Question 1

Because most people like to get tattoos and body piercings on the weekends,a tattoo parlor in Portland,Maine,offers a reduced rate from Monday to Thursday for all of its services.Prices on Friday and Saturday are 45 percent higher than they are during the rest of the week.The tattoo parlor is using a(n) _____ pricing strategy.

Accepted Answer

A)   Odd
B)   Synchro-
C)   Discounting
D)   Prestige
E)   ComplementaryF) C) and D)
G) A) and E)

Question 2

_______-based pricing is used when there are a small number of large service providers.

Accepted Answer

A)   Demand
B)   Profit
C)   Competition
D)   Supply
E)   CostF) B) and E)
G) B) and C)

Question 3

Price visibility does not influence reference prices when selecting a stockbroker.

Accepted Answer

A) True 
 B)False

Question 4

Accountants,architects,interior decorators,marriage counselors and lawyers typically use a _____ pricing strategy.

Accepted Answer

A)   Going-rate
B)   Perceived value
C)   Fee for service
D)   Price signaling
E)   Cost-plusF) C) and E)
G) B) and C)

Question 5

Which of the following statements describes a problem with demand-based pricing for services?

Accepted Answer

A)   Prices may not reflect customer value
B)   Costs are difficult to trace
C)   Heterogeneity of services limits comparability
D)   Monetary price must be adjusted to reflect the value of non-monetary costs
E)   Labor is more difficult to price than materialsF) A) and B)
G) None of the above

Question 6

One of the reasons used to explain why customers evaluate goods and services differently is:

Accepted Answer

A)   The greater degree of customer empowerment used to sell services
B)   Services and goods influence opportunity costs differently
C)   That customers often have limited reference prices for services
D)   The increased customer autonomy in the pricing of goods
E)   The cost of maintaining inventoryF) A) and B)
G) A) and C)

Question 7

When the customer defines value as low price,the service provider should use prestige pricing.

Accepted Answer

A) True 
 B)False

Question 8

After moving to Florida,Vanessa opened both a savings and a checking account at Benford Bank.Although Benford had a higher minimum balance requirement for free checking than the other two banks she considered,Vanessa chose Benford because it was located closer to her home than the other banks.Vanessa would rather expend other costs than _____ costs.

Accepted Answer

A)   Convenience
B)   Monetary
C)   Psychological
D)   Time
E)   SearchF) A) and E)
G) B) and D)

Question 9

In which of the following service industries would you most likely find the service provider using competition-based pricing?

Accepted Answer

A)   Banking industry
B)   Hospital industry
C)   Legal services
D)   Tax accounting business
E)   Rental car industryF) A) and B)
G) D) and E)

Question 10

Which of the following approaches to pricing considers that customers may judge quality on the basis of price?

Accepted Answer

A)   Demand-based pricing
B)   Profit-based pricing
C)   Competition-based pricing
D)   Supply-based pricing
E)   Cost-based pricingF) A) and B)
G) A) and C)

Question 11

The New York Yankees,a major league baseball team,offers half-price tickets for high school and college students every Wednesday home game at Yankee Stadium.The New York Yankees are using a(n) _____ pricing strategy.

Accepted Answer

A)   EDLP
B)   Value
C)   Penetration
D)   Market segmentation
E)   Cost-basedF) B) and D)
G) A) and B)

Question 12

Which of the following is NOT a type of differential used by service providers to synchronize demand and supply?

Accepted Answer

A)   Time
B)   Quantity
C)   Place
D)   Utility
E)   IncentiveF) A) and B)
G) C) and E)

Question 13

A prestige pricing strategy is appropriate when customers define value as:

Accepted Answer

A)   All that I get for all that I give
B)   Everything I want in a service
C)   Low price
D)   Reliable service
E)   The quality I get for the price I payF) B) and D)
G) C) and D)

Question 14

Demand-based pricing does not consider that customers might be sensitive to nonmonetary prices and may judge quality on the basis of price.

Accepted Answer

A) True 
 B)False

Question 15

The basic formula for _____ is Price = Direct costs + Overhead + Profit margin.

Accepted Answer

A)   Contribution margin
B)   Return on investment
C)   Cost-based pricing
D)   ABC costing
E)   Net profitF) None of the above
G) A) and E)

Question 16

Price framing would be used when the customer defines value as:

Accepted Answer

A)   All that I get for all that I give
B)   Superior quality
C)   Quality I get for the price I pay
D)   Everything I want in a service
E)   Low priceF) A) and B)
G) A) and E)

Question 17

Which of the following statements describes a problem in cost-based pricing for services?

Accepted Answer

A)   Monetary price must be adjusted to reflect the value of non-monetary costs
B)   Heterogeneity of services limits comparability
C)   Prices may not reflect customer value
D)   Labor is more difficult to price than materials
E)   Information on service costs is not available to customersF) A) and B)
G) A) and E)

Question 18

The price for an all-day trip to the Alpine Spa is $235 and includes an hour-long massage,a facial,a manicure and pedicure and a hair styling and make-up application.Any of these services can be purchased individually for the total cost of almost $350.What kind of pricing strategy is Alpine Spa using?

