The Difference Between Customers' Expectations and a Firm's Perception of Those

question 121

Multiple Choice

The difference between customers' expectations and a firm's perception of those customer expectations is reflected in the:

• A)standards gap.
• B)communication gap.
• C)delivery gap.
• D)zone of tolerance.
• E)knowledge gap.

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Definitions:

Margin of Safety

The difference between actual sales and the break-even point, which measures the cushion that a business has to withstand a sales downturn.

Sales Revenue

The total amount of money generated from sales of goods or services before any expenses are subtracted.

Operating Leverage

A measure of how revenue growth translates into growth in operational income, highlighting the impact of fixed costs on profits.

Variable Costs

Variable Costs are expenses that vary directly with the level of production or business activity.