Question 1

Which of the following is NOT one of the productive capacity forms in a service context?

Accepted Answer

A)  Physical facilities designed to contain customers 
B)  Physical equipment used to process people, possessions, or information 
C)  Customers 
D)  Labor 
E)  Infrastructure 
A)  Physical facilities designed to contain customers 
B)  Physical equipment used to process people, possessions, or information 
C)  Customers 
D)  Labor 
E)  Infrastructure C

Question 2

When a firm wants to inventory demand via a reservation system and has insufficient capacity it should lower prices selectively.

Accepted Answer

A) True 
 B)False  False

Question 3

Describe four of the ten propositions on the psychology of waiting lines.

Accepted Answer

Waiting lines create dissatisfied customers for a number of reasons. The ten propositions describe characteristics that can increase or decrease satisfaction. First, unoccupied time feels longer than occupied time. The solution is to find a way to occupy customers, perhaps with other services. Second, pre- and post-process waits feel longer than in-process waits. Express/electronic check-in and speedy billing can reduce dissatisfaction here. Third, anxiety makes waits seem longer. Here again, occupying customers can help reduce negative effects. Fourth, uncertain waits are longer than known, finite waits. Adjusting to a wait of known length is easier because customers can see a finish line approaching.

Question 4

Describe how ski resorts manage traditionally seasonal supply and demand fluctuations.

Accepted Answer

Traditionally ski resorts only operated

Question 5

A good example of inventorying demand is a haircut that can be set up and prepared for one day and executed the next.

Accepted Answer

A) True 
 B)False

Question 6

Efforts directed at changing demand patterns on a city bus should be aimed at cross-training individual employees.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is the correct action for a firm to take that wants to reduce demand and has insufficient capacity?

Accepted Answer

A)  Take no action. 
B)  Consider override for most desirable segments. 
C)  Consider priority systems for most desirable segments. 
D)  Increase prices or encourage use in other time slots. 
E)  Lower prices selectively. 
A)  Take no action. 
B)  Consider override for most desirable segments. 
C)  Consider priority systems for most desirable segments. 
D)  Increase prices or encourage use in other time slots. 
E)  Lower prices selectively.

Question 8

Discuss why a subway car has elastic capacity.

Accepted Answer

A subway car has elastic capacity becaus

Question 9

Possible strategic applications of excess capacity include all of the following EXCEPT ____________.

Accepted Answer

A)  reducing variation in current capacity 
B)  free trials for prospective customers 
C)  free trials for intermediaries who sell to end customers 
D)  employee rewards 
E)  bartering with the firm's own suppliers 
A)  reducing variation in current capacity 
B)  free trials for prospective customers 
C)  free trials for intermediaries who sell to end customers 
D)  employee rewards 
E)  bartering with the firm's own suppliers

Question 10

Describe how Disney decided to deal with long lines.

Accepted Answer

The theme park implemented virtual waiti

Question 11

Optimum and maximum capacities are never one and the same (e.g. a sport performance).

Accepted Answer

A) True 
 B)False

Question 12

What are the four supply and demand conditions that a fixed-capacity service may face?

Accepted Answer

Excess demand, demand exceeds

Question 13

Describe how optimum and maximum capacities may differ in the restaurant industry.

Accepted Answer

A full restaurant may deterior

Question 14

List the four key marketing strategies that can be employed to reshape demand.

Accepted Answer

Use price and nonmonetary cost

Question 15

What are the two basic approaches to fluctuating demand?

Accepted Answer

Adjust the level of capacity t

Question 16

One way to stretch capacity is to utilize the facility for longer periods.

Accepted Answer

A) True 
 B)False

Question 17

Processing times for people are typically less variable than objects or things.

Accepted Answer

A) True 
 B)False

Question 18

Random fluctuations in business are usually caused by factors well within management's control.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT a way of understanding the nature of demand curves?

Accepted Answer

A)  Research. 
B)  Analyzing parallel situations in other locations. 
C)  Trial and error. 
D)  Analyzing parallel situations in comparable services. 
E)  Analyzing competing demand positions. 
A)  Research. 
B)  Analyzing parallel situations in other locations. 
C)  Trial and error. 
D)  Analyzing parallel situations in comparable services. 
E)  Analyzing competing demand positions.

