! Consider the global hotel market.A. Describe and explain the role of sunkcosts, economies of scale, and economiesof scope as drivingforces behind the development of a hotelchain.B. Explain the trade-off for managerialdecisions when considering servicestandardization and the roleof service standardization on marketsegmentation (i.e. hotels with differentlevels of servicestandardization). Use diagrams to supportyour arguments.

Answered: Consider the global hotel market. A.…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

Consider the global hotel market.
A. Describe and explain the role of sunk
costs, economies of scale, and economies
of scope as driving
forces behind the development of a hotel
chain.
B. Explain the trade-off for managerial
decisions when considering service
standardization and the role
of service standardization on market
segmentation (i.e. hotels with different
levels of service
standardization). Use diagrams to support
your arguments.

Expert Solution

Concept

Disclaimer: Since you have asked multiple question, so we will solve the first question for you. If you want any specific question to be solved then please specify the question number or post only that question.

Producing in economies of scale reduce the unit cost of hotel firm . Where providing various services they decline their cost which help to obviously covering sunk cost .

So these two helps to maximize their profit and provide their service to customers at reasonable cost. All kinds of cists have their individual significance and reasons why they occur.