The Gap Between Management Perceptions and Service Quality Specifications Occurs

question 20

Multiple Choice

The gap between management perceptions and service quality specifications occurs when:

• A)A firm's policies concerning customer service are unclear or haphazardly enforced.
• B)A firm does not have an accurate understanding of service evaluation by customers.
• C)A firm's marketing communications causes unrealistically high expectations in customers.
• D)A firm fails to give its employees adequate reward structures for good performance.

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Definitions:

Marginal Cost

The additional expense involved in making or acquiring one more unit of a product or service.

Downstream Division

The part of a company or industry involved in the later stages of the production process, including distribution and retail.

Transfer Price

The price at which goods and services are sold between divisions within the same company, often used for budgetary and accounting purposes.

Buying Division

A specialized department within a company responsible for making purchase decisions and executing transactions.