When a Customer Chooses Between a Restaurant in a Pricy

question 10

Multiple Choice

When a customer chooses between a restaurant in a pricy suburb of Atlanta and a restaurant in a small farming community 45 miles away, there is a _____ made by the locations that the customer will be more likely to find exotic cuisine and better trained servers at the downtown Atlanta restaurant.

• A) Explicit service promise
• B) Perceived service alternative
• C) Word-of-mouth communication
• D) Implicit service promise
• E) Marketing testimonial

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Definitions:

High Volume Products

Products that are produced or sold in large quantities, often benefiting from economies of scale.

Departmental Overhead Rates

Costs associated with running a department that are allocated to the products or services it produces, based on a specific rate.

Overhead Costs

Expenses related to the operation of a business that cannot be directly attributed to a specific product or service, such as rent, utilities, and management salaries.

Idle Capacity

Unused or underutilized production capacity within a manufacturing operation, often leading to increased costs without corresponding revenue.