2010/11 Semester 2
Select the best answer
1. Business organizations consist of three major functions which, ideally:
a) support one another
b) are mutually exclusive
c) exist independently of each other
d) function independently of each other
e) do not interface with each other
2. Revenue management is concerned with:
a) a process designed to determine the best use of funds generated through sales.
b) the use of marketing tools to increase revenue.
c) the use of accounting tools to monitor cash flow.
d) the use of pricing to increase the profit generated from a limited supply of supply chain assets.
e) the appropriate use of operational tools to improve operational efficiency with a view to increasing revenue.
3. In order to make differential pricing effective, which of the following issues are to be dealt with?
a) The firm must differentiate between the market segments and structure its pricing to make one segment pay more than the other.
b) The firm must control demand such that the lower paying segment does not utilize the entire availability of the asset.
c) The firm must secure enough capacity to meet demand from each segment.
d) The firm should structure pricing according to different market segments and also control demand in such a way that the lower segment does not utilize the entire availability of the asset.
e) The firm must secure enough capacity to meet demand of each segment and also control demand in such a way that the lower segment does not utilize the entire availability of the asset.
4. In order to differentiate between different market segments, the firm must:
a) negotiate separately with different market segments that value product or service attributes differently.
b) create barriers by identifying product or service attributes that the segments value differently.
c) develop pricing structures based on the volume of various product or service attributes. d)