The Service Recovery Paradox States That All Recovery Service Efforts

question 56

True/False

The service recovery paradox states that all recovery service efforts deepen the long-term relationship between the customer and the service provider.

---

Definitions:

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as rent and salaries.

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, indicating the capability of covering fixed costs and generating profit.

Variable Manufacturing Costs

Costs that vary in total directly and proportionately with changes in the production volume, including direct materials, direct labor, and variable manufacturing overhead.

Selling Commission

A fee paid to a salesperson or agent for facilitating a sale, typically a percentage of the sale price.