List and Explain the Six Distinguishing Characteristics of Service Products

question 19

Essay

List and explain the six distinguishing characteristics of service products. Then discuss some of the marketing issues and problems associated with each characteristic.

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Definitions:

Total Cost

The sum of all costs associated with the production of a specific quantity of a good or service, including both fixed and variable costs.

ATC

Average Total Cost, a financial metric calculated by dividing total cost by the quantity of output produced, illustrating the average cost per unit of output.

AVC

Average Variable Cost is the total variable costs divided by the quantity of output produced.

AFC

Average Fixed Cost, the fixed cost per unit of output, calculated by dividing total fixed costs by the quantity produced.