Question

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 characteristics of service is most likely the source of Alex's problem?

Answer 1

Answer: Perishability

 

Explanation: In simple words, perishability refers to the problem under which a service is in use for a definite period of time and after that has no value.

In the given case, the storage capacity of Alex Smith has no use after summer months.

Hence from the above we can conclude that the source of problem is perishability.