1) How can locating the breakeven point assist in price determination? this ques
ID: 399715 • Letter: 1
Question
1) How can locating the breakeven point assist in price determination? this question the chapter is about pricing decision miximun 1 page for this.
Do you think adding hidden charges to hotel bills is a smart marketing strategy? Why or why not?
Visit the website of a hotel chain with which you are familiar to learn if it gives any information about additional surcharges. If consumers were informed about the charges ahead of time, would you feel differently about them? Why or why not?
for this 2do question the chapter is about pricing stretegies.
this assigmente is for my class of marketing principles and analysing
Explanation / Answer
Answer 1 : Break even point is the point at which it the income is equal to expenditure i.e no profit no loss . At this point the business is able to overcome its expenses by selling the required number of products or services. This required number is determined by Break Even Analysis method.It takes into consideration the fixed cost, variable cost per unit and revenue per unit sold. This method also shows time required for the break even. Now to determine the break even point it is necessary to determine the price of the product.The product price will ultimately decide when will the break even achieved. Break Even point will show what amount of product you need to sell monthly , quaterly , semi annually and annually . To achive the BEP , price has to be determined looking at the time frame.It should cover your fixed cost, varialable cost and other costs.
Answer 2
I think its a smart marketing strategy of the hotel owners to add the hidden charges to the hotels bills of the customers. This is permitted by law so they are not doing any illegal things. They are also not liable for any legal action for doing so which has given the free hand to the hotel owners to charge the customers.Here the customers should check the pricing before the hotel check-inns. The hidden charges are added in the customer bills because there is a tendancy of most of the people to not check the bill only see the final amount and swipe the card and just leave. People generally trust the billing system of the luxury hotels. They are ready to pay the charges as it adds just a few more dollars in the bill. People generaly don't mind the addition of such small amount of charge. If the consurmers were informed about the charge ahead of the time I would feel differntly about them because the charges which are now going to get added in thier bill is conveyed to them. The customers are aware that they are being charged for the unknown reason. They will started thinking on it which was not happening in the first case where the itemized bill was directly given to the customer at the time of leaving the hotel. So there is a difference between these two situation. So the customer may have a second thought before coming the same hotel again keeping in mind about the charges.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.