Cookies Is a Retail Store Where Customers Host Parties for Guests

question 73

Multiple Choice

Cookies is a retail store where customers host parties for guests to bake and decorate cookies. If the retailer offers a money back guarantee if the party experience is boring. In this way, the retailer is:

• A) Creating tiered-value offerings to improve customer education
• B) Preparing customers for the service process through customer education
• C) Offering service guarantees to manage service promises
• D) Featuring the servicescape as a tool for integrating its marketing communications
• E) Confirming that performance equals performance standards to manage customer expectations

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Definitions:

Investment Required

The total amount of capital needed to undertake a specific project, purchase, or investment.

Project Profitability Index

A calculation used to determine the relative profitability of a project by dividing the present value of future cash flows by the initial investment cost.

Salvage Recovered

The amount of money or value received from selling off the remains of assets after their useful life is over or after a casualty loss.

Discount Rate

Used to calculate the present value of future cash flows, reflecting the opportunity cost of capital investment.