Which of the Following Statements About Customer Contact in Services

question 186

Multiple Choice

Which of the following statements about customer contact in services marketing is false?

• A) Service employees are important in creating satisfied customers.
• B) High-contact services are less expensive to deliver because they are typically equipment based.
• C) The main principle of customer contact is that satisfied employees lead to satisfied customers.
• D) Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact services.
• E) Employee training programs are an effective way to ensure good customer contact and reduce problems.

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Definitions:

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, serving as a benchmark for measuring the risk of other investments.

Intrinsic Value

The perceived or calculated true value of an asset, determined through fundamental analysis without reference to its market price.

ROE

Return On Equity, a profitability ratio that measures the ability of a firm to generate profits from its shareholders' investments in the company.

Required Return

The minimum expected return an investor demands to compensate for the risk of an investment.