1. Inspired by:
The Strategic Levers of Yield Management
Brett Powers, Ravi Krishnan, & Jon W. Hensley
Executive Ph.D. in Business Administration, Florida Atlantic University
MAR 7936: Seminar in Marketing
Cheryl Burke Jarvis, Ph.D.
Kimes, S. E., & Chase, R. B. (1998). The Strategic Levers of Yield
Management. Journal of Service Research, 1(2), 156–166.

2. Yield Management in Retail Sales
• Problem: A retail establishment would like to enjoy the advantages of dynamic pricing by moving from
a traditional pricing model to a yield management model
• Question: Is a yield management model practical for retail sales?
• Purpose: To increase net revenues by implementing a dynamic pricing model in a retail store
• H01: Dynamic pricing based on inventory and demand would increase net revenue.
• HO2: Dynamic pricing will not decrease customer satisfaction
• HO3: Dynamic pricing will have no negative effect on the cost of handling and selling a product
• H04: Dynamic pricing will not have a negative effect on the perishability of products in inventory

3. Yield Management Model: Manage the 4 Cs of Retail Goods:
Calendar
(how far in advance
Inventory orders are
placed)
Clock
(the time of day goods
are offered)
Cost
(the price of the goods)
Capacity
(the inventory of
goods)
Manage
Customer Demand
$
Maximum Profitability
Dynamic
Pricing