Q1. Explain the basis of market segmentation and explain each basis in detail.

Ans. Bases are – Demographic, Geographic, Behavioural, Psychographic, Firmographic

a)     Demographic Segmentation - Demographic segmentation is one of the simple, common methods of market segmentation. It involves breaking the market into customer demographics as age, income, gender, race, education, or occupation. This market segmentation strategy assumes that individuals with similar demographics will have similar needs. Example: The market segmentation strategy for a new video game console may reveal that most users are young males with disposable income.

b)     Geographic Segmentation - Geographic segmentation is technically a subset of demographic segmentation. This approach groups customers by physical location, assuming that people within a given geographical area may have similar needs. This strategy is more useful for larger companies seeking to expand into different branches, offices, or locations. Example: A clothing retailer may display more raingear in their Pacific Northwest locations compared to their Southwest locations.

c)      Behavioral Segmentation - Behavioral segmentation relies heavily on market data, consumer actions, and decision-making patterns of customers. This approach groups consumers based on how they have previously interacted with markets and products. This approach assumes that consumers prior spending habits are an indicator of what they may buy in the future, though spending habits may change over time or in response to global events. Example: Millennial consumers traditionally buy more craft beer, while older generations are traditionally more likely to buy national brands.

d)     Psychographic Segmentation - Often the most difficult market segmentation approach, psychographic segmentation strives to classify consumers based on their lifestyle, personality, opinions, and interests. This may be more difficult to achieve, as these traits (1) may change easily and (2) may not have readily available objective data. However, this approach may yield strongest market segment results as it groups individuals based on intrinsic motivators as opposed to external data points. Example: A fitness apparel company may target individuals based on their interest in playing or watching a variety of sports.

e)     Firmographic Segmentation - Firmographic segmentation is the same concept as demographic segmentation. However, instead of analyzing individuals, this strategy looks at organizations and looks at a company's number of employees, number of customers, number of offices, or annual revenue. Example: A corporate software provider may approach a multinational firm with a more diverse, customizable suite while approaching smaller companies with a fixed fee, more simple product.

Q2. What is consumer behaviour? Explain the process involved in consumer buying decision.

Ans. Consumer behavior is the study of consumers and the processes they use to choose, use (consume), and dispose of products and services, including consumers’ emotional, mental, and behavioral responses. Consumer behavior incorporates ideas from several sciences including psychology, biology, chemistry, and economics.

a)      Problem Recognition or Need Recognition.

b)     Information Search.

c)      Evaluation of Alternatives.

d)     Purchase Decision.

e)     Post-Purchase Evaluation.

a) Problem Recognition or Need Recognition. - Need recognition of Problem Recognition is the first stage of the buyer decision process. During need or problem recognition, the consumer recognizes a problem or need satisfied by a product or service in the market.

·        Changes in the Financial Status

·        Promotional Activities

·        Consumer’s Previous Decisions

·        Individual Development

b) Information Search.- The second stage of the purchasing process is searching for information. Once the need is recognized, the consumer is aroused to seek more information and moves into the information search stage.

·        Personal sources: This includes family, friends, neighbors, acquaintance, etc.

·        Commercial source: This includes advertising, salespeople, dealers, packaging, display, etc.

·        Public sources: This includes mass media, consumer rating organizations, etc. they also become confidential to provide information.

·        Experimental sources: This includes handling, examining, using, etc. Such information becomes decisive and confidential.

c) Evaluation of Alternatives. - Evaluation of alternatives is the third stage of the buying process. Various points of information collected from different sources are used in evaluating different alternatives and their attractiveness. While evaluating goods and services, different consumers use different bases.

·        First, it is assumed that each consumer sees a product as a bundle of product attributes.

·        Second, the importance of depending upon their needs and wants.

·        Third, the consumer will develop a set of brand beliefs about where each brand stands on each attribute.

·        Fourth, the consumer’s expected total product satisfaction will vary with the changes at the levels of different attributes.

·        Fifth, the consumer develops attitudes toward the different brands through some evaluation procedure.

d) Purchase Decision. - At this stage of the buyer decision process, the consumer buys the product. After the alternatives have been evaluated, consumers decide to purchase products and services. They decide to buy the best brand. But their decision is influenced by others’ attitudes and situational factors.

