Service Industries and 'Experiences' Are Typically Intangible, and Therefore, __________Is

question 81

Multiple Choice

Service industries and 'experiences' are typically intangible, and therefore, __________is used to encourage the sale of unused capacity.

• A)discounting
• B)advertising
• C)public relations
• D)online advertising

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Definitions:

Sunk Cost

A cost that has already been incurred and cannot be recovered.

Nonrefundable

Describing a payment or deposit that cannot be returned or refunded back to the payer under most circumstances.

Nontransferable

An attribute of an item or asset that cannot be legally transferred or assigned from one individual or entity to another.

Fixed Cost

Expenses that do not change with changes in the volume of production, such as rent, salaries, and insurance.