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Service Marketing > FINALS WEEK 3 > Flashcards

FINALS WEEK 3 Flashcards

1
Q

This term refers to the resources or assets that a
firm can use to create goods and services that are
typically key cost components and therefore need to
be managed carefully.

A

PRODUCTIVE SERVICE CAPACITY

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2
Q

In a service context, productive capacity can take
several forms, including facilities ,equipment, labor,
and infrastructure.

A

PRODUCTIVE SERVICE CAPACITY

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3
Q

Five Productive Capacity in Services

A
  1. Physical facilities to contain customers
  2. Physical facilities to store or process goods
  3. Physical equipment to process people, possessions, or information
  4. Labor used for physical or mental work
  5. Public/private infrastructure
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4
Q

Four conditions potentially faced by fixed-capacity services:

A
  1. Excess demand
  2. Demand exceeds optimum capacity
  3. Demand and supply are well balanced at the level of optimum capacity
  4. Excess capacity
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5
Q

The level of demand exceeds the maximum available
capacity, resulting in some customers being denied service and business is lost.

A

Excess demand.

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6
Q

No one is turned away, but conditions
are crowded and customers are likely to perceive a deterioration in service quality
and may feel dissatisfied.

A

Demand exceeds optimum capacity

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7
Q

Staff and facilities are busy without being overworked, and customers receive
good service without delays.

A

Demand and supply are well balanced at the level of optimum capacity

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8
Q

Demand is below optimum capacity and productive
resources are underutilized, resulting in low productivity

A

Excess capacity

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9
Q

ADDRESSING THE PROBLEM OF FLUCTUATING
DEMAND
Two basic approaches:

A
  1. Adjust the level of capacity to meet demand.
  2. Manage the level of demand.
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10
Q

This approach requires
an understanding of what constitutes productive capacity and how it may
be increased or decreased on an incremental basis.

A

Adjust the level of capacity to meet demand.

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11
Q

This requires a good understanding of
demand patterns and drivers on a segment-by-segment basis, so that
firms can use marketing strategies to smooth out variations in demand.

A

Manage the level of demand.

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12
Q

Most service firms use a mix of both approaches. What is that approach?

A

-Adjust the level of capacity to meet demand.
-Manage the level of demand.

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13
Q

(ability to absorb extra demand)

A

Elastic Capacity

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14
Q

The actual capacity level remains
unchanged, and more people are being served with the same capacity

A

Elastic Capacity

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15
Q

In other instances, it may be achieved by cutting back the level of service — say,
offering a simpler menu at busy times of the day.

A

Reduced the average amount of time customers (or their possessions) spend in
the process.

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16
Q

STRETCHING CAPACITY LEVELS

A

-Elastic Capacity
-Utilize the facilities for longer periods
-Reduced the average amount of time customers (or their possessions) spend in
the process

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17
Q

ADJUSTING CAPACITY TO MATCH DEMAND

A
  1. Schedule downtime during periods of low demand
  2. Cross-train employees
  3. Use part-time employees
  4. Invite customers to perform self-service
  5. Ask customers to share
  6. Create flexible capacity
  7. Rent or share extra facilities and equipment
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18
Q

Five basic approaches to managing demand:

A
  1. Take no action and leave demand to find its own levels.
    . Reduce demand during peak periods.
  2. Increase demand during low periods.
  3. Inventory demand using a queuing system.
  4. Inventory demand using a reservations system.
19
Q

are intended to guarantee that service will be available when
the customer wants it.

A

Reservations

20
Q

Customer dissatisfaction due to excessive waits can be avoided
(T or F)

A

t

21
Q

It allow demand to be controlled and smoothed out in a more manageable way

A

Reservation

22
Q

It enable the implementation of revenue management and serve to pre-sell a service to different customer segments

A

Reservation

23
Q

Data from _____________ also help organizations prepare operational and financial projections for future periods

A

reservation systems

24
Q

something that occurs everywhere

A

Waiting

25
Q

Waiting for lines known to operations researchers as ________

A

Queues

26
Q

occur whenever the number of arrivals at a facility exceeds the capacity of the system to process them

A

Queues

27
Q

It’s boring, time-wasting, and sometimes physically uncomfortable

A

Waiting

28
Q

Demand can be inventoried in two ways:

A
  1. By asking customers to wait in line.
  2. By offering customers the opportunity to reserve
29
Q

MANAGING WAITING LINES

A
  1. Rethinking the design of the queuing. 2. Tailoring the queuing system to different market segments. 3. Managing customers’ behavior and their perceptions of the wait. 4. Installing a reservations system. 5. Redesigning processes to shorten the time of each transaction
30
Q

DIFFERENT QUEUE CONFIGURATIONS

A

-Single line single server single stage.
-Single line sequential stages
-Parallel lines to multiple servers
-Single line to multiple servers
-Designated lines
-Taking a number

31
Q

Customers proceed and transact through a single serving operation

A

Single line single server single stage.

32
Q

Customers proceed through several serving operations.

A

Single line sequential stages

33
Q

______ may occur at any stage where the process takes longer to execute than at previous stages.

A

Bottlenecks

34
Q

Offer more than one serving station, allowing customers to select one of several lines in which to wait. Banks and ticket windows are common examples.

A

Parallel lines to multiple servers

35
Q

Commonly known as a “snake.”

A

Single line to multiple servers

36
Q

This type of waiting line solves the problem of parallel lines to multiple servers moving at different speeds. This method is commonly used at post offices and airport check-ins.

A

Single line to multiple servers

37
Q

Involve assigning different lines to specific categories of customers

A

Designated lines

38
Q

Saves customers the need to stand in a queue. This procedure allows them to sit down and relax, or to guess how long the wait will be and do something else in the meantime

A

Taking a number

39
Q

TEN PREPOSITIONS ON THE PSYCHOLOGY OF WAITING LINES

A
  1. Unoccupied time feels longer than occupied time.
  2. Solo waits feel longer than group waits
  3. Physically uncomfortable waits feel longer than comfortable waits
  4. Pre-and post-process waits feel longer than in-process waits
  5. Unfair waits are longer than equitable waits
  6. Unfamiliar waits seem longer than familiar ones
  7. Uncertain waits are longer than known, finite waits
  8. Unexplained waits are longer than explained waits
  9. Anxiety makes waits seem longer
  10. The more valuable or important the service, the longer people will wait.
40
Q

To manage demand effectively, firms need to understand demand patterns and drivers by market segment. Different segments often exhibit different demand patterns (T or F)

A

t

41
Q

Once firms have an understanding of the demand patterns of their market segments, they can use marketing strategies to reshape those patterns.

A

t

42
Q

To understand the patterns of demand by segment, research should begin by getting some answers to a series of important questions about the patterns of demand and their underlying causes.

A

t

43
Q

ANALYZING DRIVERS OF DEMAND

A
  1. Understand why customers from specific market segments select this service.
  2. Keep good records of transactions to analyze demand patterns.
  3. Record weather conditions and other special factors that might influence demand.

Service Marketing (4 decks)

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