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...