Question 1

Two ways in which to put a cost on a service are: to consider both the related monetary and non-monetary costs.

Accepted Answer

A) True 
 B)False

Question 2

When a firm has a relatively undifferentiated service compared to its competitors, price competition intensifies.Which of the following is NOT an example of price competition?

Accepted Answer

A) Increased number of competitors 
B) Increased substitute offers 
C) Decreased capacity in the industry 
D) Increased surplus capacity in the industry 
E) Wider distribution of the service 
A) Increased number of competitors 
B) Increased substitute offers 
C) Decreased capacity in the industry 
D) Increased surplus capacity in the industry 
E) Wider distribution of the service

Question 3

A service provider can increase the net value of a service by doing all of the following except:

Accepted Answer

A) adding benefits 
B) adding supplementary services 
C) cutting costs 
D) combination of a, b and c 
E) adding costs 
A) adding benefits 
B) adding supplementary services 
C) cutting costs 
D) combination of a, b and c 
E) adding costs

Question 4

Evaluate, from a consumer perspective, a recent visit to a service organisation where you were dissatisfied with the service.What advice would you give to the organisation to improve the value of the product they were offering?

Accepted Answer

As a consumer, my recent visit to a serv

Question 5

Which of the following does an effective pricing strategy do?

Accepted Answer

A) Keeps prices below costs 
B) Makes service pricing difficult to understand 
C) Fulfils the promise of the value proposition 
D) Keeps price levels below the target customers' willingness to pay 
E) Eliminates non-monetary costs 
A) Keeps prices below costs 
B) Makes service pricing difficult to understand 
C) Fulfils the promise of the value proposition 
D) Keeps price levels below the target customers' willingness to pay 
E) Eliminates non-monetary costs

Question 6

Which of the following sectors of service marketing use the concept of revenue management?

Accepted Answer

A) Travel industry 
B) Hotel industry 
C) Airline industry 
D) Restaurant industry 
E) All of the above 
A) Travel industry 
B) Hotel industry 
C) Airline industry 
D) Restaurant industry 
E) All of the above

Question 7

New companies offering price discounts to stimulate trial and attract customers are pursuing patronage-oriented pricing objectives.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is NOT a revenue or profit objective?

Accepted Answer

A) Vary prices to maximise revenue from a fixed capacity 
B) Cover all costs, including overhead 
C) Cover costs of providing a particular service 
D) Maximise demand 
E) Make the largest possible contribution or profit 
A) Vary prices to maximise revenue from a fixed capacity 
B) Cover all costs, including overhead 
C) Cover costs of providing a particular service 
D) Maximise demand 
E) Make the largest possible contribution or profit

Question 9

Which of the following benefits can be achieved by using activity-based costing?

Accepted Answer

A) Determining differences in costs of serving different customers 
B) Determining different activities associated with each customer 
C) Determining the amount of each activity demanded by different customers 
D) Determining profitability for different customers 
E) All of the above 
A) Determining differences in costs of serving different customers 
B) Determining different activities associated with each customer 
C) Determining the amount of each activity demanded by different customers 
D) Determining profitability for different customers 
E) All of the above

Question 10

Net value is the sum of all benefits a customer receives from purchasing a service minus the total costs of doing so.

Accepted Answer

A) True 
 B)False

Question 11

A service organisation may take into consideration all of the following costs when using the cost-based pricing, except:

Accepted Answer

A) semi-variable costs 
B) marginal costs 
C) fixed costs 
D) opportunity costs 
E) variable costs 
A) semi-variable costs 
B) marginal costs 
C) fixed costs 
D) opportunity costs 
E) variable costs

Question 12

Even a well-designed revenue management system has difficulty accurately predicting how many customers will use a service at a given time.

Accepted Answer

A) True 
 B)False

Question 13

The _________ to be recovered set a floor to the price that may be charged for a specific service.

Accepted Answer

A) costs 
B) value 
C) competitors price 
D) elasticity 
E) price 
A) costs 
B) value 
C) competitors price 
D) elasticity 
E) price

Question 14

Companies seeking to make a profit must recover the full costs associated with producing and marketing a service, and then add a margin sufficient to yield a satisfactory profit.This is known as:

Accepted Answer

A) value-based pricing 
B) yield-based pricing 
C) marginal-cost pricing 
D) cost-based pricing 
E) activity-based pricing 
A) value-based pricing 
B) yield-based pricing 
C) marginal-cost pricing 
D) cost-based pricing 
E) activity-based pricing

Question 15

Price competition intensifies with each of the following except:

Accepted Answer

A) increased number of competitors 
B) switching costs are high 
C) wider distribution of competitors 
D) increased surplus capacity in the industry 
E) wider distribution of substitute offers 
A) increased number of competitors 
B) switching costs are high 
C) wider distribution of competitors 
D) increased surplus capacity in the industry 
E) wider distribution of substitute offers

Two ways in which to put a cost on a service are: to consider both the related monetary and non-monetary costs.

When a firm has a relatively undifferentiated service compared to its competitors, price competition intensifies.Which of the following is NOT an example of price competition?

A service provider can increase the net value of a service by doing all of the following except:

Evaluate, from a consumer perspective, a recent visit to a service organisation where you were dissatisfied with the service.What advice would you give to the organisation to improve the value of the product they were offering?

Which of the following does an effective pricing strategy do?

Which of the following sectors of service marketing use the concept of revenue management?

New companies offering price discounts to stimulate trial and attract customers are pursuing patronage-oriented pricing objectives.

Which of the following is NOT a revenue or profit objective?

Which of the following benefits can be achieved by using activity-based costing?

Net value is the sum of all benefits a customer receives from purchasing a service minus the total costs of doing so.

A service organisation may take into consideration all of the following costs when using the cost-based pricing, except:

Even a well-designed revenue management system has difficulty accurately predicting how many customers will use a service at a given time.

The _________ to be recovered set a floor to the price that may be charged for a specific service.

Companies seeking to make a profit must recover the full costs associated with producing and marketing a service, and then add a margin sufficient to yield a satisfactory profit.This is known as:

Price competition intensifies with each of the following except:

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

Two ways in which to put a cost on a service are: to consider both the related monetary and non-monetary costs.

When a firm has a relatively undifferentiated service compared to its competitors, price competition intensifies.Which of the following is NOT an example of price competition?

A service provider can increase the net value of a service by doing all of the following except:

Evaluate, from a consumer perspective, a recent visit to a service organisation where you were dissatisfied with the service.What advice would you give to the organisation to improve the value of the product they were offering?

Which of the following does an effective pricing strategy do?

Which of the following sectors of service marketing use the concept of revenue management?

New companies offering price discounts to stimulate trial and attract customers are pursuing patronage-oriented pricing objectives.

Which of the following is NOT a revenue or profit objective?

Which of the following benefits can be achieved by using activity-based costing?

Net value is the sum of all benefits a customer receives from purchasing a service minus the total costs of doing so.

A service organisation may take into consideration all of the following costs when using the cost-based pricing, except:

Even a well-designed revenue management system has difficulty accurately predicting how many customers will use a service at a given time.

The _________ to be recovered set a floor to the price that may be charged for a specific service.

Companies seeking to make a profit must recover the full costs associated with producing and marketing a service, and then add a margin sufficient to yield a satisfactory profit.This is known as:

Price competition intensifies with each of the following except:

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