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Revenue Management Final Exam – Questions & Answers (Rated A+)
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Revenue Management Final Exam – Questions &Answers (Rated A+)
What is the term used to identify a management philosophy that places
customer gain ahead of short-term revenue maximization in revenue
management decision making? Right Ans - customer-centric revenue
management
What is the term used to describe the potential customers to whom a
business's marketing activities and messages are directed? Right Ans - the
target market
Understanding the barter system is critical because it helps us understand the
concept of Right Ans - value without money
A company that focuses solely on generation of its profits is likely to go out of
business in today's marketplace. This is because successful organizations
know that both the company and the __________________ must profit in order to
maintain a successful and profitable business. Right Ans - customer
Revenue refers to the total amount of sales achieved in a specified time
period. Therefore, the formula isNumber of units sold X Right Ans - unit
price
What is the fundamental assumption upon which the concept of consumer
rationality is based? Right Ans - Buyers act in ways that are of personal
benefit to them
What is created when a seller communicates to a buyer a description of a
product to be sold and the price at which that product will be sold? Right
Ans - A value proposition
What concept is displayed by the intersecting point on a supply and demand
curve? Right Ans - An estimate of the amount of a product that would be
purchased at a known price and point in time
, Which of the following statements about the relationship between costs and
pricing is true? Right Ans - An appropriate selling price for a product or
service must dictate its allowable costs
The minimum sales point is equivalent to Right Ans - the dollar sales
volume at the break-even point (revenue - cost = 0)
What special challenge do buyers of hospitality products such as hotel
guestrooms or restaurant meals face? Right Ans - Difficulty in quality
evaluation prior to purchase
If quantity and quality are held constant how will a reduction in price affect
buyers' perceptions of value? Right Ans - Perceived value will increase
If quantity and price are held constant how will reductions in product or
service quality affect buyers' perceptions of value? Right Ans - Perceived
value will decrease
Which individual would be most likely to spend the most money on
incidentals (at the per person level) in a hotel? Right Ans - Business
traveler on a corporate account
In the consumer's mind, value for the product is equivalent to Right Ans -
perceived benefit minus the price
What is the formula revenue managers use to calculate Net ADR Yield?
Right Ans - Net Room Rate/Standard ADR = Net ADR Yield
What is an explanation of "consumer surplus"? Right Ans - When
customers' willingness to pay is lower than the price they paid
What is the name for the specific requirements that describe how and who is
eligible for a special pricing offer? Right Ans - price fence
If a RM identifies that a certain segment of customers is willing to pay a higher
price for a product, but that RM does not have an effective way for those
customers to identify themselves, the RM is likely to encounter which
unfortunate effect of poorly managed differential pricing? Right Ans -
cannibalization
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