Charging different prices to maximize revenue for a set amount of capacity at any given time is referred to as
A)demand backward pricing
B)target pricing
C)yield management pricing
D)skimming pricing
E)penetration pricing

Question

Quizplus · Accepted Answer

Yield management pricing, also known as dynamic pricing or revenue management, involves adjusting prices based on demand in order to maximize revenue. It is commonly used in the airline and hotel industries, where prices may vary based on factors such as seasonality, day of the week, and how far in advance a reservation is made. This approach allows businesses to optimize revenue by charging different prices for the same product or service based on demand, while still maintaining capacity constraints.

Charging Different Prices to Maximize Revenue for a Set Amount