Use the Case Below to Answer the Following Question(s)

question 5

Multiple Choice

Use the case below to answer the following question(s) .
The Tipton Hotel is considering a major remodeling effort and needs to determine the best combination of rates and suite sizes to maximize revenues.Currently,the hotel has 755 suites with the following history: Each market segment has its own price/demand elasticity.Estimates are: This means,for example,that a 1% decrease in the price of a standard suite will increase the number of suites sold by 1.5%.Similarly,a 1% increase in the price will decrease the number of suites sold by 1.5%.For any pricing structure (in $) ,the projected number of suites of a given type sold (we will allow continuous values for this problem) can be found using the formula:
(Historical average number of suites sold) + (Elasticity) (New price - Current price) (Historical average number of suites sold) /(Current price)
The hotel owners want to keep the price of a standard suite between $70 and $90; a gold suite between $90 and $110; and a platinum suite between $120 and $149.
Define S = price of a standard suite,G = price of a gold suite,and P = price of a platinum suite.
-The constraint that models the stated price range of a standard suite is ________.

• A)70 ≤ S ≤ 90
• B)90S² - 70S ≥ 0
• C)70S² - 90S ≤ 0
• D)35 ≤ S ≤ 45

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Definitions:

Promotion Program

A comprehensive strategy incorporating various promotional tools and activities to boost market presence, customer engagement, and sales performance.

Four Ws

A common framework in planning that refers to Who, What, Where, and Why, used to gather comprehensive information on a topic.

Push Strategies

Marketing tactics aimed at getting products in front of the customer, often through distribution channels, to increase demand.

Pull Strategies

Marketing techniques aimed at increasing demand for a product among consumers, encouraging retailers to stock the product in response.