Exam 8: Pricing Strategy

The Club is a local hair salon and day spa that caters to an upper-middle class clientele. Although price competition in the local area has been increasing, the owners of The Club have decided to focus their marketing efforts on quality, service, and value, and to resist the temptation to compete on price. In pursuing this non-price strategy, managers of The Club are ascribing to which of the following assumptions?

Which of the following statements is TRUE with respect to the relationship between price and revenue?

Because service capacity is perishable and service demand is highly time dependent, service firms employ yield management strategies in an effort to:

Despite the rising costs of medical care in the United States, customers continue to increase their purchases of medical goods and services, particularly in elective procedures. It seems that no matter how much prices increase, customer demand for medical services stays the same or increases. This situations describes an example of:

Firms such as IKEA and The Home Depot are known for their use of _____ because they set reasonably low prices but still offer high-quality products and adequate customer services.