Exam 15: Pricing of Services

Loss leadership is the term typically used when providers place a familiar service on special to draw the customer to the store and then reveal other levels of service available at higher prices.

Prestige pricing is a special form of cost-plus pricing by service marketers who offer some sort of status service like providing cold storage for a mink coat or maintenance for a Rolls Royce.

In which of the following service industries are you most likely to find the service provider using fee for service pricing?

Describe the three strategies associated with the complementary pricing of a service?

Pizza Hut,Uncle Sam's,Domino's and Papa John's all deliver pizza in Cartersville,Georgia,a town of about 30,000.As a result,one would expect all of the pizza delivery services to use _____-based pricing.

Value may be perceived differently because of consumers' idiosyncratic tastes,knowledge about the service,buying power and ability to pay.