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Question: What are the benefits of using a


What are the benefits of using a modeling approach to decision making?


> What tools are available for aiding our understanding of customer responses and for guiding the design and improvement of service environments?

> What are the implications of the fact that service environments are perceived holistically?

> Why is it important to consider the distribution of core and supplementary services both separately and jointly?

> What are the roles of signs, symbols, and artifacts?

> Explain the dimensions of ambient conditions and the ways in which each can influence customer responses to the service environment.

> Why do different customers and service staff respond very differently to the same service environment?

> Select a bad and a good waiting experience, and contrast the two situations with respect to the service environment and the other people waiting.

> Visit a self-service environment and analyze how the design dimensions guide you through the service process. Which elements do you find most effective, and which seem least effective? How can the environment be improved to make the “way-finding”

> Visit a service environment, and have a detailed look around. Experience the environment, and try to understand how the various design elements shape what you feel and how you behave in that setting.

> Explain how flexible capacity can be created in each of the following situations: (a) A local library, (b) An office-cleaning service, (c) A technical support help desk, (d) An Interflora franchise.

> Identify one website that is exceptionally user friendly and another that is not. What are the factors that make for a satisfying user experience in the first instance and a frustrating one in the second? Specify recommendations for improvements in the s

> Discuss the significance of search, experience, and credence attributes for the communications strategy of a service provider. Assume that the objective of the communications strategy is to attract new customers.

> Explain the Flower of Service concept and identify each of its petals. What insights does this concept provide for service marketers?

> Which elements of the Services Marketing Communications Mix would you use for each of the following scenarios? Explain your answers. 1. A newly established hair salon in a suburban shopping center 2. An established restaurant facing declining patronage

> Register at Amazon.com and Hallmark.com and analyze their permission-based communications strategy. What are their marketing objectives? Evaluate their permission-based marketing for a specific customer segment of your choice. Mention what is excellent,

> What tangible cues could a diving school or a dentistry clinic use to position itself as appealing to upscale customers?

> If you were exploring your current university or researching the degree program you are now in, what could you learn from blogs and any other online word of mouth you can find? How would that information influence the decision of a prospective applicant

> How might revenue management be applied to (a) A professional service firm (e.g., a law firm), (b) A restaurant, and (c) A golf course? What rate fences would you use and why?

> An entrepreneur is thinking of setting up a new service business (you can choose any specific business). What advice would you offer regarding the distribution strategy for this business? Address the What? How? Where? When? Of service distribution.

> Which strategy for entering a new international market should (a) An architectural design firm (b) An online discount broker (c) A satellite TV channel consider, and why?

> What advice would you give to (a) A weight reduction clinic, (b) A pest control company, and (c) A university offering undergraduate courses about going international?

> Think of three services you buy or use either mostly or exclusively via the internet. What is the value proposition of this channel over alternative channels (e.g., phone, mail, or branch network)?

> Provide two examples of service firms that use service levels (other than airlines, hotels, and car rentals) to differentiate their products. Explain the determinant attributes and service levels used to differentiate the positioning of one service from

> What are the most common bases used in segmentation? Provide examples for each of these bases.

> Is there evidence that improving customer satisfaction leads to improved financial returns for shareholders?

> Refer to questions 6 and 7 and answer the following questions: In Questions 6 and 7 Tri-Cities Bank has a single drive-in teller window. On Friday mornings, customers arrive at the drive-in window randomly, following a Poisson distribution at an average

> Describe an example in which business or political organizations may use framing effects to influence decision making.

> Describe an example in which business or political organizations may use anchoring effects to influence decision making.

> Identify one or more mental models you have used. Can any of them be expressed mathematically? If so, identify the dependent and independent variables in your model.

> In what ways are descriptive models different from predictive models?

> Refer to question 6. Suppose that service at the drive-in window is provided at a rate of 40 customers per hour and follows an exponential distribution. In Question 6 Tri-Cities Bank has a single drive-in teller window. On Friday mornings, customers arr

> In what ways are prescriptive models different from predictive models?

