358 Ch. 9

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

Customers

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

F

Airlines place restrictive conditions on fares for tourists to prevent business travelers from traveling on economy class.

F

Demand patterns are usually random.

F

During the SARS period when travel and tourism was affected, staff were sent for training or encouraged to resign

F

Medical clinics, hotels, and passenger aircrafts are all examples of physical facilities designed to contain goods and services.

F

One way to stretch capacity is to ensure slack time is encountered.

F

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

F

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

F

Which of the following is NOT one of the benefits of having a reservations system?

Helps service personnel to serve more effectively.

All of the following are questions to ask about demand patterns and their underlying causes EXCEPT ____________.

How much demand are competitors receiving?

Which of the following is NOT one of the conditions that fixed-capacity firms may face?

Ideal demand exceeds capacity.

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

Increase prices or encourage use in other time slots.

Which of the following is NOT one of the five basic approaches to managing demand?

Inventory capacity until demand increases.

Which of the following is NOT one of the alternative queuing configurations discussed?

Multiple line to single servers ("snake")

One way for car washes to decrease the number of visitors to the existing site is to

Offer mobile car wash services.

The demand on a city bus is likely to vary by all EXCEPT which of the following?

Population density in the city.

____________ is usually the first variable to be proposed for bringing demand and supply into balance.

Price.

Which of the following is NOT one of the ways to change the overall level of capacity to match demand variations?

Share facilities with the supplier.

A subway can increase the capacity on a route after all seats have been occupied.

T

Financial success in businesses with limited capacity depends largely on how capacity is used.

T

Good records of a firm's transactions can help one to understand demand patterns.

T

One of the most direct ways for a hotel to reduce excess demand at peak periods is to charge customers more money to use the service during those periods.

T

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

T

We need to have queuing or reservations systems because demand cannot be inventoried.

T

Yield analysis forces managers to recognize the opportunity cost of selling capacity for a given date to a customer from one market segment when another might subsequently yield a higher rate.

T

New York City's 911 service uses education to ______________.

discourage undesirable demand

Marketing strategies can be used to shape demand in all ways EXCEPT ____________.

modify mode of delivery

All of the following are ways to make waits more bearable EXCEPT ____________.

provide the customers with no explanation for the wait

Mont Tremblant uses all the following ways to attract guests during summer EXCEPT _____________.

wind surfing


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