Inconsistency of Services Refers to the Fact That

question 67

Multiple Choice

Inconsistency of services refers to the fact that

• A)there is no regulation of service industries in terms of basic standards of quality.
• B)the quality of service provided by a firm is often inconsistent with its image.
• C)the performance of one employee may vary from the performance of another employee even though the same firm employs both.
• D)training and standardization of service delivery procedures cannot be accomplished.
• E)services have a varying degree of durability.

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Definitions:

Utility Function

A mathematical representation that assigns numerical values to different bundles of goods, showing the satisfaction or utility those goods generate for a consumer.

Equivalent Variation

An economic measure of the difference in income that a consumer would require to reach the same level of utility before and after a price change.

Income

The sum of funds earned, often periodically, from employment or investment returns.

Demand Function

A mathematical equation that describes the relationship between the quantity of a good demanded and its price, along with other factors like income and price of related goods.