Question 1

Adaptive pricing strategies include all of the following except:

Accepted Answer

A) altering the product size. 
B) using new distribution channels. 
C) requiring purchase minimums. 
D) offering two-for-one deals. 
E) offering guarantees. 
A) altering the product size. 
B) using new distribution channels. 
C) requiring purchase minimums. 
D) offering two-for-one deals. 
E) offering guarantees.

Question 2

Which of the following statements about the pricing of services (compared to the pricing of goods) is false?

Accepted Answer

A) The demand for services tends to be more inelastic than the demand for goods. 
B) Cost-oriented pricing is more difficult for services. 
C) Comparing prices of competitors is more difficult for service consumers. 
D) Self-service is a viable competitive alternative. 
E) Consumers are more able to stockpile services by taking advantage of discount prices. 
A) The demand for services tends to be more inelastic than the demand for goods. 
B) Cost-oriented pricing is more difficult for services. 
C) Comparing prices of competitors is more difficult for service consumers. 
D) Self-service is a viable competitive alternative. 
E) Consumers are more able to stockpile services by taking advantage of discount prices.

Question 3

The technique that allows consumers to either buy Service A and Service B together or purchase one service separately is called _____ bundling.

Accepted Answer

A) long-term 
B) relations 
C) mixed 
D) product 
E) individual 
A) long-term 
B) relations 
C) mixed 
D) product 
E) individual

Question 4

When pricing a service,the service provider should consider all of the following except _____ considerations.

Accepted Answer

A) demand 
B) cost 
C) customer 
D) intuitive 
E) product 
A) demand 
B) cost 
C) customer 
D) intuitive 
E) product

Question 5

A buyer's perception of value is considered a trade-off between:

Accepted Answer

A) product value and psychic cost. 
B) total customer value and total customer cost. 
C) image value and energy cost. 
D) service value and monetary cost. 
E) personnel value and time cost. 
A) product value and psychic cost. 
B) total customer value and total customer cost. 
C) image value and energy cost. 
D) service value and monetary cost. 
E) personnel value and time cost.

Question 6

The pricing strategy that is a form of relationship pricing is:

Accepted Answer

A) activity-based costing. 
B) price bundling. 
C) benefit-driven pricing. 
D) flat-rate pricing. 
E) efficiency pricing. 
A) activity-based costing. 
B) price bundling. 
C) benefit-driven pricing. 
D) flat-rate pricing. 
E) efficiency pricing.

Question 7

Discuss the circumstances under which price segmentation is most effective.

Accepted Answer

Criteria for effective price segmentatio

Question 8

Discuss the demand considerations that differentiate the pricing of services from the pricing of goods.

Accepted Answer

First,demand for services tends to be mo

Question 9

Consumers exchange their money,time,and effort for the bundle of benefits the service offers.Economic theory suggests that consumers will have a(n) ____ that captures the value they place on these benefits.

Accepted Answer

A) lower price threshold 
B) reservation price 
C) consumer surplus 
D) image value 
E) product value 
A) lower price threshold 
B) reservation price 
C) consumer surplus 
D) image value 
E) product value

Question 10

All of the following are a form of satisfaction-based pricing except:

Accepted Answer

A) offering guarantees. 
B) benefit-driven pricing. 
C) flat-rate pricing. 
D) relationship pricing. 
E) none of these are exceptions. 
A) offering guarantees. 
B) benefit-driven pricing. 
C) flat-rate pricing. 
D) relationship pricing. 
E) none of these are exceptions.

Question 11

In general,what guidelines should a service provider follow when formulating a pricing strategy?

Accepted Answer

1.The price should be easy for customers

Question 12

Total customer value consists of all of the following components except _____ value.

Accepted Answer

A) product 
B) service 
C) image 
D) time 
E) personnel 
A) product 
B) service 
C) image 
D) time 
E) personnel

Question 13

The negative effect of cross-price elasticity in which the increasing price of one service decreases the demand for another service is said to be:

Accepted Answer

A) unitary. 
B) substitutes. 
C) complementary. 
D) inelastic. 
E) elastic. 
A) unitary. 
B) substitutes. 
C) complementary. 
D) inelastic. 
E) elastic.

Question 14

The mental energy spent by customers to acquire a service is referred to as:

Accepted Answer

A) image costs. 
B) monetary price. 
C) energy costs. 
D) psychic costs. 
E) time costs. 
A) image costs. 
B) monetary price. 
C) energy costs. 
D) psychic costs. 
E) time costs.

Question 15

Total customer cost consists of all of the following components except _____ cost.

Accepted Answer

A) monetary 
B) social 
C) time 
D) psychic 
E) energy 
A) monetary 
B) social 
C) time 
D) psychic 
E) energy

Question 16

A willingness to pay more for a service because of the top-notch reputation of the company providing it is related to _____ value.

Accepted Answer

A) psychic 
B) image 
C) service 
D) product 
E) personnel 
A) psychic 
B) image 
C) service 
D) product 
E) personnel

Question 17

Sheila saw the advertised price for carpet cleaning as too low and instead went with a higher-priced competitor.Sheila saw the price as a(n):

Accepted Answer

A) signpost. 
B) quality cue. 
C) reservation price. 
D) dual entitlement. 
E) adaptive price. 
A) signpost. 
B) quality cue. 
C) reservation price. 
D) dual entitlement. 
E) adaptive price.

