Problems And effects of the density of the customer population of a service centre is high near the service centre hospital but decrease with increasing distance due to the frictional effects of the distance
Problems:
1. Overcrowding near the service centre hospital can lead to long wait times for customers, resulting in frustration and dissatisfaction.
2. Limited parking spaces near the hospital can make it difficult for customers to find a place to park.
3. The high density of customers near the hospital can lead to noise pollution and a chaotic environment.
4. The service centre may struggle to meet the high demand near the hospital, resulting in delays and inefficiencies in servicing customers.
5. Customers who live further away may be discouraged from visiting the service centre due to the perceived inconvenience of traveling a greater distance.
Effects:
1. The service centre may prioritize customers near the hospital, leading to unequal service distribution.
2. Customers who live further away may not receive the same level of service as those near the hospital, leading to disparities in customer satisfaction.
3. The high density of customers near the hospital can strain resources and lead to burnout among service centre staff.
4. The frictional effects of distance may result in customers seeking alternative service options closer to their homes, leading to a loss of business for the service centre.
5. The uneven distribution of customers can impact the overall profitability and sustainability of the service centre.