REVENUE MANAGEMENT FINAL EXAM
QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) A GRADE
1. Which of the following statements about restaurant
pricing methods is true? - correct answer-
Restaurant industry pricing methods are very different
from hotel industry pricing methods
A business hotel's promotion targeting local area
residence and designed to offer them significantly
reduced room rates on Sunday nights is an example of
which type of differential pricing strategy? - correct
answer- Pricing based on time
According to Alfred Marshall's work, if the price of a
product is lower than the natural, or equilibrium price,
what will happen? - correct answer- The
demand fort he product would exceed its supply
Ahmed is the sole waitperson on duty at the Athenian
restaurant during the very slow 2:00 p.m. to 4:00 p.m.
,time period. Which of the Four I's of service refers to the
fact that employees such as Ahmed must be scheduled to
work anytime a service business is open and regardless of
low volume levels? - correct answer- Inventory
All except one of the following pricing systems are
marketing-based. Which one is not an example of
marketing-based pricing? - correct answer-
Return on Investment (ROI) pricing
Amanda is the revenue manager of a hotel. When she
opened her e-mail last Friday she found a message from
the Executive Director of the state dental association
asking Amanda for a formal price quote on rooms and
meeting space needed by the association for their annual
conference. What would Amanda call this inquiry? -
correct answer- RFP
Arthur's restaurant is extremely busy on Friday and
Saturday. The manager of the operation offers reduced
prices on quick-to-prepare and quick-to-serve menu items
on those two nights. What revenue related factor is this
,restaurant manager seeking to positively influence? -
correct answer- Capacity
Assume a food and beverage operator offers guests a 20-
year old Scotch at a price five times the amount charged
for one-year old Scotch. Assume also that the operator's
customers very rarely purchase the more expensive
Scotch. Which statement would explain why the 20 year
old Scotch does not sell well? - correct answer-
Customers do not accept this seller's price-value
proposition
Assume an equilibrium price (P1) is in place for a product.
What would the law of supply and demand predict as an
outcome if demand for that product increased? -
correct answer- The new price (P2) would be
lower than the previous price (P1) because supply would
decrease
At Lauren's restaurant the check average is always higher
on Saturday night than on any other night. What is the
most likely cause of the check average variance she
experiences? - correct answer- The sales mix
, At Rachel's hotel the CPOR is $40.00. Her Net ADR Yield
averages 85% and her franchise fees average 5%. What is
Rachel's average minimum ADR sales point? - correct
answer- $50.00
Bob is the revenue manger at the Waterfront hotel. For
the third week in December next year he has determined
the hotel will accept reservations for guests seeking to
arrive on Dec 21st. Dec 22nd. or Dec 23rd; but not on Dec
24th or Dec 25th. Which of the following revenue
management control (restriction) strategies is she using?
- correct answer- CTA
Charging guests for watching a "Pay-Per-View" movie in
their hotel guestroom is an example of what type of
pricing? - correct answer- Two-tiered pricing
Consider the formula: (A + B) - C = D
Where: A = Perceived tangible product benefit
B = Perceived intangible service benefit
QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) A GRADE
1. Which of the following statements about restaurant
pricing methods is true? - correct answer-
Restaurant industry pricing methods are very different
from hotel industry pricing methods
A business hotel's promotion targeting local area
residence and designed to offer them significantly
reduced room rates on Sunday nights is an example of
which type of differential pricing strategy? - correct
answer- Pricing based on time
According to Alfred Marshall's work, if the price of a
product is lower than the natural, or equilibrium price,
what will happen? - correct answer- The
demand fort he product would exceed its supply
Ahmed is the sole waitperson on duty at the Athenian
restaurant during the very slow 2:00 p.m. to 4:00 p.m.
,time period. Which of the Four I's of service refers to the
fact that employees such as Ahmed must be scheduled to
work anytime a service business is open and regardless of
low volume levels? - correct answer- Inventory
All except one of the following pricing systems are
marketing-based. Which one is not an example of
marketing-based pricing? - correct answer-
Return on Investment (ROI) pricing
Amanda is the revenue manager of a hotel. When she
opened her e-mail last Friday she found a message from
the Executive Director of the state dental association
asking Amanda for a formal price quote on rooms and
meeting space needed by the association for their annual
conference. What would Amanda call this inquiry? -
correct answer- RFP
Arthur's restaurant is extremely busy on Friday and
Saturday. The manager of the operation offers reduced
prices on quick-to-prepare and quick-to-serve menu items
on those two nights. What revenue related factor is this
,restaurant manager seeking to positively influence? -
correct answer- Capacity
Assume a food and beverage operator offers guests a 20-
year old Scotch at a price five times the amount charged
for one-year old Scotch. Assume also that the operator's
customers very rarely purchase the more expensive
Scotch. Which statement would explain why the 20 year
old Scotch does not sell well? - correct answer-
Customers do not accept this seller's price-value
proposition
Assume an equilibrium price (P1) is in place for a product.
What would the law of supply and demand predict as an
outcome if demand for that product increased? -
correct answer- The new price (P2) would be
lower than the previous price (P1) because supply would
decrease
At Lauren's restaurant the check average is always higher
on Saturday night than on any other night. What is the
most likely cause of the check average variance she
experiences? - correct answer- The sales mix
, At Rachel's hotel the CPOR is $40.00. Her Net ADR Yield
averages 85% and her franchise fees average 5%. What is
Rachel's average minimum ADR sales point? - correct
answer- $50.00
Bob is the revenue manger at the Waterfront hotel. For
the third week in December next year he has determined
the hotel will accept reservations for guests seeking to
arrive on Dec 21st. Dec 22nd. or Dec 23rd; but not on Dec
24th or Dec 25th. Which of the following revenue
management control (restriction) strategies is she using?
- correct answer- CTA
Charging guests for watching a "Pay-Per-View" movie in
their hotel guestroom is an example of what type of
pricing? - correct answer- Two-tiered pricing
Consider the formula: (A + B) - C = D
Where: A = Perceived tangible product benefit
B = Perceived intangible service benefit
