Question

1. Queuing results when current demand falls below a company’s capacity to serve. True or False

2. If a service cannot decrease the length of time that a customer must wait, the service should consider distractions that alter the customer’s perceived wait. True or False

3. The true cost of waiting must be measured both from the external customer’s point of view (e.g. anxiety, anger), and from the internal customer’s point of view (e.g. low utilization). True or False

4. If a customer intends to eat at a particular restaurant, but turns away when he/she sees the length of the waiting line, that customer reneged. True or False

Answer 1

Answer

1. Queuing results when current demand falls below a company’s capacity to serve

✓ false (queuing results when current demand exceeds the company's capacity to serve)

2. If a service cannot decrease the length of time that a customer must wait, the service should consider distractions that alter the customer’s perceived wait.

✓ true (distractions can be a great way to influence the customers perceived wait if the service cannot decrease the length of wait.)

3. The true cost of waiting must be measured both from the external customer’s point of view (e.g. anxiety, anger), and from the internal customer’s point of view (e.g. low utilization).

✓ true (cost of waiting needs to be evaluated by considering how a customer shows his anger and anxiety and utilisation)

4.  If a customer intends to eat at a particular restaurant, but turns away when he/she sees the length of the waiting line, that customer reneged.

✓ false (when a person intends but doesn't enter a waiting line it is called as balking. When he or she enters the line and then decide to leave it without being served it is known as reneged)