It is important for the firm to structure its revenue management program in a way that
A)it is presented simply as a mechanism for extracting maximum revenue.
B)revenue increases while improving service along some dimension that is important to customers that pay the highest price.
C)profit is maximized.
D)all of the above

Question

Quizplus · Accepted Answer

It is important for a firm to structure its revenue management program in a way that revenue increases while improving service along some dimension that is important to customers that pay the highest price. This ensures that the firm is not only maximizing revenue, but also delivering value to its highest paying customers, which can lead to increased loyalty and retention. Simply presenting the program as a mechanism for extracting maximum revenue may not be well-received by customers and could ultimately harm the firm's reputation. While profit maximization is important, it should not be pursued at the expense of customer satisfaction and loyalty. Therefore, option B is the best choice.

It Is Important for the Firm to Structure Its Revenue