Which pricing strategy is used to manage demand for limited, time-slotted tee times?

Which pricing strategy is used to manage demand for limited, time-slotted tee times?

• A. Flat-rate pricing
• B. Penetration pricing
• C. Demand-based pricing
• D. Cost-plus pricing

Answer: (C)

Pricing when tee times are limited and scheduled in slots relies on adjusting what customers pay based on how many people want those times. Demand-based pricing uses price as a lever to influence demand, raising prices for busy peak periods and lowering them for off-peak times. This helps smooth the tee sheet, ensuring valuable slots aren’t overbid or underbooked, while maximizing revenue from the scarce inventory. Flat-rate pricing keeps one price for all times regardless of demand, so it doesn’t steer customers toward or away from specific slots. Penetration pricing aims to win market share with low prices, not to manage when demand occurs. Cost-plus pricing focuses on adding a markup to costs, not on aligning pricing with demand patterns.

Pricing when tee times are limited and scheduled in slots relies on adjusting what customers pay based on how many people want those times. Demand-based pricing uses price as a lever to influence demand, raising prices for busy peak periods and lowering them for off-peak times. This helps smooth the tee sheet, ensuring valuable slots aren’t overbid or underbooked, while maximizing revenue from the scarce inventory.

Flat-rate pricing keeps one price for all times regardless of demand, so it doesn’t steer customers toward or away from specific slots. Penetration pricing aims to win market share with low prices, not to manage when demand occurs. Cost-plus pricing focuses on adding a markup to costs, not on aligning pricing with demand patterns.