One problem in the interstate trucking industry is the number of trucks that return after making a delivery with an empty truck. There is a website where independent interstate truckers can look for loads that they can carry with them on their return trip. Because the trucks would be returning empty (and inefficiently), truckers, who use this website to get business that they would not have had without it, give a reduced shipping rate. This reduced rate is an example of:
A)cost-plus pricing.
B)target pricing.
C)yield management pricing.
D)penetration pricing.

Question

Quizplus · Accepted Answer

The reduced shipping rate offered by truckers on this website is an example of yield management pricing, which involves setting prices to maximize revenue based on fluctuations in demand and supply. In this case, the demand for shipping loads on the return trip is low, so the truckers offer a lower price to entice customers to fill their empty trucks and increase their revenue. Cost-plus pricing involves adding a margin to the cost of production to set a selling price, target pricing involves setting a price based on the perceived value to the customer, and penetration pricing involves offering a low price to gain market share. None of these pricing strategies accurately describe the situation on the website for independent interstate truckers.

One Problem in the Interstate Trucking Industry Is the Number