Question

​Asmeret works as a hotel manager for a popular family resort and casino in Atlantic City, New Jersey. During the summer, hotel managers aim for an occupancy rate of at least 85% to ensure that overhead costs are covered. The resort is known for its quality services; guests generally return an average of three times during the summer and use their rewards and loyalty cards during their stays. On this particular day, Asmeret is quite stressed because the occupancy rate is only 65%. If the hotel fails to sell at least an additional 20% of the available rooms, she might be in some trouble. Required: Which aspect of a service is best illustrated in the scenario?

A) ​Services are perishable.
B) ​Service standards show wide variation.
C) ​Services are inseparable from service providers.
D) ​Companies cannot easily standardize the services they provide.
E) ​Buyers play an important role in the creation and distribution of services.

Answer 1

Answer: A) ​Services are perishable

Step-by-step explanation:

The aspect of a service is best illustrated in the scenario is that services are perishable.

Perishability is a term that is used in marketing and it implies that the capacity of service cannot be stored and sold in the future. Once services have been used, they cannot be saved, returned or stored.

Once services has been rendered to a customer, it has been then consumed and it can't be delivered to another person. Other characteristics of services are inseparability, variability and intangibility.