Which of the Following Is NOT a Link in the Service

question 136

Multiple Choice

Which of the following is NOT a link in the service profit chain?

• A) Satisfied customers remain loyal, repeat purchase and refer other customers which results in superior service firm performance and growth.
• B) Satisfied and productive service employees tend to be more loyal and hardworking employees, which results in service firm performance and growth.
• C) A focus on productivity and the determination to meet performance and conformance targets results in superior service performance and growth.
• D) Superior employee selection and training, a quality work environment, and strong support for those dealing with customers, which results in superior service firm performance and growth.
• E) More effective and efficient customer value creation and service delivery, which results in superior service firm performance and growth.

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Definitions:

Materials Price Variance

The difference between the actual cost of raw materials and the standard (expected) cost, used to assess budgeting efficiency.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost at standard prices.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks to measure actual performance and cost control.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit.