Question 1

Value-pricing is a very safe way to price.

Accepted Answer

A) True 
 B)False

Question 2

Which costs come together to make up a product's total cost?

Accepted Answer

A product's total cost is comprised of v...

Question 3

Product-bundling involves combining several products into a package with a reduced price.

Accepted Answer

A) True 
 B)False

Question 4

With increased demand, or higher guest/customer traffic, the total costs are likely to ________.

Accepted Answer

A)   Increase
B)   Decrease
C)   Stay the same
D)   Remain undeterminedE) A) and B)
F) A) and C)

Question 5

An executive fully reimbursed for all travel expenses is most likely to be attracted to a(n) :

Accepted Answer

A)   Discount rate offer for a hotel room
B)   Discount rate offer for a hotel room and a restaurant offering a $9.99 dinner special
C)   Discount rate offer for a hotel room and a restaurant offering a $9.99 dinner special and a free breakfast the next day
D)   Upscale hotel, having a room-service breakfast, and eating lunch and dinner in a more expensive restaurant.E) A) and C)
F) B) and C)

Question 6

Fixed costs are the same as overhead.

Accepted Answer

A) True 
 B)False

Question 7

Costs that do NOT vary with production levels are called:

Accepted Answer

A)   Non-operating cost
B)   Variable cost
C)   Fixed cost
D)   Permanent costE) B) and C)
F) A) and B)

Question 8

A hotel trying to sell its food and beverage facilities, meeting rooms, retails, etc. to its guests, is an example of:

Accepted Answer

A)   Up-selling
B)   Down-stream selling
C)   Cross-selling
D)   Internal promotionE) A) and B)
F) A) and C)

Question 9

For which goods could the demand slope curve upward?

Accepted Answer

A)   Necessary goods
B)   Prestige goods
C)   Discretionary goods
D)   Most goodsE) A) and B)
F) C) and D)

Question 10

During periods of weak demand, very few competitors escape the effect of a ________ market.

Accepted Answer

A)   Weak
B)   Strong
C)   Volatile
D)   SpiralingE) B) and C)
F) A) and D)

Question 11

Target profit pricing refers to the profit a company can make from a particular target market.

Accepted Answer

A) True 
 B)False

Question 12

The more someone spends on a product, the more ________ he or she is to the product's price.

Accepted Answer

A)   Sensitive
B)   Insensitive
C)   Neither sensitive nor insensitive
D)   ComfortableE) B) and C)
F) A) and C)

Question 13

If a server in a restaurant convinces a patron to buy a t-shirt at the front counter, they are:

Accepted Answer

A)   Upselling
B)   Cross-selling
C)   Split-selling
D)   OversellingE) A) and D)
F) B) and C)

Question 14

One major benefit to yield management is that it is removed from any ethical problems.

Accepted Answer

A) True 
 B)False

Question 15

Going-rate pricing is an example of competition-based pricing.

Accepted Answer

A) True 
 B)False

Question 16

When pricing, creative judgment can be as important as technical expertise.

Accepted Answer

A) True 
 B)False

Question 17

A restaurant seeking to establish a heavy demand is likely to:

Accepted Answer

A)   Offer high quality products for low prices
B)   Offer low quality products for high prices
C)   Offer high quality products for high prices
D)   Offer low quality products for low pricesE) B) and D)
F) All of the above

Question 18

The factor that sets the floor for a product's price is:

Accepted Answer

A)   Elasticity
B)   Quality
C)   Availability
D)   CostE) B) and C)
F) A) and C)

Question 19

Which of the following is NOT a factor affecting price sensitivity?

Accepted Answer

A)   Total expenditure effect
B)   Customer satisfaction effect
C)   End-benefit effect
D)   Unique value effectE) B) and C)
F) None of the above

Question 20

The strategy of setting a high price when the market is price-insensitive, is called:

Accepted Answer

A)   Market-penetration pricing
B)   Market skimming pricing
C)   Target profit pricing
D)   Going-rate pricingE) None of the above
F) A) and D)

Exam 11: Pricing: Understanding and Capturing Customer Value

Target profit pricing refers to the profit a company can make from a particular target market.

Correct AnswerverifiedShow Answer

One major benefit to yield management is that it is removed from any ethical problems.

Correct AnswerverifiedShow Answer

Costs that do NOT vary with production levels are called:

Correct AnswerverifiedShow Answer

Going-rate pricing is an example of competition-based pricing.

Correct AnswerverifiedShow Answer

For which goods could the demand slope curve upward?

Correct AnswerverifiedShow Answer

Value-pricing is a very safe way to price.

Correct AnswerverifiedShow Answer

A restaurant seeking to establish a heavy demand is likely to:

Correct AnswerverifiedShow Answer

Product-bundling involves combining several products into a package with a reduced price.

Correct AnswerverifiedShow Answer

Which of the following is NOT a factor affecting price sensitivity?

Correct AnswerverifiedShow Answer

The more someone spends on a product, the more ________ he or she is to the product's price.

Correct AnswerverifiedShow Answer

If a server in a restaurant convinces a patron to buy a t-shirt at the front counter, they are:

Correct AnswerverifiedShow Answer

When pricing, creative judgment can be as important as technical expertise.

Correct AnswerverifiedShow Answer

A hotel trying to sell its food and beverage facilities, meeting rooms, retails, etc. to its guests, is an example of:

Correct AnswerverifiedShow Answer

With increased demand, or higher guest/customer traffic, the total costs are likely to ________.

Correct AnswerverifiedShow Answer

During periods of weak demand, very few competitors escape the effect of a ________ market.

Correct AnswerverifiedShow Answer

Which costs come together to make up a product's total cost?

Correct AnswerAnswered by ExamLex AIA product's total cost is comprised of v...View AnswerShow Answer

Fixed costs are the same as overhead.

Correct AnswerverifiedShow Answer

An executive fully reimbursed for all travel expenses is most likely to be attracted to a(n) :

Correct AnswerverifiedShow Answer

The factor that sets the floor for a product's price is:

Correct AnswerverifiedShow Answer

The strategy of setting a high price when the market is price-insensitive, is called:

Correct AnswerverifiedShow Answer

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Answered by ExamLex AI
A product's total cost is comprised of v...
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