Why Is Airline Yield Management an Effective Method to Increase

question 277

Multiple Choice

Why is airline yield management an effective method to increase revenue?

• A)Because airlines have invested heavily in developing computer models that identify optimal pricing strategies in the various market segments
• B)Because airlines have successfully induced customers to reveal their resources and preferences by offering them different versions of the product such as business class and coach plane tickets
• C)Because a ticket is a contract to transport a specific person, and is not transferable
• D)Because airlines have a monopoly in long-distance carriage

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Definitions:

Mental Set

A tendency to approach a problem in one particular way, often a way that has been successful in the past.

Particular Way

A specific manner, method, or approach to doing something.

Problem

A situation, condition, or issue that needs to be resolved.

Mental Set

A cognitive framework consisting of a person's usual way of approaching and solving problems, often leading to a fixation on previous solutions.