> Can a decision problem have more than one dependent variable?

> Can a model have more than one dependent variable?

> What kinds of spreadsheet applications would not be considered business analytics?

> Describe an example in which a well-known business, political, or military leader made a good decision that resulted in a bad outcome, or a bad decision that resulted in a good outcome.

> What is meant by the term decision analysis?

> Suppose sharks have been spotted along the beach where you are vacationing with a friend. You and your friend have been informed of the shark sightings and are aware of the damage a shark attack can inflict on human flesh. You both decide (individually)

> If you were presented with several different models of a given decision problem, which would you be most inclined to use? Why?

> Must a model accurately represent every detail of a decision situation to be useful? Why or why not?

> Which step in the problem-solving process do you think is most important? Why?

> The day after a snow storm, cars arrive at Mel’s Auto-Wash at an average rate of 10 per hour according to a Poisson process. The automated car washing process takes exactly 5 minutes from start to finish. a. What is the probability that an arriving car w

> What are the steps in the problem-solving process?

> Discuss the meaning of the phrase “probortunity.”

> Consider the spreadsheet model shown in Figure 1.2. Is this model descriptive, predictive, or prescriptive in nature, or does it not fall into any of these categories? Figure 1.2 H Imunt Page Fdat D Vi D m Ane er Path Ie Po O Tme S in thare 122 Car

> How would you define the words description, prediction, and prescription? Carefully consider what is unique about the meaning of each word.

> In what ways are prescriptive models different from descriptive models?

> What is an independent variable?

> What is a dependent variable?

> In what ways do spreadsheet models facilitate the decision-making process?

> What is the relationship between business analytics and spreadsheet modeling?

> Of the queuing configurations shown in Figure 13.2, which would you prefer to wait in? Explain your response. Figure 13.2 Customer Customer ... Arrives Leaves Waiting Line Server Customer Leaves Server 1 Customer Customer ... Arrives Leaves Waiting

> Define the term business analytics.

> What is the difference between a spreadsheet model and a computer model?

> Define the term computer model.

> Sanderson Manufacturing produces ornate, decorative wood frame doors and windows. Each item produced goes through three manufacturing processes: cutting, sanding, and finishing. Each door produced requires 1 hour in cutting, 30 minutes in sanding, and 30

> A farmer in Georgia has a 100-acre farm on which to plant watermelons and cantaloupes. Every acre planted with watermelons requires 50 gallons of water per day and must be prepared for planting with 20 pounds of fertilizer. Every acre planted with cantal

> The Quality Desk Company makes two types of computer desks from laminated particle board. The Presidential model requires 30 square feet of particle board, 1 keyboard sliding mechanism, 5 hours of labor to fabricate, and sells for $149. The Senator model

> Zippy motorcycle manufacturing produces two popular pocket bikes (miniature motorcycles with 49cc engines): the Razor and the Zoomer. In the coming week the manufacturer wants to produce up to 700 bikes and wants to ensure the number of Razors produced d

> Blacktop Refining extracts minerals from ore mined at two different sites in Montana. Each ton of ore type 1 contains 20% copper, 20% zinc, and 15% magnesium. Each ton of ore type 2 contains 30% copper, 25% zinc, and 10% magnesium. Ore type 1 costs $90 p

> The marketing manager for Mountain Mist soda needs to decide how many TV spots and magazine ads to run during the next quarter. Each TV spot costs $5,000 and is expected to increase sales by 300,000 cans. Each magazine ad costs $2,000 and is expected to

> American Auto is evaluating their marketing plan for the sedans, SUVs, and trucks they produce. A TV ad featuring this SUV has been developed. The company estimates each showing of this commercial will cost $500,000 and increase sales of SUVs by 3% but r

> Which of the following constraints are not linear or cannot be included as a constraint in a linear programming problem? a. 2X1 + X2 – 3X3 ≥ 50 b. 2X1 + √X2 ≥ 60 c. 4X1 – 1/3X2 = 75 d. 3X1 + 2X2 - 3X3 / X1 + X2 + X3 ≤ 0.9 e. 3X21 + 7X2 ≤ 45

