Written Assignment Unit -06
DECEPTIVE ADVERTISING
BUS 5115 Business Law, Ethics and Social Responsibility
University of the People
March- 2021
, BUS 5115 BUSINESS LAW, ETHICS AND SOCIAL 2
RESPONSIBILITY
Written Assignment Unit-06
TOPIC:
Case Study: The Pizza Puzzle
Topic: Deceptive Advertising
Involved Parties:
George Hansen, General Manager of Augusta Marigold Inn, a Subsidiary of Hospitality
Enterprises
Sharon Coombs, Food Services Manager, Augusta Marigold Inn
George Hansen is General Manager for the Marigold Inn in Augusta, Georgia. Sharon Coombs is
Restaurant and Food Services Manager for the Inn. She reports to George. Two years ago, Sharon
noticed a decline in room service business, the highest margin portion of her operation. This decline
coincided with an increase in the national sales of pizza delivery and carryout firms as well as an
increase in the number of empty pizza boxes from these firms being left in guest rooms in the Inn.
Her immediate response was to install a pizza oven in the kitchen and offer room service pizza to
guests. The effort met with modest success, though it was well below her expectations.
Questionnaires completed by departing guests revealed a problem of product quality.
Focusing on this problem, Sharon improved the Inn’s pizza until blind taste tests judged it at least
equal in quality to the products of the two major pizza delivery competitors in Augusta. Sales did not
improve, convincing Sharon that the problem was a perceived mismatch between the hotel’s image
and guests’ expectations of pizza makers. Guests simply did not seem to believe that the traditional
steak and seafood restaurant at the Inn could make a high-quality, authentic pizza. Based on this
conclusion, Sharon presented the following proposal to George:
Sales of room service pizza are stagnant due to guests’ misperception that our product is lower in
quality than that of competitors. This misperception is based on the belief that until we disassociate
our pizza from the Marigold Inn name. Therefore, to capture more room service pizza business, we
should create a ‘Napoli Pizza’ image for our guest room delivery service by:
DECEPTIVE ADVERTISING
BUS 5115 Business Law, Ethics and Social Responsibility
University of the People
March- 2021
, BUS 5115 BUSINESS LAW, ETHICS AND SOCIAL 2
RESPONSIBILITY
Written Assignment Unit-06
TOPIC:
Case Study: The Pizza Puzzle
Topic: Deceptive Advertising
Involved Parties:
George Hansen, General Manager of Augusta Marigold Inn, a Subsidiary of Hospitality
Enterprises
Sharon Coombs, Food Services Manager, Augusta Marigold Inn
George Hansen is General Manager for the Marigold Inn in Augusta, Georgia. Sharon Coombs is
Restaurant and Food Services Manager for the Inn. She reports to George. Two years ago, Sharon
noticed a decline in room service business, the highest margin portion of her operation. This decline
coincided with an increase in the national sales of pizza delivery and carryout firms as well as an
increase in the number of empty pizza boxes from these firms being left in guest rooms in the Inn.
Her immediate response was to install a pizza oven in the kitchen and offer room service pizza to
guests. The effort met with modest success, though it was well below her expectations.
Questionnaires completed by departing guests revealed a problem of product quality.
Focusing on this problem, Sharon improved the Inn’s pizza until blind taste tests judged it at least
equal in quality to the products of the two major pizza delivery competitors in Augusta. Sales did not
improve, convincing Sharon that the problem was a perceived mismatch between the hotel’s image
and guests’ expectations of pizza makers. Guests simply did not seem to believe that the traditional
steak and seafood restaurant at the Inn could make a high-quality, authentic pizza. Based on this
conclusion, Sharon presented the following proposal to George:
Sales of room service pizza are stagnant due to guests’ misperception that our product is lower in
quality than that of competitors. This misperception is based on the belief that until we disassociate
our pizza from the Marigold Inn name. Therefore, to capture more room service pizza business, we
should create a ‘Napoli Pizza’ image for our guest room delivery service by: