MGT 560 Ch. 11 Quiz

Which of the following is NOT an example of the differential pricing policy?

difference in hospital fees for walk-in and scheduled services

Which of the following strategies is inappropriate for managing capacity with demand?

Decrease customer participation in the service process

A cruise ship has available a certain number of rooms in each of 10 categories of appointments ranging from a two-bunk inside cabin to a suite with an outside patio and indoor sitting area. If a passenger requests a sailing date in which the desired cabin is sold out, which of the following actions would be considered the least viable alternative for the cruise line?

overbook the cabin

Which is the following is NOT a strategy for managing capacity?

Developing complementary services

A disadvantage of yield management is that it cannot be implemented in real time. T/F

False

Differential pricing is an attempt to make peak usage products unattractive by imposing a penalty on the consumer for using the service during peak periods. T/F

False

The use of a ski-resort hotel for business conventions during the summer is an example of using the complementary service strategy. T/F

False

Time perishability of service capacity is a challenge for service managers because customers demand immediate service. T/F

False

For a chase demand strategy, which of the following does NOT have a high-trade off?

Labor-skill level

A drawback to increased consumer participation is the fact that service quality is no longer completely under the control of the provider of the service T/F

True

Cross-training employees as a strategy to increase flexibility is feasible only when there exist tasks, the demands for which peak at different times T/F

True

Some restaurants use tables and chairs instead of booths to create more flexible capacity. T/F

True

The workshift scheduling problem is important in service organizations that face a cyclic demand for their services. T/F

True

Using part-time personnel at fast-food restaurants allows capacity to vary with demand T/F

True

Yield Management is a strategy that manages both demand and capacity T/F

True

Yield management is a pricing and capacity allocation system that was developed by American Airlines. T/F

True

Faced with variable demand and a perishable capacity, a service manager can smooth demand by?

Using reservations and appointments

A good overbooking strategy should _____?

balance the expected opportunity cost of idle service capacity and expected cost of turning away customers who have reservations

________ is not a characteristic appropriate for a yield management strategy.

steady demand

A health club's offering a reduced rate membership for students to workout before 4:00pm on weekdays is?

promoting off-peak demand

The strategy of segmenting demand is feasible only when ________?

demand is not from a homogeneous source

Which of the following is NOT a characteristic of firms using yield management?

There is one homogeneous customer class

Expected loss for an overbooking reservation strategy would be calculated by multiplying the loss for each no-show possibility and its probability of occurrence, and then adding the products. T/F

True

Yield management is the process of allocating a fixed perishable resource to several market segments in the most profitable manner. T/F

True