4. Explain the differences between services and goods
characteristics that distinguish service intangibility inseparability heterogeneity perishability
5. Which process type do hotel belong to? And how should you measure it?
6. When we design the servicescape for a company, what elements should be taken into consideration?
the success of a firm is driven by the customer benefit packages it -offers and how they address both order-qualifying and order-winning criteria
Part Ⅳ. Questions
1. In the St. Luke’s hospital there are 6 lifts for visitors. While the average capacity of the 6 lifts is
sufficient to transport the visitors during the day, visitors have to wait 6 minutes on the average to get in the lift. The value of waiting for the visitor is 0.25 Euro/minute. Installing a fifth lift would reduce the waiting time to 3 minutes. Knowing that the yearly depreciation and operational costs of a 7th lift is 30,000 Euro and knowing that there are about 50, 000 visitors a year, would you recommend the hospital to install the 7th lift? Installing a seventh will reduce waiting time to 1 minute, and has the same depreciation and operational cost. Would you suggested the hospital to install the 8th lift?
2. Spring Airlines has scheduled a flight between Shanghai and Kunming on a particular day. The plane has a capacity of 180 seats. The airline knows that there are two categories of customers interested in this trip. Category A: the price is ￥2091. The average demand is 65 passengers on a day, and the standard deviation is 25 passengers. Category B: the price is ￥660. The average demand is 150 passengers on a day, and the standard deviation is 25 passengers. The demand is normally distributed. How much capacity should Southwest airline set aside for Category B?.
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Standard normal distribution table x 0.0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.0 0.500 0 0.504 0 0.508 0 0.512 0 0.516 0 0.519 9 0.523 9 0.527 9 0.531 9 0.1 0.539 8 0.543 8 0.547 8 0.551 7 0.555 7 0.559 6 0.563 6 0.567 5 0.571 4 0.2 0.579 3 0.583 2 0.587 1 0.591 0 0.594 8 0.598 7 0.602 6 0.606 4 0.610 3 0.3 0.617 9 0.621 7 0.625 5 0.629 3 0.633 1 0.636 8 0.640 4 0.644 3 0.648 0 0.4 0.655 4 0.659 1 0.662 8 0.666 4 0.670 0 0.673 6 0.677 2 0.680 8 0.684 4 0.5 0.691 5 0.695 0 0.698 5 0.701 9 0.705 4 0.708 8 0.712 3 0.715 7 0.719 0 0.6 0.725 7 0.729 1 0.732 4 0.735 7 0.738 9 0.742 2 0.745 4 0.748 6 0.751 7 0.7 0.758 0 0.761 1 0.764 2 0.767 3 0.770 3 0.773 4 0.776 4 0.779 4 0.782 3 0.8 0.788 1 0.791 0 0.793 9 0.796 7 0.799 5 0.802 3 0.805 1 0.807 8 0.810 6 0.9 0.815 9 0.818 6 0.821 2 0.823 8 0.826 4 0.828 9 0.835 5 0.834 0 0.836 5 1 0.841 3 0.843 8 0.846 1 0.848 5 0.850 8 0.853 1 0.855 4 0.857 7 0.859 9 1.1 0.864 3 0.866 5 0.868 6 0.870 8 0.872 9 0.874 9 0.877 0 0.879 0 0.881 0 1.2 0.884 9 0.886 9 0.888 8 0.890 7 0.892 5 0.894 4 0.896 2 0.898 0 0.899 7 1.3 0.903 2 0.904 9 0.906 6 0.908 2 0.909 9 0.911 5 0.913 1 0.914 7 0.916 2
3. The demand at that location is normally distributed with an average of 500 rooms per night and a standard deviation of 100.
(1)If on a particular day the hotel has to turn away a customer because it is fully booked, it loses the gross margin on the room of 81 euro(Cs is therefore 81 euro).
(2) if the hotel has one room unoccupied on a particular day, it has a cost which is equal to the depreciation of the capital invested in the room per day and the cost of the upkeeping of that room(cleaning, heating, etc.).This cost is estimated to be 19 euro(Co in this case is therefore 19 euro). How much is the optimal capacity? （10 points）(referring to the standard normal distribution table) 4.
