WORKSHEET #2

TEST I – IDENTIFICATION. Provide your best answers.

1. A type of product differentiation that focuses on differentiation in a product based on

quality.
Answer: Vertical differentiation

2. A type of product differentiation when products are differentiated according to a

specific feature.
Answer: Horizontal Differentiation

3. An advertising strategy that focuses on a unique target market.

Answer: Special Niche

4. Part of the planning cycle in which it will give direction on how the whole process will
be undertaken.
Answer: Implement

5. Part of the planning cycle in which it is necessary in giving a road map that the whole
process will undertake.
Answer: Plan

TEST II- ESSAY: Answer the following questions below.

1. How can Low Price Strategy be applied in hospitality industry?

Answer: In service hospitality industry, especially in the commercial sections of the
hotel industry, it is necessary to be more market orientated. Therefore, in this industry,
price itself is a market driven factor and it will affect future demand and eventually price
can be used as a promotional aid for enticing new customers into the market or
attracting them away from competitor. Minimum prices and/or value for money can be
used as a sales image of the services if suitable. As has been previously indicated,
price, especially in areas where quality is difficult for consumers to assess in advance of
purchase, is often regarded as an indicator for quality. In this circumstance, prestige or
high-price policies may be more successful than value for money. If price is seen as an
indicator of quality expected, it is essential to fulfil the expectations of the customer,
especially to provide excellent services.

2. How can Differentiated Product Strategy be applied in hospitality industry?

Answer: According to my research, Differentiated Product Strategy be applied in
hospitality industry through hotel chains that have standardized processes will be
able to increase effectiveness by eliminating property operational uniqueness and
implementing new solutions quickly and more consistently. Hotels that understand
the importance of innovating in the next decade will recognize that standardized
operations will act as a multiplier in the positive effects that innovation will have
on both customers and the bottom line
3. How can Special Niche Strategy be applied in hospitality industry?
Answer: For me, Special Niche Strategy be applied in hospitality industry through by
targeting a niche market, hotels can adapt their services and products to better serve
customers and maybe face less competition, while achieving greater profitability with
the many other brands that offer the same type of product or service, a brand can use
niche marketing to stand out, appear more valuable, reach its growth potential, and
build a stronger, longer-lasting connection with its ideal audience.

4. What do you think is the most important part in hospitality planning?

Answer: The most important part in hospitality planning is needs to have a hospitality
planning cycle. Hospitality planning cycle lies in the value of planning ahead of time so
that the industry can perform well. This is because in event that they fail to plan they are
planning to fail. The industry needs to have a hospitality planning cycle for unity,
direction, and a sense of identity in achieving business goals like for a good service is
the key to success in any hospitality business. Many customers rely on internet reviews
to decide whether to visit a business – and just a couple of dissatisfied customers
sharing their experiences online can quickly put you out of business

5. How important is planning in meeting guest expectations?

Answer: Planning in meeting guest expectations is very important because to give
guests what they expect takes detailed planning, forecasting, and sound intuitive
judgment. Managers of excellent hospitality organizations try to mix all three together
into a strategy that allows them to give guests exactly what they expect and even a bit
more. Guests will return only if their experiences meet, if not exceed, their expectations.
The service strategy is the organization's plan for providing the experience that guests
expect.