On the other hand,if the firm were to adopt a strategy to utilise excess demand by continually operating at above optimum or near full capacity,it would expose the organisation to long-term risks of deterioration in the quality of service(Heskett et al.,1990,p.139;Rust et al.,1996,p.29;
Kurtz and Clow,1998,p.346)(see Figure 2). Hesket(1986)reported a study in a restaurant where the perception of service quality increased up to 75 per cent utilisation of capacity and fell sharply beyond that point.