Revenue management, pricing and the consumer

McMahon‐Beattie, Una; McEntee, Mairead; McKenna, Robert; Yeoman, Ian; Hollywood, Lynsey

doi:10.1057/rpm.2016.17

Cited by 6 publications

(5 citation statements)

References 56 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Differences in customer willingness to pay can be exploited by variable pricing and by revenue management (McMahon-Beattie et al 2016 ; Nagle and Müller 2017 ). Variable pricing requires the creation of different offers sold at different prices based on a segmentation variable (e.g., quality of the game).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Price ceilings ensure affordability for games that would sell out at any price: sports clubs do not want premium games to be considered exclusive events that only high-income fans can afford. Even with price floors and ceilings, customers may perceive revenue management as discriminatory (McMahon-Beattie et al 2016 ). Fairness considerations thus lead ticket sellers to purposefully under-price (Kahneman et al 1986 ).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Revenue management is widely applied across different industries (McMahon-Beattie et al 2016 )—except the sports industry. This is quite surprising, since the sports industry has many characteristics that are conducive to revenue management implementation.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Pricing practices of football and basketball clubs in Italy

Hinterhuber

Viberti

2021

J Revenue Pricing Manag

View full text Add to dashboard Cite

Revenue management is widely adopted across industries—except in the sports industry. In the context of the present study, we contact every single football and soccer club belonging to the top league in Italy—one of the world’s most successful football nations—and obtain responses from close to half of all clubs. We find that one-third of all football clubs apply revenue management, far more than basketball clubs. Basketball clubs rely heavily on fixed pricing, whereas soccer clubs use variable pricing or revenue management. Study data also suggest that perceived barriers to revenue management include a fear of alienating customers or perceived high implementation costs; since experiences of revenue management implementation are overwhelmingly positive, this study suggests that the fears of revenue management implementation are overblown. This study advances research on the practical implementation of revenue management in non-traditional industries and provides an encouragement for executives working in other industries to implement revenue management.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Pricing practices of football and basketball clubs in Italy

Hinterhuber

Viberti

2021

J Revenue Pricing Manag

View full text Add to dashboard Cite

show abstract

“…Yeoman (2016) argues that the ability of consumers to compare prices and achieve the best deal as a consequence of the emergence of online travel agents as a major transformation. Indeed McMahon-Beattie et al (2016) review the evolution of RM as more than operational research and mathematical algorithms and support a holistic approach encompassing the consumer behaviour. If the primary aim of RM is selling the right product/service to the right customer, at the right time, for the right price, in order to generate revenue from perishable capacity, then an understanding of consumers and their behaviour is critical to its effective development and implementation.…”

Section: Turning Point 9: the Consumer And Price Transparencymentioning

confidence: 99%

The turning points of revenue management: a brief history of future evolution

Yeoman

McMahon‐Beattie

2017

JTF

Self Cite

View full text Add to dashboard Cite

Purpose The primary aim of revenue management (RM) is to sell the right product to the right customer at the right time for the right price. Ever since the deregulation of US airline industry, and the emergence of the internet as a distribution channel, RM has come of age. The purpose of this paper is to map out ten turning points in the evolution of Revenue Management taking an historical perspective. Design/methodology/approach The paper is a chronological account based upon published research and literature fundamentally drawn from the Journal of Revenue and Pricing Management. Findings The significance and success to RM is attributed to the following turning points: Littlewood’s rule, Expected Marginal Seat Revenue, deregulation of the US air industry, single leg to origin and destination RM, the use of family fares, technological advancement, low-cost carriers, dynamic pricing, consumer and price transparency and pricing capabilities in organizations. Originality/value The originality of the paper lies in identifying the core trends or turning points that have shaped the development of RM thus assisting futurists or forecasters to shape the future.

show abstract

“…When demand is high and capacity diminishing, price rapidly rises to sell the remaining seats. At the same time, when demand is low with an abundance of capacity, prices fall dramatically (McMahon-Beattie, McCentee, McKenna, Yeoman, & Hollywood, 2016) One of the ways to build value is to establish a trusting relationship between buyer and seller. However, it could be argued that price discrimination, which is inherent in RM may undermine trust in an organisation where the customer perceives that they have been treated less fairly in terms of price than other buyers or when price is unjust.…”

mentioning

confidence: 99%