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:

Total Profit

The financial gain made by a business after subtracting all expenses, taxes, and costs from total revenues.

Profit-Maximizing

A strategy in which a firm seeks to achieve the highest possible profit from its operations, often by adjusting output or prices.

Marginal Revenue

The additional revenue that a company earns from selling one more unit of a product or service.

Marginal Revenue

The additional revenue that a company generates from selling one more unit of a good or service.