·        But two factors might influence the purchase intention and the purchase decision. The first factor is the attitudes of other people related to the consumer.

·        The second factor is unexpected situational factors. The consumer may form a purchase intention based on factors such as expected price and expected product benefits.

e) Post-Purchase Evaluation.- In the buyer decision process’s final stage, post-purchase-purchase behavior, the consumer takes action based on satisfaction or dissatisfaction. In this stage, the consumer determines if they are satisfied or dissatisfied with the purchasing outcome. Here is where cognitive dissonance occurs, “Did I make the right decision.” At this stage of the buyer decision process, consumers take further action after purchase based on their satisfaction or dissatisfaction.


Q3. Explain the various methods/tools involved in promotion mix.

Ans. In marketing, the promotional mix describes a blend of promotional variables chosen by marketers to help a firm reach its goals.

a)      Advertising

b)     Public relations or publicity

c)      Sales promotion

d)     Direct marketing

e)     Personal selling

a) Advertising - Advertising involves mass media, from TV and radio to the Internet, magazines, newspapers and billboards. Its impersonal nature usually leaves little room for gathering instant feedback from receivers. That's why you must study how your target audience will respond to your message before you send it.

Advertising can help you:

·        Introduce your target market to new products, new product features and new applications.

·        Persuade your audience to choose your product over a competitor's or to perceive your product in a new way, perhaps by launching an "image" appeal.

·        Remind your target market of your product's features, benefits and availability.

b) Public Relations/ Publicity - Publicity is free advertising. You can generate publicity through press releases, special events, sponsorships, newsletters and community activities. The most common form of publicity is press coverage. It fits into the promotional mix only when there's newsworthy information about your company such as:

·        You've developed a breakthrough technology or service that no one else offers.

·        You've won a prestigious award or industry prize that's widely recognizable.

·        You've made a major investment in your community, whether in ramping up hiring (especially if you're aggressively courting people with disabilities, senior citizens or implementing welfare-to-work programs), purchasing land to build your new headquarters or donating goods to charities.

·        You've acquired another company.

·        You're hiring new executives or announcing the addition of new board members.

c) Sales Promotion - Sales promotions are marketing activities that provide extra value or incentives to your sales force, distributors or consumers. Sales promotions tend to lose their luster after a few weeks or months. They're typically woven into a promotional mix to:

·        Encourage customers to use the product more frequently and to attract users of a competing brand.

·        Transform potential customers into actual customers.

·        Encourage retailers to carry more inventory.

d) Direct Marketing - Direct marketing enables you to communicate with your customers in a more personalized way than advertising, such as greeting them with a letter or telephoning them directly. Telemarketing, direct mail, catalogs and coupon mailers are all examples of direct-marketing techniques.

Consider using direct marketing in your promotional mix if:

·        Your primary means of distributing your product is through the mail or directly to customers.

·        You are selling products with many benefits.

·        Your advertising efforts fail to reach your target market.

·        You are selling an expensive product or service.

·       Your business depends on reorders and/or volume.

f) Personal Selling - Personal selling brings humanness to selling. Sales representatives do what advertisements do: inform, persuade or remind. But they do it in person and can thus give your company a distinct personality. There are two types of salespeople, order getters and order takers. Order getters engage in creative selling by finding and winning over customers. Order takers are more passive: They wait for customers to find them.

Q4. What is meant by SWOT & PEST analysis?

Ans. SWOT                                                                                      

·        Strengths - Strengths describe what an organization excels at and what separates it from the competition: a strong brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example, a hedge fund may have developed a proprietary trading strategy that returns market-beating results. It must then decide how to use those results to attract new investors.

·        Weaknesses - Weaknesses stop an organization from performing at its optimum level. They are areas where the business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high levels of debt, an inadequate supply chain, or lack of capital.

·        Opportunities - Opportunities refer to favorable external factors that could give an organization a competitive advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing sales and market share.

·        Threats - Threats refer to factors that have the potential to harm an organization. For example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other common threats include things like rising costs for materials, increasing competition, tight labor supply. and so on.



