rev management exam 2 quiz chapter 4

All except one of the following pricing systems are marketing-based. Which one is not an example of marketing-based pricing? - return on investment (ROI) pricing - loss leader pricing - competitive pricing - penetration pricing

A

Offering guests the opportunity to purchase a sandwich, fries, and a soft drink at a price lower than that which would be charged for those same items purchased separately is an example of which type of differential pricing strategy? - bundling - quantity - payment terms - time

A

The use of a formal customer rewards program is an example of what type of differential pricing strategy? - pricing based on customer characteristic - pricing based on distribution channel - pricing based on payment terms - pricing based on product versioning

A

Which course of action would be most beneficial to the profile generating ability of a revenue manager's business? - the majority of any consumer surplus is captured by the business - the majority of any consumer surplus is captured by intermediaries - consumer surplus is maximized - the majority of any consumer surplus is retained by the business's customers

A

The premium prices charged for dinner at the restaurant Le Jules Vemes on the second level of the Eiffel Tower in Paris, France can be attributed, in part, to which type of differential pricing strategy? - bundling - location - time - product versioning

B

What is the formula revenue managers use to calculate Net ADR Yield? - Standard ADR / Net room rate = net adr yield - net room rate / standard adr = net adr yield - standard adr - distribution channel costs = net adr yield - occupancy% / standard ADR = net ADR yield

B

Which statement about revenue management and revenue optimization is true? - rev opt seeks to maximize income while rev management seeks to maximize long-term profits - rev management seeks to maximize income while rev opt seeks to maximize long-term profits - rev opt seeks to minimize rev while rev management seeks to maximize RevPAR - rev management seeks to maximize income while rev opt seeks to minimize income

B

A business hotel's promotion targeting local area residence and designed to offer them significantly reduced room rates on Sunday nights is an example of which type of differential pricing strategy? - bundling - product versioning - location - time

C

Hottickets.com is a web-based business that buys popular concert tickets in bulk. It buys the tickets at a low price because it qualifies for group ticket discounts offered by concert promoters. Hotticket.com then marks up and immediately resells the tickets it has purchased to interested individuals who visit to Hotticket website. What is the name of the activity Hottickets.com is engaging in? - articles of trade - consumer surplus staging - arbitrage - commoditization

C

What is the economic term used to describe the difference between what a consumer is charged for a product or service and the price that consumer would willingly pay for it? - value - consumer rationality - consumer surplus - buyer's remorse

C

What is the purpose of a price fence or barrier? - to establish the actual amount of available product inventory - to minimize the sale of low priced products or services - to identify who is and who not eligible for a special pricing offer - to determine the optimum price at which to sell a product or service

C

What is the relationship between differential pricing and consumer surplus? - consumer surplus prevents the effective use of differential pricing - differential pricing is a strategy used by sellers to maximize consumer surplus - differential pricing is a strategy used by sellers to minimize consumer surplus - consumer surplus mandates to use of differential pricing

C

What is value-based pricing? - a pricing system based upon a seller's view of product or service value - a pricing system based upon the total amount of profit needed to maintain an ongoing business - a pricing system based upon a buyer's view of product or service value - a pricing system based upon the value of the sum of costs incurred by a seller

C

Which differential pricing strategy would in most cases be illegal or unethical if implemented? - pricing strategy on the age of the buyer - pricing based on the occupation of the buyer - pricing based on the ethnicity of the buyer - pricing based upon the location at which the buyer makes a purchase

C

Offering reduced room rates only to those room buyers willing to book their reservations via an internet website is an example of which type of differential pricing strategy? - product versioning - time - location - distribution channel

D

The requirement that a buyer present a coupon at the time of a purchase is an example of what type differential pricing strategy? - pricing based on payment terms - pricing based on customer characteristics - pricing based on distribution channel - pricing based on product versioning

D

What is the term used to describe a pricing system in which all customers are charged the same price at all times? - segmented pricing - value-based pricing - demand-based pricing - fixed pricing

D

What is true for franchised hotel operations in the United States? - their prices are established by their franchisers - their prices are established by their hotel owners - their prices are established by their franchiser advisory committees - their prices are established by the hotel's brand managers

D

Which statement about high volume buyers in the hospitality industry is true? - the costs of selling and servicing their accounts increase proportionately with the volume of purchases made - they expect to pay more per unit purchased because they buy in large quality - it is easier to win the business of low volume buyers - the per unit cost of selling to them is less than the cost associated with low volume buyers

D

which statement about revenue management in the hospitality industry is true? - its effective implementation requires intuition rather than data analysis - those who implement it must have advanced training in statistical analysis - it is best understood by experienced hospitality managers - its focus should be on costs, not customers

both intuition and data analysis (question answers were worded wrong)