Question 1

For a passenger railroad company, the cost incurred to sell an additional ticket for a seat in a train is an example of:

Accepted Answer

A) variable cost 
B) semi-variable cost 
C) fixed cost 
D) marginal cost 
E) none of the above 
A) variable cost 
B) semi-variable cost 
C) fixed cost 
D) marginal cost 
E) none of the above

Question 2

Consumer perception is one of the factors - but only of limited importance - in setting guidelines for pricing of services.

Accepted Answer

A) True 
 B)False

Question 3

Using the information in Table 6.6, develop a pricing strategy for an entertainment venue of your choice.

Accepted Answer

To develop a pricing strategy for an ent

Question 4

Assume that you are running a medical surgery.Discuss how you can increase the net value of the service you provide to your customers.

Accepted Answer

There are several ways to increase the n

Question 5

Psychological costs to the customer can be minimised by ensuring that unpleasant surroundings and procedures are eliminated or minimised.

Accepted Answer

A) True 
 B)False

Question 6

Building rent is an example of:

Accepted Answer

A) variable cost 
B) semi-variable cost 
C) fixed cost 
D) marginal cost 
E) none of the above 
A) variable cost 
B) semi-variable cost 
C) fixed cost 
D) marginal cost 
E) none of the above

Question 7

Which of the following conditions would intensify price competition?

Accepted Answer

A) Personal relationships matter to customers 
B) There is increased surplus capacity in the industry 
C) Customers want to use services at specific times and locations 
D) Saving time and effort are more important to customers 
E) Switching costs are high 
A) Personal relationships matter to customers 
B) There is increased surplus capacity in the industry 
C) Customers want to use services at specific times and locations 
D) Saving time and effort are more important to customers 
E) Switching costs are high

Question 8

Satisfied customers believe they have received acceptable value for the money, time and effort they invest in particular services.

Accepted Answer

A) True 
 B)False

Question 9

When deciding on a price to charge for the service which is being offered, it is important to consider:

Accepted Answer

A) customer price sensitivity 
B) the right customer 
C) the right time 
D) the right place 
E) the right inventory unit 
A) customer price sensitivity 
B) the right customer 
C) the right time 
D) the right place 
E) the right inventory unit

Question 10

What elements of price bundling could assist a newly-opened silver service restaurant located in the heart of the city?

Accepted Answer

Price bundling can be a great strategy f

Question 11

To provide a simple and effective way for consumers to pay for the service they require it is possible to use intermediaries such as:

Accepted Answer

A) travel agents for booking hotels 
B) banks for accepting deposits 
C) ticket agents for selling concert hall seats 
D) all of the above 
E) a and c 
A) travel agents for booking hotels 
B) banks for accepting deposits 
C) ticket agents for selling concert hall seats 
D) all of the above 
E) a and c

Question 12

A customer who perceives high levels of _________ worries about when and how she will be able to find, evaluate and select a service provider.

Accepted Answer

A) time and effort cost 
B) performance risk 
C) psychological risk 
D) social cost 
E) financial cost 
A) time and effort cost 
B) performance risk 
C) psychological risk 
D) social cost 
E) financial cost

Question 13

In some cases, __________ demand might be more important than achieving maximum __________, as long as basic __________ requirements are met.

Accepted Answer

A) maximising; profit; profit 
B) basic; profit; needs 
C) actualising; profit; profit 
D) maximising; exposure; profit 
E) minimising; sales; profit 
A) maximising; profit; profit 
B) basic; profit; needs 
C) actualising; profit; profit 
D) maximising; exposure; profit 
E) minimising; sales; profit

Question 14

Which of the following is the difference between the variable costs to the seller and the price charged to the purchaser?

Accepted Answer

A) Institutional overhead 
B) Semi-variable cost 
C) Contribution margin 
D) Break-even point 
E) Total benefits 
A) Institutional overhead 
B) Semi-variable cost 
C) Contribution margin 
D) Break-even point 
E) Total benefits

Question 15

Research by Zeithaml suggests four broad expressions of value.Which of the following is NOT one of them?

Accepted Answer

A) Value is low price. 
B) Value is what I want in a product. 
C) Value is benefits minus costs. 
D) Value is the quality I get for the price I pay. 
E) Value is what I get for what I give. 
A) Value is low price. 
B) Value is what I want in a product. 
C) Value is benefits minus costs. 
D) Value is the quality I get for the price I pay. 
E) Value is what I get for what I give.

Question 16

The only business function that brings operating revenues into the organisation is ____________.

Accepted Answer

A) marketing 
B) management 
C) finance 
D) accounting 
E) information technology 
A) marketing 
B) management 
C) finance 
D) accounting 
E) information technology

Question 17

Each customer will have their own viewpoint on what constitutes value and what they are prepared to pay for the service which offers value.

Accepted Answer

A) True 
 B)False

Question 18

__________ costs often vary widely from one situation to another, depending on the type of service and the number of people involved.

