"Yield management" is best described as
A) a situation where management yields to labour demands.
B) a situation where the labour union yields to management demands.
C) a process designed to increase the rate of output.
D) capacity allocation to different classes of customers in order to maximize profits.
E) management's selection of a product mix yielding maximum profits.

Question

Quizplus · Accepted Answer

Yield management is a practice where companies allocate their capacity to different classes of customers in order to maximize profits. This involves offering different prices and incentives to different customers based on factors such as demand, time of purchase, and market conditions. The ultimate goal is to sell as much capacity as possible at the highest price possible, while still ensuring that all customers are satisfied with their purchase.

"Yield Management" Is Best Described as