Service capacity decisions have all of the following strategic characteristics, except ________.
A) the decision to invest in capacity will attract competitors
B) financial investment in capacity must be balanced against the costs of lost sales
C) inadequate short-term capacity needs can generate customers for the competition
D) hostile customers can result from inadequate capacity following a marketing campaign

Question

Quizplus · Accepted Answer

While service capacity decisions can have strategic characteristics such as balancing financial investment and lost sales, generating customers for competitors, and managing customer expectations after marketing campaigns, the decision to invest in capacity itself would not necessarily attract competitors.

Service Capacity Decisions Have All of the Following Strategic Characteristics