Development-Process-for-
Newbies&id=4913903

90. B
Compilation of press releases. A compilation of press releases gives an overview of important activities
that have recently occurred at the company. This might include new product releases, hiring of a key staff
member, philanthropic activities in which the business has engaged, etc. A permission to print form is not
needed since the goal of the press kit is to get information published. Providing coupons and a copy of
the CEO's latest speech could be included in the press kit; however, they are not as critical as the press
releases.
SOURCE: PR:226
SOURCE: Ismail, E. (1999-2011). How to compile a press kit. Retrieved February 21, 2011, from
http://www.ehow.com/how_4676822_compile-press-kit.html

91. A
Brainstorming. When planning special events, the event planners should brainstorm ideas to identify
events that would be of interest to the target audience. Once the idea for the special event is identified,
the event planners can move forward with budgeting, scheduling, and shopping.
SOURCE: PR:360
SOURCE: Event planning checklist. (n.d.). Retrieved February 21, 2011, from
http://sua.umn.edu/groups/forms/event_planning.pdf
2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 31

92. B
To determine their impact on sales. The marketing specialist needs to establish a baseline number on
whatever s/he wants to measure. And then, s/he needs to determine increases and decreases in that
baseline number when promotional activities appear. Ticket prices, target market, and show times would
not be impacted by promotional activities.
SOURCE: PR:335
SOURCE: Matthews, C.B. (2006). Tracking—Tips for evaluating your marketing effectiveness.
Retrieved February 21, 2011, from
http://www.meritagestrategies.com/res/files/6/Meritage%20-
%20Tracking%20Marketing%20Effectiveness.pdf

93. D
Sales promotion. Sales promotion consists of any activity other than advertising, publicity, and personal
selling that are designed to increase sales. The prizes that can result from use of Monopoly help to
increase sales. Transit advertising is a form of out-of-home media such as billboards, car wraps, and
street furniture ads. Personal selling is an effort by a company representative to complete sales
transactions. Publicity is any nonpersonal presentation of ideas, goods or services that is not paid for by
the company or individual which benefits from or is harmed by it.
SOURCE: PR:121
SOURCE: Kaser, K., & Freeman, J.T. (2002). Hospitality marketing (p. 109). Mason, OH: South-
Western.

94. A
Showcase stuffed animals surrounding a papier mâché witch on a broom stick. Good displays feature the
product that is for sale. Using the papier mâché witch reinforces the “Boo at the Zoo” theme. The other
alternatives do not feature products. Placing photos of the zoo animals at varying heights throughout the
gift shop fails to tie the decorations into the special theme.
SOURCE: PR:162
SOURCE: AllBusiness.com. (1999-2011). Tips for creating winning store window displays. Retrieved
March 7, 2011, from http://www.allbusiness.com/sales/selling-techniques-strategic-
selling/4353607-1.html

95. C
Suggestion selling. When wait staff recommends food items, such as desserts, to go with the customer's
original purchase, they are using suggestion selling. By suggesting an additional item, the wait staff are
trying to increase the amount of their sales. Closing the sale occurs when the customer has made a
buying decision. Trading up occurs when the wait staff recommends a more expensive menu item than
that requested. Overcoming objections occurs when the wait staff turns a customer's reasons for not
buying into selling points with which the customer agrees.
SOURCE: SE:875
SOURCE: Silva, K. E. & Howard, D.M. (2006). Hospitality & tourism (pp. 243, 245). Woodland Hills, CA:
Glencoe/McGraw-Hill.

96. B
Upselling. When car rental agents suggest that customers rent more expensive vehicles than the ones
they signed up for online, the agents are using a sales technique known as upselling. This helps to
increase the amount of the sale. Substitute selling occurs when the requested item is not in stock or does
not meet the customer's needs. Suggestion selling involves recommending an additional item to
accompany the original purchase. Outsourcing involves the use of a third party to handle tasks that the
company used to handle internally.
SOURCE: SE:476
SOURCE: Kaser, K., & Freeman, J.T. (2002). Hospitality marketing (p. 7). Mason, OH: South-Western.
 2011 HS ICDC HOSPITALITY AND TOURISM CLUSTER EXAM—KEY 32

97. B
Physiological. When people travel for the purpose of relaxation, they are satisfying their physiological
needs. These are basic needs that people have, such as the need for food, water, and sleep. With self-
actualization needs, people would travel to develop their full potential. Self-esteem needs are met when
people travel for self-respect and the respect of other people. Safety and security needs are being met
when people travel for personal security and for a source of income.
SOURCE: SE:220
SOURCE: Silva, K. E. & Howard, D.M. (2006). Hospitality & tourism (pp. 37-38). Woodland Hills, CA:
Glencoe/McGraw-Hill.

98. C
Onboard cooking demonstration. Service recommendations need to fit the needs of the customer. In this
case, one of the customers lacks the mobility needed for the fitness center, horseback riding, or raft
riding. The onboard cooking demonstration would suit the mother's mobility issue.
SOURCE: SE:221
SOURCE: Holland America Line. (2011). Activities. Retrieved February 15, 2011, from
http://www.hollandamerica.com/cruise-vaction-onboard/Activities.action

99. B
To make it more convenient for the caller to contact the person in the future. This helps to save the
caller's time and makes calling more efficient. Also, if the caller loses her/his connection, it helps in
calling back. Giving a caller a person's extension number will not affect the number of incoming calls.
Callers do not hang up when they are given a person's extension number nor should they think that
calling at any time is acceptable.
SOURCE: SE:477
SOURCE: Silva, K. E. & Howard, D.M. (2006). Hospitality & tourism (p. 306). Woodland Hills, CA:
Glencoe/McGraw-Hill.

100. C
Read ticket bar codes. A bar code is a symbol known as a Universal Product Code (UPC) and contains
information (e.g., price, seat, and date) that can be read by an electronic scanner. Cashiers scan the bar
code on tickets which reads and translates the price electronically. Pricing strategies are the plans of
action for achieving pricing objectives. Using a scanner to process a sales transaction does not ensure
customer satisfaction. Businesses do not use image or laser scanners to develop service standards.
SOURCE: SE:329
SOURCE: TechTarget. (2006, January 31). Barcode reader. Retrieved February 10, 2011, from
http://whatis.techtarget.com/definition/0,,sid9_gci857995,00.html