·        Political factors relate to how the government intervenes in the economy. Specifically, political factors have areas including tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government aims to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads).

·        Economic factors include economic growth, exchange rates, inflation rate, and interest rates. These factors can drastically affect how a business operates.

·        Social factors include the cultural aspects and health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. High trends in social factors affect the demand for a company's products and how that company operates.

·        Technological factors include technological aspects like R&D activity, automation, technology incentives and the rate of technological change. These can determine barriers to entry, minimum efficient production level and influence the outsourcing decisions. Furthermore, technological shifts would affect costs, quality, and lead to innovation

Q5. Explain the methods involved in hospitality marketing research.

Q6. Discuss in detail about STP strategies.

Ans. Segmentation, targeting, and positioning (STP) is a marketing model that redefines whom you market your products to, and how. It makes your marketing communications more focused, relevant, and personalised for your customers.

The STEP Formula - Segmentation + Targeting = Positioning



Segmenting the audience into smaller groups based on specific attributes gives you better clarity on who benefits the most out of your product and how. With this clarity, you can make your messages more focused and relevant to target groups.

Segmentation gets you better results even when you're nurturing your existing subscribers. Using tools like Salesforce's Email Studio, you can segment your current subscribers' list based on their profiles and send targeted email campaigns, improving your open and click rates. Segmenting your existing customer base also helps you make an informed guess about your larger audience. By extrapolating current customer data, you can identify potential audience segments and build your marketing strategy around them.


The next step in the STP model is targeting. This is the stage where you decide which segments you created during the segmentation phase are worth pursuing. You should ideally consider the below criteria to choose your targetable segments:









The final stage of the STP model, positioning, is where you use the insights gained from segmentation and targeting to decide how you're going to communicate your product to chosen audience segments. While segmentation and targeting are about customers, positioning is about your product from the customer's perspective. You can consider positioning as the bridge that connects your product with the audience. This is the stage where you perform competitor analysis, figure out your value proposition, and communicate that to your customers. The best way to approach positioning is by drawing a Product Positioning Map that has two key market attributes as its axes and plotting your competitors and you in it. This will give you a clear picture of how you stack up against your competition and where you should place your product to maximise profits.

Q7. Explain the different methods of pricing in hospitality sector.


1. Demand-based pricing

2. Rate parity pricing

3. Occupancy-based pricing

4. Optimized rate level utilization

5. Market segmentation pricing

6. Day of week (DOW) pricing

7. Competitive pricing

8. Penetration pricing

9. Discounted and promotional pricing

10. Length of stay pricing

11. Flex rate and semi-flex rate pricing

12. Upselling

13. Cross-selling

14. Hotel package pricing



Q8. Define ‘Marketing Research. Explain in detail various steps involved in MR.

Ans. Market research provides valuable information and insight into the hospitality industry. Whether you are relying on independent, third-party data or are gathering statistics yourself, the data can be used to make appropriate decisions regarding entering or expanding your operations in the hospitality industry.

Steps involved are –

·        Identify an issue, discuss alternatives and set out research objectives

·        Develop a research program

·        Choose a sample

·        Gather information

·        Gather data

·        Organize and analyze information and data

·        Present findings

·        Make research-based decisions

·        Take action based on insights

Q9. Explain the importance of ‘Physical Evidence’ & it’s impact on customer experience.

Ans. Physical evidence provides tangible cues of the quality of experience that a company is offering. It can be particularly useful when a customer has not bought from the organisation before and needs some reassurance, or is expected to pay for a service before it is delivered. For a restaurant, physical evidence could be in the form of the surroundings, staff uniform, menus and online reviews to indicate the experience that could be expected. For an agency, the website itself holds valuable physical evidence – from testimonials to case studies, as well as the contracts that companies are given to represent the services they can expect to be delivered.


Q10. What is PLC? Explain various strategies of PLR.

Ans. A product life cycle is the length of time from a product first being introduced to consumers until it is removed from the market. A product’s life cycle is usually broken down into four stages; introduction, growth, maturity, and decline.


Private Label Rights –


Q11. What are ‘objectives and factors’ which influence pricing?


