Compaq Computer's Decision to Charge Customers for Phone Technical Support

question 155

Multiple Choice

Compaq Computer's decision to charge customers for phone technical support to cut the high cost of phone support and to encourage customers to read documentation was a failure because consumers like the human touch. As a result, Compaq decided to focus its resources on reaching the inexpensive home computer market segment through enhanced customer service. What did Compaq engage in?

• A)strategic planning
• B)tactical resource realignment
• C)alternative selection
• D)product enhancement evaluation

---

Definitions:

Stockholders Equity

Represents the ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities.

Credit Policies

Guidelines that set the criteria for extending credit to customers, including terms of payment and requirements for creditworthiness.

Short-Term Debt

Short-Term Debt is borrowed money that a company must repay within the short term, typically within a year, often used for operational expenses.

Interest Rate Fluctuations

Changes in the interest rate over time, affecting borrowing costs, savings rates, and investment returns.