Question 1

Which of the following is the best example of a service industry that utilizes price complexity?

Accepted Answer

A)  Fast food 
B)  Education 
C)  Cellular phone 
D)  Moving/transportation 
E)  Roofing 
A)  Fast food 
B)  Education 
C)  Cellular phone 
D)  Moving/transportation 
E)  Roofing

Question 2

____________, also known as customized or personalized pricing, refers to the practice of price discrimination.

Accepted Answer

A)  Critical ratio pricing 
B)  Dynamic pricing 
C)  Collective pricing 
D)  Fixed pricing 
E)  Classical pricing 
A)  Critical ratio pricing 
B)  Dynamic pricing 
C)  Collective pricing 
D)  Fixed pricing 
E)  Classical pricing

Question 3

Tickets.com is a good example of a firm that successfully generated more revenue by implementing dynamic pricing.

Accepted Answer

A) True 
 B)False

Question 4

Shopbots collect price and product information from multiple electronic vendors and provide it to consumers.

Accepted Answer

A) True 
 B)False

Question 5

Firms do not need to consider post-consumption costs, as they occur after the firm has already secured a purchase.

Accepted Answer

A) True 
 B)False

Question 6

What are the three foundations of the pricing "tripod"?

Accepted Answer

Costs, Com

Question 7

Give an example of a service firm that uses service recovery to compensate for overbooking and discuss how the firm compensates.

Accepted Answer

A Westin beach resort frees up capacity

Question 8

Business owners often fail to recognize the fixed costs that need to be recouped when providing service.

Accepted Answer

A) True 
 B)False

Question 9

____________ recognizes that virtually all activities taking place within a firm directly or indirectly support the production, marketing, and delivery of goods and services.

Accepted Answer

A)  Break-even analysis 
B)  Variable cost 
C)  Fixed cost 
D)  Activity-based costing 
E)  Semi-fixed cost 
A)  Break-even analysis 
B)  Variable cost 
C)  Fixed cost 
D)  Activity-based costing 
E)  Semi-fixed cost

Question 10

What are two ways in which companies can improve customer perceptions and satisfaction regarding revenue management?

Accepted Answer

Design price schedules and fences that a

Question 11

Pricing is less complex in services than it is in manufacturing.

Accepted Answer

A) True 
 B)False

Question 12

The difference between the price consumer's pay and the amount they would actually have been willing to pay to obtain the benefits is known as ____________.

Accepted Answer

A)  net value 
B)  gross value 
C)  consumer surplus 
D)  moderate value 
E)  consumer demand 
A)  net value 
B)  gross value 
C)  consumer surplus 
D)  moderate value 
E)  consumer demand

Question 13

Airlines, hotels, and car rental firms are not very good at varying prices in response to the price sensitivity and needs of different market segments.

Accepted Answer

A) True 
 B)False

Question 14

Customers will often pay more for services than they think they are worth.

Accepted Answer

A) True 
 B)False

Question 15

Firms that are always reacting to competitors' price changes run the risk of pricing higher than might really be necessary.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is NOT a broad expression of value?

Accepted Answer

A)  Value is low price. 
B)  Value is whatever I want in a product. 
C)  Value is the quality I get for the price I pay. 
D)  Value is an expectation about a service outcome. 
E)  Value is what I get for what I give. 
A)  Value is low price. 
B)  Value is whatever I want in a product. 
C)  Value is the quality I get for the price I pay. 
D)  Value is an expectation about a service outcome. 
E)  Value is what I get for what I give.

Question 17

Discuss how a health club could strategically manage capacity via payment schedules.

Accepted Answer

Member usage patterns seem to be closely

Question 18

Discuss how service firms can minimize non-monetary purchase costs.

Accepted Answer

Service firms have several options avail

Question 19

Which of the following is the best example of a service firm that attracts customers with low base prices and then piles on additional fees.

Accepted Answer

A)  Rental cars 
B)  Fast food 
C)  Education 
D)  Roofing 
E)  Consulting 
A)  Rental cars 
B)  Fast food 
C)  Education 
D)  Roofing 
E)  Consulting

Question 20

Yield management computers can determine who is likely to not show up or take other flights.

