Services Marketing Strategies for Coping with Demand/Supply Imbalances

Abstract

Because services cannot be stored, temporary imbalances between supply and demand present a difficult challenge for managers of service firms. Though marketing and management strategies for dealing with foreseen disequilibrium situations are discussed, focuses primarily on stratagems for dealing with situations where demand or supply fluctuations are not foreseen. Discusses two categories of strategies: foresee the unforeseen by improving market intelligence; and lessen the intensity of the negative consequences of supply/demand disequilibriums by increasing flexibility and sharing risks.

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