Question 1

What does the "price-quality trade-off" refer to?

Accepted Answer

A)  a low price implies low quality 
B)  consumers are likely to pay a higher price for better quality products 
C)  quality can be sacrificed for price 
D)  price and quality are inversely related 
A)  a low price implies low quality 
B)  consumers are likely to pay a higher price for better quality products 
C)  quality can be sacrificed for price 
D)  price and quality are inversely related B

Question 2

When setting prices for its products, what must an organization aim to strike a balance between?

Accepted Answer

A)  making a profit and gaining acceptance 
B)  covering costs and generating a profit 
C)  staying competitive and paying suppliers 
D)  maximizing revenue and minimizing costs 
A)  making a profit and gaining acceptance 
B)  covering costs and generating a profit 
C)  staying competitive and paying suppliers 
D)  maximizing revenue and minimizing costs A

Question 3

A price spread is a range of products that will suit the ___________of all target markets.

Accepted Answer

A)  budgets 
B)  expectations 
C)  demands 
D)  perceptions 
A)  budgets 
B)  expectations 
C)  demands 
D)  perceptions A

Question 4

Which of the following statements is FALSE concerning promotional pricing?

Accepted Answer

A)  It is often used in conjunction with product-bundle pricing 
B)  It is usually done for a short period of time 
C)  Products are temporarily sold above their normal list price 
D)  It is often used to introduce new or revamped products 
A)  It is often used in conjunction with product-bundle pricing 
B)  It is usually done for a short period of time 
C)  Products are temporarily sold above their normal list price 
D)  It is often used to introduce new or revamped products

Question 5

A hotel chain has decided to reduce its room rates for the coming long weekend. Within two days of announcing this to consumers, the hotel is fully booked for the weekend. This is an example of what?

Accepted Answer

A)  an elastic supply curve 
B)  an inelastic supply curve 
C)  an elastic demand curve 
D)  an inelastic demand curve 
A)  an elastic supply curve 
B)  an inelastic supply curve 
C)  an elastic demand curve 
D)  an inelastic demand curve

Question 6

Which of the following is NOT used to calculate yield?

Accepted Answer

A)  how much customers spend 
B)  the number of customers 
C)  the number of products customers buy 
D)  the costs of supplies and materials 
A)  how much customers spend 
B)  the number of customers 
C)  the number of products customers buy 
D)  the costs of supplies and materials

Question 7

According to the final case study, which airline is still the only airline offering direct low-cost transatlantic travel to UK passengers?

Accepted Answer

A)  Norwegian 
B)  British Airways 
C)  Ryanair 
D)  Emirates 
A)  Norwegian 
B)  British Airways 
C)  Ryanair 
D)  Emirates

Question 8

At the Riad Dar Maya, which of the following is NOT true about prices?

Accepted Answer

A)  there is some seasonal change 
B)  they are higher at Christmas, Easter, August 
C)  they are higher during the Gnaoua World Music Festival 
D)  they remain the same all year round 
A)  there is some seasonal change 
B)  they are higher at Christmas, Easter, August 
C)  they are higher during the Gnaoua World Music Festival 
D)  they remain the same all year round

Question 9

You have entered into a discussion with a fellow classmate regarding strategic approaches to pricing. She feels that premium pricing is unfair as it sets prices higher than necessary and is disadvantageous to consumers. Based on what you have read in the text, your response is:

Accepted Answer

A)  to agree: premium pricing is unfair since it takes advantage of unsuspecting consumers 
B)  to disagree: premium pricing is fair provided that the customer receives the appropriate benefits 
C)  to agree: not only is premium pricing unfair to consumers, it also hurts smaller retailers who cannot risk charging such high prices 
D)  to disagree: if the government allows such pricing strategies to exist, it must be fair and acceptable 
A)  to agree: premium pricing is unfair since it takes advantage of unsuspecting consumers 
B)  to disagree: premium pricing is fair provided that the customer receives the appropriate benefits 
C)  to agree: not only is premium pricing unfair to consumers, it also hurts smaller retailers who cannot risk charging such high prices 
D)  to disagree: if the government allows such pricing strategies to exist, it must be fair and acceptable

Question 10

Dublin-based Ryanair has introduced the following strategies in order to cut prices

Accepted Answer

A)  no complimentary food and beverage services 
B)  very low luggage allowances 
C)  surcharges for extras such as wheelchair service 
D)  all of the above 
A)  no complimentary food and beverage services 
B)  very low luggage allowances 
C)  surcharges for extras such as wheelchair service 
D)  all of the above

Question 11

What two variables affect the price elasticity of demand?

