Your company has recently requested that you travel to Dhaka, Bangladesh, to work on negotiations for a new factory to be located in one of the port cities. Your travel agent provides a list of several hundred local hotels and a Sheraton. In this case, the Sheraton brand-name is likely to be used as a signal of
A)perceived differences that are not likely to exist among your various options.
B)quality when quality cannot be easily judged.
C)inefficiency in markets characterized by recognizable brand names.
D)the quality of general lodging accommodations in Dhaka.

Question

Quizplus · Accepted Answer

The Sheraton brand-name serves as a signal of quality when quality cannot be easily judged among the several hundred local hotels. As an internationally recognized brand, it implies that the hotel meets a certain standard of quality and service, making it a preferable option for business travelers who may not have personal knowledge of the local hotel market.

Your Company Has Recently Requested That You Travel to Dhaka