[Appendix: Advanced Material] Cross Functional Revenue Management Examines Capacity,pricing,and Customer

question 16

Multiple Choice

[Appendix: Advanced Material] Cross functional revenue management examines capacity,pricing,and customer account management in order to maximize revenue.If the MegaPlex Movie Theater finds that too often they have to turn customers away from their theaters at peak movie times for blockbusters creating too much slippage,cross functional revenue management suggests:

• A) They could consider increasing the capacity of each theater to be able to seat more customers.
• B) They could lower the price at the peak times to reduce the problem of spoilage.
• C) They could stop showing blockbuster movies and select more critically acclaimed art films to decrease spoilage.
• D) They could stop showing movies at night.

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Definitions:

Price Volatile

Price volatility refers to the rate at which the price of a security or commodity moves up or down.

Supply

The total amount of a product or service that is available to consumers.

Demand

The consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service.

Cross Elasticity

A measure of how the quantity demanded of one good responds to a change in price of another good.