You are thinking of opening a new store near a university campus, which you consider to be
your prime market. There are already three similar stores in the vicinity (A, C and E) and you have a choice of two possible sites(B and D). (Figher 1)
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the size of the facility A,B,C,D ,E are SA =800 square footage, SB =1000 square footage, SC =300 square footage, SD =1500 square footage; SE=2000 square footage.
the travel time (or distance) from the university campus（O） to A,B,C,D ,E are: TOA=2 minutes, TOB=3 minutes, TOC=1 minute, TOD=4 minutes; TOE=5 minutes. The effect of travel time or distance on the shopping likelihood for various types of facilities: bA= bB=bC=2; bD=bE=1.
If we assume that the university has 10 000 students, each spending an average of $400 a year on clothes, Which one would you choose?
E 900
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Figher 1 Location model according to Huff
5\\Draw a service blueprint of Luxury Hotel.
6. In the St. Luke?s hospital there are 4 lifts for visitors. While the average capacity of the 4 lifts is sufficient to transport the visitors during the day, visitors have to wait 4 minutes on the average to get in the lift. The value of waiting for the visitor is 0.35 Euro/minute. Installing a fifth lift would reduce the waiting time to 2 minutes. Knowing that the yearly depreciation and operational costs of a 5th lift is 30,000 Euro and knowing that there are about 70, 000 visitors a year, would you recommend the hospital to install the fifth lift?
7. The demand at that location is normally distributed with an average of 200 rooms per night and a standard deviation of 50.
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(1)If on a particular day the hotel has to turn away a customer because it is fully booked, it loses the gross margin on the room of 10 euro.
(2)If the hotel has one room unoccupied on a particular day, it has a cost which is equal to the depreciation of the capital invested in the room per day and the cost of the upkeeping of that room(cleaning, heating, etc.).This cost is estimated to be 5 euro.
How much is the optimal capacity? (Referring to the standard normal distribution table)
Standard normal distribution table
x 0.0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.0 0.500 0 0.504 0 0.508 0 0.512 0 0.516 0 0.519 9 0.523 9 0.527 9 0.531 9 0.1 0.539 8 0.543 8 0.547 8 0.551 7 0.555 7 0.559 6 0.563 6 0.567 5 0.571 4 0.2 0.579 3 0.583 2 0.587 1 0.591 0 0.594 8 0.598 7 0.602 6 0.606 4 0.610 3 0.3 0.617 9 0.621 7 0.625 5 0.629 3 0.633 1 0.636 8 0.640 4 0.644 3 0.648 0 0.4 0.655 4 0.659 1 0.662 8 0.666 4 0.670 0 0.673 6 0.677 2 0.680 8 0.684 4 0.5 0.691 5 0.695 0 0.698 5 0.701 9 0.705 4 0.708 8 0.712 3 0.715 7 0.719 0 0.6 0.725 7 0.729 1 0.732 4 0.735 7 0.738 9 0.742 2 0.745 4 0.748 6 0.751 7 0.7 0.758 0 0.761 1 0.764 2 0.767 3 0.770 3 0.773 4 0.776 4 0.779 4 0.782 3 0.8 0.788 1 0.791 0 0.793 9 0.796 7 0.799 5 0.802 3 0.805 1 0.807 8 0.810 6 0.9 0.815 9 0.818 6 0.821 2 0.823 8 0.826 4 0.828 9 0.835 5 0.834 0 0.836 5 1 0.841 3 0.843 8 0.846 1 0.848 5 0.850 8 0.853 1 0.855 4 0.857 7 0.859 9 1.1 0.864 3 0.866 5 0.868 6 0.870 8 0.872 9 0.874 9 0.877 0 0.879 0 0.881 0 1.2 0.884 9 0.886 9 0.888 8 0.890 7 0.892 5 0.894 4 0.896 2 0.898 0 0.899 7 1.3 0.903 2 0.904 9 0.906 6 0.908 2 0.909 9 0.911 5 0.913 1 0.914 7 0.916 2
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