Question

Some cinemas offer serious discounts on slow days, such as half price or 'Cheapy' Tuesday. This is an example of a service firm managing the ________ characteristic of services.

Select one:

A. perishability
B. variability
C. inseparability
D. intangibility
E. inconsistency

Answer 1

The correct option is A). Cinemas offering discounts on slow days are addressing the perishability characteristic of services, which is the inability to store services for future use.

Step-by-step explanation:

Cinemas offering serious discounts, like half-price on 'Cheapy' Tuesday, are managing the perishability characteristic of services. This is because the service must be consumed at the time it is offered, and if not consumed—such as a seat in a cinema on a slow day—it can't be stored for future use, resulting in a potential loss. To mitigate this loss, cinemas employ pricing strategies during low-demand periods to encourage consumption, thereby managing the perishability aspect of their service.