Accepted Answer

A)  quantity sold and equilibrium price 
B)  quantity demanded and price 
C)  quantity supplied and quantity demanded 
D)  price and quantity supplied 
A)  quantity sold and equilibrium price 
B)  quantity demanded and price 
C)  quantity supplied and quantity demanded 
D)  price and quantity supplied

Question 12

What term best describes the process of offering a product or service at a lower price than the price charged by the competition?

Accepted Answer

A)  price competition 
B)  Price cutting 
C)  non-price competition 
D)  discount pricing 
A)  price competition 
B)  Price cutting 
C)  non-price competition 
D)  discount pricing

Question 13

An organization develops a new product with a short life cycle and recognizes that it will recover its marketing and organizing costs quickly. Which pricing strategy should the organization use?

Accepted Answer

A)  market skimming 
B)  prestige pricing 
C)  negotiating 
D)  penetration pricing 
A)  market skimming 
B)  prestige pricing 
C)  negotiating 
D)  penetration pricing

Question 14

When investigating prestige pricing, one must bear in mind that:

Accepted Answer

A)  consumers will only pay the additional premium if they receive high quality 
B)  it is most successful for mature products or services 
C)  the ability to charge premium prices is often short-lived 
D)  the industry must be free of any competitors employing the same strategy 
A)  consumers will only pay the additional premium if they receive high quality 
B)  it is most successful for mature products or services 
C)  the ability to charge premium prices is often short-lived 
D)  the industry must be free of any competitors employing the same strategy

Question 15

Which of the following does NOT affect pricing policies for the tourism and hospitality sector?

Accepted Answer

A)  low fixed costs 
B)  variability of demand 
C)  late booking 
D)  fixed capacity 
A)  low fixed costs 
B)  variability of demand 
C)  late booking 
D)  fixed capacity

Question 16

Which of the following is true about prices at the Madada Mogador boutique hotel in Morocco?

Accepted Answer

A)  Prices remain the same all year round 
B)  Prices are adjusted depending on the time of year 
C)  Prices are higher in the summer 
D)  Prices are discounted if the rooms are not selling 
A)  Prices remain the same all year round 
B)  Prices are adjusted depending on the time of year 
C)  Prices are higher in the summer 
D)  Prices are discounted if the rooms are not selling

Question 17

Sarah Plaskitt's attitude towards joint promotions is that?

Accepted Answer

A)  She loves them 
B)  She tends to avoid them 
C)  She is experimenting with them 
D)  She does not do any promotion 
A)  She loves them 
B)  She tends to avoid them 
C)  She is experimenting with them 
D)  She does not do any promotion

Question 18

What is a difficulty with using a willingness to pay assessment?

Accepted Answer

A)  It is difficult to control factors that will influence consumer decisions 
B)  It is difficult to find a method to measure the likelihood of consumers agreeing to pay a given price 
C)  There are no difficulties with this assessment method 
D)  Discrepancies between what people say they will do and their actual behaviour 
A)  It is difficult to control factors that will influence consumer decisions 
B)  It is difficult to find a method to measure the likelihood of consumers agreeing to pay a given price 
C)  There are no difficulties with this assessment method 
D)  Discrepancies between what people say they will do and their actual behaviour

Question 19

When European budget carrier Ryanair announced a plan to offer $10 tickets for flights between London and New York, it was engaging in what type of pricing strategy?

Accepted Answer

A)  break-even analysis 
B)  undercut pricing 
C)  cost-plus pricing 
D)  price lining 
A)  break-even analysis 
B)  undercut pricing 
C)  cost-plus pricing 
D)  price lining

Question 20

scoutski.com is what?

