Yield or revenue management would not be so appropriate if which of the following circumstances is present?
A)Uncertain demand
B)Perishable capacity
C)The market is homogeneous
D)Capacity is sold in advance
E)All of the above are appropriate

Question

Quizplus · Accepted Answer

Yield or revenue management relies on segmenting the market and selling different prices to different segments to maximize revenue. If the market is homogeneous, meaning all customers have similar needs and characteristics, there is no segmentation and therefore no opportunity for price discrimination. Yield or revenue management would not be appropriate in this scenario.

Yield or Revenue Management Would Not Be So Appropriate If