MKT 723 Chapter Notes - Chapter 6: Dynamic Pricing, Variable Cost, Fixed Cost
7 Mar 2017
School
Department
Course
Professor
Document Summary
Service pricing and revenue management: dynamic pricing is a pricing strategy that varies the prices for different customers at different times, based on demand conditions, commonly used in airline industry. Effective pricing is central to financial success: a business model is the mechanism where through effective pricing, sales are transformed into revenues, costs are covered, and value is created for the owners of the business. Pricing strategy stands on three foundations: costs, competition, and value to customer. How can we measure the effectiveness of a firm"s revenue management: success is defined as maximizing the revenue per available capacity for a given space and time unit, success in rm means increasing revpast. Fairness and ethical concerns in service pricing: although price can serve as an indication of quality, it is sometimes hard to be sure if the extra value is really there.