Question 18

Charging customers different prices for essentially the same service is called:

Accepted Answer

A) price discrimination. 
B) supply and demand. 
C) aggregrate pricing. 
D) substitutes. 
E) complementary. 
A) price discrimination. 
B) supply and demand. 
C) aggregrate pricing. 
D) substitutes. 
E) complementary.

Question 19

The actual dollar pricepaid by the consumerfor a product is _____ cost.

Accepted Answer

A) image 
B) monetary 
C) energy 
D) psychic 
E) time 
A) image 
B) monetary 
C) energy 
D) psychic 
E) time

Question 20

Southwest Airlines appeals to economically minded consumers who are looking for the best price by flying shorter,more direct routes to less congested,less expensive airports.This is an example of:

Accepted Answer

A) relationship pricing. 
B) price bundling. 
C) benefit-driven pricing. 
D) flat-rate pricing. 
E) efficiency pricing. 
A) relationship pricing. 
B) price bundling. 
C) benefit-driven pricing. 
D) flat-rate pricing. 
E) efficiency pricing.

Adaptive pricing strategies include all of the following except:

Which of the following statements about the pricing of services (compared to the pricing of goods) is false?

The technique that allows consumers to either buy Service A and Service B together or purchase one service separately is called _____ bundling.

When pricing a service,the service provider should consider all of the following except _____ considerations.

A buyer's perception of value is considered a trade-off between:

The pricing strategy that is a form of relationship pricing is:

Discuss the circumstances under which price segmentation is most effective.

Discuss the demand considerations that differentiate the pricing of services from the pricing of goods.

Consumers exchange their money,time,and effort for the bundle of benefits the service offers.Economic theory suggests that consumers will have a(n) ____ that captures the value they place on these benefits.

All of the following are a form of satisfaction-based pricing except:

In general,what guidelines should a service provider follow when formulating a pricing strategy?

Total customer value consists of all of the following components except _____ value.

The negative effect of cross-price elasticity in which the increasing price of one service decreases the demand for another service is said to be:

The mental energy spent by customers to acquire a service is referred to as:

Total customer cost consists of all of the following components except _____ cost.

A willingness to pay more for a service because of the top-notch reputation of the company providing it is related to _____ value.

Sheila saw the advertised price for carpet cleaning as too low and instead went with a higher-priced competitor.Sheila saw the price as a(n):

Charging customers different prices for essentially the same service is called:

The actual dollar pricepaid by the consumerfor a product is _____ cost.

Southwest Airlines appeals to economically minded consumers who are looking for the best price by flying shorter,more direct routes to less congested,less expensive airports.This is an example of:

An Introduction to Services

The Services Sector: Supersectors and Ethical Considerations

Fundamental Differences Between Goods and Services

Serviced Consumer Behavior

The Service Delivery Process

Developing the Service Communication Strategy

Managing the Firms Physical Evidence

People As Strategy: Managing Service Employees

People As Strategy: Managing Service Customers

Defining and Measuring Customer Satisfaction

Defining and Measuring Service Quality

Complaint and Service Recovery Management

Customer Loyalty and Retention

Pulling the Pieces Together: Creating a World Class Service Culture

Filters

Exam 6: The Pricing of Services

Adaptive pricing strategies include all of the following except:

Which of the following statements about the pricing of services (compared to the pricing of goods) is false?

The technique that allows consumers to either buy Service A and Service B together or purchase one service separately is called _____ bundling.

When pricing a service,the service provider should consider all of the following except _____ considerations.

A buyer's perception of value is considered a trade-off between:

The pricing strategy that is a form of relationship pricing is:

Discuss the circumstances under which price segmentation is most effective.

Discuss the demand considerations that differentiate the pricing of services from the pricing of goods.

Consumers exchange their money,time,and effort for the bundle of benefits the service offers.Economic theory suggests that consumers will have a(n) ____ that captures the value they place on these benefits.

All of the following are a form of satisfaction-based pricing except:

In general,what guidelines should a service provider follow when formulating a pricing strategy?

Total customer value consists of all of the following components except _____ value.

The negative effect of cross-price elasticity in which the increasing price of one service decreases the demand for another service is said to be:

The mental energy spent by customers to acquire a service is referred to as:

Total customer cost consists of all of the following components except _____ cost.

A willingness to pay more for a service because of the top-notch reputation of the company providing it is related to _____ value.

Sheila saw the advertised price for carpet cleaning as too low and instead went with a higher-priced competitor.Sheila saw the price as a(n):

Charging customers different prices for essentially the same service is called:

The actual dollar pricepaid by the consumerfor a product is _____ cost.

Southwest Airlines appeals to economically minded consumers who are looking for the best price by flying shorter,more direct routes to less congested,less expensive airports.This is an example of:

An Introduction to Services

The Services Sector: Supersectors and Ethical Considerations

Fundamental Differences Between Goods and Services

Serviced Consumer Behavior

The Service Delivery Process

Developing the Service Communication Strategy

Managing the Firms Physical Evidence

People As Strategy: Managing Service Employees

People As Strategy: Managing Service Customers

Defining and Measuring Customer Satisfaction

Defining and Measuring Service Quality

Complaint and Service Recovery Management

Customer Loyalty and Retention

Pulling the Pieces Together: Creating a World Class Service Culture

Filters