Strategic Service Pricing and Yield Management

Posted: 7 Jan 2009

See all articles by Ramarao Desiraju

Ramarao Desiraju

University of Central Florida - College of Business Administration

Steven M. Shugan

University of Florida - Warrington College of Business Administration

Date Written: January 1, 1999

Abstract

We investigate pricing strategies based on yield management systems (YMS), such as early discounting, overbooking and limiting early sales, for capacity-constrained services. We find that YMS work best when price insensitive customers prefer to buy later than price sensitive consumers. We also identify other conditions favoring the use of YMS. January 1999 under review Journal of Marketing.

Keywords: yield management, dynamic heterogeneity, dynamic pricing, revenue management, capacity control

JEL Classification: C60, D40, D42, M30, D24

Suggested Citation

Desiraju, Ramarao and Shugan, Steven M., Strategic Service Pricing and Yield Management (January 1, 1999). Available at SSRN: https://ssrn.com/abstract=1324124

Ramarao Desiraju

University of Central Florida - College of Business Administration ( email )

Department of Marketing
4000 Central Florida Parkway
Orlando, FL 32816
United States
407-823-6251 (Phone)
407-823-5965 (Fax)

Steven M. Shugan (Contact Author)

University of Florida - Warrington College of Business Administration ( email )

201 Bryan Hall Campus Box 117155
Gainsville, FL 32611-7166
United States
352-273-3276 (Phone)
413-677-2835 (Fax)

HOME PAGE: http://bear.cba.ufl.edu/shugan

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