price promotions allow companies to sell higher volumes by temporarily decreasing the price of their products. revenue management techniques measure customer responsiveness to promotions in order to strike a balance between volume growth and profitability. an effective promotion helps maximize revenue when there is uncertainty about the distribution of customer willingness to pay. when a company's products are sold in the form of long-term commitments, such as internet or telephone service, promotions help attract customers who will then commit to contracts and produce revenue over a long time horizon. when this occurs, companies must also strategize their promotion roll-off policies; they must decide when to begin increasing the contract fees and by what magnitude to raise the fees in order to avoid losing customers. revenue management optimization proves useful in balancing promotion roll-off variables in order to maximize revenue while minimizing churn.