Exam 10: Managing Perceived Costs

A local symphony has figured, through local demand analysis that for every $1 increase in the price of its ticket, there will be a corresponding drop of 100 fewer tickets sold. If the fixed cost of a production is $100,000, the cost of each performance is $10,000 and the cost for attracting each person attending is $10. The symphony is examining five price points -$30, $35, $40, $45 and $50. The symphony historically priced its tickets at $40 and averaged attendance of 6,000 over the course of six shows. The theater's capacity is 10,000 over the six-show run. Which price offers the optimum price point for the symphony?

Describe the four pricing strategies

The pricing strategy where theaters offer attendees five plays for the price of four is called:

Describe the five pricing objectives

Higher rates are charged for library services used by more affluent borrowers, such as DVD rentals, the pricing objective is called:

The two stages an organization should go through when deciding on monetary pricing are

At a medical check-up, the fear that a disease will be found is a

A hospital may require a patient to walk-in for a simple outpatient surgery instead of admitting him or her to the hospital overnight to

Understanding target audience perceptions of cost is important because

When toll roads make customers pay part of their costs, the pricing objective is called:

Mass transit companies wishing to discourage commuting during rush hours and charge a higher price during these hours, the pricing objective is called:

Describe the strategy of varying costs across segments by price discrimination

Describe the conflicts of ethical price setting

The pricing strategy where theaters offer lower-priced tickets for students is called: