Asked by Connell Maxwell on Jul 04, 2024

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​A parking lot in a busy downtown district is experimenting with its pricing strategy to figure out where it should price its spaces.Which of the following strategies should it implement?

A) ​Increase parking rates if the lot fills up much earlier than 9am
B) Decrease parking rates if the lot doesn't fill up until much after 9am
C) If the lot fills up right around 9am the price is right
D) ​All of the above

Parking Rates

the fee charged for the use of a parking space, typically determined by duration and location.

Pricing Strategy

A plan or approach adopted by a business to set prices for its products or services to achieve specific marketing objectives.

  • Gain insight into pricing practices in environments with capacity constraints, focusing on revenue maximization techniques.
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Zybrea KnightJul 05, 2024
Final Answer :
D
Explanation :
Option A is a good strategy as it indicates high demand for the parking spaces and allows the lot to capitalize on that demand by increasing the price.
Option B is also a good strategy as it indicates low demand and incentivizes customers to park in the lot by decreasing the price.
Option C is not necessarily the best choice, as the lot may not be maximizing its profits by keeping the price constant even if demand is high. By implementing both options A and B, the lot can find the optimal price point for its spaces based on demand. Therefore, option D, which includes all of the above options, is the best choice.