MKT 202 04

Total customer cost consists of all of the following components except:

• monetary cost

• social cost

• time cost

• psychological cost

• physical cost

Service high on experience and credence attributes such as surgery would create high

• monetary cost

• social cost

• time cost

• psychological cost

• physical cost

Which situation is NOT going to increase the price competition?

• Higher number of competitors

• Larger amount of substituting offers

• Wider distribution of competitors

• Lower demand

• Reducing surplus capacity

Which circumstance is NOT going to help the service organization to reduce price competitions

• Non-price related cost of using competitors products are high

• Personal relationships matter

• Switching cost are high

• Economic downturn makes customers become more price sensitive

• Time and location specificity reduces choice

One example of basic product rate fences in hotel industry is:

• Size and furnishing of a hotel room

• Free breakfast at the hotel

• Time of booking

• 5 consecutive days of stays

• Personal butler

Which one of the following is NOT a non-physical fences based on buyer characteristics?

• Time of booking or reservation

• Frequency or volume of consumption

• Group membership

• Size of customer group

• Geographic location

Following ways help firms to improve customers' fairness perception EXCEPT_____________

• Use unpublished prices and frame fences as discounts

• Use service recovery or deal with overbooking

• Use bundling to hide discounts

• Take care of loyal customer

• Design price schedules and frame fence that are logical, clear and fair

The cost of an evening at the theater for a couple with young children usually far exceeds the price of the two tickets. It can include expenses such as hiring a babysitter, travel, parking, food and drink. These expenses are called________________

• Moneytary cost

• Operating cost

• Incidental expenses

• Physical cost

• Psychological cost

____________ and ____________ represent important ways to add value to a product.

• Reciprocation; classification

• Information; classification

• Information; consultation

• Reciprocation; consultation

• Reciprocation; mediation

One approach to training customers, recommended by advertising experts is to ____________.

• train employees like customers

• use radio advertising

• show service delivery in action

• design palpable service environments

• explain service procedures in advance