In a Particular Industry, Products Need a Certain Level of Maintenance.Customers

question 2

Multiple Choice

In a particular industry, products need a certain level of maintenance.Customers can take the product to service companies to provide that maintenance.However, a number of manufacturers offer reasonably priced maintenance packages as well.This level of service after the sale indicates what about the industry?

• A) Low switching costs have empowered customers.
• B) The industry is moving toward differentiation of services.
• C) The competitive rivalry in the industry is high.
• D) The economic segment of the external environment has shifted, but strategies have remained the same.

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Definitions:

Medicare Taxes

Federal payroll taxes collected to fund the Medicare program, which provides healthcare benefits to eligible elderly and disabled individuals.

Employee

An individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties.

Employer

An organization or individual that hires employees to perform specific tasks in exchange for compensation.

Vacation Pay Expense

The cost incurred by an employer for the amount of vacation time accrued to employees.