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Exam 15: Pricing of Services

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Question 1

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Executive Dry Cleaners charges customers $2.99 to launder a dress shirt rather than $3.00.Executive Dry Cleaners is using a(n) _____ pricing strategy.

A) Odd
B) Synchro-
C) Discounting
D) Prestige
E) Complementary

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Question 2

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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:

A) All that I get for all that I give
B) Whatever I want in a service
C) Low price
D) Reliable service
E) The quality I get for the price I pay

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Question 3

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The ad for legal services that Marla saw indicated the lawyers would receive no money unless their client did.To Marla,this statement indicated the legal firm offering this service was using:

An inn near a ski resort would be using a synchro-pricing strategy if it had lower rates in the summer months than in its busy season.

_____ 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.

Which of the following is NOT an example of an effective pricing strategy to use when the customer defines value as "all that I get for all that I give?"

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:

_______-based pricing occurs in services that are standardized across providers.

Which of the following statements does NOT contain a reason why consumers lack accurate reference prices for services?

Promotional pricing may be less meaningful for services,for which price anchors do not exist,than for goods,for which they do.

Search costs are the costs invested to identify and choose from services you desire.

process for installing a new in-dash audio system in Leo's car took almost four hours,which Leo spent sitting in the waiting room of J.J.'s Auto Sound.Leo paid _____ costs for the installation of his new audio system.

All of the following examples are nonmonetary costs EXCEPT:

To calculate what it charges a client,a detective agency charges $200 a day direct costs plus an additional $50 per day to pay for office expenses,licenses and other fixed costs and fifteen percent of full costs for the profit margin.What type of pricing strategy is being used by the detective agency?

The three types of complementary pricing are:

Cost-plus pricing is more likely to be used by lawyers than by the construction industry.

In talking to a travel agent,T.J.Matthews learned that he would have to pay the same amount of money for a three-day/two-night package right outside the gates of Walt Disney World for his family of four as he would for a five-day/four-night stay at a hotel that was about 50 miles away from Walt Disney World.Matthews decided the farther hotel was a much better value.Matthews defined value as:

In mixed-leader pricing,the price of a catered reception may be less if the bride buys her wedding cake from the same caterer and pays full price for the cake.

Which of the following is an example of competition-based pricing strategy?

A day after US Airways announced its new low fares for the autumn on travel from New York (i.e.,Newark and LaGuardia Airports) to selected cities in the United States and Canada,American Airlines matched their fares.American Airlines is using a _____ strategy.