Description
3 Service Marketing discuss questions, you can find the answer with google, but plz change to your own words
1. Callie's Canine Cottage has 45 kennels for boarding dogs. During June, July, August, November and December, each of the kennels is booked. During these months, Callie's always charges its regular price of $15 per day per kennel. When business is slow, Callie's sometimes charges a discounted rate of $13 per day per kennel for the first 25 kennels booked and $15 for the rest. On September 15th, Callie's filled 25 kennels at $13 per day and 10 kennels at $15 per day. Calculate Callie's yield for September 15th.*
2. List AND discuss the challenges and risks in using yield management?
3. One of the major approaches to overcoming service communication challenges is to manage service promises. Select a service industry and explain what strategies a company in that industry would use to manage its service promises to match service promises with delivery?
* You MUST show your work (i.e., your calculations). Simply stating the answer will only get 1/2 credit if correct and no credit if incorrect. (if I can see your calculations and your logic is correct, but math is wrong you can earn partial credit).
Explanation & Answer
Attached.
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Running head. SERVICE MARKETTING
Service marketing
Name
Institutional affiliation
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SERVICE MARKETTING
1. Callie's yield for September 15th.
Potential revenue = $15*45 = $ 675 per night
Actual revenue for September 15th = [(25*$13) + (10*$15)]/$675
[$325 + $150]/ $675
$475/$675
= 70%
2. challenges and risks in using yield management
Loss of competitive focus
One of the major risks of yield management is that it makes a firm to put more
emphasis on maximizing returns putting in jeopardy other aspects that offer long term
progress pertaining competitive edge of the organization.
Customer alienation
In most of the cases customers ...
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