Which of the following statements about the pricing of services (compared to the pricing of goods) is true?
A)The demand for services tends to be more elastic than the demand for goods.
B)Cost-oriented pricing is more difficult for services.
C)Comparing prices of competitors is less difficult for service consumers.
D)Self-service is not a viable competitive alternative.
E)Consumers are more able to stockpile services by taking advantage of discount prices.

Question

Quizplus · Accepted Answer

Cost-oriented pricing can be more difficult for services because it's harder to accurately calculate the costs associated with producing and delivering a service compared to the production costs of goods. Services often have intangible costs associated with them, such as the time and expertise of the person providing the service, which can be harder to quantify.

Which of the Following Statements About the Pricing of Services