Because service capacity is perishable and service demand is highly time dependent, service firms employ yield management strategies in an effort to:
A) control costs.
B) control demand through effective advertising strategies.
C) establish fair guidelines for overbooking capacity.
D) shift customer demand to other firms that can handle the excess business.
E) balance price and revenue considerations with their need to fill unused capacity.

Question

Quizplus · Accepted Answer

Yield management strategies are used by service firms to balance price and revenue considerations with the need to fill unused capacity, due to the perishable nature of service capacity and the high time dependency of service demand.

Because Service Capacity Is Perishable and Service Demand Is Highly