Question

The busiest time for tax preparers is the week prior to April 15. Many tax preparers send out mailings to their regular customers asking the customers to bring their tax information in to the tax preparer's office in January and February. The mailings explain how they will receive their tax refunds much quicker if they bring their information in now rather than wait till the last minute. Tax preparers are using which of the following strategies for shifting demand to match capacity?

1) Advertising
2) Incentives
3) Pricing
4) Scheduling

Answer 1

Tax preparers use the strategy of scheduling to shift client demand to earlier in the tax season, helping to match their service capacity with the anticipated workload.

Step-by-step explanation:

Tax preparers often experience their busiest period in the week leading up to the tax deadline, which is usually April 15th. To effectively manage their workload and distribute client submissions more evenly throughout the tax season, many tax preparers send out mailings to encourage clients to submit their tax information earlier, often in January and February. By doing so, they use a strategy known as scheduling to shift demand. The mailings explain the benefits of early submission, primarily that clients can receive their tax refunds more quickly. This systematic approach helps tax preparers match their capacity to the forecasted demand more efficiently.