[Appendix: Advanced Material] Cross functional revenue management examines capacity,pricing,and customer account management in order to maximize revenue.If the MegaPlex Movie Theater finds that too often they have to turn customers away from their theaters at peak movie times for blockbusters creating too much slippage,cross functional revenue management suggests:
A) They could consider increasing the capacity of each theater to be able to seat more customers.
B) They could lower the price at the peak times to reduce the problem of spoilage.
C) They could stop showing blockbuster movies and select more critically acclaimed art films to decrease spoilage.
D) They could stop showing movies at night.

Question

Quizplus · Accepted Answer

Increasing the capacity of each theater would allow the MegaPlex to seat more customers and reduce the problem of turning customers away during peak times, ultimately maximizing revenue. Lowering the price may lead to an increase in demand, but it may also result in a decrease in revenue due to decreased profitability. Stopping the showing of blockbuster films would also decrease spoilage but may not be a viable long-term solution as these films tend to generate the highest revenue. Stopping shows at night is not a feasible option as it would significantly reduce revenue opportunities.

[Appendix: Advanced Material] Cross Functional Revenue Management Examines Capacity,pricing,and Customer