Daniel Sells Specialty Software Designed to Allow Small Insurance Companies

question 55

Multiple Choice

Daniel sells specialty software designed to allow small insurance companies to manage customer data and claims.Daniel knows that satisfied customers are likely to come back for software updates.To ensure that customers are satisfied after purchasing his software,Daniel should:

• A) create realistic expectations through his communication with customers.
• B) carefully demonstrate the software to his customers' staff.
• C) provide a satisfaction guarantee or return policy.
• D) provide a hotline to answer customers' questions.
• E) all of these.

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Definitions:

Bundle

A combination or collection of goods or services that is considered as a single unit by consumers or businesses.

Cobb-Douglas Utility

A specific form of utility function used in economics to represent preferences of consumers, characterized by a functional form that is a particular type of product of goods' amounts raised to various powers.

Compensating Variation

An economic concept referring to the amount of money one would need to attain the same level of utility after a price change.

Equivalent Variation

A measure in economics that calculates the change in wealth needed to reach utility before a price change, preserving consumer satisfaction levels.