HotwireCom,an Online Travel Company Specializing in Cheap and Discounted Hotel

question 28

Multiple Choice

Hotwire.com,an online travel company specializing in cheap and discounted hotel rates and airfares,often asks customers if their travel dates are flexible when pricing potential bookings.This practice helps Hotwire.com practice price discrimination by allowing it to

• A) easily distinguish between different groups of buyers.
• B) book reservations for customers who are most likely to travel before those who are less likely to travel.
• C) post higher prices initially and then lower the price based on room availability.
• D) determine which customers are simply comparison shopping and which ones are ready to make a purchase.
• E) offer high prices to customers with flexible travel dates and low prices to those who are on a fixed income.

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Definitions:

Motivation

The driving force or reasons behind an individual's actions, desires, or willingness to engage in a particular behavior.

Chess Player

A chess player is an individual who plays chess, a strategic board game requiring skill in planning and foresight.

Process Theories

Theories that focus on understanding how certain psychological and behavioral processes motivate individuals.

Cognitive Processes

Mental activities involved in acquiring, storing, retrieving, and using information, including perception, memory, thinking, and problem-solving.