Which of the Following Statements Regarding the Perishability of Services

question 24

Multiple Choice

Which of the following statements regarding the perishability of services is incorrect?

• A)Capacity is a substitute for inventory.
• B)The demand for services is often predictable and consistent.
• C)If capacity is set for peak demand, a service inventory must exist to supply the highest level of demand.
• D)All of the answer choices.
• E)Both capacity is a substitute for inventory and if capacity is set for peak demand, a service inventory must exist to supply the highest level of demand.

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Definitions:

Product Advertisements

Advertisements that focus on selling a product or service and which take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder.

Nonpersonal Communication

Any form of message dissemination that does not involve direct personal contact, including mass media advertising, sales promotions, and public relations.

Identified Sponsor

In advertising, a sponsor whose name and identity is known and disclosed in the message to inform or persuade the audience.

Advertising

The action of calling public attention to products, services, needs, etc., through paid announcements by an identified sponsor.