Lindsay Believed That Customers Would Come to View Her New

question 40

Multiple Choice

Lindsay believed that customers would come to view her new resort hotel with high personal involvement because it was a quality property with an excellent view. Instead, she found that many of her customers came to the hotel only when she offered special price discounts. What aspect of consumer involvement had Lindsay ignored?

• A) Lindsay forgot that consumer involvement includes personal factors and situational factors as well as object factors.
• B) Lindsay forgot that most consumers are apathetic about travel, irrespective of the quality of facilities at their travel destinations.
• C) Lindsay forgot that consumer involvement is primarily a function of price; other factors such as quality are relatively unimportant.
• D) Lindsay forgot that consumer involvement develops only over long periods of time, and most tourists simply don't have the time to become involved consumers.

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Definitions:

Reportable Segments

Parts of a business that have separate financial information available, which can be evaluated regularly by the company's chief operating decision-maker in deciding how to allocate resources and in assessing performance.

Profits

The financial gain remaining after subtracting all expenses, taxes, and costs from total revenue.

Revenues

The total amount of money received by a company for goods sold or services provided during a specific time period.

Assets Test

A means of determining eligibility for certain government assistance programs based on the value of an individual's or entity's assets.