How Can a Service Retailer Best Cope with the Problems

question 69

Multiple Choice

How can a service retailer best cope with the problems associated with the intangibility of service? 

• A) Use low prices during off-seasons to help match supply and demand.
• B) Use mass production.
• C) Emphasize quality control.
• D) Solicit customer evaluations and complaints.
• E) Increase staffing at peak demand times.

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Definitions:

Comparative Advantage

Comparative Advantage is the ability of an individual, company, or country to produce a good or service at a lower opportunity cost than its competitors.

Productive Advantage

A situation where a person or entity can produce goods or services at a lower opportunity cost than others.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.

Bushel

A unit of volume that is used in the United States for measuring agricultural commodities, usually grains.