> Bill’s Grill is a popular college restaurant that is famous for its hamburgers. The owner of the restaurant, Bill, mixes fresh ground beef and pork with a secret ingredient to make delicious quarter-pound hamburgers that are advertised as having no more

> Refer to the previous question. Suppose that Electrotech’s management decides that they need to make at least 20 generators and at least 20 alternators. In Previous Question: The Electrotech Corporation manufactures two industrial-sized electrical devic

> The Electrotech Corporation manufactures two industrial-sized electrical devices: generators and alternators. Both of these products require wiring and testing during the assembly process. Each generator requires 2 hours of wiring and 1 hour of testing a

> The Gourmet Grill Company manufactures and sells two different types of grills: propane and electric. Each propane grill sells for $320 and costs $220 to manufacture. Each electric grill sells for $260 and costs $180 to manufacture. Each grill goes throu

> Oakton Manufacturing makes two types of rocking chairs specifically designed for men and women known as the His and Hers models. Each chair requires four legs and two rockers but differing numbers of wooden dowels. Each His chair requires four short dowe

> Bibbins Manufacturing produces softball and baseballs for youth recreation leagues. Each softball costs $11 to produce and sells for $17 while each baseball costs $10.50 and sells for $15. The material and labor required to produce each item is listed he

> Solve the following LP problem graphically by enumerating the corner points. MAX: 10X1 + 12X2 Subject to: 8X1 + 6X2 ≤ 98 6X1 + 8X2 ≤ 98 X1 + X2 ≥ 14 X1, X2 ≥ 0

> Solve the following LP problem using level curves. MAX: 4X1 + 5X2 Subject to: 2X1 + 3X2 ≤ 120 4X1 + 3X2 ≤ 140 X1 + X2 ≥ 80 X1, X2 ≥ 0

> Solve the following LP problem graphically using level curves. MIN: 2X1 + 3X2 Subject to: 2X1 + 1X2 ≥ 3 4X1 + 5X2 ≥ 20 2X1 + 8X2 ≥ 16 5X1 + 6X2 ≤ 60 X1, X2 ≤ 0

> Consider the following LP problem. MAX: 3X1 + 2X2 Subject to: 3X1 + 3X2 ≤ 300 6X1 + 3X2 ≤ 480 3X1 + 3X2 ≤ 480 X1, X2 ≥ 0 a. Sketch the feasible region for this model. b. What is the optimal solution? c. Identify any redundant constraints in this model.

> Are the following objective functions for an LP model equivalent? That is, if they are both used, one at a time, to solve a problem with exactly the same constraints, will the optimal values for X1 and X2 be the same in both cases? Why or why not? MAX: 2

> Solve the following LP problem graphically by enumerating the corner points. MIN: 5X1 + 20X2 Subject to: X1 + X2 ≥ 12 2X1 + 5X2 ≥ 40 X1 + X2 ≤ 15 X1, X2 ≥ 0

> Solve the following LP problem graphically using level curves. MAX: 2X1 + 5X2 Subject to: 6X1 + 5X2 ≤ 60 2X1 + 3X2 ≤ 24 3X1 + 6X2 ≤ 48 X1, X2 ≥ 0

> Solve the following LP problem graphically by enumerating the corner points. MAX: 3X1 + 4X2 Subject to: X1 ≤ 12 X2 ≤ 10 4X1 + 6X2 ≤ 72 X1, X2 ≥ 0

> An LP model can have more than one optimal solution. Is it possible for an LP model to have exactly two optimal solutions? Why or why not?

