Scenario 12

question 305

Multiple Choice

Scenario 12.4 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 and then 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 12.4. Glenwood's new pricing strategy is an example of ____ pricing.

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

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Definitions:

Mental Incapacity

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A contract between a lessor and lessee that grants the lessee rights to use a property owned by the lessor for a specified period in return for payment.

Oil Exploration

The process of searching for oil deposits, often involving geological surveys and drilling.

Restrictive Covenant

A clause in a deed or lease that limits what the owner of the property can do with it, often to ensure the use aligns with certain criteria or standards.