In Terms of Managing Customer Expectations, What Are the Three

question 22

Essay

In terms of managing customer expectations, what are the three possible outcomes that may occur when expectations are compared to actual product performance? What should marketers do to manage expectations effectively, especially when customers' expectations are unrealistic? Should a firm attempt to delight its customers by constantly exceeding their highest expectations?

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Definitions:

Income Source

The origin or means through which an individual, company, or entity earns money.

Utility Function

An expression that captures how a consumer ranks different bundles of goods based on the level of utility or satisfaction each bundle provides.

Labor Income

Earnings from work or employment, including wages, salaries, bonuses, and any other form of payment for labor services.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and the prices of goods and services.