Calculator Allowed: Yes
Transcription of this question: 4.Imperial Falls (IF)Imperial Falls (IF) is a luxury hotel in a city centre. The hotel is an old palace, elegantlyfurnished and overlooking the harbour. Of the highest quality, for decades IF has been thepreferred hotel for business travellers to the city. Relying on reputation and word of mouth,IF does little promotion. Its facilities include a swimming pool and a high-quality restaurant.Table 1 shows information about the principal hotels located in this city centre in 2018.Table 1: Selected information about the principal hotels in the city centre in 2018A.B.C.D.HotelImperial FallsBellevueWelcome RestExcaliburAverageServiceroom priceper night$245$179$215$155rating5 stars3 stars4 stars3 starsIn 2019, bookings at IF have begun to decline because of a new hotel, Guest Rooms (GR),which is part of a global chain. Many businesses have employees who travel to majorcities, where most business meetings occur. Hotels in city centres are usually luxurious andexpensive. GR is different. It offers clean, small rooms with Wi-Fi, a small desk and a doublebed. Room prices at GR are significantly lower than most city-centre hotels. The new GR islocated near the airport, 6 kilometres (3.72 miles) from the city centre.GR uses a fee-based membership model and member companies require employees to stayat a GR hotel when on business. Employees may also stay there when on personal travel.Guests use self-service check-in machines (similar to those used at airport check-ins), whichissue electronic keys. GR electronically bills the company directly. Service is minimal. GRrelies heavily on social media marketing. It also uses above-the-line promotion.(a)(b)(c)(d)State two types of above-the-line promotion.Using Table 1, construct a product position map/perception map for all four hotels priorto the opening of GR.Explain two ways in which GR is able to offer rooms at a lower price than IF.Discuss possible changes to IFS marketing mix to reduce the loss of customers to GR.