What approach can help optimize capacity using demand management?

Utilizing price incentives through yield management is an effective approach for optimizing capacity using demand management. This method recognizes that different customers may have varying sensitivities to price and thus allows organizations to adjust prices based on demand fluctuations. By implementing price incentives, businesses can encourage customers to engage with services during off-peak times, effectively balancing demand against available capacity.

This approach helps maximize revenue while ensuring that service providers maintain optimal utilization of their resources. Additionally, by understanding customer behavior and adjusting pricing strategies accordingly, organizations can better forecast demand and prepare their capacity to meet that demand when it peaks, leading to improved efficiency and customer satisfaction.

In contrast, minimizing user engagement can lead to underutilization of services and does not address the need to manage demand effectively. Standardizing service costs might simplify pricing, but it may not incentivize behavior that aligns demand with capacity. Completely reducing service changes can lead to rigidity and may not adapt to changing market conditions or customer needs. Hence, leveraging yield management through price incentives stands out as a proactive strategy to optimize capacity in demand management.