* Lesson 8

H323 L08 Recap Quiz

Some text here about the topic of discussion

Multiple Choice

A new attraction has offered special group rates to attract travel agencies to send group customers. This price is enough to cover the fixed costs of operating the attraction. This pricing strategy is an example of:

• Value Based Pricing 

• Cost Based Pricing

• Demand Based Pricing

• Break-even Analysis Pricing

• Target Rate of Return Pricing

Multiple Choice

Customers will always choose products/ services that offer the lowest price.

• TRUE

• FALSE

The consumers will choose products/ services that offer them the most economic value or utility for the price paid. Economic value is the value that person places on an economic good based on the benefit that they derive from the good. It is often estimated based on the person’s willingness to pay for the good, typically measured in units of currency

​Some text here about the topic of discussion.

​Pricing...

Multiple Choice

The “Value Equation” states that value is NOT equal to the services offered and experienced, divided by the price paid.

• TRUE

• FALSE

Multiple Choice

In a transient retail market, after conducting a rate value matrix, a competitor shows a higher customer experience differential score than the subject hotel but priced similarly. How should the subject hotel price as compared to this competitor in the retail market?

• Price independently

• Price at a discount

• Price at a premium

• Price at the same pice

The subject hotel should price at a discount as the perceived value of the product/ service is lower. This is a display of game theory. According to the game theory, the actions and choice of all the participants (in this case the subject hotel and its competitors) affect the outcome of each.

H323

​Game Theory

Multiple Choice

Online customer reviews are usually favoured over professional reviews.

• TRUE

• FALSE