* Lesson 6

Lesson 6 Quiz Review

H323 Revenue Management

Multiple Choice

Markets are segmented because...

• the mass market may not know what it wants

• it is a cheaper way to reach out to your market

• it is easier to handle them should disputes arise

• businesses can charge different prices for the same product

Different segments have different needs and respond differently to different stimuli in their buying behaviour. Products may be similar but different group of consumers value the product or service differently, thus enable businesses to charge at different prices.

H323

Market Segmentation

Multiple Choice

A Revenue Manager should consider the ______ of a product when planning pricing strategies for each segment

• behaviour and preferences

• age and geographical location

• price sensitivity and profitability

• product line and booking window

By understanding the price sensitivity and profitability of a product, the Revenue Manager will understand how to adjust the pricing and inventory availability to maximise revenue for the business

H323

​Pricing

Multiple Choice

Which of the following criteria is NOT a price fence for segmentation?

• Alan bought a tour package at a special price when he travelled with his family

• Mary enjoyed a discount when she bought the concert ticket to her favourite K-pop concert two months in advance

• Tom enjoyed his staycation package at a Sentosa resort that was applicable to Singapore residents only

• Senior citizens can enjoy a special admission fee when they bring their grandchildren to Singapore Science Centre

When discount is given for early bird / advance purchase tickets, the price fence used is based on transactional characteristics (controlled availability) rather than segmentation

Fencing

Multiple Choice

Your friend just got back from Kuala Lumpur from a business conference and was complaining to you about the bad experience of the location of the venue. Which stage of the Customer Decision Making Process is he/she exhibiting?

• Performance Review

• Evaluation of alternatives

• Information search

• Purchase decision

This is the last stage of the process and it often influences consumers on their next purchase of a similar product or service. In this question, the friend is experiencing cognitive dissonance, a state where the buyer experiences discomfort, caused by a post purchase conflict

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H323

​Customer Decision-making Process

Multiple Choice

Establishing a segmentation strategy is to define and optimise the composition of consumers for the business

• TRUE

• FALSE

Different consumers place different values on different products at different times. Businesses can increase their revenue by catering to different market segments at different prices. Optimising the composition of consumers means to have an optimal mix of market segments

H323

Segmentation Strategy