Question:Services have certain qualities which distinguish them from products. Because of their , physical elements such as vouchers, tickets, confirmations and merchandise are an important part of service provision.
Which of the following words most accurately completes the sentence?
A. Inseparability
B. Perishability
C. Variability
D. Intangibility
The correct answer is: D
Rationale: Intangibility refers to the fact that there are no material or physical aspects to a service: physical elements help to reduce this effect, and make the provision concrete for the customer.
Inseparability and perishability refer to the fact that services are created and consumed at the same time: they cannot be stored - and pose challenges to demand forecasting and scheduling.
Variability refers to the fact that services are specific to the situation and cannot easily be standardised.