Answer to Question #209160 in Management for KAM

Question

SUBJECT : SERVICE MARKETING

Discuss the various forms (in elaboration ) of capacity interfaces . What are the strategies to modify demand , elaborate in detail ? Under what circumstances the demand cannot be modified to suit the capacity , elaborate circumstances in detail in points ?

Answer 1

Forms of capacity interfaces

1. Physical facilities designed to contain customers- are used for distributing customers processing services or mental inducement processing services.

2. Physical facilities designed for storing or processing goods- they are either owned by consumers or offered to them for sale. Examples are pipelines, warehouses, freight among others.

3. Physical equipment used to process people, possession, or information - they are equipment used to embrace a huge range of items in particular circumstances. They include machinery, diagnostics equipment, computers among others.

4. Labour.

They are key elements of productive capacity in both high contact and low contact services that are used by physical and mental works.

5. Infrastructure.

Those are either private or public infrastructures used by many companies to deliver quality goods and services to the customers.

B. The strategies used to modify demands are

1. Smoothening the demand fluctuations by shifting the demand to match the current supply. This is when the organization shifts their buyers away when the demand exceeds the capacity by convincing them to use the service in the low-demand periods.

2. Adjusting the capacity to match the fluctuations in demand. This is when the organization adjusts, stretches, and aligns the capacity to suit the consumer's needs.

3. Reducing the demand during peak times. This strategy focuses on reducing the demand when customers' demand for goods and services is at its peak.

4. Increase the demand to match the capacity. This is when the company raises the demand for the services when the service operation is below full capacity.

C. Circumstances the demand cannot be modified to suit the capacity.

1. More random events such as weather conditions and health emergencies.

2 legal issues such as a change in the law that will hinder the smooth supply of services in a particular country.

3. Political issues such as post-election violence that pose a threat to continue the supply of goods and services in a country experiencing chaos.