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.

---

Definitions:

Marginal Cost (MC)

The additional cost required to produce one additional unit of a product or service, a crucial factor in economic decision-making and pricing strategies.

Average Cost (AC)

The total cost of production divided by the quantity of output produced, representing the per unit cost.

Marginal Revenue

This refers to the additional income generated from the sale of one more unit of a good or service.

Average Cost

the total cost of production divided by the number of units produced, used to evaluate the efficiency of production processes.