Revenue Management Final Exam Quiz 4

Revenue Management Final Exam Quiz 4 Which statement about revenue management in the hospitality industry is true? - ANS-it is best understood by experienced hospitality managers What is value-based pricing? - ANS-A pricing system based upon a buyer's view of product or service value All except one of the following pricing systems are marketing-based. Which one is not an example of marketing-based pricing? - ANS-Return on Investment (ROI) pricing What is the term used to describe a pricing system in which all customers are charged the same price at all times? - ANS-Fixed pricing What is true for franchised hotel operations in the United States? - ANS-Their prices are established by their franchiser 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? - ANS-Consumer Surplus What is the relationship between differential pricing and consumer surplus? - ANSDifferential pricing is a strategy used by sellers to minimize consumer surplus Which course of action would be most beneficial to the profit generating ability of a revenue manager's business? - ANS-The majority of any consumer surplus is captured by the business H 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. H then marks up and immediately resells the tickets it has purchased to interested individuals who visit the Hotticket website. What is the name of the activity H is engaging in? - ANS-Arbitrage What is the purpose of a price fence or barrier? - ANS-To identify who is and who is not eligible for a special pricing offer Which differential pricing strategy would in most cases be illegal or unethical if implemented? - ANS-Pricing based on the ethnicity of the buyer The use of a formal customer rewards program is an example of what type of differential pricing strategy? - ANS-Pricing based on customer characteristic The requirement that a buyer present a coupon at the time of purchase is an example of what type differential pricing strategy? - ANS- Continues...