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23.  The purpose of differential pricing is to: make peak period usage attractive. make off-peak usage attractive.  ...

23.  The purpose of differential pricing is to:

  1. make peak period usage attractive.
  2. make off-peak usage attractive.  
  3. charge customers according to their ability to pay.
  4. adjust capacity to demand.

24.  A good overbooking strategy should:

  1. maximize the expected opportunity cost of idle service capacity.
  2. balance the expected opportunity cost of idle service capacity and the expected cost of turning away customers who have reservations.
  3. minimize the expected cost of turning away reservations.
  4. none of the above; services should try to avoid overbooking.

25.  Bars that offer happy hours in the afternoon are using the strategy of:

  1. creating adjustable capacity.
  2. developing complementary services.
  3. increasing customer participation.
  4. promoting off-peak demand.   
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Answer #1

23.  The purpose of differential pricing is to:

Answer: b) make off-peak usage attractive.  

24.  A good overbooking strategy should:

Answer: b) balance the expected opportunity cost of idle service capacity and the expected cost of turning away customers who have reservations.

25. Bars that offer happy hours in the afternoon are using the strategy of:

Answer: d) Promoting off-peak demand.

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