HTM 381 EXAM 1 (QUIZ QUESTIONS UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. What is the term used to describe the perceived benefit gained, minus the price paid, in a business
transaction?
Answer:
Value
Question:
2. What is created when a seller communicates to a buyer a description of a product to be sold and the
price at which that product will be sold?
Answer:
A value proposition
Question:
3. Assume an equilibrium price (P1) is in place for a product. What would the law of supply and demand
predict as an outcome if demand for that product increased?
Answer:
The new price (P2) would be higher than the previous price (P1) and supply would increase.
Question:
4. If a Revenue Manager implements an organization's strategic pricing plan what personal characteristic
of that Revenue Manager will be most important for ensuring the plan's success?
Answer:
An understanding of the organization's customers
Question:
5. What is the term for the point at which an organization's revenues exactly equal its costs?
Answer:
Break-even point
Question:
6. Which one of the following terms is not one of the 4 Ps of the Marketing Mix?
Answer:
Proposition
Question:
7. In a hospitality industry break-even analysis graph the Total Revenues line starts at 0. Why does the
Total Costs line always start farther up the y axis?
Answer:
Because fixed costs are incurred even if no guests are served or rooms are sold.
Question:
8. What is the fundamental assumption upon which the Law of Supply is based?
QUESTIONS AND CORRECT ANSWERS
Question:
1. What is the term used to describe the perceived benefit gained, minus the price paid, in a business
transaction?
Answer:
Value
Question:
2. What is created when a seller communicates to a buyer a description of a product to be sold and the
price at which that product will be sold?
Answer:
A value proposition
Question:
3. Assume an equilibrium price (P1) is in place for a product. What would the law of supply and demand
predict as an outcome if demand for that product increased?
Answer:
The new price (P2) would be higher than the previous price (P1) and supply would increase.
Question:
4. If a Revenue Manager implements an organization's strategic pricing plan what personal characteristic
of that Revenue Manager will be most important for ensuring the plan's success?
Answer:
An understanding of the organization's customers
Question:
5. What is the term for the point at which an organization's revenues exactly equal its costs?
Answer:
Break-even point
Question:
6. Which one of the following terms is not one of the 4 Ps of the Marketing Mix?
Answer:
Proposition
Question:
7. In a hospitality industry break-even analysis graph the Total Revenues line starts at 0. Why does the
Total Costs line always start farther up the y axis?
Answer:
Because fixed costs are incurred even if no guests are served or rooms are sold.
Question:
8. What is the fundamental assumption upon which the Law of Supply is based?
