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2 months ago

Question 1.

Manufacturers of equipment must provide product-support services. Product-support services are becoming a major battleground for competitive advantages. Firms that provide high-quality service outperform their less-service-orientated competitors. In service support programs, customers generally have three specific worries. List these three worries and briefly explain each.

Question 2.

Several strategies exist for managing supply and demand of services. List the strategies for both managing "supply" and then for managing "demand."
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Marketing Management
Edition: 13th
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2 months ago
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Answer 1

Customers worry about: (1) the reliability and failure frequency of the product; (2) downtime caused by the failure of the product; and (3) out-of-pocket costs associated with the product failure.

Answer 2

To manage "demand"—differential pricing, nonpeak demand, complementary services, and reservation systems can all be used.  To manage "supply"—part-time employees, peak-time efficiency, increased consumer participation, shared services, and facilities for future expansion.
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