Chapter 24 Questions

One of the issues, when marketing a service, is that you cannot "store" the service offering for another time if consumer demand falls seasonally (Ski resort) or fluctuates through the day (restaurant). To try to manage the demand such that it is more consistent marketers may do all the following except:

increase capacity at peak demand times and reduce capacity at non-peak times.
market the service to segments with different demand patterns.
market new services that have counter cyclical demand patterns.
train personnel to do multiple tasks.
offer incentives to consumers to use the service at non-peak times.

All the following differentiate a for profit business and a non-profit business except:

Goals...non-profit businesses do not have profit related goals.
A non-profit business may have three distinct constituents, volunteers, donors and recipients, a for profit business does not.
A non-profit business does not have to be concerned with generating revenue.
A non-profit business may rely on infrequent fundraising efforts to generate revenue rather than gaining a revenue stream from the sale of products.
Non-profit businesses have a competitive advantage since their business operations are tax exempt.

Return to Syllabus
Return to Homepage