All of the Following Are True About the Price Element

question 61

Multiple Choice

All of the following are true about the price element of services EXCEPT:

• A)price can be referred to in a variety of terms.
• B)price can affect consumer perceptions of the service.
• C)price techniques like on-peak pricing are used to manage variations in supply for the service.
• D)price can be used in capacity management.
• E)price can be used in services to imply a higher quality.

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Definitions:

Logic

The systematic study of correct reasoning and inference, often applied in computing to carry out processes based on conditions and rules.

Efficient Market Hypothesis

A theory that suggests market prices fully reflect all available information, making it impossible to consistently achieve higher than average returns.

Random Walk

The hypothesis that stock market prices evolve according to a random path, making it impossible to consistently predict their future direction.

Index Funds

A type of mutual fund with a portfolio constructed to match or track the components of a financial market index, such as the S&P 500, aiming to offer broad market exposure, low operating expenses, and low portfolio turnover.