Question 20

The term "productive capacity" refers to the resources or assets that a firm can employ to create goods and services.

Accepted Answer

A) True 
 B)False

Which of the following is NOT one of the productive capacity forms in a service context?

When a firm wants to inventory demand via a reservation system and has insufficient capacity it should lower prices selectively.

Describe four of the ten propositions on the psychology of waiting lines.

Describe how ski resorts manage traditionally seasonal supply and demand fluctuations.

A good example of inventorying demand is a haircut that can be set up and prepared for one day and executed the next.

Efforts directed at changing demand patterns on a city bus should be aimed at cross-training individual employees.

Which of the following is the correct action for a firm to take that wants to reduce demand and has insufficient capacity?

Discuss why a subway car has elastic capacity.

Possible strategic applications of excess capacity include all of the following EXCEPT ____________.

Describe how Disney decided to deal with long lines.

Optimum and maximum capacities are never one and the same (e.g. a sport performance).

What are the four supply and demand conditions that a fixed-capacity service may face?

Describe how optimum and maximum capacities may differ in the restaurant industry.

List the four key marketing strategies that can be employed to reshape demand.

What are the two basic approaches to fluctuating demand?

One way to stretch capacity is to utilize the facility for longer periods.

Processing times for people are typically less variable than objects or things.

Random fluctuations in business are usually caused by factors well within management's control.

Which of the following is NOT a way of understanding the nature of demand curves?

The term "productive capacity" refers to the resources or assets that a firm can employ to create goods and services.

New Perspectives on Marketing in the Service Economy

Consumer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing Service Products: Core and Supplementary Elements

Distributing Services Through Physical and Electronic Channels

Setting Prices and Implementing Revenue Management

Promoting Services and Educating Customers

Designing and Managing Service Processes

Crafting the Service Environment

Managing People for Service Advantage

Managing Relationships and Building Loyalty

Complaint Handling and Service Recovery

Improving Service Quality and Productivity

Striving for Service Leadership

Filters

Exam 9: Balancing Demand and Productive Capacity

Which of the following is NOT one of the productive capacity forms in a service context?

When a firm wants to inventory demand via a reservation system and has insufficient capacity it should lower prices selectively.

Describe four of the ten propositions on the psychology of waiting lines.

Describe how ski resorts manage traditionally seasonal supply and demand fluctuations.

A good example of inventorying demand is a haircut that can be set up and prepared for one day and executed the next.

Efforts directed at changing demand patterns on a city bus should be aimed at cross-training individual employees.

Which of the following is the correct action for a firm to take that wants to reduce demand and has insufficient capacity?

Discuss why a subway car has elastic capacity.

Possible strategic applications of excess capacity include all of the following EXCEPT ____________.

Describe how Disney decided to deal with long lines.

Optimum and maximum capacities are never one and the same (e.g. a sport performance).

What are the four supply and demand conditions that a fixed-capacity service may face?

Describe how optimum and maximum capacities may differ in the restaurant industry.

List the four key marketing strategies that can be employed to reshape demand.

What are the two basic approaches to fluctuating demand?

One way to stretch capacity is to utilize the facility for longer periods.

Processing times for people are typically less variable than objects or things.

Random fluctuations in business are usually caused by factors well within management's control.

Which of the following is NOT a way of understanding the nature of demand curves?

The term "productive capacity" refers to the resources or assets that a firm can employ to create goods and services.

New Perspectives on Marketing in the Service Economy

Consumer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing Service Products: Core and Supplementary Elements

Distributing Services Through Physical and Electronic Channels

Setting Prices and Implementing Revenue Management

Promoting Services and Educating Customers

Designing and Managing Service Processes

Crafting the Service Environment

Managing People for Service Advantage

Managing Relationships and Building Loyalty

Complaint Handling and Service Recovery

Improving Service Quality and Productivity

Striving for Service Leadership

Filters