133 terms

DECA Hospitality Terms

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Misrepresentation
When one party makes a false statement to a second party with the intention of making the second party behave a certain way.
Ex. Business falsifies records to convince bank to lend it money
Negligence
When business is not doing something necessary or required.
Ex. When hotel breaches the duty of care
Fraud
Deception purposely carried out to secure unfair or unlawful gain.
Ex. Providing inaccurate information on tax returns and money laundering
Exclusive Dealing
An illegal agreement that forbids customers from buying goods and services from competitors. Many jurisdictions consider this practice illegal when it restricts trade.
Price Discrimination
An illegal activity in which a business charges different customers different prices for similar amounts and types of products.
Full-line forcing
Occurs when a producer requires its intermediaries to carry an entire line of its products rather than one or a few of the items. Can be an illegal activity if it restrains trade and competition
Selective Distribution
A distribution strategy in which a producer sells a product through a limited number of middlemen in a geographic area
Operations Management
The process of planning, controlling, and monitoring the day-to-day activities required for continued business functioning.
Selling
Marketing function that involves determining client needs and wants and responding through planned, personalized communication that influences purchase decisions and enhances future business opportunities.
Information Management
The process of accessing, processing, maintaining, evaluating, and disseminating knowledge, facts, or data to assist business decision making
Pricing
Marketing function that involves determining and adjusting prices to maximize return and meet customers' perceptions of value.
Product/Service Management
The marketing function that involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities
Production
The process or activity of producing goods and services
Mapping
Visual Method of note-taking that involves writing the main topic in a circle and writing supporting ideas on lines around the circle.
Cornell Method
Taking notes in two columns
Blind Carbon Copy (BCC)
Hides email addresses from the email's recipients
Place
Making sure that goods and/or services are available where customers need or want them. Can be a physical location or a site where a want or need is fulfilled.
Ex. Hotel building lodging facility on Interstate 95
Elastic Demand
When demand is elastic, consumers adjust demand for products based on price. Demand changes when prices change. Prices go up = consumers purchase less
Inelastic Demand
Demand for a good or service is constant, event if product's price changes
Complementary
Products that are usually together
Stages of Business Cycle
Business cycle involves fluctuating levels of economic activity ranging from expansion to contraction.
In periods of expansion, there is an increase in business growth, employment, and business and consumer spending.
In periods of contraction, business growth slows, unemployment rises, and consumer spending decreases.
Underemployment
Occurs when a worker is not working enough or is not fully using her/his skills and talents. Underemployment rate takes into account friction unemployment, downsizing, and technological unemployment.
Floating Exchange Rate
Determined by supply and demand. Changes depending on the market.
Pegged/Fixed Exchange Rate
Set by government and does not change based on market's fluctuations
Mutual Funds
Carries the advantage of professional management. Comes with a high price. High fees may cut into a mutual fund investor's returns. Mutual fund investors do not risk personal time and effort like entrepreneurs. Has high potential for return. No penalty for early withdrawal from mutual fund.
Accounts Receivable
Money that is owed to a business. They are an asset to the business, but they do not have a physical presence.
Petty cash-fund
A small amount of money that a business keeps on hand for inexpensive business purchases. By maintaining a petty-cash fund, a business can easily pay for things such as steps flowers, and coffee supplies without writing a check or going through regular purchasing procedures. Several factors go into determining amount of money that should be allocated to the petty-cash fund. Factors include average number and dollar amount of transactions that it expects during a certain time period.
Primary Information
New information collected for the purpose at hand.
Secondary Information/Data
Facts and figures that have been collected for purposes other than the project at hand.
Testimonial
Statement by an identified user of a product proclaiming the benefits received from use of the product
Tables
Sections of the database that contain specific categories or types of information about customers.
Ex. A table that contains contact information may include fields that store the customer's name, telephone number, email address, etc. Another table might contain information about the customer's purchasing history-products, quantities, and dates of purchase.
Pie Chart
Businesspeople often use a pie chart to compare the parts of whole concept such as market share of a particular industry or geographic location.
Flowchart
Presents a visual depiction of activities or processes in sequential order by integrating text in a graphic format.
Psychographic Segmentation
Involves dividing the market by consumers' lifestyles or personalities.
Ex. Health and fitness is a lifestyle factor
Demographic Segmentation
Divides market on the basis of its physical and social characteristics.
Ex. gender, education, age, and family life cycle.
Geographic Segmentation
Involves location factors such as physical location, climate, city size, etc.
Conversion Rate
Measures number of inquires that turn into sales expressed as a percentage.
Sample Plan
In marketing research, a sample plan is an outline for the sampling process that ensures that a truly representative sample of the population is selected in the most efficient way possible with the lowest potential for error.
Business Productivity
Amount of goods or services produced by a business from a set amount of resources.
Business Licenses
Documents that grant permission to operate a business
Business Trends
Tendencies and changes in the business world
Process Performance Management
Quality-control method that involves supervising business and manufacturing processes to ensure their quality and efficiency.
Gross Profit
A good indicator of how well a business is controlling its costs.
