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Which of the following conditions  is yield management applicable?Select one:a.Relatively fixed capacity or fixed resource amount.b.Service organization does not face competition.c.Higher marginal cost of serving additional customer compared to low marginal capacity change cost.d.Service capacity is unperishable.

Question

Which of the following conditions  is yield management applicable?Select one:a.Relatively fixed capacity or fixed resource amount.b.Service organization does not face competition.c.Higher marginal cost of serving additional customer compared to low marginal capacity change cost.d.Service capacity is unperishable.

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Solution

Yield management is applicable in the following condition:

a. Relatively fixed capacity or fixed resource amount.

This is because yield management is a variable pricing strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, perishable resource.

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