Services organizations are often capacity-constrained while facing wide swings in demand. This requires service marketers to constantly manage their organizations capacity in order to better match capacity to demand. You have recently been appointed as the marketing manager of a high-end hot spring spa service in your home city where Covid-lockdowns have occurred almost every two months for the past 18 months. When the lock-down is applied, the service must be closed; but when the lock-down is lifted, the demand for the service dramatically surges.
- Outline suitable capacity management strategies for the service when lock-down is applied and when it is lifted. (5 marks)
- Outline suitable demand management strategies for the service when lock-down is applied and when it is lifted. (5 marks)