Exam 14: Coping With Fluctuating Demand for Services

Each additional customer served beyond an organization's optimum capacity has no effect on the service experience for all customers and the organization's ability to offer excellence.

Which,if any,of the following approaches is (are)NOT recommended for controlling demand without increasing capacity or shifting demand?

COMPLETION QUESTIONS Random Predictive Service Capacity Chasing Maximum Optimum Smoothing Demand Demarketing Reservation System Formal Queuing System -Establishing a(n)_______________ is one way of controlling demand without increasing capacity or shifting demand.

Recently a strategic planning meeting was held to determine how to handle over-demand for your firm's service offering.One recommendation that was forwarded was to do nothing.Is this necessarily a wise recommendation to follow? Explain.

Chasing demand by stretching capacity is always a good idea.

Few service organizations may be characterized as capacity-constrained services.

COMPLETION QUESTIONS Random Predictive Service Capacity Chasing Maximum Optimum Smoothing Demand Demarketing Reservation System Formal Queuing System -Service firms that use a ____________________ ensure that some patrons must wait.

COMPLETION QUESTIONS Random Predictive Service Capacity Chasing Maximum Optimum Smoothing Demand Demarketing Reservation System Formal Queuing System -A firm's ___________ capacity is dictated by the size of its facilities,the number of and skill level of its personnel,and the nature of its equipment.

Demand that falls short of capacity makes that capacity a wasted resource.

COMPLETION QUESTIONS Random Predictive Service Capacity Chasing Maximum Optimum Smoothing Demand Demarketing Reservation System Formal Queuing System -_____________ efforts should be used by service marketers to attempt to deflect or shift some customer demand to slower periods.

Service organizations often do not experience predictable or manageable fluctuations of demand.

Once service demand patterns are discovered;the next step for service providers who are interested in shifting consumer demand is to use this strategy as a basis for developing appropriate service strategies.

Achieving maximum capacity does not have negative consequences for the service organization or its customers.

What is meant by service capacity,and why is it important for service marketers to understand the nature of service capacity?

During the past year,your service organization became aware that it is experiencing excess customer demand.As the marketing director for the organization,how would you respond to this condition?

Demand cycles and perishability are two demand circumstances that nearly all service organizations face.

Insufficient demand for a service offering may be the result of the firm's excess service capacity.

To get an accurate picture of the overall demand,service organizations must chart the patronage patterns of the segments for the service product together.

Which of the following circumstances is NOT at the heart of the services demand problem?

As chairman of the Marketing Department at a local university,you are faced with overdemand for some marketing courses and underdemand for others.Explain how would you go about balancing the service capacity and customer (student)demand for your courses?