Which of the Following Statements Would Best Increase Customer Satisfaction

question 56

Multiple Choice

Which of the following statements would best increase customer satisfaction, after a service failure was experienced?

• A)providing a refund
• B)providing a store credit
• C)offering either a refund, store credit, or gift certificate
• D)none of these, as the firm is losing money

---

Definitions:

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often estimated using models like the Capital Asset Pricing Model (CAPM).

Dividend Growth

Dividend growth is the rate at which a company's dividend payments to shareholders increase over time.

SML Approach

Refers to the Security Market Line approach, a graphical representation of the Capital Asset Pricing Model (CAPM), showing the relationship between the expected return of a security and its beta (systematic risk).

Cost of Equity

The return a company needs to generate on its equity investments to compensate its shareholders for taking on the risk of investing.