What type of pricing strategy allows a Marriott hotel to charge significantly more for its amenities compared to an Econo-Lodge?

The correct answer is a value-based pricing strategy. This approach is particularly suitable for services such as those offered by Marriott hotels, as it allows them to set prices based on the perceived value of their amenities and services to customers rather than just costs or competition.

Marriott hotels typically offer a range of high-quality services, luxurious accommodations, and additional amenities that enhance the overall experience for guests. Because consumers are often willing to pay a premium for these superior experiences, Marriott can justify higher prices compared to budget options like Econo-Lodge, which may focus on basic accommodations without the extra offerings that create added value.

This contrast highlights how value-based pricing relies on understanding what guests are looking for and how much they value the luxury and experience provided. By aligning the price with the customer's perceived value, Marriott effectively positions itself as a premium option in the hospitality market.

In comparison, penetration pricing aims to attract a large customer base with low prices initially, defensive pricing is often about responding to competitive pressures, and cost-plus pricing focuses primarily on the costs of services to determine the price. These strategies do not capture the essence of why Marriott can charge more for its offerings, which ultimately rests on the value delivered to customers.