Question 1

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

Accepted Answer

They can design such that price schedules and fences are clear, logical and fair. High published prices should be used, and fences should be framed as discounts rather than surcharges. The benefits of revenue management should be communicated to customer. Bundling is also a way to 'hide' discounts. Loyal customers should be taken care of first, and finally, there should be service recovery procedures in place to make up for overbooking.

Question 2

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

Accepted Answer

Rate fences may be perceived as less fair if they are framed as surcharges instead of discounts. A hair salon should thus set a higher weekend price and offer a discount for weekday service.

Question 3

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

Accepted Answer

A) Net value 
B) Consumer surplus 
C) Gross value 
D) Moderate value 
E) Consumer demand 
A) Net value 
B) Consumer surplus 
C) Gross value 
D) Moderate value 
E) Consumer demand A

Question 4

Which of the following is NOT listed in the chapter as a firm that uses online reverse auctions?

Accepted Answer

A)  Priceline.com 
B)  Hotwire.com 
C)  eBay.com 
D)  Lowestfare.com 
E)  All of the above use online reverse auctions. 
A)  Priceline.com 
B)  Hotwire.com 
C)  eBay.com 
D)  Lowestfare.com 
E)  All of the above use online reverse auctions.

Question 5

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

Accepted Answer

Service firms have several options avail

Question 6

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 7

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 8

What are rate fences? Provide examples to aid your explanation.

Accepted Answer

Rate fences can be either physical or no

Question 9

Firms that are always reacting to competitors' price changes run the risk of pricing higher than might really be necessary.

Accepted Answer

A) True 
 B)False

Question 10

Under what situations can price competitions be reduced?

Accepted Answer

Some situations that reduce price compet

Question 11

Customers will often pay more for services than they think they are worth.

Accepted Answer

A) True 
 B)False

Question 12

Relate fairness perceptions to DVD rental late fees.

Accepted Answer

Late fees for DVD rentals shou

Question 13

Name two e-tailers that utilize traditional auction models.

Accepted Answer

The answer of Name two e-tailers that utilize traditional auction...

Question 14

Describe how airlines utilize revenue management to enhance profitability.

Accepted Answer

Revenue management involves setting pric

Question 15

Give an example of a service firm that uses service recovery to compensate for overbooking and discuss how the firm compensates.

Accepted Answer

A Westin beach resort frees up capacity

Question 16

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

Accepted Answer

A)  perishable inventory 
B)  relatively fixed capacity 
C)  varying customer price sensitivity 
D)  fixed inventory 
E)  variable demand 
A)  perishable inventory 
B)  relatively fixed capacity 
C)  varying customer price sensitivity 
D)  fixed inventory 
E)  variable demand

Question 17

Shopbots help consumers combat dynamic pricing online.

Accepted Answer

A) True 
 B)False

Question 18

Yield management computers can determine who is likely to not show up or take other flights.

Accepted Answer

A) True 
 B)False

Question 19

Give an example of a tradeoff between monetary and non-monetary costs associated with patronizing a dental clinic.

Accepted Answer

Paying a higher pric

Question 20

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

Accepted Answer

A) True 
 B)False

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

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

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

Which of the following is NOT listed in the chapter as a firm that uses online reverse auctions?

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.

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

What are rate fences? Provide examples to aid your explanation.

Firms that are always reacting to competitors' price changes run the risk of pricing higher than might really be necessary.

Under what situations can price competitions be reduced?

Customers will often pay more for services than they think they are worth.

Relate fairness perceptions to DVD rental late fees.

Name two e-tailers that utilize traditional auction models.

Describe how airlines utilize revenue management to enhance profitability.

Give an example of a service firm that uses service recovery to compensate for overbooking and discuss how the firm compensates.

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

Shopbots help consumers combat dynamic pricing online.

Yield management computers can determine who is likely to not show up or take other flights.

Give an example of a tradeoff between monetary and non-monetary costs associated with patronizing a dental clinic.

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

Introduction to Services Marketing

Consumer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing the Service Concept: Core and Supplementary Elements

Distributing Service Through Physical and Electronic Channels

Promoting Services and Educating Customers

Developing and Managing Service Processes

Balancing Demand Against 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

Organizing for Change Management and Service Leadership

Filters

Exam 6: Setting Prices and Implementing Revenue Management

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

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

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

Which of the following is NOT listed in the chapter as a firm that uses online reverse auctions?

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.

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

What are rate fences? Provide examples to aid your explanation.

Firms that are always reacting to competitors' price changes run the risk of pricing higher than might really be necessary.

Under what situations can price competitions be reduced?

Customers will often pay more for services than they think they are worth.

Relate fairness perceptions to DVD rental late fees.

Name two e-tailers that utilize traditional auction models.

Describe how airlines utilize revenue management to enhance profitability.

Give an example of a service firm that uses service recovery to compensate for overbooking and discuss how the firm compensates.

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

Shopbots help consumers combat dynamic pricing online.

Yield management computers can determine who is likely to not show up or take other flights.

Give an example of a tradeoff between monetary and non-monetary costs associated with patronizing a dental clinic.

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

Introduction to Services Marketing

Consumer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing the Service Concept: Core and Supplementary Elements

Distributing Service Through Physical and Electronic Channels

Promoting Services and Educating Customers

Developing and Managing Service Processes

Balancing Demand Against 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

Organizing for Change Management and Service Leadership

Filters