Clearwater Spa Operates on the Premise That Service Quality Is

question 91

Essay

Clearwater Spa operates on the premise that service quality is the main reason that customers come to the spa, and the attendants are trained to provide excellent service. Despite this, the spa rarely has repeat customers. Clearwater began collecting feedback from customers to find out the reason for this. The management realized that although the customers were happy about the services, they did not like the ambience. What kind of a gap is causing the unsuccessful service delivery in this situation?

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues, indicating the net earnings attributable to shareholders.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company, reflected in its statement of cash flows.

Operating Activities

Daily activities of a business related to producing and delivering its products and services, which generate the majority of a company's cash flow.