Semi-Variable Costs
Fixed until the business reaches a certain level of production; after that, they become variable.
Price Markups
Indicates the difference between total cost and selling price
Breakeven Point
Occurs when a company's total sales equal its total expenses.
Invoice
The formal, printed record of a sale that included all necessary information of a sales transaction.
Serves as a legal document or formal agreement in which one party takes possession of goods or services in exchange for payment within a certain time period.
Information includes the buyer, the seller, items purchased, quantities, prices, delivery date, credit, discount terms, etc.
Creative Destruction
Term coined by Austrian economist Joseph Schumpeter, it describes how new goods and services can hurt existing products. This is one risk of innovation
Franchise
A contractual agreement between a parent company and a franchisee to distribute goods or services.
Strategical Alliance/Joint Venture
An agreement that involves 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 for a single project/transaction.
Licensing
A business structure that requires the authorization or permission from an owner to another entity to use trademarked, copyrighted, or patented material for a specific activity, during a specific time period, for the profit of both parties.
Industries
-Hospitality industry: Provides services to people who are away from home.
-Recreation industry: A segment of the hospitality industry, provides services designed to provide rest, relaxation, and enjoyment.
-Entertainment businesses: Part of recreation industry. Includes movie theaters, concerts, and plays.
-Lodging industry: Consists of businesses that provide sleeping accommodations for travelers.
-Travel businesses: Provide transportation.
-Tourism industry: consists of businesses that promote travel for business and leisure.
Feasibility Study
Involves evaluating the target market's interest in the product, as well as production and marketing costs.
Product Extension
Involves adding a similar good or service to an existing product line or product category.
Product Bundling
Involves packaging two or more similar products together and selling them at a single price that is lower than if the customers purchase the items separately.
Brand Positioning
Branding strategy in which marketers create a certain image or impression of a brand as compared to those of competitors' brands.
Corporate Brand
All of the combined customer impressions and experiences associated with a particular company.
Short Message System/Service (SMS)
Technology that enables people to send text messages over cell phones.
Blog
Primary purpose of a corporate blog is to connect with company's target market in a more informal and personal way than through the corporate website. Blogs typically have articles podcasts, and videos about business-related topics that interest audience. Blogs should be reusable. Selling products is not primary purpose of blog.
"Search-friendly" URL
Businesses should strive to use an in-house classification for URLs by using clear, relevant keywords. Using applicable keywords in the URL is more likely to yield a higher placement in a search engine's results field when users want to find specific topics, articles, and authors.
Advertising Message
Color: tool used by advertisers use to create a certain mood.
Placement: The way in which the advertisement's elements are arranged on the page.
Reach: a quantitative measure of the number o different people in the target audience who are exposed at least once to an advertising message.
Frequency: quantitative measure of the average number of times a target consumer is exposed to an advertising message.
Value (artistic term)
In artistic terms, value is the degree of lightness or darkness on the surface of something such as an object in a drawing or photograph
Illustration
Graphic component of advertisement that visually ties headline and copy together. May include photographs, drawings, paintings, or a combination of media. Type of illustration has an impact on mood or tone of the advertisement.
Simulation
Imitation or an actual or plausible situation that enables trainees to practice their behavior and responses under certain circumstances. Often used for training purposes.
Word-of-mouth
(WOM) marketing involves customers communicating with others about satisfaction with a business. Occurs in person or online.
Publicity
Any non personal presentation of ideas, goods, or services that is not paid for by the company or individual that benefits from or is harmed by it.
Advergaming
Inclusion of a product, brand, or company in a video game for promotion
Cooperative advertising
When producers provide channel members with financial support to cover advertising expenses.
Template
Basic layout that developers use to create a web page. Provides visual consistency as visitors click through different sections of the website.
Hyperlink
Component of an electronic document that computer users click on to jump to another place within the document or into a different document.
Heat map
Color-coded graphical representation that shows marketers the ways in which visitors interact with the website
Server log
Purpose is to maintain a history of website page requests
Press kit
Purpose of press kit is to provide tools to obtain publicity through various media outlets. Should contain information about the business.
Product Acquisition
Involves location and purchasing goods for business use or for resale.
Institutional/Corporate Promotion
Type of promotion that aims to create a certain image in the eyes of consumers.
Quality assurance
Process that businesses use to prevent defective products from being produced
Competitive Analysis
Process of comparing a business's income statement with that of its competitors to see how it is doing by industry standards.
Retention rate
metric expressed as a percentage and indicates a business's ability to keep customers over a certain period of time
Accounting System
Consists of the methods and procedures used in consistently handling the business's financial information
Suggestion Selling
Sales technique in which the salesperson attempts to increase the customer's purchase by suggesting additional products to buy after the customer has made his original purchase decision
Up-selling
Sales technique in which salesperson suggests a higher priced product than the one that the customer originally requests
Online Reservation Systems
Enables consumers to purchase travel, tourism, and hospitality products directly with the service provider.
Router Software
Enables computer devices to access wireless Internet within a certain area.
