54 Questions
What concept refers to the appearance of effort in service delivery?
Labor illusion
Which strategy involves making the service process visible to customers?
Operational Transparency
What strategy aims to help customers understand and appreciate the value being added?
Yield management
Which concept involves the length of service impacting the perceived value?
Duration heuristics
What does letting customers see operations aim to achieve according to the text?
Increase loyalty
Which service provider is mentioned in the text as an example of operational transparency?
Starbucks
What are the main capacity constraints mentioned in the text?
Time, labour, equipment, and facilities
In yield management strategies, what is balanced among capacity utilization, pricing, market segmentation, and financial return?
Yield
What is one of the key aspects for managing waiting lines mentioned in the text?
Operational Transparency
Which service-related constraints are mentioned in the text under 'Constraints on Capacity'?
Delivery services, telecommunications services, and health clinic services
What is the primary goal of yield management strategies according to the text?
Optimizing revenue by adjusting prices based on demand
What concept does yield management primarily focus on optimizing?
Revenue
What is the goal of Yield Management (revenue management)?
Maximize revenue (yield)
In the context of Yield Management, what does 'yield' refer to?
Actual Revenue / Potential Revenue
What represents the formula for Actual Revenue in Yield Management?
Actual Capacity Used × Average Actual Price
Which quadrant do Airlines, Hotels, Rental Cars, and Cruise Lines fall into when considering price mix in service industries?
Quadrant 2
What is one strategy for managing the uncertainty of duration in service industries?
Overbooking based on forecasting
How is the potential revenue calculated in Yield Management?
Total Capacity / Maximum Price
What is the formula to calculate yield in Yield Management?
Yield = Actual Revenue / Potential Revenue
How can service providers manage the uncertainty of duration in service industries?
By implementing strategies like overbooking based on forecasting or using deposit, penalties, and no availability guarantee for late arrival.
Which quadrant do Restaurants, Golf Courses, and ISPs fall into when considering price mix in service industries?
Quadrant 3
What is the concept that involves making the service process visible to customers?
Operational Transparency
What is the primary goal of yield management strategies according to the text?
The primary goal is to maximize revenue or yield.
Which strategy aims to help customers understand and appreciate the value being added?
Operational Transparency
What are some key capacity constraints mentioned in the text when it comes to managing demand and supply?
Time, labour, equipment, and facilities
In the context of yield management strategies, what is the main goal of balancing capacity utilization, pricing, market segmentation, and financial return?
Achieving optimal revenue and profit maximization
How can operational transparency be beneficial for service providers according to the text?
Building customer trust and confidence
What concept involves making the service process visible to customers to enhance their experience?
Operational transparency
What is the primary focus of yield management strategies when it comes to optimizing revenue?
Balancing capacity utilization and pricing
How is the term 'yield' calculated theoretically in the context of yield management?
Yield = Actual Revenue / Potential Revenue
How can operational transparency impact customer satisfaction and loyalty?
Operational transparency can lead to more satisfaction, more willingness to pay, and more loyalty.
Explain the concept of duration heuristics and its effect on perceived value in service industries.
Duration heuristics refers to the length of the service impacting the perceived value. Customers tend to associate longer service duration with higher value.
How does the labor illusion play a role in service delivery?
The labor illusion involves creating the appearance of effort in service delivery to make customers value the service more.
What is the main goal of yield management strategies in service industries?
The main goal of yield management strategies is to maximize revenue by balancing capacity utilization, pricing, and market segmentation.
How is 'yield' calculated theoretically in yield management?
Theoretical yield in yield management is calculated by multiplying the total capacity by the average price.
What is one strategy for managing uncertainty of duration in service industries?
One strategy for managing duration uncertainty is to make the service process visible to customers.
Which strategy aims to improve ER wait times by assigning each patient to a specific doctor?
Implementing a dedicated queue
What is a common consideration when managing waiting lines according to the text?
Duration of the service transaction
In the context of managing market demand, which pricing approach involves starting with low prices and gradually increasing them?
Low to High
What is one strategy mentioned in the text to make waiting more tolerable for customers?
Adjust queuing systems
How can ER wait times be shortened according to the text?
Implementing dedicated queues for patients
Which pricing mix strategy involves having different price points for the same service based on added features or benefits?
Good Better Best Pricing
Why is managing the uncertainty of duration crucial in service industries?
To minimize underutilization of capacity due to uncertain duration.
In Yield Management, what does the 'Good Better Best Pricing' strategy aim to achieve?
Balancing revenue across different market segments by offering various price options.
Which quadrant do Hospitals and Continuing Care facilities typically belong to in terms of price mix in service industries?
Quadrant 4
What is one strategy mentioned in the text for managing waiting lines in service industries?
Using a single waiting line to achieve a fairer system.
How is yield calculated theoretically in Yield Management?
$$ Yield = Actual hinspace Revenue / Potential hinspace Revenue $$
What is a key advantage of using virtual or electronic waiting lines in service industries?
Increased perceived fairness among customers.
What is the main goal of yield management strategies in service industries?
Optimizing revenue and financial return
How is 'yield' calculated theoretically in the context of yield management?
By taking the ratio of revenue to the maximum potential revenue
What is one strategy for managing uncertainty of duration in service industries?
Implementing dynamic pricing based on demand fluctuations
Which aspect is NOT typically considered in Yield Management strategies?
Customer Satisfaction
What represents a challenge when managing waiting lines at service facilities like hospitals?
Balancing staff workload with demand fluctuations
In the context of managing waiting lines, what is a disadvantage of a single line with multiple servers configuration?
It may lead to longer overall wait times in certain scenarios
Learn about yield management in capacity-constrained services, which involves matching demand and supply through various methods. Understand the strategies of balancing prices, market segments, capacity usage, and revenue to maximize yield. Explore the formulas for calculating actual and potential revenue in yield management.
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