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Marketing Exam Study!

  • 1.

    Schedule downtime during periods of low demand

  • 2.

    Use temporary employees

  • 3.

    Rent or share extra facilities and equipment

  • 4.

    Cross-train employees

  • 5.

    Let customers perform self-service

Five approaches to managing demand

  • 1.

    Taking no action and leaving demand to find its own level

  • 2.

    Reduce demand in peak periods

  • 3.

    Increase demand when there is excess capacity

  • 4.

    Inventorying demand until capacity becomes available

  • 5.

    Creating formalized queuing systems

Different Queue Configurations

  • In single line, sequential stages, ,customers proceed through several serving operations, as in a cafeteria

  • Parallel lines to multiple servers offer more than one serving station, allowing customers to select one of several lines in which to wait (ie. banks, fast food restaurants

  • Create single line to multiple servers (commonly known as “snake”) as a solution for thinking that you are in the shortest line but watch in frustration that the other lines are moving twice as fast

  • Designated lines involve assigning different lines to specific ategories of customer (express lines of 12 items or less)

  • Take a number saves customers the need to stand in a queue, because they know they will be called in their order of arrival

  • Customers who waited in parallel lines to multiple servers reported significantly higher agitation and greater dissatisfaction with the fairness of the service delivery process than customers who waited in a single line

From Excess Demand to Excess Capacity

  • Excess demand. the level of demand exceeds maximum available capacity, with the result that some potential customers are denied service and business is lost

  • Demand exceeds optimum capacity. No one is actually turned away, but conditions are crowded and customers are likely to perceive a deterioration in quality of service and feel dissatisfied


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