Because Service Capacity Is Perishable and Service Demand Is Highly

question 23

Multiple Choice

Because service capacity is perishable and service demand is highly time dependent, service firms employ yield management strategies in an effort to:

• A) control demand by limiting capacity.
• B) control capacity through price changes over time.
• C) establish fair guidelines for overbooking capacity.
• D) shift customer demand to other firms that can handle the excess business.
• E) balance price and revenue considerations with their need to fill unused capacity.

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Definitions:

Congressional Review

The process by which Congress can nullify regulations made by government agencies within a certain timeframe after the rules have been presented to it.

Exhaust Administrative Remedies

The principle that requires a party to use all available administrative options or appeals within an agency before pursuing legal action in court.

Writ of Certiorari

A type of writ by which a higher court reviews the decisions of a lower court.

Inspector General

An official in charge of inspecting and overseeing the operations and activities within a particular organization to ensure compliance and integrity.