Question 1

What are two examples of situations that increase price competition?

Accepted Answer

Increasing number of competito

Question 2

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 3

Which of the following is an example of a physical cost?

Accepted Answer

A)  Mental effort 
B)  Fatigue 
C)  Feelings of inadequacy 
D)  Social Embarrassment 
E)  Perceived Risk 
A)  Mental effort 
B)  Fatigue 
C)  Feelings of inadequacy 
D)  Social Embarrassment 
E)  Perceived Risk

Question 4

Describe how airlines utilize revenue management to enhance profitability.

Accepted Answer

Revenue management involves setting pric

Question 5

____________ 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 6

Which company is an example of dynamic pricing in the Internet access business?

Accepted Answer

A)  AOL 
B)  easyInternetcafe 
C)  Vox1 
D)  Earthlink 
E)  Barbados Internet Forums 
A)  AOL 
B)  easyInternetcafe 
C)  Vox1 
D)  Earthlink 
E)  Barbados Internet Forums

Question 7

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 8

Which of the following intensifies price competition?

Accepted Answer

A)  Non-price-related costs of using competing alternatives are high. 
B)  Wider distribution of competitor and or substitution offers. 
C)  Personal relationships have been established. 
D)  Switching costs are high. 
E)  Customer need for time and location specificity. 
A)  Non-price-related costs of using competing alternatives are high. 
B)  Wider distribution of competitor and or substitution offers. 
C)  Personal relationships have been established. 
D)  Switching costs are high. 
E)  Customer need for time and location specificity.

Question 9

Psychological costs relate to unpleasant sensations affecting any of the five senses.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

Service firms have several options avail

Question 12

Because quality is subjective, all customers have the expertise to assess the quality and value they receive.

Accepted Answer

A) True 
 B)False

Question 13

____________ are services sold at less than full cost to attract customers, who will then be tempted to buy profitable service offerings from the same organization in the future.

Accepted Answer

A)  Benign followers 
B)  Unit packages 
C)  Loss leaders 
D)  Cost providers 
E)  Contracts 
A)  Benign followers 
B)  Unit packages 
C)  Loss leaders 
D)  Cost providers 
E)  Contracts

Question 14

Describe how rate fences should be used in a hair salon service.

Accepted Answer

Rate fences may be perceived a

Question 15

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 16

Describe the concept of price elasticity and draw a graph comparing consumers with high and low elasticity.

Accepted Answer

Price elasticity refers to the amount of

Question 17

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 18

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

Accepted Answer

Member usage patterns seem to be closely

Question 19

Draw a graph of the relationship between price per seat on an airline and demand for seats. Label each price bucket.

Accepted Answer

The answer of Draw a graph of the relationship between...

Question 20

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

What are two examples of situations that increase price competition?

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.

Which of the following is an example of a physical cost?

Describe how airlines utilize revenue management to enhance profitability.

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

Which company is an example of dynamic pricing in the Internet access business?

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

Which of the following intensifies price competition?

Psychological costs relate to unpleasant sensations affecting any of the five senses.

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

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

Because quality is subjective, all customers have the expertise to assess the quality and value they receive.

____________ are services sold at less than full cost to attract customers, who will then be tempted to buy profitable service offerings from the same organization in the future.

Describe how rate fences should be used in a hair salon service.

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

Describe the concept of price elasticity and draw a graph comparing consumers with high and low elasticity.

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 ____________.

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

Draw a graph of the relationship between price per seat on an airline and demand for seats. Label each price bucket.

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

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

What are two examples of situations that increase price competition?

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.

Which of the following is an example of a physical cost?

Describe how airlines utilize revenue management to enhance profitability.

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

Which company is an example of dynamic pricing in the Internet access business?

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

Which of the following intensifies price competition?

Psychological costs relate to unpleasant sensations affecting any of the five senses.

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

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

Because quality is subjective, all customers have the expertise to assess the quality and value they receive.

____________ are services sold at less than full cost to attract customers, who will then be tempted to buy profitable service offerings from the same organization in the future.

Describe how rate fences should be used in a hair salon service.

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

Describe the concept of price elasticity and draw a graph comparing consumers with high and low elasticity.

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 ____________.

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

Draw a graph of the relationship between price per seat on an airline and demand for seats. Label each price bucket.

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

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