Which of the Following Statements Regarding Service Branding Is MOST

question 71

Multiple Choice

Which of the following statements regarding service branding is MOST accurate?

• A) Because the classification of services is so complex, it is far more difficult to find a brand name that hasn't already been taken.
• B) Services must include the word "service" in all their brand names to assure that customers understand they are not purchasing a product.
• C) Service firms with a well-established brand reputation will also find it easier to introduce new services than firms without a brand reputation.
• D) Many consumers are suspicious of companies that offer too many services under the same brand name.
• E) Many service organizations, such as banks, hotels, and restaurants do not rely heavily on branding because of the extent to which they are people-dominated services.

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Definitions:

Total Return

Total return is the overall return on an investment, including dividends, capital gains, and interest, over a specific period.

Dividend Income

Income received from owning shares of a company, distributed out of the company's profits.

Capital Gain

The profit that results from a disposition of a capital asset, such as stock, bond, or real estate, where the sale price exceeds the purchase price.

Arithmetic Average Return

The simple mean of a series of returns over a period of time, calculated by summing the returns and dividing by the number of periods.