Exam 8: Setting a Price for the Service Rendered

COMPLETION QUESTIONS Yield Management Systems Profit-Oriented Volume-Oriented Value Price/Demand Elasticity Fixed Variable Contribution Margin Breakeven Point Price Bundling Pure Price Bundling -_________ is an assessment of the benefits of a service less the costs associated with it.

Indirect costs of a service

COMPLETION QUESTIONS Yield Management Systems Profit-Oriented Volume-Oriented Value Price/Demand Elasticity Fixed Variable Contribution Margin Breakeven Point Price Bundling Pure Price Bundling -A service's _____________ is the number of units of a service that need to be sold or the number of customers that need to be served to cover costs.

COMPLETION QUESTIONS Yield Management Systems Profit-Oriented Volume-Oriented Value Price/Demand Elasticity Fixed Variable Contribution Margin Breakeven Point Price Bundling Pure Price Bundling -____________ pricing objectives stress generating high returns on the service's investments in resources and labor.

A volume-oriented pricing objective stresses high returns on the service's investments in labor and resources.

COMPLETION QUESTIONS Yield Management Systems Profit-Oriented Volume-Oriented Value Price/Demand Elasticity Fixed Variable Contribution Margin Breakeven Point Price Bundling Pure Price Bundling -The difference between the price charged to the service customer and the ___________ costs attributable to each unit of sale is the ____________.

A service organization's pricing strategy is not related to its overall marketing strategy.

A price floor is the minimum price that covers all costs of producing the service.

A price ceiling establishes a price in relation to competition.

COMPLETION QUESTIONS Yield Management Systems Profit-Oriented Volume-Oriented Value Price/Demand Elasticity Fixed Variable Contribution Margin Breakeven Point Price Bundling Pure Price Bundling -__________ costs do not change regardless of the number of customers.

COMPLETION QUESTIONS Yield Management Systems Profit-Oriented Volume-Oriented Value Price/Demand Elasticity Fixed Variable Contribution Margin Breakeven Point Price Bundling Pure Price Bundling -_________ refers to linking several service offerings or features under one attractive price so that customers from different segments can be given a packaged service offering that includes service features that may not have been desirable when priced individually.

Price is a vehicle for

Why is the pricing of services often confusing for both the service organizations and their customers?

Why is it important for service organizations to conduct breakeven analyses for their products?

The difference between the price charged to the service customer and the variable costs attributable to each unit of sales is called net profit.

Price bundling allows service providers to meet wider ranges of their customers' needs.

_______________ approach to pricing focuses attention on the ____________.

Service providers that use a yield management strategy

The ________ characteristic of services makes it difficult for customers to know what a reasonable price should be for a service.

The inherent tradeoff between price and demand makes yield management an easy strategy for services marketers to use.