From an operational perspective, yield management is least effective under which of the following circumstances?
A) Demand can be segmented by customer.
B) The product can be sold in advance.
C) The product can be kept to be sold when demand is stronger.
D) Fixed costs are high, and variable costs are low.
E) Demand is highly variable.

Question

Quizplus · Accepted Answer

Yield management, also known as revenue management, is least effective when the product can be stored for sale at a later time when demand is stronger. This is because yield management strategies are most effective when dealing with perishable inventory, such as hotel rooms or airline seats, which cannot be stored and sold later.

From an Operational Perspective, Yield Management Is Least Effective Under