A Company That Specializes in Water Purifiers Recently Installed a System

question 48

Multiple Choice

A company that specializes in water purifiers recently installed a system at John's house.John realizes that the system is faulty because the purifier developed a leak within a few days of installation.John calls the company's service team, which goes over the problem in detail with him and then sends service personnel to John's house to fix the problem.In this scenario, the company tried to resolve the issue by:

• A)attempting to rectify the situation.
• B)explaining the process they use to resolve complaints.
• C)providing adequate compensation for the inconvenience.
• D)replacing the system.
• E)eagerly listening to John's complaint and resolving the problem.

---

Definitions:

Squared Market Shares

A measure often used in calculating market concentration, where the market shares of all firms in the market are squared and then summed.

Concentration Ratio

An economic metric that assesses the total market share controlled by the top firms within an industry.

Rivals

Competitors in a market vying for the same customers or resources.

Reactions

Responses or adjustments made by individuals, markets, or materials to external changes or stimuli.