Question

Oftentimes, doctors, salons and other service providers will charge a cancellation fee if a customer does not show up to their agreed upon appointment time. This is because the provider cannot simply keep that appointment time in inventory for another potential buyer, but rather loses the opportunity to sell that space to someone else once the time has passed. This best demonstrates the _____________

Answer 1

Answer: Perishability of services.

Step-by-step explanation:

The services of doctors, salons, Uber drivers etc cannot be stored as inventory like most products, this challenge is known as the Perishability of services. The Perishability of services describes that services are intangible and cannot be stored.