A convention hall has a standard rate of $500.00 an evening as a rental fee. However, during key holidays of the year (such as New Year's Eve), the rental fee per evening is $1,250.00. This is an example of:
A)standard markup pricing
B)yield management pricing
C)experience curve pricing
D)cost-plus and fixed-fee pricing

Question

Quizplus · Accepted Answer

Yield management pricing is a pricing strategy where prices are adjusted based on demand or specific events. In this case, the convention hall is charging a higher rental fee for key holidays when they expect higher demand for their venue. Standard markup pricing involves adding a fixed percentage markup to the cost of a product or service to determine the selling price. Experience curve pricing involves reducing prices as manufacturing experience increases and costs decrease. Cost-plus and fixed-fee pricing involves adding a fixed amount or percentage to the cost of producing a good or service to determine the selling price.

A Convention Hall Has a Standard Rate of $500