HTM 4454 Lecture Notes - Lecture 2: Market Segmentation, Liquid Oxygen, Aarp

• School: Virginia Tech
• Department: Hospitality and Tourism Management
• Course: HTM 4454
• Professor: Perdue

Document Summary

High fixed costs as a % of total cost (low variable costs) Large majority of variable costs is human a. iv. 1: market structures resource costs b. i. Difference in the value of customer segments b. ii. Taste and buying heterogeneity across customers: marketing strategies, peak season strategy high value customers and opportunities, shoulder season strategy push out the season (events, etc. , off season strategy building alternative products, market structures a. Identification of market segments based on how they purchase, what they want, and/ or how they consume a product a. i. Taste & buying heterogeneity wants/ willingness to pay/ purchase timing/ purchase channel: variance in the value of a customer b. i. High value customers tend to book last b. i. 1. a. Booking curve pattern of booking segments b. i. 1. b. b. i. 1. c. Primary/ secondary (filler) more on long-term: revenue management process, creating the revenue management framework a. i. Lo2: into to revenue management & process of revenue management a. i. 1. b. Influence of the brand largely defines front-end of market segmentation a. ii.