Question 1

Cost data helps management to evaluate the impact of periodic cycles and demand fluctuations.

Accepted Answer

Cost data allows management to track changes in expenses over time and identify patterns in the level of demand for the company's products or services. By analyzing the data, management can make necessary adjustments to their operations to minimize the impact of fluctuations on the company's financial performance.

Question 2

How might a restaurant in a big city CBD use marketing mix elements to shape demand patterns? How might a restaurant located on a major highway going through a small town use marketing mix elements to shape demand patterns?

Accepted Answer

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Question 3

How effective is pricing as a strategy to shape demand patterns during off-season and peak times? In your opinion, is this one of the most successful methods or could a combination of marketing mix elements be used?

Accepted Answer

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Question 4

Customers are not willing to pay more for priority queuing.

Accepted Answer

Many customers are willing to pay more for priority queuing to save time and enjoy the convenience of faster service, as seen in various industries such as airlines, amusement parks, and customer support services.

Question 5

Discuss the statement: 'In a very real sense, queues are basically a symptom of unresolved capacity management problems'.Do you agree or disagree with the statement? Justify your answer.

Accepted Answer

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Question 6

Assume you run a harbour cruise service.What kind of demand patterns might you expect for such a business? What strategies would you recommend for this business to balance capacity and demand?

Accepted Answer

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Question 7

You are responsible for organising a queuing system for a new supermarket which is just opening.Which of the queuing systems that are available would you select to ensure your customers' satisfaction? Justify your answer in terms of queuing systems available.

Accepted Answer

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Question 8

'Although service businesses can rarely inventory supply, they can often inventory demand.' Discuss how this statement would apply to a national airline and a veterinary surgery.

Accepted Answer

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Question 9

A car detailer in a shopping centre should recognise that customers who are unoccupied will feel as if their waiting time is longer than they would if they were occupied.

Accepted Answer

This is true because when customers are unoccupied and waiting, they have nothing else to do to distract themselves or pass the time, making the waiting time feel longer. It is important for the car detailer to recognize this and provide entertainment or comfortable seating options to make the experience more pleasant for the customer.

Question 10

Loyalty programs are a good example of using customer and channel development to create demand for wasted capacity.

Accepted Answer

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Question 11

The management of inventory can best be achieved through a reservation system.Discuss this statement in relation to a specific service organisation of your choice.

Accepted Answer

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Question 12

Your company has not been able to reduce waiting times.Discuss the psychological implications of waiting time and the managerial implications.

Accepted Answer

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Question 13

Is it possible to tailor queuing systems for market segments and, if so, how can this be achieved?

Accepted Answer

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Question 14

Reservations strategies should focus on yield.

Accepted Answer

Reservations strategies should focus on maximizing revenue through yield management, which involves adjusting prices and availability based on demand and market conditions.

Question 15

Discuss the benefits and problems for service firms associated with reservations or booking systems.

Accepted Answer

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Quiz 7: Balancing productive capacity and demand