Why is the demand for most services--such as popular restaurants--extremely time-and-place dependent?
A) because popular services typically lack sufficient capacity
B) because services cannot be stored for future use
C) because customers must be present for service to be delivered
D) because service customers are typically unsure of their needs
E) because competing services force customers to make tradeoffs between quality and time

Question

Quizplus · Accepted Answer

Services are intangible and require the presence of both the customer and the service provider simultaneously for the service to be delivered. Therefore, the demand for most services, such as popular restaurants, is highly time-and-place dependent, as customers must be present to receive the service.

Option A is incorrect because while capacity constraints may limit the availability of a service, it does not necessarily make the demand time-and-place dependent.

Option B is incorrect because while services cannot be stored for future use, it does not necessarily make the demand time-and-place dependent.

Option D is incorrect because uncertainty of customer needs may result in different service offerings or customization, but it does not necessarily make the demand time-and-place dependent.

Option E is incorrect because competition may affect the demand for a service, but it does not necessarily make the demand time-and-place dependent.

Why Is the Demand for Most Services--Such as Popular Restaurants--Extremely