Refer to the Scenario Below to Answer the Following Questions

question 64

Multiple Choice

Refer to the scenario below to answer the following questions.
Tan Peng Kia, owner of Seabird Terrace, watched his investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Overlooking the Terengganu coast, Seabird Terrace had attracted thousands of visits in some months, but then faced a tremendous downturn in business during the monsoon season. "But, given the industry in the nearby towns, very little year-round competition, and our close proximity to towns," Tan said, "I couldn't understand why seasonality had to hit Seabird Terrace so hard!"
So Tan spent his time devising a new marketing plan. He put together a promotional package designed to attract business travelers year-round. Tan's plan, then, involved a seasonal large-scale selling and promotion effort -to be implemented from March to July -that would attract the usual crowd. His idea worked! During the monsoon season, Tan greeted numerous business travelers-both satisfied repeat guests as well as new guests who had been snagged by his promotional appeals.
"We still have a long way to go," Tan admitted. "Our restaurant offers delicious local foods, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Tan then added, "Actually, there are so many possibilities!"
-Renovations of the guest rooms at the Seabird Terrace are an example of the ________ concept.

• A) selling
• B) marketing
• C) product
• D) production
• E) societal marketing

---

Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, representing the per-unit cost of production.

Total Cost Function

A mathematical representation of the total economic cost of production, which includes both fixed and variable costs, as a function of output level.

Fixed Cost

An expense that remains constant regardless of the volume of products or services produced or sold.

Variable Cost

Expenses that directly fluctuate in relation to the amount of goods or services produced, including labor and materials.