Exam 15: Pricing of Services

_____ occurs in markets with a high concentration of sellers.Any price offered by one company will be matched by its competitors in order to avoid giving the low-price seller a distinct advantage.

To calculate what it charges a client,a detective agency charges $200 a day direct costs plus an additional $50 per day to pay for office expenses,licenses and other fixed costs and fifteen percent of full costs for the profit margin.What type of pricing strategy is being used by the detective agency?

The ad for legal services that Marla saw indicated the lawyers would receive no money unless their client did.To Marla,this statement indicated the legal firm offering this service was using:

The three types of complementary pricing are:

Salespeople are often on the road three nights every week.They cannot afford to stay in the most luxurious of hotels,but they do appreciate amenities like a good mattress,a firm pillow and a comfortable work area.They want the price they pay to be commensurate with the amenities provided by the hotels.They tend to define value as:

In talking to a travel agent,T.J.Matthews learned that he would have to pay the same amount of money for a three-day/two-night package right outside the gates of Walt Disney World for his family of four as he would for a five-day/four-night stay at a hotel that was about 50 miles away from Walt Disney World.Matthews decided the farther hotel was a much better value.Matthews defined value as:

Cost-plus pricing is more likely to be used by lawyers than by the construction industry.

An inn near a ski resort would be using a synchro-pricing strategy if it had lower rates in the summer months than in its busy season.

_______-based pricing occurs in services that are standardized across providers.

All of the following examples are nonmonetary costs EXCEPT:

Promotional pricing may be less meaningful for services,for which price anchors do not exist,than for goods,for which they do.

Which of the following is an example of competition-based pricing strategy?

In mixed-leader pricing,the price of a catered reception may be less if the bride buys her wedding cake from the same caterer and pays full price for the cake.

Executive Dry Cleaners charges customers $2.99 to launder a dress shirt rather than $3.00.Executive Dry Cleaners is using a(n)_____ pricing strategy.

Which of the following is NOT an example of an effective pricing strategy to use when the customer defines value as "all that I get for all that I give?"

Search costs are the costs invested to identify and choose from services you desire.

process for installing a new in-dash audio system in Leo's car took almost four hours,which Leo spent sitting in the waiting room of J.J.'s Auto Sound.Leo paid _____ costs for the installation of his new audio system.

A day after US Airways announced its new low fares for the autumn on travel from New York (i.e.,Newark and LaGuardia Airports)to selected cities in the United States and Canada,American Airlines matched their fares.American Airlines is using a _____ strategy.

When comparing the value of health clubs,Shaundra believes value comes from having a "women's only" nautilus room and "women's only" aerobic classes.Shaundra defines value as:

Which of the following statements does NOT contain a reason why consumers lack accurate reference prices for services?