BU412 Chapter Notes - Chapter 9: Rush Hour, Shortage, Airport Security
Document Summary
Many services with limited capacity face wide swings in demand. Service capacity cannot be kept aside for sale at a later date. The goal should be to utilize staff, labour, equipment, and facilities as productively as possible. Service marketers may be able to develop strategies to bring demand and capacity into balance in ways that create benefits for customers as well as to improve profitability for the business. For ski operators, the effective use of capacity post winter requires changing the nature of the activities so that the slopes and facilities can still be utilized. In peak periods you have to turn customers away and in low periods facilities are idle. At any given moment, a fixed-capacity service may face one of four conditions: Excess demand the level of demand exceeds maximum available capacity. Some customers are denied service and business is lost.
