Channel and Inventory Management

30 important questions on Channel and Inventory Management

What is prestige pricing?

to use high price to elevate the positioning of an organization’s products/services and increase the perceived value to the customer.

What is the introductory stage?

At this moment the product is brand new and only the most adventurous consumers are poised to purchase.

What are Early adapters?

Consumers who strive to be the first to try new products and services
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What is the growth stage?

Volume sold increases, which in turn generates economies of scale in production.

What means economies of scale?

A economic concept that means the more of a product or service that is produced, the lower its per unit cost of production.

What is the mature stage?

The time when nearly every consumer has purchased the product. It is no longer considered as a hot item.

What is the final stage?

Decline stage; sales of the product/service are flat or falling

What is a loyalty program?

members are rewarded by receiving reduced rates, increased valu

What is Price transparency?

The ability to observe prices.

What is price parity?

the practice of maintaining consistent prices across all channels of distribution. This reduces customer dissatisfaction.

What is the best rate guarantee?

the organization will match the price found by the customer at another company cheaper.

What is Rate integrity?

The maintenance of consistent prices for similar purchase conditions.

What is Discount price leadership?

organization setting the lowest rates

What is a Perceptual positioning map?

visualizing how customers perceive an organization as compared to its competitors.

What is the first factor to assess when competitive pricing?

Do customers really know when a competitor changes its prices

What is the second factor to consider when assessing competitive pricing?

It there strategic pricing plan better than ours.

What are denial reports?

Show how much business they could have captured if they had additional inventory.

What are regret reports?

Highlight when and where the rates were too high for that time of the period.

What are lost business reports?

Helps organization evaluate the appropriateness of its pricing strategies.

What is price gouging?

When there are specific circumstances what affect a certain area, hotels in another area increases their prices because increased demand.

Is price gouging legal?

No price gouging is illegal

What is price fencing?

Setting up rules & restrictions regarding the eligibility of an individual to purchase products/services at a specific price

What does run of house mean?

Best available rates will be available for all room types

What is perishable inventory?

products/services that possess the possibility of spoilage or loss (airline seat/ hotel room)

What is Onward distribution?

The transportation of rates, inventory, and content to various channels through the internet via switching mechanisms.

What is Non- electronic channel management?

telephone/email



Electronic channel management needs to take into consideration:

- is the website easy navigable?
- can groups make a reservation on the website?
- how many clicks does the site receive per month?
- is making a reservation easy on the website?

What is Price parity policy?

Tries to maintain the same price for the same type of inventory across various channels.

What is Customer ownership?

guest books room at merchant for a hotel, is it then a hotel guest or guest from merchant?

What are stay controls?

duration rules & restrictions may apply to arrival dates, departure dates and minimum length of stay.

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