Internal factors

 When setting price, marketers need to take into consideration several factors, which are the result of company choices and actions.

       Return on Investment (ROI)-A firm may set as a marketing objective, the prerequisite that all products achieve a certain percentage return on the organization’s spending on marketing the product.

       Cash flow-Firms might seek to set prices at a level that will insure that sales income will cover product production and marketing costs. This is most likely to happen with new products where the organizational objectives permit a new product to simply meet its expenditures while efforts are made to establish the product in the \market.

       Market share-The pricing decision might be important when the firm has a goal of gaining a hold in a new market or retaining a certain percentage of an existing market .

       Maximize profits-Mature products that appeal to a market that is no longer growing may have a company target requiring the price be set at a level that optimizes profits.

       Fixed costs-Likewise referred to as overhead costs, these represent costs the marketing organization sustains that are not affected by level of production or sales.

       Variable costs-These costs are directly related with the production and sales of products and, consequently, might change as the level of manufacture or sales changes. Typically variable costs are assessed on a per-unit basis since the cost is directly connected to individual items.


External factors

There are a number of swaying factors, which are not controlled by the company but will influence pricing decisions. Understanding these factors necessitates the marketer conduct research to monitor what is off happening in each market the company serves since the consequence of these factors can vary by market.

       Elasticity of demand-Understanding how price changes influence the market necessitates the marketer have a firm understanding of the idea economists call elasticity of demand, which relates to how purchase amount changes as prices change.

       Customer expectations-Possibly the most noticeable external factors that influence price setting, are the expectations of customers and channel partners. When it comes to making a purchase decision customers assess the overall “worth” of a product much more than they assess the price

       Direct competitor pricing-Almost all marketing decisions, including pricing, will contain an evaluation of competitors’ offerings. The impact of this information on the actual setting of price will be contingent on the competitive nature of the market. For example, products that dominate markets and are viewed as market leaders might not be heavily influenced by competitor pricing since they are in a commanding position to set prices as they see fit.

       Related product pricing-Products that offer new ways for explaining customer needs may look to pricing of products that consumers are currently using even though these other products might not appear to be direct competitors.

       Primary product pricing-Marketers may sell products regarded as complementary to a primary product. For example, Bluetooth headsets are considered complementary to the primary product mobile phones. The pricing of complementary products may be affected by pricing variations made to the primary product since customers may compare the price for complementary products based on the primary product price.

       Government regulation-Marketers need to be aware of regulations that influence how price is set in the markets in which their products are sold. These regulations are primarily government endorsed, meaning that there may be legal consequences if the rules are not followed. Price regulations can come from any level of government nd vary extensively in their requirements.

Q12. Explain the ‘importance of market research’ and what is

a)     Survey Methods

b)     States Forecasting

Ans. Importance of market research

·        Identifies new products or services

·        Identifies potential customers

·        Establishes viability of a product or service

·        Anticipates and discovers future market trends

·        Keeps your company ahead of competitors

·        Decides best marketing strategy

·        Reduces risk and increases profitability

·        Identifies threats and opportunities

·        Helps to understand existing customers

·        Assists in realistic goal setting

a) Survey Methods –

·        Online Survey Method

·        Face-to-Face Surveys

·        Focus Groups

·        Panel Sampling

·        Phone Survey

·        Mail Surveys

·        Kiosk Surveys

·        Paper Surveys

Q13. Explain the following:

a)     Buying Process

b)     Market Segmentation

c)     Brand Equity

d)     Relationship Marketing

e)     Promotional Mix


a) Buying Process –

·        Problem Recognition. ...

·        Information Search. ...

·        Evaluation of Alternatives. ...

·        Purchase Decision. ...

·        Purchase. ...

·        Post-Purchase Evaluation.

b) Market Segmentation - Demographic, psychographic, behavioral and geographic segmentation

c) Brand Equity - Brand equity refers to a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability. Mass marketing campaigns also help to create brand equity.

d) Relationship Marketing - Relationship marketing is a form of marketing developed from direct response marketing campaigns that emphasizes customer retention and satisfaction rather than sales transactions. It differentiates from other forms of marketing in that it recognises the long-term value of customer relationships and extends communication beyond intrusive advertising and sales promotional messages.

e) Promotional Mix -  A promotion mix is a set of different marketing approaches that marketers develop to optimize promotional efforts and reach a broader audience. The marketer’s task is to find the right promotion mix for a particular brand.

