Question

Because of the intangibility of services, the promotional challenge is to show:

	A.	A) how they really are tangible. B
	B.	the value of the savings in using the service.
	C.	the tangible benefits of the service if used.
	D.	All of these are correct.

When the percentage change in demand does not exceed the percentage change in price, then consumer demand is said to be:

	A.	demand sensitive.
	B.	demand insensitive.
	C.	price inelastic.
	D.	price elastic.

Under which health care system does risk lie with the health care system to manage the care of the individual over the contractual period?

	A.	Fee-for-service
	B.	Capitation
	C.	Cost-based reimbursement
	D.	Pay for performance

Answer 1

1.C) The tangible benefits of the service if used.

Because of the intangibility of service the promotional challenge is to show the tangible benefits of the service if used.

2.C) Price inelastic

When the percentage change in demand does not exceed the percentage Change in price then consumer demand is said to be price inelastic.

3.B) Capitation

Under Capitation health care system risk lie with the health care system to manage the care of individual over the contractual period.