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LGAV 3100 EXAM STUDY GUIDE A+ GRADED
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LGAV 3100 EXAM STUDY GUIDE A+ GRADEDDistribution problems of commodities shipped by air include - ANSWER Expensive,
custom packaging
Under a general commodity rate, - ANSWER As the weight of the shipment increase, the
per-pound rate decreases
Container rates - ANSWER Offers lower rates for containerized shipments
All-cargo airlines offer - ANSWER Point-to-point service
Which type of air cargo service transports primarily high-priority small packages? -
ANSWER Air express
Specific commodity rates are generally higher than general commodity rates - ANSWER
False
Air freight forwarders - ANSWER a. Are middlemen between shippers and airlines
b. Consolidate shipments
Which government department first controlled the air mail service? - ANSWER Post
Office Department
Cabotage is - ANSWER a. The exclusive right of a country to control air traffic within its
own boarders
b. A foreign operator carrying passengers between two domestic points of another
country
The U.S. offered foreign carriers the right to operate more international routes within
United States territory to - ANSWER Encourage greater pricing and operating flexibility
for American carriers
The drafting of the 1919 Paris Convention was drafted by - ANSWER The allied and
associated powers exclusively
The Two Freedoms Agreement - ANSWER b. Established the international privilege of
flying across territory without landing
c. Recognized the privilege of landing for nontraffic purposes
Bilateral agreements are - ANSWER b. Designed to establish operating and traffic rights
of U.S. airlines over foreign routes
c. Usually provide standards for customs duties and inspection fees
, The three factors influencing the development of airline alliances are: - ANSWER
Marketing advantages, nationality and ownership rules, and competition
The Bermuda Agreement of 1946 - ANSWER a. Set up a comprehensive procedure for
determining airline rates between the U.S. and U.K.
b. Placed IATA in charge of rate making
Many carriers are renaming their expanded business class as - ANSWER First class
MGM Grand Air, a luxury air carrier, failed because - ANSWER It couldn't cover
overhead costs
Price levels are determined by - ANSWER a. Demand
b. Production and marketing costs
During the customer-oriented period - ANSWER a. Carriers focus on increased market
segmentation and intensive growth strategies
b. The target-market approach is used for marketing strategy
c. Carriers rely more on market research before executing marketing strategy
Airlines are beginning to spend more money on marketing because since deregulation -
ANSWER a. Passengers are price sensitive
b. Passenger loyalty no longer exists
The 'shot-gun' approach during the ________ period was a marketing strategy aimed at
convincing passengers to change their mode of transportation. - ANSWER
Sales-oriented
________describes the process by which the marketing mix is changed - ANSWER
Marketing strategy
In the airline industry, marginal cost pricing is derived from - ANSWER Excess capacity
and perishable inventory
Some analysts believe that several large and strong air carriers must be eliminated
before prices stabilize and carriers use nonprice competition. - ANSWER False
Direct selling is the preferred method of sale by airlines because - ANSWER Costs are
reduced and savings passed to the passenger
70% of reservations made my U.S. travel agent are made through these systems -
ANSWER CRS
Mergers offer airlines the advantages of - ANSWER Increased market share and greater
economies of scale
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