REVENUE MANAGEMENT FINAL EXAM
REVENUE MANAGEMENT FINAL EXAM
QUESTIONS AND ANSWERS GRADED A+
What is the term used to identify a management philosophy that places
customer gain ahead of short-term revenue maximization in revenue
management decision making? - correct answer customer-centric revenue
management
What is the term used to describe the potential customers to whom a
business's marketing activities and messages are directed? - correct answer
the target market
Understanding the barter system is critical because it helps us
understand the concept of - correct answer value without money
A company that focuses solely on generation of its profits is likely to go
out of business in today's marketplace. This is because successful
organizations know that both the company and the
,REVENUE MANAGEMENT FINAL EXAM
__________________ must profit in order to maintain a successful and
profitable business. - correct answer customer
Revenue refers to the total amount of sales achieved in a specified time
period. Therefore, the formula isNumber of units sold X - correct answer
unit price
What is the fundamental assumption upon which the concept of
consumer rationality is based? - correct answer Buyers act in ways that are
of personal benefit to them
What is created when a seller communicates to a buyer a description of
a product to be sold and the price at which that product will be sold? -
correct answer A value proposition
What concept is displayed by the intersecting point on a supply and
demand curve? - correct answer An estimate of the amount of a product
that would be purchased at a known price and point in time
Which of the following statements about the relationship between
costs and pricing is true? - correct answer An appropriate selling price for a
product or service must dictate its allowable costs
The minimum sales point is equivalent to - correct answer the dollar sales
volume at the break-even point (revenue - cost = 0)
, REVENUE MANAGEMENT FINAL EXAM
What special challenge do buyers of hospitality products such as hotel
guestrooms or restaurant meals face? - correct answer Difficulty in quality
evaluation prior to purchase
If quantity and quality are held constant how will a reduction in price
affect buyers' perceptions of value? - correct answer Perceived value will
increase
If quantity and price are held constant how will reductions in product or
service quality affect buyers' perceptions of value? - correct answer
Perceived value will decrease
Which individual would be most likely to spend the most money on
incidentals (at the per person level) in a hotel? - correct answer Business
traveler on a corporate account
In the consumer's mind, value for the product is equivalent to - correct
answer perceived benefit minus the price
What is the formula revenue managers use to calculate Net ADR Yield? -
correct answer Net Room Rate/Standard ADR = Net ADR Yield
What is an explanation of "consumer surplus"? - correct answer When
customers' willingness to pay is lower than the price they paid
REVENUE MANAGEMENT FINAL EXAM
QUESTIONS AND ANSWERS GRADED A+
What is the term used to identify a management philosophy that places
customer gain ahead of short-term revenue maximization in revenue
management decision making? - correct answer customer-centric revenue
management
What is the term used to describe the potential customers to whom a
business's marketing activities and messages are directed? - correct answer
the target market
Understanding the barter system is critical because it helps us
understand the concept of - correct answer value without money
A company that focuses solely on generation of its profits is likely to go
out of business in today's marketplace. This is because successful
organizations know that both the company and the
,REVENUE MANAGEMENT FINAL EXAM
__________________ must profit in order to maintain a successful and
profitable business. - correct answer customer
Revenue refers to the total amount of sales achieved in a specified time
period. Therefore, the formula isNumber of units sold X - correct answer
unit price
What is the fundamental assumption upon which the concept of
consumer rationality is based? - correct answer Buyers act in ways that are
of personal benefit to them
What is created when a seller communicates to a buyer a description of
a product to be sold and the price at which that product will be sold? -
correct answer A value proposition
What concept is displayed by the intersecting point on a supply and
demand curve? - correct answer An estimate of the amount of a product
that would be purchased at a known price and point in time
Which of the following statements about the relationship between
costs and pricing is true? - correct answer An appropriate selling price for a
product or service must dictate its allowable costs
The minimum sales point is equivalent to - correct answer the dollar sales
volume at the break-even point (revenue - cost = 0)
, REVENUE MANAGEMENT FINAL EXAM
What special challenge do buyers of hospitality products such as hotel
guestrooms or restaurant meals face? - correct answer Difficulty in quality
evaluation prior to purchase
If quantity and quality are held constant how will a reduction in price
affect buyers' perceptions of value? - correct answer Perceived value will
increase
If quantity and price are held constant how will reductions in product or
service quality affect buyers' perceptions of value? - correct answer
Perceived value will decrease
Which individual would be most likely to spend the most money on
incidentals (at the per person level) in a hotel? - correct answer Business
traveler on a corporate account
In the consumer's mind, value for the product is equivalent to - correct
answer perceived benefit minus the price
What is the formula revenue managers use to calculate Net ADR Yield? -
correct answer Net Room Rate/Standard ADR = Net ADR Yield
What is an explanation of "consumer surplus"? - correct answer When
customers' willingness to pay is lower than the price they paid