Accepted Answer

A)   Synchro-pricing
B)   Complementary pricing
C)   Price bundling
D)   Results-based pricing
E)   Penetration pricingF) All of the above
G) A) and B)

Question 19

If you visit a county or state fair,you will pay a basic admission fee plus other fees if you want to enjoy any of the amusement rides.County and state fairs that price this way are using:

Accepted Answer

A)   Synchro-pricing
B)   Two-part pricing
C)   Mixed bundling
D)   Contribution margin pricing
E)   Contingency pricingF) All of the above
G) D) and E)

Question 20

Deana and Rod Li went on a one-week vacation at the Club Med Turkoise village,located in Turks and Caicos,a chain of islands in the Caribbean.Club Med's per person price of $2199 included round-trip air travel from New York,one-week accommodations,all meals,sports,activities and nightly entertainment.Club Med is using a _____ strategy.

Accepted Answer

A)   Market segmentation pacing
B)   Price framing
C)   Complementary pricing
D)   Price bundling
E)   Contingency pricingF) B) and D)
G) A) and E)

Exam 15: Pricing of Services

When the customer defines value as low price,the service provider should use prestige pricing.

Correct Answer
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Correct Answer
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Price visibility does not influence reference prices when selecting a stockbroker.

Correct Answer
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If you visit a county or state fair,you will pay a basic admission fee plus other fees if you want to enjoy any of the amusement rides.County and state fairs that price this way are using:

Correct Answer
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A prestige pricing strategy is appropriate when customers define value as:

Correct Answer
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In which of the following service industries would you most likely find the service provider using competition-based pricing?

Correct Answer
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Correct Answer
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Which of the following approaches to pricing considers that customers may judge quality on the basis of price?

Correct Answer
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One of the reasons used to explain why customers evaluate goods and services differently is:

Correct Answer
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Accountants,architects,interior decorators,marriage counselors and lawyers typically use a _____ pricing strategy.

Correct Answer
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_______-based pricing is used when there are a small number of large service providers.

Correct Answer
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Price framing would be used when the customer defines value as:

Correct Answer
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Correct Answer
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Which of the following statements describes a problem in cost-based pricing for services?

Correct Answer
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Which of the following is NOT a type of differential used by service providers to synchronize demand and supply?

Correct Answer
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Demand-based pricing does not consider that customers might be sensitive to nonmonetary prices and may judge quality on the basis of price.

Correct Answer
verified

The New York Yankees,a major league baseball team,offers half-price tickets for high school and college students every Wednesday home game at Yankee Stadium.The New York Yankees are using a(n) _____ pricing strategy.

Correct Answer
verified

Which of the following statements describes a problem with demand-based pricing for services?

Correct Answer
verified

Correct Answer
verified

The basic formula for _____ is Price = Direct costs + Overhead + Profit margin.

Correct Answer
verified

Exam 15: Pricing of Services

When the customer defines value as low price,the service provider should use prestige pricing.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Price visibility does not influence reference prices when selecting a stockbroker.

Correct AnswerverifiedShow Answer

If you visit a county or state fair,you will pay a basic admission fee plus other fees if you want to enjoy any of the amusement rides.County and state fairs that price this way are using:

Correct AnswerverifiedShow Answer

A prestige pricing strategy is appropriate when customers define value as:

Correct AnswerverifiedShow Answer

In which of the following service industries would you most likely find the service provider using competition-based pricing?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following approaches to pricing considers that customers may judge quality on the basis of price?

Correct AnswerverifiedShow Answer

One of the reasons used to explain why customers evaluate goods and services differently is:

Correct AnswerverifiedShow Answer

Accountants,architects,interior decorators,marriage counselors and lawyers typically use a _____ pricing strategy.

Correct AnswerverifiedShow Answer

_______-based pricing is used when there are a small number of large service providers.

Correct AnswerverifiedShow Answer

Price framing would be used when the customer defines value as:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements describes a problem in cost-based pricing for services?

Correct AnswerverifiedShow Answer

Which of the following is NOT a type of differential used by service providers to synchronize demand and supply?

Correct AnswerverifiedShow Answer

Demand-based pricing does not consider that customers might be sensitive to nonmonetary prices and may judge quality on the basis of price.

Correct AnswerverifiedShow Answer

The New York Yankees,a major league baseball team,offers half-price tickets for high school and college students every Wednesday home game at Yankee Stadium.The New York Yankees are using a(n) _____ pricing strategy.

Correct AnswerverifiedShow Answer

Which of the following statements describes a problem with demand-based pricing for services?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The basic formula for _____ is Price = Direct costs + Overhead + Profit margin.

Correct AnswerverifiedShow Answer

Correct Answer
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