This chapter is devoted to the topic of marketing of
services with capacity constraints. The authors argue
that both service quality and service strategy are
integrally related to capacity decisions. For it is
capacity (i.e., available employee hours, available
physical facilities, lengths of queues, etc.) that
ultimately determines whether the service provider can
satisfy and retain buyers. Capacity decisions also
impact costs and profitability. There are basic
compromises between creating additional capacity to
better serve customers and increasing costs. pdf
