Jessica is planning a vacation and is interested in taking a cruise. She's starting to research cruise lines and prices and had hoped to take a cruise with her husband over the Christmas holidays. She's learning that the prices for a cruise are much higher for cruises that depart between December 22nd and January 3rd. However, she notices that prices are somewhat lower from January 4th through March 1st. Which aspect or characteristics of services does this difference in price reflect?
A) Services are perishable.
B) Services are intangible.
C) Services are inseparable from the service providers.
D) Companies cannot easily standardize services.

Question

Quizplus · Accepted Answer

The difference in price reflects the perishability of services. Prices are higher during peak holiday times when demand is high and lower during off-peak times, illustrating how the value of the service (in this case, a cruise) cannot be stored for sale or use at a later time, hence it is perishable.

Jessica Is Planning a Vacation and Is Interested in Taking