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) they 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.
C) rank students on the basis of academic merit and award higher financial aid offers to those at the bottom of the ranking.
D) they 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.

Question

Quizplus · Accepted Answer

Yield management in colleges involves adjusting financial aid offers based on the price sensitivity (elasticity) of students' demand for education. Students more sensitive to price changes (more price elastic) receive higher financial aid offers to encourage their enrollment, while those less sensitive (less price elastic) receive lower offers. This strategy aims to maximize enrollment and revenue.

When Colleges Use Yield Management Techniques, They