Exam 11: Pricing: Understanding and Capturing Customer Value

Upselling is part of effective revenue management.

In the first few months upon opening a new hotel, a hotel company wanting to achieve market share leadership is most likely to:

When employees try to sell a higher priced alternative to a potential customer, it is called:

How important is price among the elements of the marketing mix?

A restaurant seeking to establish an exclusive clientele is likely to:

Charging $0.99 instead of $1.00, or using 3s in the price instead of 7s, is an attempt to engage in:

Pricing based on segmentation of the market and pricing differences based on price elasticity characteristics of these segments, is called:

What do we know about a product when we understand its price elasticity? What determines the price elasticity of demand?

The restaurant industry has adopted a rule of thumb that says the highest-priced entree on a menu should cost no more than 2.5 times the lowest-priced entree.

The basic break-even price is:

Identify and define the internal factors affecting a firm's pricing decisions.

In the short run, the most important pricing strategy is:

Which of the following statements is TRUE?

The establishment of price based largely on those of competitors, is called:

When families go to the same resort year after year, and get to know and like both the resort employees and friends in the nearby town, they may be less sensitive to price increases at the resort due to the:

Which of the following is an example of an elastic demand situation?

What can a business learn from a demand curve for their product?

Value-based pricing is based on the seller's perception of value.

Hotels often use this strategy when the economy slumps:

Customers are more price-sensitive when the price of the product accounts for a large share of the total cost of the ________.