Question 1

Salespeople are often on the road three nights every week. They cannot afford to stay in the most luxurious of hotels, but they do appreciate amenities like a good mattress, a firm pillow and a comfortable work area. They want the price they pay to be commensurate with the amenities provided by the hotels. They tend to define value as:

Accepted Answer

The answer of Salespeople are often on the road three...

Question 2

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

Accepted Answer

The answer of Which of the following is NOT a...

Question 3

American Woman Fitness Centers offer first-time customers a 3-month membership for $59, a saving of $20 off the regular 3-month membership price. American Woman Fitness Centers' pricing strategy is aligned with which of the following customer definitions of value?

Accepted Answer

The answer of American Woman Fitness Centers offer first-time customers...

Question 4

_____ occurs in markets with a high concentration of sellers. Any price offered by one company will be matched by its competitors in order to avoid giving the low-price seller a distinct advantage.

Accepted Answer

The answer of _____ occurs in markets with a high...

Question 5

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

Accepted Answer

The answer of A prestige pricing strategy is appropriate when...

Question 6

In a _____ pricing strategy, new services are introduced at high prices with large promotional expenditures.

Accepted Answer

The answer of In a _____ pricing strategy, new services...

Question 7

_____ is a form of competition-based pricing that involves charging the most prevalent price on the market for a service.

Accepted Answer

The answer of _____ is a form of competition-based pricing...

Question 8

Which of the following is NOT an effective pricing strategy to use when customers define value as "low price"?

Accepted Answer

The answer of Which of the following is NOT an...

Question 9

Derrick saves coupons from 10-minute oil and lubrication services (e.g., Jiffy Lube, Quick Lube and Speedi-Lube) and when he needs to have his car's oil changed, he chooses the oil and lubrication service that offers the best deal on a 10-minute oil change. For 10-minute oil and lubrication services, Derrick defines value as:

Accepted Answer

The answer of Derrick saves coupons from 10-minute oil and...

Question 10

Because most people like to get tattoos and body piercings on the weekends, a tattoo parlor in Portland, Maine, offers a reduced rate 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

The answer of Because most people like to get tattoos...

Question 11

In talking to a travel agent, T. J. Matthews learned that he could get a three-day/two night package near Disneyworld for his family of four or for the same amount of money, he could have a five-day/four-night stay at a hotel that was about fifty miles away from Disneyworld. Matthews decided the farther hotel was a much better value. Matthews defined value as:

Accepted Answer

The answer of In talking to a travel agent, T....

Question 12

A day after Continental Airlines announced its new low fares for the autumn on travel from New York (i.e., Newark and LaGuardia Airports) to selected cities in the U.S., Canada, the Caribbean and Latin America, USAir and American Airlines matched Continental's fares. USAir and American Airlines are using a _____ strategy.

Accepted Answer

The answer of A day after Continental Airlines announced its...

Question 13

Which of the following statements does NOT describe how consumers typically define value?

Accepted Answer

The answer of Which of the following statements does NOT...

Question 14

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

Accepted Answer

The answer of Which of the following statements describes a...

Question 15

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

Accepted Answer

The answer of Which of the following approaches to pricing...

Question 16

American Airlines BreakAway fares offer travelers substantial savings on nonstop flights from Newark, New Jersey to Los Angeles from mid-August to mid-October. The round-trip airfare is $299 for customers who depart on Friday and return the following Monday or Tuesday. American Airlines is using a(n) _____ differential.

Accepted Answer

The answer of American Airlines BreakAway fares offer travelers substantial...

Question 17

If a family has one child enrolled in Kid's Corral day care center, it costs $75 per week. If a family has two children enrolled in Kid's Corral, it costs $135. Step-by-Step is using a(n) _____ differential.

Accepted Answer

The answer of If a family has one child enrolled...

Question 18

When comparing the value of health clubs, Shaundra believes value comes from having a "women's only" nautilus room and "women's only" aerobic classes. Shaundra defines value as:

Accepted Answer

The answer of When comparing the value of health clubs,...

Question 19

In which of the following situations would a penetration pricing strategy be inappropriate?

Accepted Answer

The answer of In which of the following situations would...

Question 20

Bell Atlantic NYNEX Mobile introduced its Talk Along portable phone service at a price of $14.99 a month. Bell Atlantic is using a(n) _____ pricing strategy.

Accepted Answer

The answer of Bell Atlantic NYNEX Mobile introduced its Talk...

Quiz 17: Pricing of Services