Services frequently use differential pricing in an attempt to synchronize supply and demand.Hotels frequented by business travelers often offer discounts for weekend bookings.Cinemas have lower prices for matinee shows.This is a way to contend with the service characteristic of:

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Differential pricing is a way to contend with the service characteristic of perishability, which means that services cannot be stored for future use. By offering lower prices during periods of lower demand, businesses can increase utilization of their service and maximize revenue. The other options - variability, intangibility, inseparability, and simultaneous production and consumption - do not directly relate to the use of differential pricing to synchronize supply and demand.

Services Frequently Use Differential Pricing in an Attempt to Synchronize