When Is a Service Guarantee Inappropriate

question 31

Multiple Choice

When is a service guarantee inappropriate?

• A) When prices for the service are high
• B) When negative impact of unsolved problems is high
• C) When service quality is truly uncontrollable
• D) When company has a poor image for service quality
• E) When company depends on frequent customer purchases

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Definitions:

Agency Relationship

A legal relationship in which one party, the agent, acts on behalf of another party, the principal, in conducting transactions with third parties.

Actual Authority

The express power granted by a principal to an agent to perform tasks or make decisions on their behalf.

Principal

The initial amount of a loan or investment, excluding any interest or dividends.

Agent

An individual or entity authorized to act on behalf of another.