Scenario 12

question 220

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 has decided that it is going to offer a special package offer if the prevention plan is purchased within the first 30 days of each year's time for vaccinations. This type of pricing strategy would be an example of

• A) customary pricing.
• B) secondary-market pricing.
• C) introductory pricing.
• D) periodic discounting.
• E) random discounting.

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Definitions:

Shared Values

Fundamental beliefs or standards agreed upon by a group, which guide their behaviors and decisions.

Functionalism

A theoretical framework in sociology that views society as a complex system whose parts work together to promote solidarity and stability.

Human Behavior

The array of actions and mannerisms exhibited by humans in conjunction with their environment, influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion, and/or genetics.

Industrial Revolution

A period of major industrialization from the late 18th to early 19th century that transformed primarily agrarian, rural societies in Europe and America into industrialized, urban ones.