Question

1) Having significantly more capacity than is required to meet customer demand is always more profitable...

1) Having significantly more capacity than is required to meet customer demand is always more profitable

True or False

2) If your target market does not already use the product or service and you would need to educate the target market for them to consider purchasing it, international expansion will definitely not work.

True or False

3) A restaurant takes reservations for its dining room. For the restaurant to develop a good overbooking strategy, they would at least need to know the average profit per table, the rate at which reservations do not show up, and the estimated cost (reputational damage, negative word-of-mouth) of a disaffected customer who makes a reservation, shows up, and does not get a table.

True or False

4) If a airline bumps a passenger with a ticket due to overbooking a flight (even once), the airline is running the business poorly.

True or False

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