Exam 6: Setting Prices and Implementing Revenue Management

Revenue management is the most effective when applied to firms characterized by all the following conditions EXCEPT ______________.

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.

Revenue management practices that help build customers' fairness perceptions include ____________.

____________ recognizes that resource expenses are linked to the variety and complexity of goods and services produced and not just on physical volume.

How can firms have revenue management practices and yet still have customer satisfaction, trust and good will?

Which of the following is NOT an objective for service pricing?

What are the objectives for pricing of services?

Price elasticity is computed as ____________.

Amazon.com is a good example of a firm that aggravated its customers with dynamic pricing.

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

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

____________ is defined as the sum of all the perceived benefits minus the sum of all the perceived costs of service.

Break-even analysis allows managers to know the sales volume at which service will become profitable.

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

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

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 NOT an example of a non-physical fence?

What three components are considered in a pricing strategy?

What different forms of payment methods are can customer use other than cash?

To make a profit, a firm must set its price low enough to attract customers.