episode 08 exercise answer 01

Part 1: Solution

For each of the following statements, determine the service characteristic to which it refers.

Let's see how well you answered the questions.

	1.	CanGo's servers can handle 500,000 hits per hour. If fewer hits occur in any given hour, that capacity goes unused.
		Your Answer:
		Correct Answer: Perishability
		Service capacity cannot be stored; it is perishable.

	2.	A CanGo customer will not know the speed of CanGo's service until he or she tries it out.
		Your Answer:
		Correct Answer: Intangibility
		The quality of the service cannot be judged from sensory evaluation. As an intangible, it must be experienced to be evaluated.

	3.	Download speeds at the CanGo Web site are affected by the number of people visiting at a given moment as well as their individual requests.
		Your Answer:
		Correct Answer: Variability
		The variability in the wants of CanGo's customers results in variability in the delivery of the service.

	4.	CanGo typically has four customer service representatives who handle phone calls from customers who want person-to-person service. If six calls come in at once, two customers must wait and might be lost.
		Your Answer:
		Correct Answer: Perishability
		Too much demand cannot be recaptured unless customers are willing to wait.

	5.	If CanGo ships the wrong CD to a customer, the customer will discover the mistake before CanGo does.
		Your Answer:
		Correct Answer: Inseparability
		The service experience is inseparable from the customer. When the product is completed, the customer is there to see if it was done correctly.

	6.	A customer explores informative links on the CanGo site about a band or author. That customer takes nothing away from the experience except new knowledge.
		Your Answer:
		Correct Answer: Intangibility
		Interesting links, such as a suggestion for another band the buyer might like, and/or information, such as reviews and artist bios, are an intangible product.

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