Question

The number of customers who dine at Eat and Den, a restaurant, varies during weekdays and weekends. On days when customer traffic is less, Eat and Den incurs losses because the food prepared on one day will not be fresh the next day. In this scenario, which of the following characteristics of services is the reason for Eat and Den's loss of revenue? a) Intangibility b) Variability c) Heterogeneity d) Perishability

Answer 1

Eat and Den's loss of revenue on days with lower customer traffic is due to the perishability of their food service, which means unsold food from one day cannot be stored and sold fresh the next day.

Step-by-step explanation:

The characteristic of services that is causing Eat and Den to incur losses is perishability. Perishability in services refers to the fact that services cannot be stored for later use.

For example, if food is prepared and not sold the same day, it cannot be stored and sold fresh the next day, leading to waste and financial losses for the restaurant. This is unlike tangible goods that can be inventoried if not immediately sold.

The other options, such as intangibility, which refers to services not being physical objects, variability, which is about the consistency of service quality, and heterogeneity, which deals with the differences in service performance, do not directly cause loss of revenue due to unsold food becoming unviable for sale the following day.

Answer 2

(d) Perishability is the reason for Eat and Den's loss of revenue

Step-by-step explanation:

Perishability is utilized in marketing to show how capacity service cannot be put away available to be purchased later on. It is a fundamental idea of service showcasing.

One of the urgent variables/issues looked by advertisers is the perishability factor in services showcasing. Administrations have Zero Inventory! When sold, they stand sold and can't be returned. Subsequently, a few times in the administration's business, the maxim "Early introduction is the last impression" really holds genuine. Similarly, in Eat and Den, the eatable goods are all perishable and cannot be reused the next day hence the restaurant incurs significant loss.