Companies that have highly perishable inventories have used yield management quite extensively over the past decade. The process helps to maximize revenues based on demand. The airline industry was the first to adopt the process into a business setting and has seen varying results along the way. Much of the existing research is geared towards examining the revenue producing potential of the system. There has been little research however, to examine how this process of shifting price to manipulate demand effects customer loyalty; This research attempts to evaluate what the effects actually are when price is used as the major tool in controlling demand. This research will address consumer behavior issues associated with yield management pricing. Some examples are how yield management effects perceived value and trust. Issues like overbooking, price thresholds, reference prices, and rate increases will also be examined by creating specific scenarios to capture the attitudes of the business traveler in each case
