Fred White Has Just Accepted a Sales Position with the ABC

question 132

Multiple Choice

Fred White has just accepted a sales position with the ABC Health Maintenance Organization,a major provider of health care services.He had been selling medical supplies for some time and found that he understood how customers bought medical supplies.Which of the following is likely to be a characteristic of the health care service purchase?

• A)Customers are engaged in a low involvement purchase process.
• B)The quality of services can be predetermined in a similar manner to tangible products.
• C)The buyer does not participate in producing the service.
• D)A consumer may not have the ability to judge the quality of medical care service even after the service has been provide

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Definitions:

Transfer Payments

Payments made by the government to individuals without any expectation of a direct return, such as welfare, social security, and unemployment benefits.

Automatic Stabilizers

Economic policies and programs, such as unemployment benefits and progressive taxation, that automatically help stabilize an economy by increasing spending in a downturn and reducing spending in an upswing without additional government action.

Private Spending

Private Spending is the total expenditures by individuals and businesses in an economy, excluding government spending and investment.

Transfer Payments

Payments made by the government to individuals or organizations without requiring any goods or services in return, such as welfare checks or social security.