Services Frequently Use Differential Pricing in an Attempt to Synchronize

question 79

Multiple Choice

Services frequently use differential pricing in an attempt to synchronize supply and demand.Hotels frequented by business travellers often offer discounts for weekend bookings.Cinemas have lower prices for matinee shows.This is a way to contend with which service characteristic?

• A) intangibility
• B) simultaneous production and consumption
• C) perishability
• D) variability

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Definitions:

Dutch Auction

A bidding strategy where the auctioneer starts with a high asking price which is lowered until some participant is willing to accept the auctioneer's price.

Selling Shares

The act of disposing of ownership in a company by selling stock in exchange for cash or other compensation.

Subscription Price

The cost that investors pay to acquire securities during an offering before they are available on the open market.

Rights-On Period

A specific time frame during which shareholders have the right to buy additional shares at a predetermined price before the offer is open to others.