·        Improves the effectiveness of promotional campaigns

·        Helps segment the audience

·        Improves communication with clients

·        Informs subscribers

·        Stands out from the crowd

Q14. Explain the importance of Sales & Marketing in hospitality industry. Also write about ‘Social Media Marketing.’

Ans. Marketing and sales are important areas within the hospitality industry as they directly correlate to the profitability of a business. The Marketing and Sales team is responsible for maximising a hotel’s revenue by developing strategies and business plans to increase revenue.

Strategies for Success - The hospitality industry use different methods to develop and maintain an efficient marketing plan. The following are some of the general strategies that marketers use for brand success.

Research - Customers choose hotels and other hospitality services for a wide range of reasons. The role of marketers is to recognize what factors make customers choose a specific hospitality service, and this requires extensive research. By interacting with current and former guests, taking customer reviews on websites, reviewing industry data and more, helps the professionals to learn about what actually customer needs.

Awareness - Brand awareness is very important to attract customers. If potential customers don’t know about a service, they can’t purchase it. Marketers make sure that information on hotels, resorts and restaurants is simple to find and always up-to-date. They can achieve this by doing advertisements on relevant travel sites and collaborating with other, noncompeting hospitality services in the same market.

Promotion - Another elegant strategy for attracting customers is to do promotions during certain times of the year, typically when business is slower. Offering incentives is one of the most prominent ways to achieve this and grab the market. Promotions are a never ending process.

Relationships - Good customer relationships are vital to ensure repeat business.

Resources - The best way to embark your career in hospitality management is with the right kind of education. Because marketing plays such an important role in the industry, it is important to choose a program that provides a strong background of business and marketing courses.


Social media marketing (SMM) (also known as digital marketing and e-marketing) is the use of social media—the platforms on which users build social networks and share information—to build a company's brand, increase sales, and drive website traffic. In addition to providing companies with a way to engage with existing customers and reach new ones, social media marketing (SMM) has purpose-built data analytics that allow marketers to track the success of their efforts and identify even more ways to engage.


Q15. Define pricing. Explain the various pricing methods and strategies in hospitality marketing.

Ans. Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan.

Pricing methods and strategies –

·        Occupancy-based pricing.

·        Forecast based-pricing.

·        Market competition-based pricing.

·        Segment-based pricing.

·        Length of stay-based pricing.

·        Guest type-based pricing.

·        Cancellation policy based pricing.

·        Upselling based pricing.

Q16. What is physical evidence? Explain the peripheral & essential evidence with examples.

Ans. Physical evidence: -

·        is the tangible proof that establishes credibility

·        includes the look and feel of your business branding

·        spans the physical and digital environment.

Physical evidence may be:


·        a retail store

·        interior design

·        a business website

·        online ratings and reviews

·        the uniforms and behaviour of employees.

(a) Peripheral Evidence

Peripheral evidence is actually possessed as part of the purchase of a service. It has however little or no independent value. Thus a bank cheque book is of no value unless backed by the funds transfer and storage service it represents.

An admission ticket for a cinema equally has no independent value. It merely confirms the service. It is not a surrogate for it. Peripheral evidence ‘adds to’ the value of essential evidence only as far as the customer values these symbols of service.

The hotel rooms of many large international hotel groups contain much peripheral evidence like directories, town guides, pens, notepads, welcome gifts, drink packs, soaps and so on. These representations of service must be designed and developed with customer needs in mind. They often provide an important set of complementary items to the essential core service sought by customers.

(b) Essential Evidence:

Essential evidence, unlike peripheral evidence, cannot be possessed by the customer. Nevertheless essential evidence may be so important in its influence on service purchase it may be considered as an element in its own right. The overall appearance and layout of a hotel; the ‘feel’ of a bank branch; the type of vehicle rented by a car rental company; the type of aircraft used by a carrier are all examples of physical evidence.


Q18. Describe the various components of hospitality marketing mix with examples.

