Revision quiz for Unit 2

Service organizations even use different terms to describe the prices. Which of the following describes prices in the hotel industry?

• Service interests

• Room commissions

• Room rates

• Utility fees

Which of the following pricing strategies determines price based on overhead costs?

• Cost plus pricing

• Value based pricing

• Dynamic pricing

• Loyalty pricing

Which of the following pricing strategies' encourage business innovation?

• Cost plus pricing

• Value based pricing

• Dynamic pricing

• Loyalty pricing

Which of the following pricing strategies' help business maximise revenue according to market demands and fluctuations?

• Cost plus pricing

• Value based pricing

• Dynamic pricing

• Loyalty pricing

This pricing strategy may seem unfair by customers.

• Cost plus pricing

• Value based pricing

• Dynamic pricing

• Loyalty pricing

Which of the following is NOT an objective of service pricing?

• Build supply

• Gain profit

• Support positioning strategy

• Cover costs

The pricing tripod consist of ______, costs and value to customer.

In Cost-based pricing, a firm must set its price high enough to recover the full costs of producing and marketing the service and add a sufficient margin to yield the desired profit at the predicted sales volume to make a profit. This concept is known as

• Activity based costing

• Pricing implications of cost analysis

• Establishing the costs of providing service

• Variable and semi variable costing

Value can be expressed as "What I get must be more than what I give"

• True

• False

Value can be expressed as "Getting whatever I want in a product"

• True

• False