To Reduce Problems Associated with the Intangibility of the Services

question 56

Multiple Choice

To reduce problems associated with the intangibility of the services offered by a restaurant, the restaurant owner would be most likely to do which of the following?

• A) lower entree prices between 4 p.m. and 6 p.m.
• B) provide clean tablecloths and cloth napkins for each new customer
• C) empower employees to handle customer complaints
• D) offer a service guarantee to ensure customers that food quality will be consistent
• E) offer regular employee workshops focusing on customer service

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Definitions:

Capital Employed

The total amount of capital used for the acquisition of profits by a firm or project, including equity, debt, and long-term liabilities.

Transfer Pricing Policy

Regulations and practices concerning the pricing of goods, services, and intangibles transferred within an organization between different business units or divisions.