How a Person Establishes Expectations for a Service Not Yet

question 143

Multiple Choice

How a person establishes expectations for a service not yet experienced is influenced by word-of-mouth communications, personal needs, past experiences, and

• A)the economy.
• B)consumer income.
• C)competitive trends.
• D)promotional activities.
• E)how the organization delivers its service.

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Definitions:

Marginal Cost

The incremental expense incurred when a business produces another item of its product line.

Marginal Cost

The elevation in total spending caused by the assembly of one additional unit of a product or service.

Average Cost

It refers to the total cost divided by the number of goods or services produced.

Monopolist

A sole provider of a good or service in a market, facing no direct competition, which often results in the power to set prices.