Revenue Management: Resolving Potential Customer Conflicts
Wirtz, Jochen; Kimes, Sheryl E.; Theng, Jeanette Ho Pheng; Patterson, Paul
Revenue management is a sophisticated form of supply and demand management that helps a firm maximize revenue by balancing pricing and inventory controls. In recent years, an increasing number of firms have recognized the importance of revenue management in their ability to increase sales and profitability. When a firm that is fundamentally customer oriented also embraces revenue management, however, a series of customer conflicts can result and be detrimental to the firm's long-term success. This paper outlines these potential conflicts and explores various marketing and organizational strategies that can be used to resolve such conflicts.
customers; marketing; satisfaction; revenue management
Required Publisher Statement: © Palgrave Macmillan. Final version published as: Wirtz, J., Kimes, S. E., Theng, J. H. P., & Patterson, P. (2003). Revenue management: Resolving potential customer conflicts. Journal of Revenue & Pricing Management, 2, 216-226. doi:10.1057/palgrave.rpm.5170068 Reprinted with permission. All rights reserved.