QUESTION 1

Successful service managers identify that managing demand and capacity is vital for both productive use of the firm's assets and providing the customers the quality service experiences they are expecting. Yet, waiting for a service process is an almost universal phenomenon. Virtually every organization has to deal with queues somewhere in its operation

You are required to advise the managers by answering the following questions

(a) What does productive capacity means?

(b) Explain the five potential forms of productive capacity within the service context

(c) Two marketing strategies to shape demand patterns are

(i) Manipulating price and other costs of service

(ii) Promotion and education

Explain each of them

(d) State and explain the seven elements of a queuing system

QUESTION 2

a) Define service recovery

b) Discuss the impact of the service recovery efforts on customer loyalty

c) Briefly explain why Service guarantees are considered as powerful tools for both promoting and achieving service quality

d) State and explain the guidelines for effective problem resolution

QUESTION 3

a) Using appropriate examples explain briefly the types of ‘new services' and the distinctive features of services that need to be considered in new service development

b) Describe the new service development process and where applicable make use of the author Easingwood

QUESTION 4

a) Briefly explain satisfaction

b) Why satisfaction is important to service mangers

c) Discuss the steps involved in the purchase process

d) Describe search, experience and credence attributes and give examples of each