Sparkling Valley, a Luxury Resort, Prices Cottages Facing the Lake

question 87

Multiple Choice

Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages that do not, even though the cottages and services offered are identical in every other aspect. This form of pricing is called ________.

• A) location-based pricing
• B) time-based pricing
• C) by-product pricing
• D) seasonal pricing
• E) captive product pricing

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Definitions:

Operational Risks

The possibility of experiencing a loss due to inefficient or malfunctioning internal procedures, individuals, and systems, or owing to occurrences outside the organization's control.

Vendors Quality

The measure of excellence or state of being free from defects, deficiencies, and significant variations, brought by the strict and consistent adherence to measurable and verifiable standards to meet consumer's satisfaction by the vendor.

Poverty Trap

A situation in which an individual or community remains in poverty because their low income prevents them from investing in opportunities that could increase their wealth.

Individual Capability

The skills, knowledge, and abilities possessed by an individual that enable them to perform tasks and achieve goals.