Setting Prices And Implementing Revenue Management

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Questions Bank

Introduction to Services Marketing
Customer Behavior in a Services Context
Positioning Services in Competitive Markets
Developing Service Products Core and Supplementary Elements
Distributing Service through Physical and Electronic Channels
Setting Prices and Implementing Revenue Management
Promoting Services and Educating Customers
Designing 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
Building a World-Class Service Organization

All Questions

Question 1

Free

Multiple Choice

Which of the following is NOT an example of price complication?

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Fluctuating air fare

Commissions

Expressway toll

Listed price

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Question 2

Free

Multiple Choice

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

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Build supply.

Build demand.

Seek profit.

Cover costs.

Build a user base.

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Question 3

Free

Multiple Choice

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

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Break-even analysis

Variable cost

Fixed cost

Activity-based costing

Semi-fixed cost

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Question 4

Free

Multiple Choice

____________ is defined as the sum of all the perceived benefits minus the sum of all the perceived costs of service.

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Net value

Consumer surplus

Gross value

Moderate value

Consumer demand

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Question 5

Free

Multiple Choice

Variable costs include all but which of the following?

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Labour Cost

Fuel Cost

Repairs costs

Salaries

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Question 6

Multiple Choice

Filling in an account opening form that requires lot of detailed information is a form of ____________ .

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psychological cost

physical cost

sensory cost

time cost

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Question 7

Multiple Choice

Revenue management is the most effective when applied to firms characterized by all the following conditions EXCEPT ______________ .

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perishable inventory

relatively fixed capacity

varying customer price sensitivity

fixed inventory

variable demand

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Question 8

Multiple Choice

Price elasticity is computed as ____________ .

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percentage change in demand / percentage change in price

percentage change in price / percentage change in demand

percentage change in supply / percentage change in price

percentage change in demand / percentage change in supply

percentage change in price / percentage change in supply

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Question 9

Multiple Choice

Which of the following is NOT an example of a non-physical fence?

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Time or duration of use.

Group membership.

Service level.

Flexibility of ticket usage.

Location of reservation.

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Question 10

Multiple Choice

Revenue management practices that help build customers' fairness perceptions include ____________ .

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designing clear and logical prices

using high publishes prices

frame fences as discounts

"hiding" discounts through bundling

All of the above

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Question 11

True/False

The pricing tripod consists of costs, competition and volume.

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True

False

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Question 12

True/False

Customers will often pay more for services than they think they are worth.

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True

False

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Question 13

True/False

In credence services, the customers do not have the skills or knowledge to assess value.

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True

False

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Question 14

True/False

To make a profit, a firm must set its price low enough to attract customers.

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True

False

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Question 15

True/False

Customers often incur significant financial costs in searching for, purchasing, and using a service, above and beyond the purchase price paid to the supplier.

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True

False

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Question 16

True/False

Break-even analysis allows managers to know the sales volume at which service will become profitable.

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True

False

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Question 17

True/False

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

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True

False

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Question 18

True/False

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

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True

False

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Question 19

True/False

Firms that are always reacting to competitors' price changes run the risk of pricing higher than might really be necessary.

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True

False

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Question 20

True/False

Revenue management involves setting prices according to predicted demand levels among different market segments.

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True

False

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