The Moderately Priced Days Inn and the Upscale Four Seasons

question 147

Multiple Choice

The moderately priced Days Inn and the upscale Four Seasons Hotel both provide sleeping accommodations, but their respective guests have considerably different expectations of service. Why do their expectations differ?

• A) Companies cannot standardize services.
• B) Service quality shows wide variations.
• C) Services are inseparable from their providers.
• D) Services have a high perishable rate.

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Definitions:

Traveler's Checks

A preprinted, fixed-amount check designed to allow the person signing it to make an unconditional payment to someone else as a result of having paid the issuer for that privilege.

Credit Cards

Financial instruments that allow users to borrow funds from a pre-approved limit to pay for goods and services, with the expectation of paying back the borrowed amount along with any applicable interest.

Opportunity Cost

The value of the next best alternative that is foregone as a result of making a decision to pursue a particular action.

Holding Money

The act of keeping money in cash or in accounts as savings rather than investing it.