Which of the Following Statements Is True of Service Failures

question 9

Multiple Choice

Which of the following statements is true of service failures?

• A)They can be eliminated by successful market segmentation.
• B)Retailers cannot recover from service failures.
• C)They can be solved by canceling return policies.
• D)If handled effectively, they can result in higher customer loyalty.

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Gambler's Fallacy

The erroneous belief that if a particular event occurs more frequently than normal during the past, it is less likely to happen in the future, or vice versa, in situations that are truly random.

Ignoring Base Rates

Ignoring base rates is a cognitive bias that involves disregarding or underestimating general information (base rates) in favor of specific individual information when making decisions or judgments.

Availability Bias

A cognitive bias that causes people to overestimate the likelihood of events based on their availability in memory, often leading to skewed decision-making.