When the Marketer Emphasizes Reductions in Staff, Overhead, and Capital

question 56

Multiple Choice

When the marketer emphasizes reductions in staff, overhead, and capital as potential benefits to the purchaser, this relates to the service characteristic of:

• A)variability.
• B)perishability.
• C)simultaneous production and consumption.
• D)intangibility.
• E)lack of ownership.

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Definitions:

Real Dollars

Real dollars refer to the value of money after accounting for inflation, indicating the actual purchasing power of money.

Present Value

Today's monetary value of anticipated future money sums or cash inflow sequences, based on a predetermined rate of return.

Zero-Coupon Bonds

Bonds that do not pay interest during their lifetime and are instead issued at a discount to their face value, which is paid at maturity.

Yield

The income return on an investment, such as the interest or dividends received, often expressed as an annual percentage based on the investment's cost, its current market value, or its face value.