1. The maximum number of customers that can be served at one time by a service firm is referred to as its:
A. Capacity.
B. Optimal capacity.
C. Adequate capacity.
D. Desired capacity.
E. Minimum capacity.

2. ___?___ is the movement of goods using two methods of shipment simultaneously.
A. Optimal capacity.
B. Moonlighting.
C. Demand.
D. Productivity.
E. Intermodal.

3. Individuals who hold jobs with two or more employers are known as:
A. Part-time employees.
B. Moonlighters.
C. Supervisors.
D. Sun worshipers.

4. The point at which customers can be served adequately by the staff and crowding does not adversely affect patronage is:
A. Capacity.
B. Optimal capacity.
C. Adequate capacity.
D. Desired capacity.
E. Minimum capacity.

5. Services have a direct lineage to demand because they:
A. Are inseparable.
B. Are intangible.
C. Are variable.
D. Cannot be inventoried or stored.
E. Are provided without machines.

6. Matching supply and demand requires all of the following steps except:
A. Determine the demand pattern.
B. Assess the cause of the demand variations.
C. Determine methods of managing supply.
D. Determine methods of managing demand.
E. Determine who the competition is.

7. Using part-time employees to manage supply offer all of the following benefits except:
A. Reduced costs.
B. Increased capacity.
C. Increased productivity.

8. Using peak-time operating procedures to manage supply would be best suited for firms using the ___?___ operational position.
A. Cost efficiency.
B. Service quality.
C. Customization.
D. Batch.
E. Franchise

9. The ideal strategy for services to manage demand is to:
A. Shift usage from high demand periods to low demand periods.
B. Decrease demand during high demand periods.
C. Stimulate demand during low demand periods.
D. Increase supply.
E. Optimize capacity.

10. The most effective tool for stabilizing demand is:
A. Reservation system.
B. Differential pricing.
C. Communication.
D. Increasing supply.
E. Reducing capacity.

11. The strategies which are currently being used the most by service firms to manage supply include all of the following except:
A. Hiring part-time workers.
B. Having current employees work overtime.
C. Cross-training of employees.
D. Outsourcing.

12. For low demand, the strategy which is currently being used the most by service firms to stimulate demand is:
A. Calling on current customers.
B. Running an advertisement.
C. Offering a coupon.
D. Designing a differential pricing system.
E. Offering a new service.

13. Improving the quality of the labor force to enhance productivity provides all of the following benefits except:
A. Higher quality service.
B. Fewer customer complaints.
C. Lower costs.
D. Lower employee turnover.

14. The primary reason the United States Post Office has been unsuccessful in the implementation of the 9-digit zip code is:
A. The 9 digit system will not save labor.
B. The 9 digit system will not increase productivity.
C. They failed to understand human psychology.
D. They did not have the proper equipment to read the 9 digit number.
E. They lacked support by the federal government.

15. Increasing customer participation in a service to increase the supply is of concern from a marketing prospective because:
A. Possible conflict of scripts.
B. Reduced labor costs.
C. Conflict among customers.
D. Demand may exceed supply.

16. Of the following strategies to increase supply, the best for professional services would be:
A. Part-time employees.
B. Have current employees work overtime.
C. Increase customer participation.
D. Outsourcing.

17. The advantages of shifting demand from a high period to a low period include all of the following except:
A. Business is not lost.
B. Service quality is not adversely affected.
C. Income is not lost.
D. Efficiency is increased.
E. Capacity is increased.

18. Of the strategies for managing demand, salespeople and service personnel of a service firm would most often be involved in:
A. Shifting demand from a high period to a low period.
B. Decreasing demand for high periods.
C. Stimulating demand for low periods.

19. The installation of ATMs by banks is an example of enhancing productivity through all of the following methods except:
A. Investing in capital equipment.
B. Improving the quality of the labor force.
C. Changing customer/service interaction.
D. Increasing self-service options.
E. Automating tasks.

20. The four primary components of the service process are all of the following except:
A. Information.
B. Reservation.
C. Payment.
D. Consumption.
E. Credit.