There Are Key Differences Between a Service and a Product

question 48

Multiple Choice

There are key differences between a service and a product.Which of the following is true regarding these differences?

• A) Low-contact services as well as manufacturing require employees who are flexible, personable, and willing to work with the customer.
• B) The degree of customer contact is usually higher for manufacturing organizations than for service organizations.
• C) There is a greater degree of customer participation in the manufacture and sale of goods than there is in the sale of services.
• D) Service firms commonly require employees that are more flexible, personable, and willing to work with the customer than is true at manufacturing firms.

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Definitions:

Clients' Interests

The priorities and goals that are in the best financial or professional benefit of a client, often emphasized in advisory roles.

Suitability

The requirement that investment choices made by a financial advisor or broker must be appropriate for the client, taking into consideration the client's financial situation, objectives, and risk tolerance.

Variable Annuity

An insurance product with an investment component, where payouts vary based on the performance of the selected investments.

Life Expectancy

The average period that a person may expect to live, based on demographic factors and health conditions.