Accepted Answer

A) Variable 
B) Semi-variable 
C) Fixed 
D) Marginal 
E) None of the above 
A) Variable 
B) Semi-variable 
C) Fixed 
D) Marginal 
E) None of the above

Question 19

When deciding on the basis for pricing, marketers may use which of the following units of consumption?

Accepted Answer

A) admission 
B) time taken 
C) completion of a task 
D) a and b 
E) all of the above 
A) admission 
B) time taken 
C) completion of a task 
D) a and b 
E) all of the above

Question 20

Which of the following is NOT an example of a prepaid method of payment for services?

Accepted Answer

A) e-tag 
B) Telephone cards 
C) Debit cards 
D) Credit cards 
E) c and d 
A) e-tag 
B) Telephone cards 
C) Debit cards 
D) Credit cards 
E) c and d

For a passenger railroad company, the cost incurred to sell an additional ticket for a seat in a train is an example of:

Consumer perception is one of the factors - but only of limited importance - in setting guidelines for pricing of services.

Using the information in Table 6.6, develop a pricing strategy for an entertainment venue of your choice.

Assume that you are running a medical surgery.Discuss how you can increase the net value of the service you provide to your customers.

Psychological costs to the customer can be minimised by ensuring that unpleasant surroundings and procedures are eliminated or minimised.

Building rent is an example of:

Which of the following conditions would intensify price competition?

Satisfied customers believe they have received acceptable value for the money, time and effort they invest in particular services.

When deciding on a price to charge for the service which is being offered, it is important to consider:

What elements of price bundling could assist a newly-opened silver service restaurant located in the heart of the city?

To provide a simple and effective way for consumers to pay for the service they require it is possible to use intermediaries such as:

A customer who perceives high levels of _________ worries about when and how she will be able to find, evaluate and select a service provider.

In some cases, demand might be more important than achieving maximum , as long as basic __ requirements are met.

Which of the following is the difference between the variable costs to the seller and the price charged to the purchaser?

Research by Zeithaml suggests four broad expressions of value.Which of the following is NOT one of them?

The only business function that brings operating revenues into the organisation is ____________.

Each customer will have their own viewpoint on what constitutes value and what they are prepared to pay for the service which offers value.

__________ costs often vary widely from one situation to another, depending on the type of service and the number of people involved.

When deciding on the basis for pricing, marketers may use which of the following units of consumption?

Which of the following is NOT an example of a prepaid method of payment for services?

Marketing in the service economy

Customer behaviour, culture and service encounters

Positioning services in competitive markets

Developing service products: core and supplementary service elements

Distributing services through physical and electronic channels

Balancing productive capacity and demand

Integrated services marketing communications

Managing people for service advantage

Crafting the service environment

Managing the customer service function

Customer satisfaction and service quality

Managing relationships and building loyalty

Handling customer complaints and managing service recovery

Filters

Exam 6: Understanding costs and developing pricing strategy

For a passenger railroad company, the cost incurred to sell an additional ticket for a seat in a train is an example of:

Consumer perception is one of the factors - but only of limited importance - in setting guidelines for pricing of services.

Using the information in Table 6.6, develop a pricing strategy for an entertainment venue of your choice.

Assume that you are running a medical surgery.Discuss how you can increase the net value of the service you provide to your customers.

Psychological costs to the customer can be minimised by ensuring that unpleasant surroundings and procedures are eliminated or minimised.

Building rent is an example of:

Which of the following conditions would intensify price competition?

Satisfied customers believe they have received acceptable value for the money, time and effort they invest in particular services.

When deciding on a price to charge for the service which is being offered, it is important to consider:

What elements of price bundling could assist a newly-opened silver service restaurant located in the heart of the city?

To provide a simple and effective way for consumers to pay for the service they require it is possible to use intermediaries such as:

A customer who perceives high levels of _________ worries about when and how she will be able to find, evaluate and select a service provider.

In some cases, __________ demand might be more important than achieving maximum __________, as long as basic __________ requirements are met.

Which of the following is the difference between the variable costs to the seller and the price charged to the purchaser?

Research by Zeithaml suggests four broad expressions of value.Which of the following is NOT one of them?

The only business function that brings operating revenues into the organisation is ____________.

Each customer will have their own viewpoint on what constitutes value and what they are prepared to pay for the service which offers value.

__________ costs often vary widely from one situation to another, depending on the type of service and the number of people involved.

When deciding on the basis for pricing, marketers may use which of the following units of consumption?

Which of the following is NOT an example of a prepaid method of payment for services?

Marketing in the service economy

Customer behaviour, culture and service encounters

Positioning services in competitive markets

Developing service products: core and supplementary service elements

Distributing services through physical and electronic channels

Balancing productive capacity and demand

Integrated services marketing communications

Managing people for service advantage

Crafting the service environment

Managing the customer service function

Customer satisfaction and service quality

Managing relationships and building loyalty

Handling customer complaints and managing service recovery

Filters

In some cases, demand might be more important than achieving maximum , as long as basic __ requirements are met.