A Focus on Maximizing the Number of Customers Using a Service

question 60

Multiple Choice

A focus on maximizing the number of customers using a service is a(n) _____ pricing objective for service firms.

• A) maximization of demand
• B) patronage-oriented
• C) profitability-oriented
• D) operations-oriented
• E) revenue-oriented

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Definitions:

Time Value

Time value refers to the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Money

A medium of exchange used to facilitate transactions for goods and services.

Net Present Value

A method used to evaluate an investment's profitability by calculating the present values of all cash inflows and outflows.

Delay

The act or instance of postponing or hindering a process, decision, or action.