A Restaurant Wants to Use Value-Based Pricing

question 147

Multiple Choice

A restaurant wants to use value-based pricing. It knows the costs of the ingredients in the food. It must also factor in ________ in determining customer satisfaction and value.

• A) wages of employees
• B) costs of utilities of the restaurant
• C) atmosphere and décor of the restaurant
• D) travel distance for customers
• E) percentage of bar patrons versus dining patrons

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Definitions:

Representativeness Heuristic

A mental shortcut used to judge the probability of an event by how much it resembles a typical case.

Simulation Heuristic

The simulation heuristic is a psychological theory that explains how people determine the likelihood of an event based on how easy it is to visualize the event happening.

Exam Question

A query or problem posed during an examination to evaluate a student's knowledge or skills.

Simulation Heuristic

A cognitive heuristic where people determine the likelihood of an event based on how easily they can imagine it happening, influencing their perception of risks and outcomes.