Essay by snv28College, Undergraduate November 2014

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BUSSCM 1750: Revenue Management Quiz 1

Pricing and revenue optimization is

Concerned with determining the prices that will be in place tomorrow

Strategic pricing is

Used to establish a general position within a market.

The problem of pricing did not exist until the

17th and 18th century

The greatest insight of classical economics was that

The price of a good is based on the interplay of supply and demand

A market structure is perfectly competitive if

There are many firms, each with an insubstantial share of the market. These firms produce a homogenous product, and they cannot raise their prices without losing all of their market to their competitor

While there has been a general acceleration of business in all fields, the impact on pricing and revenue optimization has been particularly notable. This acceleration-and the corresponding interest in developing tools to enable better pricing and revenue optimization (PRO) decisions-has been driven by

The success of revenue management in the airline industry, the use of enterprise resource planning and customer relationship management software, the development of e-commerce and the success of supply chain management

The techniques of revenue management are applicable when the following conditions are met

Capacity is limited and perishable, customers book capacity ahead of time, and prices are changed by opening and closing predefined booking classes.

Enterprise Resource Planning (ERP) systems were created in response to

Homegrown business software, highly specialized and oriented toward a single corporate function, developed in isolation, not integrated and conflicting data sources and definition

Specific characteristics of Internet commerce increase the urgency of pricing and revenue optimization

All of the above

The basic differences between Supply Chain Management (SCM) and Pricing and Revenue Optimization (P&RM) are

SCM assumes that demand is uncertain and exogenous and tries to find a way to...