Revenue Management Final Exam
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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 organization's revenues MUST do three things: 1.
Understand the importance of revenue management
2. Understand the many complex factors that influence revenue management strat-
egy and tactics
3. Become better at making revenue management decisions 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 in-
vestment
7. Revenue Manager: The individual or team responsible for ensuring that a com-
pany's prices match a customer's willingness to pay. These techniques are always
customer-needs driven, not company-needs driven
8. Customer-centric revenue management: A revenue management philosophy
that places customer 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
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
, Revenue Management Final Exam
Study online at https://quizlet.com/_f2t2bu
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 hospitality products: Desire, Ability to Pay,
Willingness to Pay
19. Break-Even Point: The point at which a firm's revenues exactly equal to its
expenses
20. Variable (cost): An expense that generally increases as sales volume increases
and decreases as sales volume decreases
21. Fixed (cost): An expense that remains constant despite increases or decreases
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 a management philosophy that places
customer gain ahead of short-term revenue maximization in revenue manage-
ment decision making?: Customer-centric revenue management
26. What is the term used to describe the potential customers to whom a
business's marketing activities and messages are directed?: The target market
27. Understanding the barter system is critical because it helps us understand
the concept of: value without money
28. 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 ___________ must profit in order to
maintain a successful and profitable business: customer
29. Revenue refers to the total amount of sales achieved in a specified time
period. Therefore, the formula is Number of units sold X: Unit Price
30. What is the fundamental assumption upon which the concept of consumer
rationality is based?: Buyers act in ways that are of personal benefit to them
31. 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?: A value
proposition
32. What concept is displayed by the intersecting point on a supply and
demand curve?: An estimate of the amount of a product that would be purchased
at a known price and point in time
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 organization's revenues MUST do three things: 1.
Understand the importance of revenue management
2. Understand the many complex factors that influence revenue management strat-
egy and tactics
3. Become better at making revenue management decisions 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 in-
vestment
7. Revenue Manager: The individual or team responsible for ensuring that a com-
pany's prices match a customer's willingness to pay. These techniques are always
customer-needs driven, not company-needs driven
8. Customer-centric revenue management: A revenue management philosophy
that places customer 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
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
, Revenue Management Final Exam
Study online at https://quizlet.com/_f2t2bu
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 hospitality products: Desire, Ability to Pay,
Willingness to Pay
19. Break-Even Point: The point at which a firm's revenues exactly equal to its
expenses
20. Variable (cost): An expense that generally increases as sales volume increases
and decreases as sales volume decreases
21. Fixed (cost): An expense that remains constant despite increases or decreases
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 a management philosophy that places
customer gain ahead of short-term revenue maximization in revenue manage-
ment decision making?: Customer-centric revenue management
26. What is the term used to describe the potential customers to whom a
business's marketing activities and messages are directed?: The target market
27. Understanding the barter system is critical because it helps us understand
the concept of: value without money
28. 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 ___________ must profit in order to
maintain a successful and profitable business: customer
29. Revenue refers to the total amount of sales achieved in a specified time
period. Therefore, the formula is Number of units sold X: Unit Price
30. What is the fundamental assumption upon which the concept of consumer
rationality is based?: Buyers act in ways that are of personal benefit to them
31. 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?: A value
proposition
32. What concept is displayed by the intersecting point on a supply and
demand curve?: An estimate of the amount of a product that would be purchased
at a known price and point in time
