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Questions and Answers
What makes service pricing strategy different and difficult?
What makes service pricing strategy different and difficult?
- Customers find service pricing easy to understand and ethical
- Service pricing does not consider the time factor
- Service pricing does not have implications of cost analysis
- It is harder to calculate financial costs of creating a service process or performance than a manufactured good (correct)
What is the main focus of value-based pricing?
What is the main focus of value-based pricing?
- Monitoring competitors' pricing strategy
- Emphasizing benefits received from the service
- Setting prices relative to financial costs
- Relating price to the value perceived by the customer (correct)
What is the significance of activity-based costing (ABC) in service pricing?
What is the significance of activity-based costing (ABC) in service pricing?
- It relates price to value perceived by the customer (correct)
- It helps in understanding net value
- It emphasizes benefits received from the service
- It focuses mainly on price
How is perceived value defined in service pricing?
How is perceived value defined in service pricing?
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What do low-cost carriers emphasize as the most important component of value?
What do low-cost carriers emphasize as the most important component of value?
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