Deceptive Advertising At Marigold Inn

888 Words 4 Pages
A case of Deceptive Advertising at Marigold Inn
University Student
University of the People Abstract
This paper presents a case study of Marigold Inn where there is low demand for its pizza. This is because of the perception by the consumers that the two business lines are not compatible and so the pizzas are not of high quality. Sharon, who is the Food Services Manager, suggests to her senior boss, George to engage in deceptive advertisements using the Napoli pizza name. there are alternatives to George and the underlying ethical issues. Deceptive Advertising
Deceptive advertising is also known false advertising where one uses untrue, confusing and misleading statements to promote a product (Laws.com, 2017). That is exactly what
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On the other hand, there is an increase in national sales of pizza delivery and the carry out firms. There is also an increase in the number of empty pizza boxes from competitors, found in guest rooms of Marigold Inn. Sharon is worried since the sales are going down. To increase sales, she installed a pizza oven in the kitchen and offered room service pizza to the guests. The sales improved but were below Sharon’s expectations. Feedback from guests, using questionnaires, pointed at the poor quality of the pizzas. Blind taste test done by Sharon improved the quality of the pizza to that of the competitors in Augusta but demand for them did not change. Sharon concluded that customers’ perception was the reason for low sales of pizza due to a mismatch between the image of the hotel and the expectations of guests about pizza makers. It was the diversification of the Marigold Inn making steak and seafood that seemed incompatible with quality pizza …show more content…
If George takes the advice of Sharon, the business will make more money from the sales and both Sharon and George will record good performance. However, the cost is on making the materials like brochures, T-shirts and the installation of the telephone extension. This cost is for the stockholders to cover. If George declines to take the advice of Sharon, it is of benefit to the employees of Marigold Inn because they will still be selling although not as the competitors. There are no costs for this option. Separating the pizza business from the Marigold Inn is of the greatest benefit. Sales will increase hence high profits. No costs are involved in making this

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