DISSATISFIED CUSTOMER SCENARIO Meg Went to Local Nail Salon to Get a Manicure

question 99

Multiple Choice

DISSATISFIED CUSTOMER SCENARIO
Meg went to local nail salon to get a manicure and pedicure. Unfortunately, she got a nasty nail infection on two of her toes on her left foot the day after her manicure. She didn't go back to the shop to complain, but she told all of her friends about it and said never to go there. One of her friends suggested she should go back there and complain and demand compensation for her medical expenses and at least get her money back for the pedicure. Meg was just disgusted and didn't even want to go back there to complain. If she ever decides to get another pedicure, she certainly won't go back to that shop.
-Refer to Dissatisfied Customer Scenario. When Meg told her friends of her infection after getting a pedicure at the nail shop, she was engaging in _____.

• A) negative public publicity
• B) customer inertia
• C) customer disloyalty
• D) rancorous revenge
• E) negative word-of-mouth

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Definitions:

Implicit Call Option

An option embedded in a financial security that allows the issuer to repurchase it at a predetermined price before maturity, not explicitly stated within the contract.

ESOs

Employee Stock Options (ESOs) are a form of equity compensation granted by companies to employees, allowing them to purchase company shares at a fixed price for a certain period.

Call Options

Financial derivatives that give the holder the right but not the obligation to buy a specific stock or asset at a predetermined price within a specified period.

American Call Option

An options contract that allows the holder to buy the underlying asset at a specified price at any time before or on the expiration date.