Service Pricing Quiz

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

• Build supply.

• Build demand.

• Seek profit.

• Cover costs.

• Build a user base.

____________ recognizes that resource expenses are linked to the variety and complexity of goods and services produced and not just on physical volume.

• Break-even analysis

• Variable cost

• Fixed cost

• Activity-based costing

• Semi-fixed cost

____________ is defined as the sum of all the perceived benefits minus the sum of all the perceived costs of service.

• Net value

• Consumer surplus

• Gross value

• Moderate value

• Consumer demand

Variable costs include all but which of the following?

• Labour Cost

• Fuel Cost

• Repairs costs

• Salaries

Filling in an account opening form that requires lot of detailed information is a form of ____________.

• psychological cost

• physical cost

• sensory cost

• time cost

Revenue management is the most effective when applied to firms characterized by all the following conditions EXCEPT ______________.

• perishable inventory

• relatively fixed capacity

• varying customer price sensitivity

• fixed inventory

• variable demand

Price elasticity is computed as ____________.

• percentage change in demand / percentage change in price

• percentage change in price / percentage change in demand

• percentage change in supply / percentage change in price

• percentage change in demand / percentage change in supply

• percentage change in price / percentage change in supply

Revenue management practices that help build customers’ fairness perceptions include ____________.

• designing clear and logical prices

• using high publishes prices

• frame fences as discounts

• “hiding” discounts through bundling

• All of the above

EasyJet needs the following to justify its low prices and to break even:

• High load factor

• Higher sales

• Higher physical costs

• Only a & b

• All of the above

Which of the following is the best example of a service industry that utilizes price complexity?

• Fast food

• Education

• Cellular phone

• Moving/transportation

• Roofing