> PC-Express is a computer retail store that sells desktops and laptops. The company earns $600 on each desktop computer it sells and $900 on each laptop. The computers PC-Express sells are actually manufactured by another company. This manufacturer has a

> The owner of Blue Ridge Hot Tubs, Howie Jones, has asked for your assistance analyzing how the feasible region and solution to his production problem might change in response to changes in various parameters in the LP model. He is hoping this might furth

> Vacations Inc. (VI) markets time-share condominiums throughout North America. One way the company generates sales leads is by offering a chance to win a free mini-vacation to anyone who fills out an information card and places it in boxes VI has distribu

> Bullseye department store is a discount retailer of general merchandise in the southeastern United States. The company owns more than 50 stores in Florida, Georgia, South Carolina, and Tennessee that are serviced by the company’s main warehouse near Stat

> DeColores Paint Company owns 10 trucks that it uses to deliver paint and decorating supplies to builders. On average, each truck returns to the company’s single loading dock at a rate of three times per 8-hour day (or at a rate of 3/8 = 0.375 times per h

> A manufacturer of engine belts uses multipurpose manufacturing equipment to produce a variety of products. A technician is employed to perform the setup operations needed to change the machines over from one product to the next. The amount of time requir

> To determine the feasible region associated with less than or equal to constraints or greater than or equal to constraints, we graphed these constraints as if they were equal to constraints. Why is this possible?

> Several hundred PCs are in use at the corporate headquarters for National Insurance Corporation. The pattern of breakdowns for these PCs follows a Poisson distribution with an average rate of 4.5 breakdowns per 5-day work week. The company has a repair t

> Refer to the previous question. Suppose that Road Rambler’s phone system can only keep four calls on hold at any time, the average profit margin of each call is $55, and sales reps cost the company $12 per hour. In Previous Question Road Rambler sells s

> During tax season, the IRS hires seasonal workers to help answer the questions of taxpayers who call a special 800 telephone number for tax information. Suppose that calls to this line occur at a rate of 60 per hour and follow a Poisson distribution. The

> State University allows students and faculty to access its super computer by high-speed proxy servers. The university has 15 proxy server connections that can be used. When all of the proxy server connections are in use, the system can keep up to 10 user

> The Orange Blossom Marathon takes place in Orlando, Florida, each December. The organizers of this race are trying to solve a problem that occurs at the finish line each year. Thousands of runners take part in this race. The fastest runners finish the 26

> The Westland Title Insurance Company leases one copying machine for $45 per day that is used by all individuals at their office. An average of five persons per hour arrive to use this machine, with each person using it for an average of 8 minutes. Assume

> The manager of the Radford Credit Union (RCU) wants to determine how many part-time tellers to employ to cover the peak demand time in its lobby from 11:00 a.m. to 2:00 p.m. RCU currently has three full-time tellers that handle the demand during the rest

> The Madrid Mist outlet store at Chiswell Mills sells discount luggage and does most of its daily business in the evening between the hours of 6 and 9 pm. During this time, customers arrive at the checkout desk at a rate of one every 2 minutes following a

> Seabreeze Furniture in Orlando maintains a large, central warehouse where it stores items until they are sold or needed by the company’s many stores in the Central Florida area. A four-person crew works at the warehouse to load or unload trucks that arri

> On Friday nights, patients arrive at the emergency room at Mercy Hospital following a Poisson distribution at an average rate of seven per hour. Assume that an emergency-room physician can treat an average of three patients per hour, and that the treatme

> In the solution to the Blue Ridge Hot Tubs problem, the optimal values for X1 and X2 turned out to be integers (whole numbers). Is this a general property of the solutions to LP problems? In other words, will the solution to an LP problem always consist

> Cuts-R-Us provides low cost haircuts at a shopping center in Boise, Idaho. During the day, customers arrive at an average rate of 9 per hour following an exponential distribution. After a customer is in a cosmetician’s chair, it takes an average of 18 mi

> Tri-Cities Bank has a single drive-in teller window. On Friday mornings, customers arrive at the drive-in window randomly, following a Poisson distribution at an average rate of 30 per hour. a. How many customers arrive per minute, on average? b. How man

> Describe a situation in which a business might want customers to wait some amount of time before receiving service.

> This chapter implies that customers find waiting in line to be an unpleasant experience. In addition to reducing the length of the wait itself, what other steps could a business take to reduce the frustration customers experience while waiting? Give spec

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