According to an Example Provided in the Text, the ANZ

question 88

Multiple Choice

According to an example provided in the text, the ANZ Bank offered to pay customers $5 if they were required to wait more than five minutes for service. This tactic was not successful because:

• A) the demands of speedy service provision created high levels of stress for employees, leading to employee dissatisfaction.
• B) customers began to focus on the time resulting in perceptions of even longer waiting times.
• C) the Bank had to pay too many customers with serious consequences for profitability.
• D) five minutes was not within the typical ANZ customer's zone of tolerance.
• E) a rival bank enjoyed average wait times that were below the five minute threshold.

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Definitions:

Cross Elasticity

A gauge for the reaction in the demand for one item when there's a price alteration in another item.

Cross Elasticity

The extent to which the demand for a certain good alters in response to price changes of another good.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increased demand for the other.

Income Elasticity

A measure of how much the quantity demanded of a good changes in response to a change in consumers' income.