pricing of services

Question 1

ways that service prices are percieved differently from goods prices

Answer 1

1. customer knowledge
2. the role of nonmonetary costs
3. price as an indicator of service quality

Question 2

variables in cost of the service

Answer 2

1. money
2. time
3. search
4. convenience
5. psychological

Question 3

options to price services

Answer 3

1. competition based
2. cost based
3. demand based

Question 4

competition based

Answer 4

1. small firms may charge to little
2. heterogienty of services limits comparability
3. prices may not reflect customer value

Question 5

cost based

Answer 5

1. costs difficult to trace
2. labor tough to price than materials
3. costs may not equal the value that
   customers percieve the services are worth

Question 6

demand based

Answer 6

1. monetary price must be adjusted to reflect
   the value of nonmonetary costs
2. info on services less available, price might
   not be a central factor

Question 7

value

Answer 7

a customers overal assessment of utility of the service based on their perception of what is recieved and what is given

Question 8

4 definitions of value and strategies

Answer 8

1. value is low price
2. value is everything i want in a service
3. value is the quality i get for price i pay
4. value is all that i get for all that i give

Question 9

value is low price

Answer 9

-discounting
-odd pricing
-synchro pricing
-penetration pricing

Question 10

value is everything i want in a service

Answer 10

-prestige pricing
-skimming pricing

Question 11

value is the quality i get for the price i pay

Answer 11

-value pricing
-market segmentation pricing

Question 12

value is all that i get for all that i give

Answer 12

-price framing
-price bundling
-complmentary pricing
-results based pricing