Question

Oftentimes, doctors, salons and other service providers will charge a cancellation fee if a customer does not show up to their agreed upon appointment time. This is because the provider cannot simply keep that appointment time in inventory for another potential buyer, but rather loses the opportunity to sell that space to someone else once the time has passed. This best demonstrates the _____________, fill in the blank, of services.

Answer 1

This best demonstrates the Perishability.

Step-by-step explanation:

In marketing field, perishability describes that a service or good cannot be stored for sale in the future.

Perishability states that the goods cannot be produced and stockpiled before demand. The perishable product exists only at the time of their production. Thus it is very difficult to maintain demand and supply of goods, and business gets affected greatly.

Perishability is more common in services and hence it is known as ‘Service Perishability’. Cancellation fee or waiting charge is charged for the perishable service to outstand from loss.