The Service Industry Faces a Challenge When Setting a Price

question 41

Multiple Choice

The service industry faces a challenge when setting a price for intangible products. Three types of pricing strategies, based on customer perception of the value provided by the purchase, have been postulated. Which of the following is not one of the strategies?

• A) Satisfaction-based pricing.
• B) Relationship pricing.
• C) Reference pricing.
• D) Efficiency pricing.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; used in finance to quantify the risk of an investment.

Capital Gain

The profit earned from the sale of an asset, such as stocks or real estate, which exceeds its purchase price.

Dividend Yield

A metric showing the yearly dividend payment of a company as a proportion of its stock price.

Total Return

The overall financial gain or loss on an investment, including both the change in value and any income from dividends or interest, over a specific period.