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1.) In recent years, hospitals have moved to paying shift differentials for peak

ID: 363664 • Letter: 1

Question

1.) In recent years, hospitals have moved to paying shift differentials for peak times in the operating room, this is an attempt to manage which of the following five I's of services? a. Inconsistency b. Intangible c. Inventory d. Inseparability

2.)One of the key advantages of a skimming strategy for services is that:

It gives a service a way to develop a position to negotiate with consumers

It is a useful mechanism for structuring all the costs of services

Since no one understands any of the costs they might as well be set high

d. It can be useful to control demand until the organization is sure that processes are in place to handle fl

3.) Trying to generate demand for an entire product class is the focus of primary demand.

True

False

a.

It gives a service a way to develop a position to negotiate with consumers

b.

It is a useful mechanism for structuring all the costs of services

c.

Since no one understands any of the costs they might as well be set high

d. It can be useful to control demand until the organization is sure that processes are in place to handle fl

Explanation / Answer

1. c. Inventory. when there is no demand for a service, the overhead cost remains cost because people are available to serve customers who must be paid. Hence, the overhead cost is managed as per demand.

2.c. Since no one understands any of the costs they might as well be set high. The company charges high price when the demand of the product is higher. Once demand dies, price is lowered.

3. True. Primary demand educates the consumers about the entire set of products