The Service Profit Chain Is the Service Sequence from Employees

question 26

Multiple Choice

The service profit chain is the service sequence from employees to customers to profit. According to this concept, the company's strategy and service delivery system determines_________ .

• A) how committed the firm is to its customers
• B) how employees service customers
• C) how the firm performs in the short run
• D) employee retention

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Definitions:

Traceable Fixed Expenses

Fixed costs that can be directly linked to a particular segment, product, or department within a business.

Common Fixed Expenses

These are expenses that do not vary with production volume or sales volume, shared across different segments of a business.

Differential Cost

The difference in total cost that will result from selecting one alternative over another in decision-making situations.

Alternatives

Various options or choices available in a decision-making process.