Accepted Answer

A)  a one-stop shop where you can book your ski trip 
B)  a Japanese tour operator 
C)  a website for scouts who want to ski 
D)  all of the above 
A)  a one-stop shop where you can book your ski trip 
B)  a Japanese tour operator 
C)  a website for scouts who want to ski 
D)  all of the above

What does the "price-quality trade-off" refer to?

When setting prices for its products, what must an organization aim to strike a balance between?

A price spread is a range of products that will suit the ___________of all target markets.

Which of the following statements is FALSE concerning promotional pricing?

A hotel chain has decided to reduce its room rates for the coming long weekend. Within two days of announcing this to consumers, the hotel is fully booked for the weekend. This is an example of what?

Which of the following is NOT used to calculate yield?

According to the final case study, which airline is still the only airline offering direct low-cost transatlantic travel to UK passengers?

At the Riad Dar Maya, which of the following is NOT true about prices?

You have entered into a discussion with a fellow classmate regarding strategic approaches to pricing. She feels that premium pricing is unfair as it sets prices higher than necessary and is disadvantageous to consumers. Based on what you have read in the text, your response is:

Dublin-based Ryanair has introduced the following strategies in order to cut prices

What two variables affect the price elasticity of demand?

What term best describes the process of offering a product or service at a lower price than the price charged by the competition?

An organization develops a new product with a short life cycle and recognizes that it will recover its marketing and organizing costs quickly. Which pricing strategy should the organization use?

When investigating prestige pricing, one must bear in mind that:

Which of the following does NOT affect pricing policies for the tourism and hospitality sector?

Which of the following is true about prices at the Madada Mogador boutique hotel in Morocco?

Sarah Plaskitt's attitude towards joint promotions is that?

What is a difficulty with using a willingness to pay assessment?

When European budget carrier Ryanair announced a plan to offer $10 tickets for flights between London and New York, it was engaging in what type of pricing strategy?

scoutski.com is what?

Todays Marketing Environment

Understanding Todays Consumer

Digital Marketing

The Marketing Plan

The Tourism and Hospitality Product

Distribution

The Role of Advertising and Sales Promotions

Public Relations and Personal Selling

Role of Customer Service in Marketing

Marketing Research

Tourism Marketing Ethics

Filters

Exam 6: Pricing

What does the "price-quality trade-off" refer to?

When setting prices for its products, what must an organization aim to strike a balance between?

A price spread is a range of products that will suit the ___________of all target markets.

Which of the following statements is FALSE concerning promotional pricing?

A hotel chain has decided to reduce its room rates for the coming long weekend. Within two days of announcing this to consumers, the hotel is fully booked for the weekend. This is an example of what?

Which of the following is NOT used to calculate yield?

According to the final case study, which airline is still the only airline offering direct low-cost transatlantic travel to UK passengers?

At the Riad Dar Maya, which of the following is NOT true about prices?

You have entered into a discussion with a fellow classmate regarding strategic approaches to pricing. She feels that premium pricing is unfair as it sets prices higher than necessary and is disadvantageous to consumers. Based on what you have read in the text, your response is:

Dublin-based Ryanair has introduced the following strategies in order to cut prices

What two variables affect the price elasticity of demand?

What term best describes the process of offering a product or service at a lower price than the price charged by the competition?

An organization develops a new product with a short life cycle and recognizes that it will recover its marketing and organizing costs quickly. Which pricing strategy should the organization use?

When investigating prestige pricing, one must bear in mind that:

Which of the following does NOT affect pricing policies for the tourism and hospitality sector?

Which of the following is true about prices at the Madada Mogador boutique hotel in Morocco?

Sarah Plaskitt's attitude towards joint promotions is that?

What is a difficulty with using a willingness to pay assessment?

When European budget carrier Ryanair announced a plan to offer $10 tickets for flights between London and New York, it was engaging in what type of pricing strategy?

scoutski.com is what?

Todays Marketing Environment

Understanding Todays Consumer

Digital Marketing

The Marketing Plan

The Tourism and Hospitality Product

Distribution

The Role of Advertising and Sales Promotions

Public Relations and Personal Selling

Role of Customer Service in Marketing

Marketing Research

Tourism Marketing Ethics

Filters