When Service Companies Change High-Contact Services into Low-Contact Services, The

question 34

Multiple Choice

When service companies change high-contact services into low-contact services, the:

• A) service becomes more expensive to deliver.
• B) quality of the service declines.
• C) service becomes less personalised.
• D) time required to deliver the service increases.
• E) service becomes less standardized.

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Definitions:

Nominal Rate

The stated interest rate of a bond or loan, not accounting for compounding or inflation effects.

Annually Compounded

An investment or interest calculation method where the interest earned over the year is added to the principal at year-end, affecting the amount earned the following year.

Nominal Rate

The nominal rate refers to the interest rate stated on a loan or investment agreement before adjusting for inflation or other factors.

Annually Compounded

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, once per year.