Which of the Following Statements About Compensation Is True

question 18

Multiple Choice

Which of the following statements about compensation is true?

• A) Compensation should be provided only when a customer demands it.
• B) The value or degree of the compensation should equal the customer's loss only in terms of energy or frustration.
• C) The recovery should compensate only the original loss and need not necessarily give any additional value.
• D) Customers should feel that the organization has suffered an equal loss.

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Definitions:

Benoit's Theory

A theory of image restoration that outlines strategies individuals or organizations can use to repair their reputation following a crisis.

Corporate Crisis

A significant threat to a company's operations or reputation that requires immediate management action.

PR

Public Relations; the practice of managing and disseminating information from an individual or an organization to the public in order to shape or influence public perception.

Empowerment

The process of giving individuals or groups the power and resources to make decisions, foster skills, and effect change.