Kala Is the New Manager of a Resort Hotel

question 94

Multiple Choice

Kala is the new manager of a resort hotel.She knows from reviewing customer complaints that service quality at the hotel is not consistently meeting customers' expectations,and she believes that the biggest problem is that her employees are not sure what is expected of them.To improve service quality,Kala will:

• A) empower customers to meet their own service needs.
• B) establish a broad zone of intolerance to reduce customer complaints.
• C) narrowly define a knowledge gap.
• D) separate intangibles from tangibles.
• E) set specific,measurable goals based on customers' expectations.

---

Definitions:

Spot Exchange Rates

The contemporary exchange rate for buying or selling a currency with immediate effect.

Interest Rate Parity

A financial theory which posits that the difference between the interest rates of two countries is equal to the expected change in exchange rates between the countries’ currencies.

Absolute Purchasing Power Parity

A theory stating that price levels between two countries should be equivalent, when expressed in a common currency, meaning the exchange rate between two currencies should equal the ratio of the countries' price levels.

Exchange Rate

The exchange rate specifies how much one currency can be traded for another, reflecting the relative values between them.