Christopher Messenger rents storage space to college students who go home for the summer but do not want to haul all of their property home and back. The business is profitable during the summer months, but when the storage space is unoccupied in the off-season, Christopher is losing money. What characteristic of service is most likely the source of Christopher's problem?
A) intangibility
B) perishability
C) personalization
D) variability
E) inseparability

Question

Quizplus · Accepted Answer

Perishability refers to the fact that services cannot be stored for future use, and this is the likely source of Christopher's problem. During the summer months, his storage space is in high demand and generates revenue. However, when the college students return home and the storage space is unoccupied, the opportunity for revenue generation is lost. Since the service cannot be stored for future use, Christopher is facing a situation where he is losing money due to unused capacity during the off-season.

Christopher Messenger Rents Storage Space to College Students Who Go