A clothing store hires additional customer service employees in anticipation of demand associated with the release of a popular new product. The clothing store is taking a risk related to which characteristic of services?
A) Service quality varies from server to server
B) Services are intangible
C) Services cannot be inventoried
D) Service quality varies from company to company

Question

Quizplus · Accepted Answer

The risk the clothing store is taking is related to the characteristic of services that cannot be inventoried. As services cannot be stockpiled, the store has to hire additional customer service employees, which is a cost in anticipation of demand. If demand fails to materialize, the store will be left with excess labor costs.

A Clothing Store Hires Additional Customer Service Employees in Anticipation