Rent and Drive is a car rental company. It prices its rentals based on operations-oriented pricing. In this scenario, Rent and Drive: a. varies the prices according to the supply and demand of cars. b. maximizes the surplus of income over its costs. c. varies prices for customers from different market segments. d. allows customers to negotiate price.

Question

Business

Miah Cameron

17 February, 05:27

Rent and Drive is a car rental company. It prices its rentals based on operations-oriented pricing. In this scenario, Rent and Drive: a. varies the prices according to the supply and demand of cars. b. maximizes the surplus of income over its costs. c. varies prices for customers from different market segments. d. allows customers to negotiate price.

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Brooklynn Garrison · Answer 1

varies the prices according to the supply and demand of cars.

Explanation:

Operation oriented pricing involves varying prices based on demand and supply. It aims to improve operational efficiency and optimise productive capacity.

For example hotels will seek to fill all their rooms as an empty room will be an unproductive asset.

So for Rent and Drive to implement this strategy it will needs to keep all its assets (cars) busy and productive.