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Yield Management Strategies in Product Management

Yield management is a variable pricing strategy based on understanding, anticipating, and influencing consumer behavior to maximize revenue from a fixed, perishable resource. It involves pricing adjustments based on various factors such as time until purchase, demand, and customer segment.

Example

A popular software company like Adobe uses yield management strategies for its Creative Cloud subscriptions. During periods of lower demand, Adobe may offer discounts or special promotions to boost sales. Conversely, during peak creative seasons, prices may return to standard rates to maximize revenue.