Business and Marketing Assessment V
1. Identify two ads or examples of pricing strategies. Include the example or describe it. Provide a discussion of what two potential types of pricing are displayed in the ad or example. Because we are studying the hospitality and tourism industry, try to focus on ads and examples from these industries.
2. According to the International Franchising Association, between 30 and 50 percent of all new franchise applicants are people who formerly worked in large corporations and who lost their jobs as a result of corporate downsizing. How do you think these midlevel, midcareer corporate executives will adapt to life as franchise owners? How will their previous corporate experience help them? How will it hurt them?
3. Can a hotel or restaurant increase or maintain customer satisfaction after implementing its first revenue management program? Explain your answer.
4. You have just been hired as the dining room manager at a local hotel. The manager asks you to evaluate the menu prices to see if they need to be adjusted. How would you go about this task?
Your response should be at least 200 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Reference:
Kotler, P., Bowen, J. T., & Makens, J. C. (2014). Marketing for hospitality and tourism (6th ed.). Upper Saddle River, NJ:
Prentice Hall.
Business and Marketing
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Question 1
Two ads or Examples of pricing strategies used in hospitality and tourism industry include penetration pricing and neutral pricing. Penetration pricing refers to a case whereby a restaurant sets low prices depending on the organization’s economic value to focus on attracting potential consumers (Kotler, Bowen and Makens, 2014). This pricing strategy functions effectively when the price is very sensitive in cases whereby consumers want to change the restaurant to get better prices elsewhere. A Restaurant that may use this strategy opts to have a lower profit margin to get a high market share and high sales volumes. A restaurant may use penetration pricing to market to customers who have a general view of restaurants as simply places for sleep and no need for other additional amenities. A restaurant, therefore, may set lower prices to get higher volume of sales and gain a cost advantage over its competitors.
A restaurant also may use neutral pricing strategy to set prices as moderate level depending on the economic value to its potential customers. In this case, a restaurant may use attributes (qualities) other than price to get a competitive advantage. The hotel can use a neutral strategy as a default when it cannot use penetration pricing due to its market conditions or market structure. Hudson (2008) explains that neutral strategy is used to target consumers who do not intend to pay for high prices, though they need certain additional amenities like gym, swimming pools, and other standout facilities.
Question 2
About 30% to 50% of all new franchise applicants are individuals who previously worked in big corporations and who lost their jobs as an impact of corporate downsizing. These midlevel midcareer corporate executives can adapt to live as franchise owners. Many people may lose jobs as a consequence of corporate downsizing, but there are important activities that such people can still do to lead a successful life (Kozak and Andreu, 2007). Involving in social activities (such as participating in sports like playing golf and spending time with family members) are important involvements that can enable these people live positive life rather than regretting misfortunate that befall them. Losing a job is a part of life and is an inevitable reality. But, going back to corporate jobs is going back to the same stuff that might befall them again.
Leading positive life is a strength that can help these people to move on with life and starts venturing on potential business activities that enable them earn a decent living. Franchising is a potential opportunity for creating jobs through working with others and earning a decent living (Morrison, 2013). Becoming a franchise owner is an important alterative; for example, creating and running a franchise restaurant can be a rewarding business activity. Thus, previous corporate experiences of these people can help them in operating franchise business...