Pricing
Chapter 11
 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
 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
d. all of these
 An
example of a fixed cost that a business
may have is
a. utilities.
b. employee costs.
c. rent.
d. water bill.
 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
c. market-penetration pricing
d. break even pricing
 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
c. loss-leader pricing
d. yield management pricing
A variable cost that a business may have is

a.
b.
c.
d.
Rent
Utilities
Mortgage payment
insurance
 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
c. a hotel having their hotel rooms, car
rental, and tickets included in the same price
d. both a and b
 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
c. loss-leader pricing
d. cost-plus pricing
To be competitive, a business must price
its products how?
a. the same as their competitors
b. a little lower than their competitors
c. higher than their competitors
d. all of the above
 During
the introduction stage of a
product how is the price normally set?
 A. a lower price to get it going
 B. a mid price
 C. a competitive price
 D. a higher price
 An
environmental factor that may affect
how a business prices their products is
a. bad weather
b. terrorists acts
c. war
d. all of these
 During
what part of the product life
cycle is the price set to be the most
competitive?
 A. introduction
 B. growth
 C. maturity
 D. decline