PricingPricing

Chapter 11Chapter 11

The Hyatt Hotel has a higher price that The Hyatt Hotel has a higher price that they charge on their hotel rooms due to they charge on their hotel rooms due to their reputation as being a higher quality their reputation as being a higher quality hotel. This is an example of what type of hotel. This is an example of what type of pricing method?pricing method?

A. promotional pricingA. promotional pricing B. psychological pricingB. psychological pricing C. cost-based pricingC. cost-based pricing D. market-penetration pricingD. market-penetration pricing

A reason why a travel and tourism A reason why a travel and tourism business may discount their prices business may discount their prices is due to is due to

a. less competition.a. less competition.

b. better weather.b. better weather.

c. for booking earlyc. for booking early

d. all of thesed. all of these

An example of a fixed cost that a business An example of a fixed cost that a business may have ismay have is

a. utilities.a. utilities.

b. employee costs.b. employee costs.

c. rent.c. rent.

d. water bill.d. water bill.

There is a new Mexican restaurant in town There is a new Mexican restaurant in town and they are pricing their products lower and they are pricing their products lower than their competitors to get customers to than their competitors to get customers to try their restaurant and to build customer try their restaurant and to build customer loyalty. This is an example of what pricing loyalty. This is an example of what pricing strategy?strategy?

a. promotional pricinga. promotional pricing

b. psychological pricingb. psychological pricing

c. market-penetration pricingc. market-penetration pricing

d. break even pricingd. break even pricing

A travel agent sells a package to its A travel agent sells a package to its customers where they will get their tickets to customers where they will get their tickets to a baseball game, a hotel room, and a meal a baseball game, a hotel room, and a meal ticket for a set price per person. This is an ticket for a set price per person. This is an example of example of

a. price lining a. price lining

b. bundle pricingb. bundle pricing

c. loss-leader pricingc. loss-leader pricing

d. yield management pricing d. yield management pricing

A variable cost that a business may have isA variable cost that a business may have is

a.a. RentRent

b.b. UtilitiesUtilities

c.c. Mortgage paymentMortgage payment

d.d. insuranceinsurance

An example of price lining would be An example of price lining would be

a. an airline having prices for different seats a. an airline having prices for different seats on their planes.on their planes.

b. a rental car company having different b. a rental car company having different prices for different size carsprices for different size cars

c. a hotel having their hotel rooms, car c. a hotel having their hotel rooms, car rental, and tickets included in the same pricerental, and tickets included in the same price

d. both a and bd. both a and b

The Carnival Cruise Line sets their pricing The Carnival Cruise Line sets their pricing based on figuring up all of their costs and based on figuring up all of their costs and then adding 25% profit onto the price. This then adding 25% profit onto the price. This is an example of what pricing strategy?is an example of what pricing strategy?

a. price lininga. price lining

b. bundle pricingb. bundle pricing

c. loss-leader pricingc. loss-leader pricing

d. cost-plus pricingd. cost-plus pricing

To be competitive, a business must price To be competitive, a business must price its products how?its products how?

a. the same as their competitorsa. the same as their competitors

b. a little lower than their competitorsb. a little lower than their competitors

c. higher than their competitorsc. higher than their competitors

d. all of the aboved. all of the above

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

An environmental factor that may affect An environmental factor that may affect how a business prices their products ishow a business prices their products is

a. bad weathera. bad weather

b. terrorists actsb. terrorists acts

c. warc. war

d. all of thesed. all of these

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