Answer :
Final answer:
A limited customer base is not a criterion necessary for unlocking the full potential of revenue management; instead, accurate demand forecasting, effective pricing strategies, and efficient inventory management are critical components.
Explanation:
The criterion that is not needed for an industry to unlock the full potential of revenue management is a Limited customer base. For revenue management to be effective, businesses require accurate demand forecasting, effective pricing strategies, and efficient inventory management, among other elements. Accurate forecasting allows a business to plan production and resource allocation efficiently. Effective pricing strategies are essential for capitalizing on different consumer groups and elasticity of demand. Efficient inventory management ensures that products or services are available when needed, preventing lost revenue from stockouts or excessive unused inventory.
However, a limited customer base is not a criterion for unlocking the full potential of revenue management; in fact, it can be a detriment. Revenue management thrives on being able to segment customers and cater to diverse demand, which often implies a broader customer base. The practice involves understanding the price responsiveness of demand and utilizing strategies that would likely not reach their potential in a market with a very small or constrained number of customers.
