Traditional yield management strategies are most appropriate when:
A) The service provider has a homogeneous target market
B) Its target market is not price sensitive
C) All members of the target market arrive at basically the same time
D) Those who arrive early or reserve early are more price sensitive than those who reserve or arrive late
E) All of the target market is equally price sensitive

Question

Quizplus · Accepted Answer

Traditional yield management strategies are suited for situations where early or advance reservations are made by price-sensitive customers. In such scenarios, the service provider can adjust prices to maximize revenue from both price-sensitive and non-price sensitive customers. Homogeneity of the target market, non-price sensitivity, simultaneous arrival, or equal price sensitivity are not prerequisites for traditional yield management strategies.

Traditional Yield Management Strategies Are Most Appropriate When