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Questions: 1. Consider the buyer's value formula. Do you think Ben's pricing strategy will significantly increase value offered and thus help the hotel sell out?
2. What impact will Ben's pricing strategy likely have on the value perceptions of those guests who have already booked at the Lennox?
3. Is it likely that those guests who have already booked rooms at the Lennox will find out about the new room rates? How would they? If you were Hillary, how would you respond to a telephone inquiry from an "early buyer" regarding the hotel's willingness to change the rate the guest had agreed to pay previously to the newer and lower room rates?
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