O'Reilly logo

Revenue Management by Ronald Huefner

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 9

Relating Revenue Management to Customer Value

One theme in cost analysis has direct linkage to revenue management, namely the effort to classify costs as value-added or non-value-added costs. Value-added costs are those that provide something for which a customer is willing to pay. This concept has a direct role in revenue management; customers are willing to pay for the value they receive from a purchase.

Early research by McNair and Vangermeersch analyzed profitability as four concentric circles.1 The inner circle represents a core of activities that adds value to the company’s products or services. These activities may contribute to the functional characteristics of the product or service, their quality, customer support services, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required