CMC Pricing Strategy & Revenue Management Flashcards
6 cards from real CMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CMC Pricing Strategy & Revenue Management flashcards as text
Revenue management is primarily concerned with:
Answer: Selling the right product to the right customer at the right time for the right price
Revenue management optimizes pricing and inventory allocation to maximize total revenue by matching supply with demand at the ideal price point and timing.
Which metric measures the total revenue a customer generates over their entire relationship with a company?
Answer: Customer lifetime value (CLV)
Customer lifetime value (CLV) calculates the total net revenue a customer is expected to generate throughout their full relationship with the company.
Competitive pricing strategy involves setting prices:
Answer: In relation to what competitors charge for similar products
Competitive pricing sets prices primarily by benchmarking against competitors' prices for similar products, rather than focusing only on costs or perceived value.
Transfer pricing in a business context refers to:
Answer: The price charged when moving products between company divisions or subsidiaries
Transfer pricing refers to the prices set for transactions between different divisions or subsidiaries of the same corporation, with significant tax and accounting implications.
The key goal of yield management is to:
Answer: Maximize revenue from a fixed, perishable capacity
Yield management maximizes revenue from limited, time-sensitive capacity by adjusting prices dynamically based on demand levels and booking timing.
A loss leader pricing strategy involves:
Answer: Pricing a product below cost to attract customers who will then buy other profitable items
A loss leader is priced intentionally below cost to draw customers to a store or platform, where they are expected to purchase other higher-margin products.