Because service capacity is perishable and service demand is highly time dependent, service firms employ yield management strategies in an effort toblank__________. A control demand by limiting capacity B control demand through price changes over time C shift customer demand into different time periods D balance price and revenue considerations with their need to fill unused capacity

Service firms do indeed have to balance price and revenue considerations with their need to fill unused capacity because service capacity is perishable.

What this means is that service Companies need to know when to take advantage of time factors to maintain their revenue regardless of demand. They need to know when to charge lower if they are in low demand so that demand goes up or when to charge higher if they are in high demand. They need to know which market segments to charge higher to or which to charge lower as well.

For example, hotels might charge lower in the off season to get more people to come. And Beach Resorts could also reduce prices around the off season as well so that people on a tight budget can take their holidays then.