Inseparability in Services Means Consumers

question 206

Multiple Choice

Inseparability in services means consumers

• A) see little variation from one service provider in an industry to another.
• B) are unable to differentiate price from quality.
• C) cannot evaluate a service until it is being used.
• D) cannot separate the service from the deliverer of the service.
• E) cannot separate themselves from the deliverer of the service.

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Definitions:

Competitive Price-searcher

A market participant who sets prices through active search and strategy, often in markets with some degree of product differentiation.

Product Diversity

The variation of products and services offered in a market to meet different customer needs and preferences.

Firms Exit

This occurs when businesses cease operations and leave a market, typically due to factors like unprofitability, competitive pressures, or changing market conditions.

Competitive Price-searcher

This refers to a market situation where companies set their prices based on competition and market conditions, aiming to attract customers by offering better deals than their rivals.