Revenue Management Final Exam
Study online at https://quizlet.com/_f2t2bu
1. Revenue The total amount of sales achieved in a specified time period
2. Revenue is calculate as: Number of Units Sold x Unit Price
3. Effective managers of an or- 1. Understand the importance of revenue management
ganization's revenues MUST do 2. Understand the many complex factors that influence rev-
three things enue management strategy and tactics
3. Become better at making revenue management deci-
sions than their competitors
4. Proft Formula Revenue - Expenses
5. Profit the net value achieved by a seller AND a buyer in a business
transaction
6. ROI (Return on Investment) Owner's Investment Return/Owner's original investment
7. Revenue Manager The individual or team responsible for ensuring that a
company's prices match a customer's willingness to pay.
These techniques are always customer-needs driven, not
company-needs driven
8. Customer-centric revenue man- A revenue management philosophy that places customer
agement gain ahead of short-term revenue maximization in revenue
management decision making
9. What is price? Price is the value placed by a firm its products and services
OR
The amount of money charged for a good or service
10. Two-tiered Price A pricing strategy in which the buyer must pay a price for
the ability to make additional purchases
, Revenue Management Final Exam
Study online at https://quizlet.com/_f2t2bu
11. Value In a buyer or seller transaction, the amount of perceived
benefit gained minus the price paid
12. Value Proposition A statement describing the goo or service to be received
and the price to be paid for it
13. Buyer Assessment A value less than 0, do not buy
A value Equal to 0, do not buy in most cases
A value greater than 0, buy
14. Marketing The process of providing a seller's value proposition to a
market
15. The 4 P's 1. Product: The product or service delivered to the buyer
2. Promotion: The means of communication between buyer
and seller
3. Place: The location or means of delivering the product or
service to be sold
4. Price: What is given up in an exchange for the product or
service
16. Supply (of law) The higher the demand of a product, the more of it will be
produced by sellers
17. Demand (law of) The higher the price of a product, the less of it will be
wanted by buyers
18. How to measure demand for Desire, Ability to Pay, Willingness to Pay
hospitality products
19. Break-Even Point The point at which a firm's revenues exactly equal to its
expenses
, Revenue Management Final Exam
Study online at https://quizlet.com/_f2t2bu
20. Variable (cost) An expense that generally increases as sales volume in-
creases and decreases as sales volume decreases
21. Fixed (cost) An expense that remains constant despite increases or de-
creases in volume. In the hospitality industry, examples
include the costs of illuminating exterior signage, overhead
music and liquor liability premiums.
22. Cost-based pricing a pricing philosophy that involves summing product (or
service) costs incurred, with desired profit, to arrive at an
item's selling price
23. Cost-based Pricing Formula Expenses + Desired profit = selling price
24. Strategic pricing the application of data and insight to effectively match
prices charged with buyer's perceptions of value
25. What is the term used to identify Customer-centric revenue management
a management philosophy that
places customer gain ahead of
short-term revenue maximiza-
tion in revenue management
decision making?
26. What is the term used to de- The target market
scribe the potential customers
to whom a business's marketing
activities and messages are di-
rected?
27. Understanding the barter sys- value without money
tem is critical because it helps
us understand the concept of
Study online at https://quizlet.com/_f2t2bu
1. Revenue The total amount of sales achieved in a specified time period
2. Revenue is calculate as: Number of Units Sold x Unit Price
3. Effective managers of an or- 1. Understand the importance of revenue management
ganization's revenues MUST do 2. Understand the many complex factors that influence rev-
three things enue management strategy and tactics
3. Become better at making revenue management deci-
sions than their competitors
4. Proft Formula Revenue - Expenses
5. Profit the net value achieved by a seller AND a buyer in a business
transaction
6. ROI (Return on Investment) Owner's Investment Return/Owner's original investment
7. Revenue Manager The individual or team responsible for ensuring that a
company's prices match a customer's willingness to pay.
These techniques are always customer-needs driven, not
company-needs driven
8. Customer-centric revenue man- A revenue management philosophy that places customer
agement gain ahead of short-term revenue maximization in revenue
management decision making
9. What is price? Price is the value placed by a firm its products and services
OR
The amount of money charged for a good or service
10. Two-tiered Price A pricing strategy in which the buyer must pay a price for
the ability to make additional purchases
, Revenue Management Final Exam
Study online at https://quizlet.com/_f2t2bu
11. Value In a buyer or seller transaction, the amount of perceived
benefit gained minus the price paid
12. Value Proposition A statement describing the goo or service to be received
and the price to be paid for it
13. Buyer Assessment A value less than 0, do not buy
A value Equal to 0, do not buy in most cases
A value greater than 0, buy
14. Marketing The process of providing a seller's value proposition to a
market
15. The 4 P's 1. Product: The product or service delivered to the buyer
2. Promotion: The means of communication between buyer
and seller
3. Place: The location or means of delivering the product or
service to be sold
4. Price: What is given up in an exchange for the product or
service
16. Supply (of law) The higher the demand of a product, the more of it will be
produced by sellers
17. Demand (law of) The higher the price of a product, the less of it will be
wanted by buyers
18. How to measure demand for Desire, Ability to Pay, Willingness to Pay
hospitality products
19. Break-Even Point The point at which a firm's revenues exactly equal to its
expenses
, Revenue Management Final Exam
Study online at https://quizlet.com/_f2t2bu
20. Variable (cost) An expense that generally increases as sales volume in-
creases and decreases as sales volume decreases
21. Fixed (cost) An expense that remains constant despite increases or de-
creases in volume. In the hospitality industry, examples
include the costs of illuminating exterior signage, overhead
music and liquor liability premiums.
22. Cost-based pricing a pricing philosophy that involves summing product (or
service) costs incurred, with desired profit, to arrive at an
item's selling price
23. Cost-based Pricing Formula Expenses + Desired profit = selling price
24. Strategic pricing the application of data and insight to effectively match
prices charged with buyer's perceptions of value
25. What is the term used to identify Customer-centric revenue management
a management philosophy that
places customer gain ahead of
short-term revenue maximiza-
tion in revenue management
decision making?
26. What is the term used to de- The target market
scribe the potential customers
to whom a business's marketing
activities and messages are di-
rected?
27. Understanding the barter sys- value without money
tem is critical because it helps
us understand the concept of
