The strategy that varies prices in order to match capacity with demand is known as
A)chase SOP.
B)level SOP.
C)yield management.
D)rough-cut capacity management.

Question

Quizplus · Accepted Answer

Yield management is a pricing strategy used by companies to adjust prices based on the demand and supply of a product or service, aiming to maximize revenue by matching capacity with demand. This approach is commonly used in industries like airlines, hotels, and car rentals, where the cost of providing the service is fixed, and the service cannot be stored for future sales.

The Strategy That Varies Prices in Order to Match Capacity