The perishability of services means
A) when demand is low, the unused capacity is lost forever.
B) when demand is low, the unused capacity can be stored.
C) when demand is low, the unused capacity can be recovered the next day.
D) when demand is low, the unused capacity must be immediately used.
E) when demand is low, the unused capacity should be re-directed.

Question

Quizplus · Accepted Answer

The perishability of services refers to the fact that when demand for a service is low, any unused capacity (such as empty seats in a restaurant or an empty hotel room) cannot be stored or saved for use at a later time. This means that the opportunity to sell that service is lost forever, resulting in lost revenue for the business.

The Perishability of Services Means