Question 1

Putting service pricing into practice includes thinking of all the following questions EXCEPT ____________.

Accepted Answer

A)  What should be the specified basis for pricing? 
B)  How much to charge? 
C)  What kind of customers should be charged more? 
D)  Who should collect payment? 
E)  When should payment be made? 
A)  What should be the specified basis for pricing? 
B)  How much to charge? 
C)  What kind of customers should be charged more? 
D)  Who should collect payment? 
E)  When should payment be made?

Question 2

Discuss how a health club could strategically manage capacity via payment schedules.

Accepted Answer

Member usage patterns seem to be closely

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Business owners often fail to recognize the fixed costs that need to be recouped when providing service.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is NOT an objective for service pricing?

Accepted Answer

A)  Build supply. 
B)  Build demand. 
C)  Seek profit. 
D)  Cover costs. 
E)  Build a user base. 
A)  Build supply. 
B)  Build demand. 
C)  Seek profit. 
D)  Cover costs. 
E)  Build a user base.

Question 6

____________, 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 
A)  Critical ratio pricing 
B)  Dynamic pricing 
C)  Collective pricing 
D)  Fixed pricing 
E)  Classical pricing

Question 7

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

Question 8

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. 
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 9

Which of the following intensifies price competition?

Accepted Answer

A)  Non-price-related costs of using competing alternatives are high. 
B)  Wider distribution of competitor and or substitution offers. 
C)  Personal relationships have been established. 
D)  Switching costs are high. 
E)  Customer need for time and location specificity. 
A)  Non-price-related costs of using competing alternatives are high. 
B)  Wider distribution of competitor and or substitution offers. 
C)  Personal relationships have been established. 
D)  Switching costs are high. 
E)  Customer need for time and location specificity.

Question 10

Which of the following is the best example of a service industry that utilizes price complexity?

Accepted Answer

A)  Fast food 
B)  Education 
C)  Cellular phone 
D)  Moving/transportation 
E)  Roofing 
A)  Fast food 
B)  Education 
C)  Cellular phone 
D)  Moving/transportation 
E)  Roofing

Question 11

Psychological costs relate to unpleasant sensations affecting any of the five senses.

Accepted Answer

A) True 
 B)False

Question 12

The amount of seats reserved for each class of American Airlines passengers on a flight is referred to as a ____________.

Accepted Answer

A)  field 
B)  row 
C)  column 
D)  bucket 
E)  gamble 
A)  field 
B)  row 
C)  column 
D)  bucket 
E)  gamble

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Firms do not need to consider post-purchase costs, as they occur after the firm has already secured a purchase.

Accepted Answer

A) True 
 B)False

Question 15

____________ recognizes that resource expenses are linked to the variety and complexity of goods and services produced and not just on physical volume.

Accepted Answer

A)  Break-even analysis 
B)  Variable cost 
C)  Fixed cost 
D)  Activity-based costing 
E)  Semi-fixed cost 
A)  Break-even analysis 
B)  Variable cost 
C)  Fixed cost 
D)  Activity-based costing 
E)  Semi-fixed cost

Question 16

Freight companies often use a combination of distance and weight or shape of parcel as a basis to price their services.

Accepted Answer

A) True 
 B)False

Question 17

Because quality is subjective, all customers have the expertise to assess the quality and value they receive.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is NOT a firm that uses dynamic pricing?

Accepted Answer

A) Easyinternetcafe.com 
B) Yahoo.com 
C) Tickets.com 
D) Amazon.com 
E) All of the above firms use dynamic pricing. 
A) Easyinternetcafe.com 
B) Yahoo.com 
C) Tickets.com 
D) Amazon.com 
E) All of the above firms use dynamic pricing.

Question 19

Airlines, hotels, and car rental firms are not very good at varying prices in response to the price sensitivity and needs of different market segments.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

Time costs, physical

Putting service pricing into practice includes thinking of all the following questions EXCEPT ____________.

Discuss how a health club could strategically manage capacity via payment schedules.

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

Business owners often fail to recognize the fixed costs that need to be recouped when providing service.

Which of the following is NOT an objective for service pricing?

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

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 reduces price competition?

Which of the following intensifies price competition?

Which of the following is the best example of a service industry that utilizes price complexity?

Psychological costs relate to unpleasant sensations affecting any of the five senses.

The amount of seats reserved for each class of American Airlines passengers on a flight is referred to as a ____________.

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

Firms do not need to consider post-purchase costs, as they occur after the firm has already secured a purchase.

____________ recognizes that resource expenses are linked to the variety and complexity of goods and services produced and not just on physical volume.

Freight companies often use a combination of distance and weight or shape of parcel as a basis to price their services.

Because quality is subjective, all customers have the expertise to assess the quality and value they receive.

Which of the following is NOT a firm that uses dynamic pricing?

Airlines, hotels, and car rental firms are not very good at varying prices in response to the price sensitivity and needs of different market segments.

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

Introduction to Services Marketing

Consumer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing the Service Concept: Core and Supplementary Elements

Distributing Service Through Physical and Electronic Channels

Promoting Services and Educating Customers

Developing and Managing Service Processes

Balancing Demand Against Productive Capacity

Crafting the Service Environment

Managing People for Service Advantage

Managing Relationships and Building Loyalty

Complaint Handling and Service Recovery

Improving Service Quality and Productivity

Organizing for Change Management and Service Leadership

Filters

Exam 6: Setting Prices and Implementing Revenue Management

Putting service pricing into practice includes thinking of all the following questions EXCEPT ____________.

Discuss how a health club could strategically manage capacity via payment schedules.

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

Business owners often fail to recognize the fixed costs that need to be recouped when providing service.

Which of the following is NOT an objective for service pricing?

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

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 reduces price competition?

Which of the following intensifies price competition?

Which of the following is the best example of a service industry that utilizes price complexity?

Psychological costs relate to unpleasant sensations affecting any of the five senses.

The amount of seats reserved for each class of American Airlines passengers on a flight is referred to as a ____________.

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

Firms do not need to consider post-purchase costs, as they occur after the firm has already secured a purchase.

____________ recognizes that resource expenses are linked to the variety and complexity of goods and services produced and not just on physical volume.

Freight companies often use a combination of distance and weight or shape of parcel as a basis to price their services.

Because quality is subjective, all customers have the expertise to assess the quality and value they receive.

Which of the following is NOT a firm that uses dynamic pricing?

Airlines, hotels, and car rental firms are not very good at varying prices in response to the price sensitivity and needs of different market segments.

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

Introduction to Services Marketing

Consumer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing the Service Concept: Core and Supplementary Elements

Distributing Service Through Physical and Electronic Channels

Promoting Services and Educating Customers

Developing and Managing Service Processes

Balancing Demand Against Productive Capacity

Crafting the Service Environment

Managing People for Service Advantage

Managing Relationships and Building Loyalty

Complaint Handling and Service Recovery

Improving Service Quality and Productivity

Organizing for Change Management and Service Leadership

Filters