REVENUE MANAGEMENT FINAL EXAM 2024-2025
QUESTIONS AND ANSWERS 100 % PASS SOLUTION A+ GRADE
The requirement that a buyer present a coupon at the time of purchase is an example of
what type differential pricing strategy?
Pricing based on distribution channel
Pricing based on customer characteristic
Pricing based on product versioning
Pricing based on payment terms - ANSWER--pricing based on customer characteristic
The premium prices charged for dinner served at the restaurant Le Jules Vernes on the
second level of the Eiffel Tower in Paris, France can be attributed, in part, to which type of
differential pricing strategy?
Pricing based on location
Pricing based on time
Pricing based on product versioning
Pricing based on bundling - ANSWER--pricing based on location
which of the following terms would be included in the place portion of a hotel's marketing
mix?
-advertising
-product enhancements
-distribution channels
-promotions - ANSWER--distribution channels
A business hotel's promotion targeting local area residence and designed to offer them
significantly reduced room rates on Sunday nights is an example of which type of differential
pricing strategy?
Pricing based on location
Pricing based on bundling
,Pricing based on product versioning
Pricing based on time - ANSWER--pricing based on time
What type of benefit is lacking in material qualities and is not able to be touched or seen but
nonetheless can still be perceived?
Intangible
Fringe
Tangible
Material - ANSWER--intangible
What will be the typical case in an auction when the initial price bid for the item being sold is
very low?
The number of potential bidders will be low
The number of potential bidders will be high
The number of potential bidders will increase as price increases
The number of potential bidders will decline - ANSWER--the number of potential bidders will
be high
Penny Larson is travelling to San Francisco for a personal vacation. Which of economist
Milton Friedman's buyer value formulas would apply to her purchase of the hotel rooms she
will need during her trip?
Spending someone else's money on herself
Spending her own money on someone else
Spending her own money on herself
Spending someone else's money on someone else - ANSWER--spending her own money on
herself
,Penny Larson is travelling to San Francisco on business. Her company will reimburse 100% of
her travel expense. Which of economist Milton Friedman's buyer value formulas would apply
to her purchase of the hotel rooms she will need during her trip?
Spending someone else's money on herself
Spending her own money on someone else
Spending her own money on herself
Spending someone else's money on someone else - ANSWER--spending someone else's
money on herself
Penny Larson is buying a $100.00 restaurant gift card as a present for her niece who is
graduating from hospitality management school. Which of economist Milton Friedman's
buyer value formulas would apply to her purchase?
Spending someone else's money on someone els
Spending her own money on herself
Spending her own money on someone else
Spending someone else's money on herself - ANSWER--spending her own money on
someone else
Penny Larson is a travel agent arranging a one-week San Francisco vacation for Mr. and Mrs.
Rafael Ochoa. Which of economist Milton Friedman's buyer value formulas would apply to
her purchase of the hotel rooms the Ochoa's will need during their trip?
Spending someone else's money on someone else
Spending her own money on herself
Spending her own money on someone else
Spending someone else's money on herself - ANSWER--spending someone else's money on
someone else
What special challenge do buyers of hospitality products such as hotel guestrooms or
restaurant meals face?
Difficulty in price determination prior to purchas
, Difficulty in quantity selection prior to purchase
Difficulty in payment terms determination prior to purchase
Difficulty in quality evaluation prior to purchase - ANSWER--difficulty in quality evaluation
prior to purchase
what is the fundamental assumption upon which the law of supply is based?
-the higher the demand for a product the less of it will be produced by sellers
-the higher the demand for a product the more of it will be produced by sellers
-the lower the demand for a product the more of it will be produced by sellers
-the demand for a product does not affect its supply - ANSWER--the higher the demand for a
product the more of it will be produced by sellers
according to Alfred Marshall's work, if the price of a product is lower than the natural, or
equilibrium price, what will happen?
-a surplus will occur
-the demand for the product would exceed its supply
-the supply of the product would exceed its demand
-excess capacity would create constrained supply - ANSWER--the demand for the product
would exceed its supply
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
-the new price (P2) would be higher than the previous price (P1) and supply would decrease
-the new price (P2) would be lower than the previous price (P1) because supply would
decrease
-the new price (P2) would be higher than the previous price (P1) and supply would increase
QUESTIONS AND ANSWERS 100 % PASS SOLUTION A+ GRADE
The requirement that a buyer present a coupon at the time of purchase is an example of
what type differential pricing strategy?
