Marketing Series: Hospitality & Tourism

Chapter 11: Pricing Products


1.	What is the term for the value placed on goods or services being exchanged?
		A)	utility
		B)	place utility
		C)	price
		D)	competitive advantage


2.	Who determines whether the value of a product is worth the exchange of money?
		A)	the marketer
		B)	the owner of the company that makes the product
		C)	the customer
		D)	none of the above


3.	À la carte and prix fix are price options used in what type of business?
		A)	hotel
		B)	motel
		C)	motor coach
		D)	restaurant


4.	Early-bird specials and weekend deals are examples of which pricing strategy?
		A)	promotional pricing
		B)	psychological pricing
		C)	market-penetration pricing
		D)	breakeven pricing


5.	The difference between the retail or wholesale price and the cost of an item is called the _____.
		A)	breakeven price
		B)	discount
		C)	markup
		D)	value


6.	Pricing an item at or below cost to attract customer attention is called _____.
		A)	bundle pricing
		B)	loss-leader pricing
		C)	markup
		D)	price lining


7.	If the supply of an item is limited, the price usually _____.
		A)	goes down
		B)	goes up
		C)	stays the same
		D)	none of the above


8.	The variation of consumer demand due to a change in price is called _____.
		A)	markup
		B)	discounting
		C)	supply
		D)	elasticity of demand


9.	Why is the price of a product generally high during the introduction stage of the product life cycle?
		A)	to attract new customers
		B)	to beat the competition
		C)	because the promotional costs are low
		D)	because the promotional costs are high


10.	Which is not a factor that can affect the price of a product?
		A)	the competition
		B)	economic conditions
		C)	war or the threat of war
		D)	loyal customers