HFT4502 Final Exam Questions and Correct Answers/ Latest Update / Already Graded

cost-plus pricing Ans: adding a standard markup to the cost of the product cross-selling Ans: The company's other products that are sold to the guest Discriminatory Pricing Ans: refers to segmentation of the market and pricing differences based on price elasticity characteristics of the segments fixed costs Ans: Costs that do not vary with the quantity of output produced going-rate pricing Page | 2 All rights reserved © 2025/ 2026 | Ans: Setting price based largely on following competitors' prices rather than on company costs or demand. price Ans: The amount of money exchanged for a good or service, or the sum of values that consumers exchange for the benefits of having or using the product or service revenue management Ans: Forecasting demand to optimize profit. Demand is managed by adjusting price. Fences are often built to keep all customers from taking advantage of lower prices. For example, typical fences include making a reservation at least two weeks in advance or staying over a Saturday night. survival Ans: A technique used when a company's or business unit's sales slump, creating a loss that threatens its existence. Because the capacity of a hotel or restaurant is fixed, survival often involves cutting prices to increase demand and cash flow. This can disrupt the market until the firm goes out of business or the economy improves. Page | 3 All rights reserved © 2025/ 2026 | upselling Ans: Training sales and reservation employees to offer continuously a higher-priced product that will better meet the customers' needs, rather than settling for the lowest price. value-based pricing Ans: uses the buyers' perceptions of value, not the sellers cost, as the key to pricing administered V