Simultaneous Production and Consumption Is a Unique Service Characteristic

question 63

Multiple Choice

Simultaneous production and consumption is a unique service characteristic. From the following list, choose the marketing implication most closely related to this characteristic.

• A)planning capacity on the basis of peak demand
• B)buyer-seller interaction requires that the service be done "right"
• C)focusing promotion on the advantages of non-ownership
• D)using pricing and promotion to even out demand peaks and valleys
• E)developing systems that minimize deviations and human error

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Definitions:

Sales Revenue

The total amount earned from the sale of goods or services before any costs or expenses are deducted.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and can be easily quantified and allocated to that product.

Break-even Point

The production level at which total revenues equal total expenses, and there is neither profit nor loss.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that exceeds variable costs, contributing to covering fixed costs and generating profit.