Exam 11: Pricing: Understanding and Capturing Customer Value

During periods of weak demand, very few competitors escape the effect of a ________ market.

A hotel trying to sell its food and beverage facilities, meeting rooms, retails, etc. to its guests, is an example of:

Product-bundling involves combining several products into a package with a reduced price.

For which goods could the demand slope curve upward?

The strategy of setting a high price when the market is price-insensitive, is called:

Target profit pricing refers to the profit a company can make from a particular target market.

A restaurant seeking to establish a heavy demand is likely to:

Going-rate pricing is an example of competition-based pricing.

With increased demand, or higher guest/customer traffic, the total costs are likely to ________.

If a server in a restaurant convinces a patron to buy a t-shirt at the front counter, they are:

An executive fully reimbursed for all travel expenses is most likely to be attracted to a(n):

Value-pricing is a very safe way to price.

The more someone spends on a product, the more ________ he or she is to the product's price.

The factor that sets the floor for a product's price is:

When pricing, creative judgment can be as important as technical expertise.

Fixed costs are the same as overhead.

Which of the following is NOT a factor affecting price sensitivity?

Costs that do NOT vary with production levels are called:

One major benefit to yield management is that it is removed from any ethical problems.

Which costs come together to make up a product's total cost?