Contemporary Marketing (MindTap Course List)
Contemporary Marketing (MindTap Course List)
17th Edition
ISBN: 9781305075368
Author: Louis E. Boone, David L. Kurtz
Publisher: Cengage Learning
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Chapter 19, Problem 1EE
Summary Introduction

To discuss: Whether the hidden charges to a resort or hotel bill are a smart marketing strategy.

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The law allows companies in various industries to add what manyrefer to as “hidden” charges to customers’ bills. Phone bills, airlinetickets, and hotel receipts often contain charges that are difficultto identify. A traveler who stays in a hotel might be hit with a hospitality fee, a resort fee, or an automatic gratuity, to name just afew. These charges are not taxes, and although they are itemized,it is difficult for the average traveler to make sense of them. Mostpeople either don’t check their bills thoroughly or are in a hurryto check out and don’t bother to dispute the charges, which maybe only a few dollars. But these charges add up over the course ofhundreds or thousands of visitors each year, and hotels are pocketing them—legitimately.281. Do you think adding hidden charges to hotel bills is a smartmarketing strategy? Why or why not?2. Visit the website of a hotel chain with which you are familiar tolearn if it gives any information about additional surcharges.If consumers were…
Letty is 17 years old. She just got her driver's license and is excited to buy her first car. She sees an ad on Craig's List for a 2010 Shelby GT500 for sale that peeks her interest. It is her favorite color, pink, in excellent condition with only 5,000 miles, and a convertible just like she wants. She calls the seller, Dominic, and tells him she wants to buy it. Dominic tells Letty the car is $30,000 and gives her his address so she can pick up the car and bring him the money. The next day Letty brings Dominic a check and drives the car home. Dominic was so excited about selling the car that before Letty arrived he decided to celebrate and drank 6 tequila shots and 3 beers. Dominic is quite a character, he loves to party and drinks almost every day. He's also somewhat of a daredevil and many of his friends describe him as fun but a little crazy. On his Facebook page he brags about how crazy he is. Three months later, Letty turns 18. She and her friends celebrate her birthday by going…
Nicolette Larson was loading the dishwasher with her husband, Kevin, and telling him about the first meeting of the Manchester United Tournament Organizing Committee. Nicolette, a self-confessed “soccer mom,” had been elected tournament director and was responsible for organizing the club’s first summer tournament.  Manchester United Soccer Club (MUSC), located in Manchester, New Hampshire, was formed in 1992 as a way of bringing recreational players to a higher level of competition and preparing them for the State Olympic Development Program and/or high school teams. The club currently has 24 boys and girls (ranging in age from under 9 to 16) on teams affiliated with the New Hampshire Soccer Association and the Granite State Girls Soccer League. The club’s board of directors decided in the fall to sponsor a summer invitational soccer tournament to generate revenue. Given the boom in youth soccer, hosting summer tournaments has become a popular method for raising funds. MUSC teams…
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