Because service capacity is perishable and service demand is highly time dependent, service firms employ yield management strategies in an effort to:

Because service capacity is perishable and service demand is highly time dependent, service firms employ yield management strategies in an effort to:



a.
control costs.
b.
control demand through effective advertising strategies.
c.
establish fair guidelines for overbooking capacity.
d.
shift customer demand to other firms that can handle the excess business.
e.
balance price and revenue considerations with their need to fill unused capacity.


Answer: e.
balance price and revenue considerations with their need to fill unused capacity.


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