All of the Following Are Cost Considerations Associated with Service

question 10

Multiple Choice

All of the following are cost considerations associated with service pricing except:

• A)​Service consumers are more likely to use price as a cue to quality.
• B)Cost-oriented pricing is more difficult for services.
• C)Consumers may not know the actual price they will pay until the service is completed.
• D)Services tend to be characterized by a high fixed-cost to variable-cost ratio.
• E)None of these are exceptions.

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Definitions:

Regional

Pertains to a specific geographic area, often used to describe the location-dependent aspects of business or culture.

Unique

Being the only one of its kind; unlike anything else, often referring to qualities that set someone or something apart from others.

Cultural

Pertaining to the customs, arts, social institutions, and achievements of a particular nation, people, or other social group.

Level of Competition

The intensity of rivalry among businesses in the same industry, which can affect market share, pricing strategies, and innovation efforts.