Question 1

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.

Accepted Answer

A)   Rental cars
B)   Fast food
C)   Education
D)   Roofing
E)   Consulting A

Question 2

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. C

Question 3

Relate fairness perceptions to DVD rental late fees.

Accepted Answer

Late fees for DVD rentals should not exceed the potentially lost revenue from rental fees during the late period if fairness perceptions are considered.

Question 4

Discounting to win new business is one of the best strategies for firms wishing to develop a loyal customer base.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

The answer of Give an example of a service firm...

Question 6

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

Accepted Answer

The answer of Give an example of a tradeoff between...

Question 7

Which of the following is NOT a broad expression of value?

Accepted Answer

A)   Value is low price.
B)   Value is whatever I want in a product.
C)   Value is the quality I get for the price I pay.
D)   Value is an expectation about a service outcome.
E)   Value is what I get for what I give.

Question 8

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

Accepted Answer

The answer of What are the four distinct categories of...

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Customers often incur significant financial costs in searching for, purchasing, and using a service, above and beyond the purchase price paid to the supplier.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Shopbots help consumers combat dynamic pricing online.

Accepted Answer

A) True 
 B)False

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

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.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

Shopbots collect price and product information from multiple electronic vendors and provide it to consumers.

Accepted Answer

A) True 
 B)False

Question 18

What is price customization?

Accepted Answer

The answer of What is price customization?...

Question 19

____________, 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

Question 20

The only function that brings operating revenues into the organization is ____________.

Accepted Answer

A)   marketing
B)   management
C)   finance
D)   accounting
E)   information technology

Exam 6: Setting Prices and Implementing Revenue Management

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.

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

Relate fairness perceptions to DVD rental late fees.

Discounting to win new business is one of the best strategies for firms wishing to develop a loyal customer base.

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

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

Which of the following is NOT a broad expression of value?

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

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

Customers often incur significant financial costs in searching for, purchasing, and using a service, above and beyond the purchase price paid to the supplier.

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

Shopbots help consumers combat dynamic pricing online.

Name two e-tailers that utilize traditional auction models.

Which of the following reduces price competition?

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

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

Shopbots collect price and product information from multiple electronic vendors and provide it to consumers.

What is price customization?

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

The only function that brings operating revenues into the organization is ____________.