What Is the Primary Cause of a Delivery Gap in Service

question 111

Multiple Choice

What is the primary cause of a delivery gap in service delivery?

• A) Managers set extremely specific service standards.
• B) Managers misinterpret customers' expectations.
• C) Service employees sometimes do not deliver according to standards.
• D) Firms make service promises they don't keep.
• E) Any of these.

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Definitions:

Few Firms

In markets characterized by few firms, also known as oligopolies, a small number of companies dominate the industry, leading to limited competition.

Prime Rate

The interest rate that banks charge their most creditworthy customers, often used as a benchmark in lending rates.

Covert Collusion

A secret agreement between firms to fix prices or divide the market to limit competition, which is illegal in many jurisdictions.

Oligopolist

A market participant in an oligopoly, a market structure with a small number of firms dominating the industry.