Which is a reason that services experience greater demand volatility for multiple reasons?
A)Services cannot be stored
B)More customer interaction
C)Different customer needs
D)Service demand is dependent on customer behavior
E)All of these options are reasons

Question

Quizplus · Accepted Answer

All of these options contribute to greater demand volatility for services. Services cannot be stored, which means that demand must be met in real-time. Services often involve more customer interaction which can lead to variability in demand due to different customer preferences or behavior. Additionally, customer needs for services may vary widely which can also contribute to demand volatility. All of these factors make service demand particularly dependent on customer behavior, which can be unpredictable.

Which Is a Reason That Services Experience Greater Demand Volatility