Radio Frequency Identification (RFID)
Involves storing an order's product information on a computer chip and then attaching it to the shipment's box, container, or pallet. When shipment arrives at business, warehouse personnel use computer scanners to receive the items.
Intranet
An intranet allows company's employees to access and share information with others within an organization
Horizontal Conflict
Occurs between businesses at the same level in the distribution channel. When two franchisees compete for some market, horizontal conflict occurs over territory
Vertical Conflict
Occurs between different levels of the same channel, such as between franchisee and its franchisor
Bar graphs
Used to show changes over time or to compare figures between different groups
Corporate Culture
Values and ideals that an organization encourages among its employees
Customer advocacy
Word-of-mouth promotion and referrals from a business's current customers to its potential customers
Touch Points
All the opportunities that businesses have to connect with customers and reinforce their brand value
Relationship buying
Customers today prefer relationship buying to shopping around. Customers want to find businesses they feel comfortable with and stick with them.
Time Utility
When products are available at the time they are desired
Form utility
Created when business alters or changes the shape or form of a product to make it more useful or satisfying for consumers
Place Utility
Exists when goods are services are available at the place where they are needed or wanted by customers
Possession Utility
Exists when ownership or a product is transferred from the seller to the person or business that will use the good or service.
Buying Power
Buying power is the amount of money available. If consumers do not have money to spend, they cannot buy products.
Equilibrium
Point at which the quantity supplied is equal to the quantity demanded.
Elasticity
An indication of how changes in price will affect changes in the amounts demanded and supplied
Utility
Product's ability to satisfy a customer's wants or needs
Strategic risks
Broad and often concern the overall business environment. Can include competition, obsolescence, regulatory and political issues, and changing customer needs.
Hazard Risks
Potential events or situations that can cause injury or harm to people, property, or the environment. Most hazard risks can only cause business losses, not gains
Operational Risks
The possible events and situations that can result from employee actions, core processes, and daily business activities. Are often things that can go wrong in short term.
Financial Risks
Possible events or situations that directly influence a company's cash flow. Can be external or internal.
Outputs
Goods or services produced as a result of combining inputs.
Productivity
The amount and value of goods and services produced from set amounts of resources
Efficiency
Accomplishing a task with minimum expenditure of time and effort
Consensus
Making a decision by consensus means that each group member has equal power to say "yes" or "no." Is not majority or minority rule. Everyone has equal power
Double coincidence of wants
Occurs in a bartering system when each party wants something that the other party is willing to barter.
Transference
Involves moving the impact of a risk to someone or something else. Is often used when the impact is measurable in dollars and cents. Insurance is one common transference device, along with contracts, warranties, and guarantees
Avoidance
Involves choosing not to do something that is considered risky
Mitigation
Reducing or controlling the impact of a risk if it occurs
Acceptance
Involves accepting a risk's consequences because the potential payoff is higher than the losses.
Balance Sheet
Captures the overall financial condition of the business at that particular moment.
Income Statements (profit-and-loss statements)
Show how much money the business has made or lost during a specific period of time, usually one year. Also known as earnings statements and operating statements.
Cash flow statement
A financial summary estimating when, where, and how much money will flow into and out of business during a specific period of time
Cost of goods sold (cost of sales)
The amount of money a business pays for the product it will sell
Equity
Refers to the assets a company already owns
Dividend
A sum of money paid to an investor or stockholder as earnings on an investment
Hospitality and Tourism Products
Core of the hospitality and tourism product is to provide transportation, a place to sleep, food, or an experience for individuals whoa re away from home
Information management
The process of accessing, processing, maintaining, evaluating, and disseminating knowledge, facts, or data for the purpose of assisting business devision making. Deals with people, processes, and practices, not just hardware and software.
Data processing
A small part of information management. Data are the necessary facts and figures, but is not useful unless it provides info.
Behavior Segmentation
When segmenting by behavior, marketers consider factors such as the market's product knowledge, purchasing habits, and responses to products.
Occasion Segmentation
Classifies buying behavior by important events
Geographics
Involves segmenting a market by location
Psychographic Segmentation
The division of a market on the basis of consumers' lifestyles and personalities
Administrative Services
Facilitate business operations through variety of administrative and clerical duties. Ex. information and communication management, data processing and collection, and project tracking. Often referred to as support staff positions
Business Information Technology Employees
Help to align business and IT goals.
General Management Carrers
Focus on planning, organizing, directing, and evaluating part or all of a business organization through the allocation and use of financial, human, ad material resources.
Human Resources Management Careers
Focus on the staffing activities that involve planning, recruitment, selection, orientation, training, performance appraisal, compensation, and safety of employees.
Convention and Visitors Bureau (CVB)
Purpose is to encourage tourism and convince businesses and organizations to hold conventions and trade shows in a particular city or region. CVB funding varies by jurisdiction. Can be funded by taxes or by local businesses or both. May operate as nonprofit marketing organizations overseen by the local government or chamber of commerce.
Industry Trade Associations
Groups of persons working in the same industry who collaborate to further the industry's interests and goals. May actively involve in lobbying efforts to address regulatory issues that affect the industry. Can provide members with training and conduct research on behalf of industry.
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