Traditional yield management strategies are most profitable when:
A) The service provider has a homogeneous target market
B) Its target market is not price sensitive
C) All members of the target market arrive at basically the same time
D) Those who arrive early or reserve early are more price sensitive than those who reserve or arrive late
E) All of the target market is equally price sensitive

Question

Quizplus · Accepted Answer

Traditional yield management strategies involve varying prices based on demand and time of purchase/reservation. This strategy is most profitable when those who arrive early or reserve early are more price sensitive, as it allows for higher prices during high demand periods without deterring price-sensitive customers. Therefore, option D is the best choice as it best describes the ideal scenario for traditional yield management strategies.

Traditional Yield Management Strategies Are Most Profitable When