The Practice of Using Dynamic Pricing Was Started in the 1980’s

question 6

Multiple Choice

The practice of using dynamic pricing was started in the 1980’s by American Airlines as an effort to compete with a now out-of-business discounter airline, People’s Express. Dynamic pricing then moved to other industries, including hotels and car rental companies, but only became popular when e-commerce arrived.
You are a consultant to a number of different organizations that use dynamic pricing, including American Airlines, St. Louis Cardinals, Coca Cola, and Marriott International. You are advising your clients of the use of dynamic pricing. Here are some questions that they have raised:
-Dynamic pricing is used in all of the following industries except ________.

• A)airline industry
• B)subways
• C)car rental industry
• D)professional sporting events industry

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Definitions:

Financial Statements

Consolidated reports detailing the financial performance and position of a company, including the balance sheet, income statement, and cash flow statement.

Inventory

The goods and materials a business holds for the ultimate purpose of resale or processing.

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

FIFO Method

An inventory valuation method where the first goods purchased are the first ones to be sold, "First In, First Out".