Ans. The product–service mix, the presentation mix, and the communication mix.

Q19. What is distribution channel in marketing? Explain various distribution channels involved in HM?

Ans.  Distribution channel

·        A distribution channel, in simple terms, is the flow that a good or service follows from production or manufacturing to the final consumer/buyer.

·        The link between producers and the end consumer is normally intermediaries, such as wholesalers, retailers, or brokers. The intermediaries can be natural persons or businesses.

·        Distribution channels can be either direct or indirect. The indirect channels can be divided up into different levels – one-channel, two-channel, and three-channel.

Q21. What is marketing target? Discuss the process of marketing target.











1.     What is environmental scanning? Explain types of environmental scanning.

ANS. Environmental scanning is the ongoing tracking of trends and occurrences in an organization's internal and external environment that bear on its success, currently and in the future. The results are extremely useful in shaping goals and strategies. There are five main types of environmental scanning: technological, legal, ecological, sociological, and economic (financial).

2.     Expand PLC and explain various stages involved in PLC.

Ans. Product Life Cycle

Stages involved are – Introduction, Growth, Maturity, Decline


3.     What are the factors which influence consumer behaviour?

Ans. Psychological, Social, Cultural, Personal, and Economic factors.

4.     Define : Differentiated Marketing, Undifferentiated  Marketing.

Ans. Undifferentiated Marketing – Mass marketing - Undifferentiated marketing, or mass marketing, is a strategy that a company my chose to adopt if the market segmentation exercise has not been useful and has not produced meaningful and substantially different segments. The strategy here is to focus on common characteristics rather than on differences. The company designs a product and accompanying promotion that would appeal to the largest group of buyers possible. This strategy is also adopted by brands that have universal appeal. For example, Coca-Cola is one of these brands that has large marketing resources and appeals to many market segments with different needs and wants.


Differentiated Marketing – Special Offer - Differentiated marketing, or segmented marketing, is deployed when the company settles on one market segment or a few market segments that provide the best opportunities for them. Each segment is targeted with special offer designed to appeal specifically to the buyers of that market. Creating a stronger position within one segment would normally lead to higher sales, more repeat purchase behaviour and higher satisfaction from the customers. All of this comes at a higher cost than undifferentiated marketing as each segment will require a different product bundle and this lowers the chance for economies of scale. Promotion cost also grow with the growing number of campaigns.


5.     Explain ‘Market environment’ with reference to

·       Environmental scanning

·       SWOT Analysis

6.     What are 7P’s of marketing? Explain in brief.


1. PRODUCT - It goes without saying that the service or product you’re selling should be at the centre of every element of the marketing mix.

2. PRICE - The strategy behind the pricing of your product needs to be based on what your customers are prepared to pay, costs such as retail mark-up and manufacturing, as well as other considerations.

3. PROMOTION - Successful marketing strategies include all the promotional activities across the marketing mix, - including advertising, direct marketing, and in-store promotional activities.

4. PLACE - Where and how your product is displayed and sold should be directly informed by your customers. A deep understanding of their purchasing patterns – and targeting them at the right stage in their buying cycle – will make it clear where you should promote and sell your products and how that fits into your online and real-world marketing mix.

5. PEOPLE - Excellent customer service not only converts to sales, but can increase your customer base by referrals. Acquiring these referrals by people who love your brand can also be a great example of how your marketing efforts can support your sales process.

6. PROCESS - The process of delivering your product to the consumer should be designed for maximum efficiency and reliability, but may also include features that are in line with your brand, such as being environmentally or sustainably focused.

7. PHYSICAL EVIDENCE - Physical evidence incorporates aspects that proves your brand exists and that a purchase took place. This, of course, includes packaging and branding, but should also bring in the ways products are displayed in stores, where they are placed, and the context in which they sit, as well as digital placement, including on your website and social media.

7.     Describe the various components of hospitality marketing mix with examples.

ANS. The product–service mix, the presentation mix, and the communication mix.


8.     Concentrated Marketing

Ans. A marketing segmentation strategy in which the firm concentrates its entire efforts and resources on serving one segment of the market; also called Niche Marketing.

9.     Describe the basis and need for target marketing in hospitality industry.

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