What is a theatre practising when they lower prices in the afternoon to offset low demand and raise prices in the evening when demand rises?
A) modified breakeven analysis
B) yield management
C) exploitation of the local theatre-goers
D) marginal pricing

Question

Quizplus · Accepted Answer

This practice is an example of yield management, which involves adjusting prices in response to changes in demand. By lowering prices during low-demand times (afternoon) and raising them during high-demand times (evening), the theatre is able to maximize revenue and optimize seat occupancy. This is a common practice in the entertainment industry, as well as in industries such as airlines and hotels.

What Is a Theatre Practising When They Lower Prices in the Afternoon