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Multiple Choice Quiz
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1
The fundamental issue underlying supply and demand management in services is the lack of _____ capability.
A)inventory
B)customization
C)automation
D)standardization
E)transportation
2
At any given time, the lack of inventory capability in service firms can result in all of the following scenarios EXCEPT:
A)demand that exceeds maximum capacity
B)demand that exceeds optimum capacity
C)supply and demand balanced at the level of optimum capacity
D)demand that is below optimum
E)demand that is below minimum capacity
3
The marketing department at a well-known university has 11 full-time faculty members and 3 part-time faculty members. There are more than 400 marketing majors at this university. The primary constraint for offering a course in direct mail marketing would more than likely be:
A)equipment
B)labor
C)money
D)facilities
E)time
4
Nine months after the terrorists' attacks on the World Trade Center and the Pentagon, maternity hospitals were filled to capacity as people who had been waiting for the right time to have children decided that there was no time like the present. The maternity hospitals experienced a(n):
A)random demand fluctuation
B)relative demand shift
C)predictable demand cycle
D)vertical demand configuration
E)organized demand pattern
5
If you buy your tickets early for a live theater production in Rome, you'll pay about 30 percent less, than if you buy them on the day of the show. The lower price helps the early sale of tickets and guarantees the audience will be large enough to justify the cost and effort put into the production. What strategy does the theater company use to shift demand for theater tickets?
A)differentiate on price
B)modify timing and location of service delivery
C)vary the service offering
D)stretch capacity
E)communicate with customers
6
Shelton Elementary School only needs its gymnasium from Monday through Friday. On the weekends it rents the facilities to an Upward Bound basketball program sponsored by a local church. By renting its facilities, the elementary school is:
A)adjusting capacity to match demand
B)creating optimal supply
C)optimizing its demand pattern
D)outsourcing
E)smoothing peaks and valleys of demand
7
Which of the following is a risk associated with the use of yield management?
A)excessive customer loyalty
B)too much focus on competition
C)employee morale problems
D)misuse of company-driven service blueprints
E)overreliance on salaries
8
Waiting time feels longer when customers:
A)are relaxed while waiting
B)are reading or drinking a beverage while waiting
C)are alone while waiting
D)know how long they will have to wait
E)understand why they are waiting





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