Accepted Answer

A) True 
 B)False

Which of the following is the best example of a service industry that utilizes price complexity?

____________, also known as customized or personalized pricing, refers to the practice of price discrimination.

Tickets.com is a good example of a firm that successfully generated more revenue by implementing dynamic pricing.

Shopbots collect price and product information from multiple electronic vendors and provide it to consumers.

Firms do not need to consider post-consumption costs, as they occur after the firm has already secured a purchase.

What are the three foundations of the pricing "tripod"?

Give an example of a service firm that uses service recovery to compensate for overbooking and discuss how the firm compensates.

Business owners often fail to recognize the fixed costs that need to be recouped when providing service.

____________ recognizes that virtually all activities taking place within a firm directly or indirectly support the production, marketing, and delivery of goods and services.

What are two ways in which companies can improve customer perceptions and satisfaction regarding revenue management?

Pricing is less complex in services than it is in manufacturing.

The difference between the price consumer's pay and the amount they would actually have been willing to pay to obtain the benefits is known as ____________.

Airlines, hotels, and car rental firms are not very good at varying prices in response to the price sensitivity and needs of different market segments.

Customers will often pay more for services than they think they are worth.

Firms that are always reacting to competitors' price changes run the risk of pricing higher than might really be necessary.

Which of the following is NOT a broad expression of value?

Discuss how a health club could strategically manage capacity via payment schedules.

Discuss how service firms can minimize non-monetary purchase costs.

Which of the following is the best example of a service firm that attracts customers with low base prices and then piles on additional fees.

Yield management computers can determine who is likely to not show up or take other flights.

New Perspectives on Marketing in the Service Economy

Consumer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing Service Products: Core and Supplementary Elements

Distributing Services Through Physical and Electronic Channels

Promoting Services and Educating Customers

Designing and Managing Service Processes

Balancing Demand and Productive Capacity

Crafting the Service Environment

Managing People for Service Advantage

Managing Relationships and Building Loyalty

Complaint Handling and Service Recovery

Improving Service Quality and Productivity

Striving for Service Leadership

Filters

Exam 6: Setting Prices and Implementing Revenue Management

Which of the following is the best example of a service industry that utilizes price complexity?

____________, also known as customized or personalized pricing, refers to the practice of price discrimination.

Tickets.com is a good example of a firm that successfully generated more revenue by implementing dynamic pricing.

Shopbots collect price and product information from multiple electronic vendors and provide it to consumers.

Firms do not need to consider post-consumption costs, as they occur after the firm has already secured a purchase.

What are the three foundations of the pricing "tripod"?

Give an example of a service firm that uses service recovery to compensate for overbooking and discuss how the firm compensates.

Business owners often fail to recognize the fixed costs that need to be recouped when providing service.

____________ recognizes that virtually all activities taking place within a firm directly or indirectly support the production, marketing, and delivery of goods and services.

What are two ways in which companies can improve customer perceptions and satisfaction regarding revenue management?

Pricing is less complex in services than it is in manufacturing.

The difference between the price consumer's pay and the amount they would actually have been willing to pay to obtain the benefits is known as ____________.

Airlines, hotels, and car rental firms are not very good at varying prices in response to the price sensitivity and needs of different market segments.

Customers will often pay more for services than they think they are worth.

Firms that are always reacting to competitors' price changes run the risk of pricing higher than might really be necessary.

Which of the following is NOT a broad expression of value?

Discuss how a health club could strategically manage capacity via payment schedules.

Discuss how service firms can minimize non-monetary purchase costs.

Which of the following is the best example of a service firm that attracts customers with low base prices and then piles on additional fees.

Yield management computers can determine who is likely to not show up or take other flights.

New Perspectives on Marketing in the Service Economy

Consumer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing Service Products: Core and Supplementary Elements

Distributing Services Through Physical and Electronic Channels

Promoting Services and Educating Customers

Designing and Managing Service Processes

Balancing Demand and Productive Capacity

Crafting the Service Environment

Managing People for Service Advantage

Managing Relationships and Building Loyalty

Complaint Handling and Service Recovery

Improving Service Quality and Productivity

Striving for Service Leadership

Filters