MCS 1000 Chapter 20: Chapter 20 Introductory Marketing Notes
17 Dec 2011
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Chapter 20 marketing: balancing demand against productive capacity. Fluctuations in demand threaten service productivity: many services face wide swing in demand, sometimes caused by change of season (i. e ski resorts have wide change of activities offered from season to season) Goal of service firm should be to utilize staff, labor, equipment, & facilities as productively as possible. Defining productive capacity: the term refers to the resources or assets that a firm can use to create goods & services. Main form of capacity limitation is probably beds, rooms, seats etc: physical facilities designed to contain customers and used for people-processing services or mental stimulus processing services. Medical clinic, college classroom, airline etc: physical facilities designed for storing or processing goods that either belong to customers or are being offered for sale to customers. Pipelines, parking lots, houses, railroad freight wagons etc: physical equipment used to process people, possessions, or info.
