Question 1

Short-term profitability and maximization of revenues from assets should always be the driving force behind services' pricing decisions.

Accepted Answer

A) True 
 B)False

Question 2

The net profit per unit is the difference between the price charged to service customer and the total cost per unit.

Accepted Answer

A) True 
 B)False

Question 3

Describe the relationship between pricing objectives and pricing strategies.

Accepted Answer

The answer of Describe the relationship between pricing objectives and...

Question 4

A revenue perspective on pricing is sometimes referred to as a customer-based approach.

Accepted Answer

A) True 
 B)False

Question 5

You and a friend were comparing prices for the same service and noticed that wide price discrepancies existed.Explain why these wide price variations may exist for the same service.

Accepted Answer

The answer of You and a friend were comparing prices...

Question 6

Your manager recently overheard a conversation regarding price bundling and wanted to know more about it.He asked you to find out what is meant by price bundling and why services would want to use it.What would you report to your manager?

Accepted Answer

The answer of Your manager recently overheard a conversation regarding...

Question 7

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 processing large numbers of customers or their possessions.

Accepted Answer

The answer of COMPLETION QUESTIONS
Yield Management Systems
Profit-Oriented
Volume-Oriented
Value
Price/Demand Elasticity
Fixed
Variable
Contribution Margin
Breakeven Point
Price...

Question 8

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 perceived value of a service is reflected in the __________ for the offering.

Accepted Answer

The answer of COMPLETION QUESTIONS
Yield Management Systems
Profit-Oriented
Volume-Oriented
Value
Price/Demand Elasticity
Fixed
Variable
Contribution Margin
Breakeven Point
Price...

Question 9

The difference between the price charged to the service customer and the total (variable + allocated fixed)costs attributed to the service is called

Accepted Answer

A) contribution margin. 
B) net profit. 
C) the breakeven point. 
D) revenue. 
E) None of these.

Question 10

The breakeven point is calculated by dividing the sum of

Accepted Answer

A) the total fixed costs and shared costs by the difference between the price and the unit variable cost. 
B) the total variable costs and shared costs by the difference between the price and the unit fixed cost. 
C) the total fixed costs and variable costs by the difference between the price and the unit shared cost. 
D) the total shared costs by the difference between the price and the sum of the total fixed costs. 
E) the total fixed costs and shared costs by the difference between the price and the sum of the total variable costs.

Question 11

An operations perspective on pricing is sometimes referred to as a cost-based approach.

Accepted Answer

A) True 
 B)False

Question 12

A price elastic service is one whose demand is not significantly affected by price changes.

Accepted Answer

A) True 
 B)False

Question 13

A profit-oriented pricing objective stresses processing large number of customers or their possessions.

Accepted Answer

A) True 
 B)False

Question 14

The variable costs of producing a service are much smaller proportionately to the total costs of the offering than is typical of packaged goods.

Accepted Answer

A) True 
 B)False

Exam 8: Setting a Price for the Service Rendered

Short-term profitability and maximization of revenues from assets should always be the driving force behind services' pricing decisions.

The net profit per unit is the difference between the price charged to service customer and the total cost per unit.

Describe the relationship between pricing objectives and pricing strategies.

A revenue perspective on pricing is sometimes referred to as a customer-based approach.

You and a friend were comparing prices for the same service and noticed that wide price discrepancies existed.Explain why these wide price variations may exist for the same service.

Your manager recently overheard a conversation regarding price bundling and wanted to know more about it.He asked you to find out what is meant by price bundling and why services would want to use it.What would you report to your manager?

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 processing large numbers of customers or their possessions.

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 perceived value of a service is reflected in the __________ for the offering.

The difference between the price charged to the service customer and the total (variable + allocated fixed) costs attributed to the service is called

The breakeven point is calculated by dividing the sum of

An operations perspective on pricing is sometimes referred to as a cost-based approach.

A price elastic service is one whose demand is not significantly affected by price changes.

A profit-oriented pricing objective stresses processing large number of customers or their possessions.

The variable costs of producing a service are much smaller proportionately to the total costs of the offering than is typical of packaged goods.