ETS Chapter 11 Flashcards
What are the motives for full cost coverage in transportation?
priser baserat på alla de kostnader som uppstår för att utföra en tjänst, inklusive både fasta och varierande kostnader
fokus på stabilitet
How does price discrimination work in transportation?
Price discrimination involves charging different prices based on customer type, demand, or service level to maximize revenue.
Example: Airlines charge higher fares for last-minute tickets compared to early bookings.
What is the maximum contribution margin in pricing strategies?
The maximum contribution margin strategy sets prices to cover variable costs and maximize profits, ensuring efficient cost recovery.
Example: A shipping company adjusts freight rates to maintain profitability in different market conditions.
How does yield management optimize transportation pricing?
Yield management adjusts pricing dynamically based on demand and capacity utilization to maximize revenue.
Example: Hotel and airline prices fluctuate based on booking trends and seasonality.
What is value-based pricing (value tariff) in transportation?
Value-based pricing charges customers based on the perceived value of the service rather than actual costs.
Example: A premium courier service charges more for faster, guaranteed deliveries.
How does time-based pricing (time tariff) function in transport?
Time-based pricing varies charges based on the time of service, encouraging off-peak usage.
Example: Electricity rates are lower at night to incentivize consumption during non-peak hours.
What challenges arise when demand is insufficient for full cost coverage?
When demand is too low to cover costs, alternative funding mechanisms or subsidies may be needed.
Example: Public bus services receive government funding to maintain operations in low-traffic routes.
What is a two-piece tariff and how is it used in transportation?
A two-piece tariff consists of a fixed fee plus a variable usage-based charge, balancing cost recovery and accessibility.
Example: A ride-sharing service charges a base fare plus a per-mile fee.
