Katrine manages a Sleepy Night Inn. She knows from experience that last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Katrine has empowered her staff to offer discounts when the motel is largely vacant, and to quote the standard price when the motel is close to full. She knows her service is ________, meaning that if no one stays in the room, it generates no revenue that evening.

Question

Quizplus · Accepted Answer

The term "perishable" refers to services that cannot be stored, inventoried, or resold. This is because services are consumed as they are produced. In this case, if a room is not rented in a particular evening, it cannot be sold or used to generate revenue in the future. Therefore, the Sleepy Night Inn's service is perishable.

Katrine Manages a Sleepy Night Inn