When colleges use yield management techniques, they
A) rank students on the basis of academic merit and award higher financial aid offers to those at the top of the ranking.
B) increase financial aid offers to students whose demand for college education is likely to be more price elastic and reduce financial aid offers to students whose demand for college education is likely to be less price elastic.
C) rank students on the basis of academic merit and award higher financial aid offers to those at the bottom of the ranking.
D) increase financial aid offers to students whose demand for college education is likely to be more price inelastic and reduce financial aid offers to students whose demand for college education is likely to be less price inelastic.

Question

Quizplus · Accepted Answer

Yield management techniques involve analyzing data to determine which students are more likely to enroll and comparing it with the amount of student financial aid needed to entice them to enroll. Colleges may increase financial aid offers for students whose demand for college education is likely to be more price elastic to maximize enrollment and revenue. Conversely, they may reduce financial aid offers to students whose demand for college education is likely to be less price elastic because they will enroll regardless of financial incentives. Therefore, option B is the correct answer as it describes the main goal of yield management techniques.

When Colleges Use Yield Management Techniques, They