Pepsi Cola Has Entered into a Long-Term Contract with a South

question 177

Multiple Choice

Pepsi Cola has entered into a long-term contract with a South African beverage business.The contract calls for the South African firm to produce and market Pepsi Cola in South Africa.Pepsi Cola will receive a royalty on each case of soda sold.This is an example of:

• A)licensing.
• B)foreign direct investment.
• C)a joint venture.
• D)a foreign subsidiary.

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Definitions:

Service Failure

A situation where a service does not meet the customer's expectations, leading to dissatisfaction and potentially damage to the service provider's reputation.

Services Gap

The discrepancy between customers’ expectations of service quality and their actual experiences.

Service Expectations

The preconceived notions or standards that customers have regarding the levels of service they should receive.

Perishability

A characteristic of a service.