Question 1

What are two ways in which companies can improve customer perceptions and satisfaction regarding revenue management?

Accepted Answer

Design price schedules and fences that are clear, logical, and fair

Question 2

Pricing is less complex in services than it is in manufacturing.

Accepted Answer

A) True 
 B)False  False

Question 3

Because quality is subjective, all customers have the expertise to assess the quality and value they receive.

Accepted Answer

A) True 
 B)False  False

Question 4

____________ are services sold at less than full cost to attract customers, who will then be tempted to buy profitable service offerings from the same organization in the future.

Accepted Answer

A) Benign followers 
B) Unit packages 
C) Loss leaders 
D) Cost providers 
E) Contracts 
A) Benign followers 
B) Unit packages 
C) Loss leaders 
D) Cost providers 
E) Contracts

Question 5

____________, also known as customized or personalized pricing, refers to the practice of price discrimination.

Accepted Answer

A) Critical ratio pricing 
B) Dynamic pricing 
C) Collective pricing 
D) Fixed pricing 
E) Classical pricing 
A) Critical ratio pricing 
B) Dynamic pricing 
C) Collective pricing 
D) Fixed pricing 
E) Classical pricing

Question 6

What are the three foundations of the pricing "tripod"?

Accepted Answer

Costs, Com

Question 7

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

Accepted Answer

Member usage patterns seem to be closely

Question 8

____________ recognizes that virtually all activities taking place within a firm directly or indirectly support the production, marketing, and delivery of goods and services.

Accepted Answer

A) Break-even analysis 
B) Variable cost 
C) Fixed cost 
D) Activity-based costing 
E) Semi-fixed cost 
A) Break-even analysis 
B) Variable cost 
C) Fixed cost 
D) Activity-based costing 
E) Semi-fixed cost

Question 9

Which of the following reduces price competition?

Accepted Answer

A) Increasing the number of competitors. 
B) Increasing the number of substituting offers. 
C) Wider distribution of competitor and/or substitution offers. 
D) High switching costs for consumers. 
E) Increasing surplus capacity in the industry. 
A) Increasing the number of competitors. 
B) Increasing the number of substituting offers. 
C) Wider distribution of competitor and/or substitution offers. 
D) High switching costs for consumers. 
E) Increasing surplus capacity in the industry.

Question 10

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 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

Relate fairness perceptions to DVD rental late fees.

Accepted Answer

Late fees for DVD rentals shou

Question 16

What are the four distinct categories of non-monetary costs?

Accepted Answer

Time costs, physical

Question 17

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 18

The amount of seats reserved for each class of American Airlines passengers on a flight is referred to as a ____________.

Accepted Answer

A) field 
B) row 
C) column 
D) bucket 
E) gamble 
A) field 
B) row 
C) column 
D) bucket 
E) gamble

Question 19

Name two e-tailers that utilize traditional auction models.

Accepted Answer

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

Question 20

What is price customization?

Accepted Answer

Charging different c

What are two ways in which companies can improve customer perceptions and satisfaction regarding revenue management?

Pricing is less complex in services than it is in manufacturing.

Because quality is subjective, all customers have the expertise to assess the quality and value they receive.

____________ are services sold at less than full cost to attract customers, who will then be tempted to buy profitable service offerings from the same organization in the future.

____________, also known as customized or personalized pricing, refers to the practice of price discrimination.

What are the three foundations of the pricing "tripod"?

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

____________ recognizes that virtually all activities taking place within a firm directly or indirectly support the production, marketing, and delivery of goods and services.

Which of the following reduces price competition?

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

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

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

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

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

Relate fairness perceptions to DVD rental late fees.

What are the four distinct categories of non-monetary costs?

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

The amount of seats reserved for each class of American Airlines passengers on a flight is referred to as a ____________.

Name two e-tailers that utilize traditional auction models.

What is price customization?

New Perspectives on Marketing in the Service Economy

Consumer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing Service Products: Core and Supplementary Elements C

Distributing Services through Physical and Electronic Channels

Promoting Services and Educating Customers

Designing and Managing Service Processes

Balancing Demand and 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

Striving for Service Leadership

Filters

Exam 6: Setting Prices and Implementing Revenue Management

What are two ways in which companies can improve customer perceptions and satisfaction regarding revenue management?

Pricing is less complex in services than it is in manufacturing.

Because quality is subjective, all customers have the expertise to assess the quality and value they receive.

____________ are services sold at less than full cost to attract customers, who will then be tempted to buy profitable service offerings from the same organization in the future.

____________, also known as customized or personalized pricing, refers to the practice of price discrimination.

What are the three foundations of the pricing "tripod"?

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

____________ recognizes that virtually all activities taking place within a firm directly or indirectly support the production, marketing, and delivery of goods and services.

Which of the following reduces price competition?

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

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

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

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

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

Relate fairness perceptions to DVD rental late fees.

What are the four distinct categories of non-monetary costs?

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

The amount of seats reserved for each class of American Airlines passengers on a flight is referred to as a ____________.

Name two e-tailers that utilize traditional auction models.

What is price customization?

New Perspectives on Marketing in the Service Economy

Consumer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing Service Products: Core and Supplementary Elements C

Distributing Services through Physical and Electronic Channels

Promoting Services and Educating Customers

Designing and Managing Service Processes

Balancing Demand and 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

Striving for Service Leadership

Filters