Because Service Capacity Is Perishable and Service Demand Is Highly

question 77

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 costs.
• B) control demand through effective advertising strategies.
• 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:

Cognitive Dissonance

A psychological conflict resulting from incongruous beliefs and attitudes held simultaneously.

Persuasion

The process of influencing someone's beliefs, attitudes, or behaviors through argument, reasoning, or appeal to emotion.

Rationalization

A defense mechanism where controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Student Government

A student organization present in many high schools, colleges, and universities that provides a voice for students and manages various aspects of student life.