Part 1Industries traditionally associated with revenue management arePart 2
A. not able to apply variable pricing for their product and are not able to control product availability. B. not able to apply variable pricing for their product but are able to control product availability. C. able to apply variable pricing for their product and are able to control product availability. D. able to apply variable pricing for their product but are not able to control product availability.

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BlackTom AI · Accepted Answer

Question restatement: Part 1 and Part 2 asks about industries traditionally associated with revenue management, and presents four statements about whether those industries can apply variable pricing and whether they can control product availability.
Option A: 'not able to apply variable pricing for their product and are not able to control product availability.' This is too restrictive for revenue management, which typically relies on dynamic pricing and controlling inventory/availability to maximize revenue; thus A misstates the core capabilities.
Option B: 'not able to apply variable pricing for their product but are able to control product availability.' The essence of revenue management is dynamic pricing in combination with inventory control. Saying they cannot apply variable pricing ignores a fundamental mechanism of revenue optimization, making B incorrect.
Option C: 'able to apply variable pricing for their product and are able to control product availability.' This aligns with the standard Revenue Management approach, where price discrimination or dynamic pricing is used along with controlling inventory to influence demand and maximize revenue; it accurately reflects the typical capabilities.
Option D: 'able to apply variable pricing for their product but are not able to control product availability.' While it recognizes dynamic pricing, it falsely asserts that inventory control is not possible; in revenue management, both pricing and availability control are central, so D is inconsistent with the integrated approach.
Additional nuance: The conventional view of revenue management emphasizes tailoring prices over time (walk-up pricing, capacity allocation, demand segmentation) to optimize revenue, which requires both pricing flexibility and inventory/availability control. Therefore, the option that best matches this understanding is the one that asserts both capabilities.
In summary, A and B neglect one or both core components, D incorrectly separates pricing from inventory control, while C correctly captures the dual capabilities central to revenue management frameworks.

Quiz:Ch 13 Quiz

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