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 c. for booking early d. all of these 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. 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 b. psychological pricing c. market-penetration pricing c. market-penetration pricing d. break even 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 b. bundle pricing c. loss-leader pricing c. loss-leader pricing d. yield management pricing d. yield management pricing

7.  A variable cost that a business may have is a. Rent b. Utilities c. Mortgage payment d. 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 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 c. a hotel having their hotel rooms, car rental, and tickets included in the same price d. both a and b 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 b. bundle pricing c. loss-leader pricing c. loss-leader pricing d. cost-plus pricing d. cost-plus pricing

10. To be competitive, a business must price its products how? To be competitive, a business must price its products how? a. the same as their competitors a. the same as their competitors b. a little lower than their competitors b. a little lower than their competitors c. higher than their competitors c. higher than their competitors d. all of the above 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 A. a lower price to get it going B. a mid price B. a mid price C. a competitive price C. a competitive price D. a higher 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 b. terrorists acts c. war c. war d. all of these d. all of these

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