Southwest Airlines operates five flights daily between Chicago and Phoenix during the winter. One flight leaves Phoenix at 12:10 p.m. The plane, a Boeing 737, has a capacity of 120 passengers. During the past month, the flight has averaged 24 passengers, a load factor of only 20 percent. Once the plane takes off, the empty seats generate no revenue for the airline for that flight. What unique aspect of services does this situation describe?
A)incongruity
B)intangibility
C)inconsistency
D)inseparability
E)idle production capacity

Question

Quizplus · Accepted Answer

This situation describes idle production capacity, which is unique to services because the capacity to provide a service cannot be easily adjusted in the short term, leading to situations where resources are underutilized (such as the empty seats on the Boeing 737). Incongruity, intangibility, inconsistency, and inseparability do not accurately describe this situation.

Southwest Airlines Operates Five Flights Daily Between Chicago and Phoenix