Yield management is most likely to be used in which one of the following situations?
A) a fast food restaurant with wide demand fluctuations during the day
B) a dental clinic that wants to fill its appointment book
C) a firm with a good counterseasonal product mix
D) a shipping company that can change its fleet size easily
E) an airline attempting to fill "perishable" seats at maximum revenue

Question

Quizplus · Accepted Answer

Yield management is a pricing strategy that involves adjusting the price of a product or service in response to fluctuations in demand. It is commonly used in industries where the products or services being sold are perishable, meaning they cannot be stored for later use. Airlines are a classic example of a business that uses yield management because they have a fixed number of seats on each flight, and once the plane takes off, any unfilled seats cannot be sold. By adjusting ticket prices based on factors such as time of day, day of the week, and time of year, airlines can maximize revenue by filling as many seats as possible at the highest possible price.

Yield Management Is Most Likely to Be Used in Which