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One of the Problems That Comes from the Intangibility of Services

question 9

Multiple Choice

One of the problems that comes from the intangibility of services is that they are perceived as higher risk purchases than goods are. Which of the following is most likely to reassure a customer who has paid in advance for a Centre Court seat at Wimbledon that they will in fact get to see the tennis?


Definitions:

Operations

The day-to-day activities involved in the running of a business for the purpose of producing value for the stakeholders, covering everything from manufacturing to administration.

Economic Order Quantity

Economic Order Quantity (EOQ) is a formula used to determine the optimal quantity of inventory to order that minimizes total inventory costs, including holding and ordering costs.

Inventory System

A process or software used for tracking goods and materials held by a business, managing stock levels, orders, sales, and deliveries.

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

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