Pricing

1
Pricing

• Chapter 11

2

• The Hyatt Hotel has a higher price that they
  charge on their hotel rooms due to their
  reputation as being a higher quality hotel. This
  is an example of what type of pricing method?
• A. promotional pricing
• B. psychological pricing
• C. cost-based pricing
• D. market-penetration pricing

3

• A reason why a travel and tourism business may
  discount their prices is due to
• a. less competition.
• b. better weather.
• c. for booking early
• d. all of these

4

• An example of a fixed cost that a business may
  have is
• a. utilities.
• b. employee costs.
• c. rent.
• d. water bill.

5

• There is a new Mexican restaurant in town and
  they are pricing their products lower than their
  competitors to get customers to try their
  restaurant and to build customer loyalty. This
  is an example of what pricing strategy?
• a. promotional pricing
• b. psychological pricing
• c. market-penetration pricing
• d. break even pricing

6

• A travel agent sells a package to its customers
  where they will get their tickets to a baseball
  game, a hotel room, and a meal ticket for a set
  price per person. This is an example of
• a. price lining
• b. bundle pricing
• c. loss-leader pricing
• d. yield management pricing

7

• A variable cost that a business may have is
• Rent
• Utilities
• Mortgage payment
• insurance

8

• An example of price lining would be
• a. an airline having prices for different seats
  on their planes.
• b. a rental car company having different
  prices for different size cars
• c. a hotel having their hotel rooms, car
  rental, and tickets included in the same price
• d. both a and b

9

• The Carnival Cruise Line sets their pricing based
  on figuring up all of their costs and then adding
  25 profit onto the price. This is an example of
  what pricing strategy?
• a. price lining
• b. bundle pricing
• c. loss-leader pricing
• d. cost-plus pricing

10

• To be competitive, a business must price its
  products how?
• a. the same as their competitors
• b. a little lower than their competitors
• c. higher than their competitors
• d. all of the above

11

• During the introduction stage of a product how is
  the price normally set?
• A. a lower price to get it going
• B. a mid price
• C. a competitive price
• D. a higher price

12

• An environmental factor that may affect how a
  business prices their products is
• a. bad weather
• b. terrorists acts
• c. war
• d. all of these

13

• During what part of the product life cycle is the
  price set to be the most competitive?
• A. introduction
• B. growth
• C. maturity
• D. decline