When Faced with Fluctuating Levels of Demand, a Service Firm

question 71

Multiple Choice

When faced with fluctuating levels of demand, a service firm can do which of the following?

• A)Stockpile inventory
• B)Manage the level of demand
• C)Adjust the level of capacity
• D)Hire only on temporary contracts
• E)b and c

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Definitions:

Below-market Pricing

Setting the price of a product or service lower than the prevailing market rates to attract customers or gain market share.

Above-market

Pricing or valuing something higher than the general market rate or expected standard.

Prestige Pricing

A pricing strategy where prices are set higher than competitors to convey an image of exclusivity or superior quality.

Price Lining

A pricing strategy where products are sold at predetermined price points, each representing a distinct level of quality or features.