Pricing based on distribution channel
Pricing based on customer characteristic
Pricing based on product versioning
Pricing based on payment terms - ANSWER--pricing based on customer characteristic
The premium prices charged for dinner served at the restaurant Le Jules Vernes on the
second level of the Eiffel Tower in Paris, France can be attributed, in part, to which type of
differential pricing strategy?
Pricing based on location
Pricing based on time
Pricing based on product versioning
Pricing based on bundling - ANSWER--pricing based on location
which of the following terms would be included in the place portion of a hotel's marketing
mix?
-advertising
-product enhancements
-distribution channels
-promotions - ANSWER--distribution channels
A business hotel's promotion targeting local area residence and designed to offer them
significantly reduced room rates on Sunday nights is an example of which type of differential
pricing strategy?
Pricing based on location
Pricing based on bundling
,Pricing based on product versioning
Pricing based on time - ANSWER--pricing based on time
What type of benefit is lacking in material qualities and is not able to be touched or seen but
nonetheless can still be perceived?
Intangible
Fringe
Tangible
Material - ANSWER--intangible
What will be the typical case in an auction when the initial price bid for the item being sold is
very low?
The number of potential bidders will be low
The number of potential bidders will be high
The number of potential bidders will increase as price increases
The number of potential bidders will decline - ANSWER--the number of potential bidders will
be high
Penny Larson is travelling to San Francisco for a personal vacation. Which of economist
Milton Friedman's buyer value formulas would apply to her purchase of the hotel rooms she
will need during her trip?
Spending someone else's money on herself
Spending her own money on someone else
Spending her own money on herself
Spending someone else's money on someone else - ANSWER--spending her own money on
herself
,Penny Larson is travelling to San Francisco on business. Her company will reimburse 100% of
her travel expense. Which of economist Milton Friedman's buyer value formulas would apply
to her purchase of the hotel rooms she will need during her trip?
Spending someone else's money on herself
Spending her own money on someone else
Spending her own money on herself
Spending someone else's money on someone else - ANSWER--spending someone else's
money on herself
Penny Larson is buying a $100.00 restaurant gift card as a present for her niece who is
graduating from hospitality management school. Which of economist Milton Friedman's
buyer value formulas would apply to her purchase?
Spending someone else's money on someone els
Spending her own money on herself
Spending her own money on someone else
Spending someone else's money on herself - ANSWER--spending her own money on
someone else
Penny Larson is a travel agent arranging a one-week San Francisco vacation for Mr. and Mrs.
Rafael Ochoa. Which of economist Milton Friedman's buyer value formulas would apply to
her purchase of the hotel rooms the Ochoa's will need during their trip?
Spending someone else's money on someone else
Spending her own money on herself
Spending her own money on someone else
Spending someone else's money on herself - ANSWER--spending someone else's money on
someone else
What special challenge do buyers of hospitality products such as hotel guestrooms or
restaurant meals face?
Difficulty in price determination prior to purchas
, Difficulty in quantity selection prior to purchase
Difficulty in payment terms determination prior to purchase
Difficulty in quality evaluation prior to purchase - ANSWER--difficulty in quality evaluation
prior to purchase
what is the fundamental assumption upon which the law of supply is based?
-the higher the demand for a product the less of it will be produced by sellers
-the higher the demand for a product the more of it will be produced by sellers
-the lower the demand for a product the more of it will be produced by sellers
-the demand for a product does not affect its supply - ANSWER--the higher the demand for a
product the more of it will be produced by sellers
according to Alfred Marshall's work, if the price of a product is lower than the natural, or
equilibrium price, what will happen?
-a surplus will occur
-the demand for the product would exceed its supply
-the supply of the product would exceed its demand
-excess capacity would create constrained supply - ANSWER--the demand for the product
would exceed its supply
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
-the new price (P2) would be higher than the previous price (P1) and supply would decrease
-the new price (P2) would be lower than the previous price (P1) because supply would
decrease
-the new price (P2) would be higher than the previous price (P1) and supply would increase
