Chapter 11

arrival, capability, request, effort, subjective preference

what are 5 components of customer induced variability

demand, capacity

yield management involves managing ____ and managing ____

tiered

____ pricing strategy use this pricing strategy to avoid losing out on other potential revenue streams maximize revenue multiple prices for different groups of customers; capture all customers instead of just middle portion airline example

moderate, high, low, high, low, hectic, high, short run

chase demand strategic dimensions ____ customer waiting ____ employee utilization ____ labor skill level ____ labor turnover ____ training required per employee ____ working conditions ____ supervision required ____ forecasting

arrival

customer induced variability customer arrivals are independent decisions not evenly spaced

effort

customer induced variability level of commitment to coproduction or self service varies

capability

customer induced variability level of knowledge and skills vary resulting in some hand holding

subjective preference

customer induced variability personal preferences introduce unpredictability

request

customer induced variability uneven service times result from unique demands

sharing, cross training, part, adjustable, shifts, participation

different ways to manage capacity: ____ capacity ____ employees using ___ time employees creating ____ capacity (chase demand strategy) scheduling work ___ increasing customer ____

complementary, overbooking, variability, off peak, incentives, segmenting

different ways to manage demand: developing _____ services reservation systems and ____ customer induced _____ promoting _____ demand offering price _____ _____ demand

budget, discounts

how can you increase off peak demand increase ____ give ___ to increase demand

standard, less

how to handle peak demand ____ pricing ____ allocated to budget

fixed, segment, perishable, in advance, fluctuating, marginal sales, capacity change

ideal characteristics for yield management: relatively ____ capacity ability to ____ markets ____ inventory product sold ____ ____ demand low ____ cost and high ____ cost

capacity

in chase demand, you're trying to change ____ every time

demand

in level capacity, you're trying to manage your ___

generally low, moderate, high, low, high, pleasant, low, long run

level capacity strategic dimensions: ____ customer waiting ____ employee utilization ____ labor skill level ____ labor turnover ____ training required per employee ____ working conditions ____ supervision required ____ forecasting

demand, capacity

managing ____ is important for level capacity. managing ____ is very important for chasing demand.

normal distribution, standard normal distribution

many of the processes in the universe can be mapped onto _____. all can be mapped onto ____.

inelasticity

many people/companies bank on _____; in the discriminatory pricing for camping experience, the price doubled but demand didn't fall at the same rate, leading to higher revenue

provide generous staffing, require reservations

strategies for managing customer induced variability; arrival: accommodation(responsiveness)- _____ reduction(efficiency)- _____

adapt to customer skill levels, target customers based on capability

strategies for managing customer induced variability; capability accommodation(responsiveness)- ____ reduction(efficiency)- ____

do work for customers, reward increased effort

strategies for managing customer induced variability; effort accommodation(responsiveness)- ____ reduction(efficiency)- _____

cross train employees, limit service breadth

strategies for managing customer induced variability; request accommodation(responsiveness)- _____ reduction(efficiency)- ____

diagnose expectations and adapt, persuade customers to adjust expectations

strategies for managing customer induced variability; subjective preference accommodation(responsiveness)- _____ reduction(efficiency)- _____