HTM-381, EXAM 1 QUESTIONS & ANSWERS UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

HTM-381, EXAM 1 QUESTIONS & ANSWERS UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS

Question:
1. Customers' willingness to pay and perceived value vary from one customer to another, or one occasion
to another. True or False
Answer:
True

Question:
2. To prevent high price guests from going to the low price options, hotels may not allow customers to
self-select. True or False
Answer:
False

Question:
3. Rate fences can help hotels reach their target markets without cannibalization. True or False
Answer:
True

Question:
4. Hotels can implement differential pricing because different customer groups have their unique needs,
wants and desires, as well as different levels of willingness to pay. True or False
Answer:
True

Question:
5. Service standardization can help to address the inconsistency of service. True or False
Answer:
True

Question:
6. Geographic segmentation is usually used to set up rate fences in hotel revenue management. True or
False
Answer:
False

Question:
7. The two approaches of price control in hotel industry are market-segment-based differential pricing and
time-based dynamic pricing. True or False
Answer:
True

, Question:
8. Which is NOT the major factor to consider when implementing differential pricing?
A. Market segmentation
B. Product versioning
C. Consumer welfare
D. Self-selection
Answer:
C. Consumer welfare

Question:
9. As a revenue manager, the ability to communicate with other departments and management about the
hotel revenue management solutions is not as important as other revenue management related skills. True
or False
Answer:
False

Question:
10. What is the industry term for a customer group which can be readily identified by one or more common
characteristics?
A. Market segment
B. STR group
C. Revenue group
D. Comp set
Answer:
A. Market Segment

Question:
11. Which of the Four I's of service refers to the tendency of consumers to equate the quality of service
provided with the attitude of the person who actually provides the service?
A. Intangibility
B. Inseparability
C. Inventory
D. Inconsistency
Answer:
B. Inseparability

Question:
12. A hotel recently provides a new service to its guests: a yoga matt is available in every guestroom. Such
a benefit provided by the hotel adds value for its guests who never practice yoga. True or False
Answer:
False

Question:
13. The definition of revenue management in hospitality is to apply the right pricing strategy to the right
customer for the right product/service at the right time within the right duration and capacity through the
right channel. True or False