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"Combine the Pain" Is an Application of Behavioral Science to Service

question 56

True/False

"Combine the pain" is an application of behavioral science to service encounters. It means that, when something is going wrong for a group of customers, it is better to totally enrage one or a very few customers rather than slightly annoying a large number of customers.


Definitions:

Total Cost Variance

The difference between the actual cost and the standard or expected cost of goods or services produced over a given period.

Standard Cost

A predetermined cost of manufacturing a product or providing a service, used for budgetary and inventory purposes.

Price Variance

The difference between the standard cost of a product or service and its actual cost, used in budgeting and financial analysis.

Quantity Variance

A measure used in budgeting and accounting to compare the actual quantity of materials or products used to the expected amount under standard costing.

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