A Classic Trade-Off

5 important questions on A Classic Trade-Off

What choice do managers face wherever customer-introduced variability creates operational issues for a company?

Do they want to accommodate that variability or reduce it?

What do companies that use reduction strategies tend to attract?

Price-conscious customers who are willing to trade of an excellent service experience for low prices.

What do accommodation strategies involve?

Asking experienced employees to compensate for the variations among customers.
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Where does the success of an accommodation strategy usually hing on?

On a company's ability to persuade customers to pay more to cover the added expense.

How can companies give customers control of the service environment?

By having customers serve themselves, companies are allowing the service experience to vary with customers' capability and effort.

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