You and Your Partners Are Investing Millions in Creating a Small

question 89

Multiple Choice

You and your partners are investing millions in creating a small chain of five-star boutique hotels in six of the finest cities in the world. Which of the following tactics fits best with your premium pricing strategy?

• A) Set room prices comparable to other high-end, boutique hotel chains
• B) Bundle spa services in with the room rates
• C) Advertise in magazines catering to wealthy, travel-minded consumers
• D) Design branding that reflects the elegant, luxurious sensibility of the chain

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Definitions:

Social Norms

Shared guidelines or rules that dictate acceptable and expected behavior within a society or group.

Social Facilitation

The process by which a person’s performance is increased when other members of a group engage in similar behavior.

Arousal

The physiological and psychological state of being awoken or stimulated to action.

Cognitive Tendencies

Cognitive tendencies are patterns or biases in thinking and decision-making, such as heuristics or cognitive biases, that influence how individuals interpret information.