One of the Primary Differences Between Tangible Goods and Services

question 49

Multiple Choice

One of the primary differences between tangible goods and services involves a consumer's ability to make prepurchase evaluations; tangible products have ________ properties, whereas services have ________ properties.

• A) consistent; inconsistent
• B) search; experience
• C) inconsistent; consistent
• D) experience; search
• E) gap; encounter

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Definitions:

Right Price

The optimal price point for a product or service, taking into account factors such as value to the customer, demand, and competition.

Consumer Demand

The desire and willingness of consumers to purchase goods and services at various price points.

Your Gut

Colloquial term referring to an individual's instinctive reaction or initial feelings about a decision or situation, often sans empirical evidence.

Inelastic Product

A product or service whose demand does not significantly change with variations in its price.