Question

((Marketeing in health care))

1-The major disadvantage of a skimming strategy is that it:

	A.	encourages competitors to enter.
	B.	allows for rate-setting commissions to begin an investigation into price-setting practices.
	C.	ignores where the bulk of the market is.
	D.	All of these are correct.

2-In health care, a major factor that affects life cycles is:

	A.	demographics.
	B.	technology.
	C.	reimbursement.
	D.	All of these are correct.

3-True or False? The value a brand gives a company through associations made by a consumer is referred to as its brand equity.

True

False

4-True or False? A hospital owns clinics, a freestanding laboratory, a surgi-center, and an ambulance company. All of these are under one name of the health system. This hospital follows a multiproduct branding strategy.

True

False

5-Intuitive Surgical has entered the market with a robotics surgical device. In the growth stage of the life cycle, it has decided to:

	A.	generate primary demand.
	B.	utilize all three strategies.
	C.	target different market segments for usage of its device.
	D.	lower prices.

6-True or False? A health system buys physician practices in many different regions and several smaller hospitals. It lets each entity retain its own name. This organization is following a reseller strategy.

True

False

7-There is one product life cycle that has only two stages: introduction and decline. Which of the following is that life cycle?

	A.	Fashion
	B.	High learning
	C.	Fad
	D.	Low learning

8-When a manufacturer of proton beam therapy publishes a magazine showing articles and stories of patients whose diseases have been treated with great results using this technology, this is a strategy to create:

	A.	primary demand.
	B.	secondary demand.
	C.	skimming.
	D.	differentiation.

Answer 1

1. Skimming price strategy refers to the strategy where the marketer sets a relatively high initial price for a product or service initially and then lowers the price over time. This is a temporal version of price discrimination or yield management.

One of the disadvantages of the skimming price strategy is that it encourages the competitors to enter as the prices are set high and also ignore where the bulk of the market lies. Thus, Option D is the correct answer.

2. Demographics, Technology, and reimbursement are the factors that affect the life cycles. Option D is the correct answer.

3. The brand equity is the commercial value that is derived from consumer perception of brand name for a product or service rather than from the product or service itself. Thus, the given statement is false as the brand equity is derived from consumer perception rather than associations made by a consumer.

4. Multiproduct branding strategy is a business strategy involving a company marketing several similar products as competitors but each one of them with its own individual brand name. In this case, the hospital owns everything that their competitors might have but with the brand name of the hospital. Thus, the given statement is True.