Which of the Following Exemplifies a Yield Management Pricing Strategy

question 131

Multiple Choice

Which of the following exemplifies a yield management pricing strategy?

• A)Lowering cab rental rates on weekends compared to weekdays
• B)Introducing a pack of oatmeal breakfast cereals at a price of $3 which actually cost $5
• C)Charging an exorbitant price for a designer outfit to signal quality and exclusiveness
• D)Selling a brand of soap at 20 percent discount for a limited time period during its introductory stage

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Definitions:

Time Weighted

A method of calculating investment returns that eliminates the effects of cash inflows and outflows on the performance.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Dollar-Weighted Return

A method of calculating an investment's return that takes into account the timing and amount of capital inflows and outflows.

Internal Rate

The internal rate of return (IRR) is a financial metric used to evaluate the profitability of potential investments, representing the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.