M&S1, Answers Chapter 5

MARKETING& SALESHOSPITALIT Y MARKETING & SALES FOR THE HOSPITALITY INDUSTRY ELLEN VAN KOOTEN Chapter 5 | Answers | Questions about the chapter 1

Marketing & Sales for the Hospitality Industry | Part 1Chapter 5 | Answers | Questions about the chapter1. What is meant by consumer behaviour? Consumer behaviour is the human behaviour related to the acquisition of goods and services.2. What buyer groups exist in the hospitality industry? Buyer groups Description People who use hospitality services at their ownPrivate guest cost from the home-work situation to provide for their own needs.Business guest People who have important business events such as dinners, meetings, appointments, conferencesTourist and staff outings often take place in a hospitality establishment. Tourist guests are people in the hospitality establishment’s service area for day trips or overnight leisure activities.3. During a business lunch, the establishment will have to take account of the wishes and expectations of the business guest. State five. 1. Time Many business guests are in a hurry, especially at lunch. It’s a good idea to ask how much time the guest has available. Guarantee that they can eat during this time and back it up. The servers can facilitate this by recommending certain dishes. 2. Goal A business guest comes to a hospitality establishment for a reason. He's there with a goal. Help the business guest achieve this goal. 3. Who makes the reservation? The executive secretary will be tasked with making a reservation ‘somewhere’. Make sure she knows your name. 4. Parking Make sure there is plenty of parking at your place of business. 5. Mobile phone If you have the space in your restaurant, it could be a good idea to have a private calling area that provides the opportunity to copy, fax and e-mail 6. Networks Try and get the leading entrepreneurs in your area as guests. Once it becomes known that they lunch with you, the rest will quickly follow. Because networking is especially important in this market. 7. Retention It is easier to retain a good business relationship with a guest than to recruit a new guest. Business guests want certainty. Once you’ve won their trust, you’ve gained regular guests.4. Guest judge a business based on expectations. These are classified into four categories. What are they? 1. Wows: Top experience. Beyond all expectations. A visit where everything comes together regarding the product, personnel, public and ambiance. 2. Positive experiences: Contribute to the good feeling about the business. Guests know why they like coming here: smooth service, free bar snacks, cheerful barkeeper, good music and a well prepared meal. 3. Negative experiences: Not a reason to stay away, but you are not really happy about it. Dirty toilets, waiting too long for your drink, overflowing ashtrays, too loud music and a draught because the door doesn’t shut properly. 4. Killers: A disastrous experience, which ensures that the guest never returns! Ignored by staff, a brawl in the establishment, a stolen jacket or severe diarrhoea after eating a tuna sandwich.Version 1 | 01-10-2018 | [email protected]

Marketing & Sales for the Hospitality Industry | Part 15. What stimuli influence a consumer’s behaviour?1. Personal stimuli2. Commercial stimuli3. Social stimuli6. The customer’s behaviour is of course not only determined by psychological and sociological factors. Economic aspects also play an important role. You might want to go to a restaurant every week, but you also have to be able to pay for it. Describe the following economic concepts: Term DescriptionPrice elasticity The extent to which consumers respond to a price change by purchasing more or less of a product is called the price elasticity of demand. The degree of change is expressed as a number. Percentage change in the number units sold ------------------------------------------------- = Price elasticity Percentage change of priceIncome elasticity The income elasticity is a number that indicates the strength of consumer response to an income change regarding the purchase of a particular product.Cross elasticity percentage change in number of units purchased ----------------------------------------------------- = Income elasticity percentage change of income Cross elasticity of demand is when a price change for one product has consequences for the demanded amount of another product. percentage change in the number of units sold of the other product --------------------------------------------------------------- = Cross elasticity percentage change in the price of the one productVersion 1 | 01-10-2018 | [email protected]