Scenario 12.3 Use the Following to Answer the Questions

question 198

Multiple Choice

Scenario 12.3
Use the following to answer the questions.
Glenwood Pet Hospital is considering implementing a new pricing strategy for its veterinarian services. After reviewing the previous three years' revenue, Glenwood finds that most of its customers bring their pets in for the required annual vaccinations only if the animal is ill. Glenwood's objective is to generate more income per customer on an annual basis. The hospital has previously priced its services by charging a flat fee for the office visit, a fee for each vaccine, and a fee for each type of examination beyond the basic office visit. Most customers pay the flat office fee and a fee for a rabies vaccine. Glenwood is now considering a new plan where the pet owner would pay one fee that would cover an office visit, the required rabies vaccine, and additional vaccines that prevent heartworm, kennel-cough, and fleas. Glenwood hopes to encourage the pet owners to view their pet's health as part of a prevention program, rather than a one-time annual visit.
-Refer to Scenario 12.3. Glenwood's new pricing strategy is an example of pricing.

• A) cost-based
• B) psychological
• C) customary
• D) bundle
• E) demand-based

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Definitions:

Punishment

The imposition of a penalty or discomfort by an authority figure or system in response to an undesired behavior, aiming to decrease its occurrence.

Positive Reinforcement

A strategy in behavior modification that involves the addition of a rewarding stimulus following a desired behavior.

Conditioned Stimulus

A conditioned stimulus is a previously neutral stimulus that, after being associated with an unconditioned stimulus, evokes a conditioned response.

Fear Conditioning

A behavioral paradigm in neuroscience and psychology where organisms learn to predict aversive events, developing a conditioned response to a previously neutral stimulus.