Bob Wilson owns and operates Flashdance Skating Rink.Last Monday afternoon,he had rented the rink out for a birthday party that was cancelled at the last minute due to a flu epidemic that had sickened three-fourths of the children who were invited.While Wilson kept the deposit,he did not get the skate rental fees or the snack food money he had anticipated from the rental.Wilson lost money as a result of the _____ characteristic of services.
A) Heterogeneity
B) Simultaneous production and consumption
C) Incomparability
D) Perishability
E) Intangibility

Question

Quizplus · Accepted Answer

The characteristic of perishability refers to the fact that services cannot be stored for future use or sale, and any unused capacity or time represents a missed opportunity for revenue. In this case, Wilson lost money because he was not able to sell his services (skate rentals and snack food) during the time slot that he had planned for the cancelled party.

Bob Wilson Owns and Operates Flashdance Skating Rink