Allstate has more than 1500 price levels that are

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55. Allstate has more than 1,500 price levels that are determined by complex algorithms that analyze 16 credit report variables, including late payments and card balances. Allstate is using a _____ to set prices. a. yield management system b. capacity correlation system c. service forecasting tools d. service management system e. capacity maintenance tool ANS: A A yield management system is complex mathematical software used to profitably filled unused capa- city. PTS: 1 REF: 301-302 OBJ: 19-4 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Pricing
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56. Which of the following statements about yield management systems (YMS) is true? PTS: 1 REF: 301-302 OBJ: 19-4 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 57. Chad has calculated the sales volume at which his lemonade stand’s costs equal revenue. Over dinner he announced to his family that he only needed to sell 50 glasses of lemonade at $5 per glass to cover all his costs (lumber and nails for the stand, lemons, sugar, etc.). Which important factor has Chad ex- cluded from his analysis? PTS: 1 REF: 306 OBJ: 19-5 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Pricing 58. The two types of costs a marketer needs to consider when setting prices are: PTS: 1 REF: 302 OBJ: 19-5 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing
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