Alex Smith rents storage space to college students who go home for the summer but do not want to haul all of their property home and back. The business is profitable during the summer months, but when the storage space is unoccupied in the off-season, Alex loses money. Which of the following characteristics of service is most likely the source of Alex's problem?
A) intangibility
B) perishability
C) inconsistency
D) variability
E) inseparability

Question

Quizplus · Accepted Answer

The characteristic of perishability is most likely the source of Alex's problem. This means that the service (storage space) is only in demand during certain times of the year (summer months) and becomes unusable and unoccupied during the off-season, leading to a loss of revenue.

Alex Smith Rents Storage Space to College Students Who Go