Which of the Following Statements Regarding Service Branding Is MOST

question 193

Multiple Choice

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

• A) Because services are intangible and more difficult to describe, brand names and logos are of critical importance.
• B) Because the classification of services is so complex, it is far more difficult to find a brand name that hasn't already been taken.
• C) Services must include the word "service" in all their brand names to assure that customers understand they are not purchasing a product.
• D) Service firms with a well-established brand reputation and service firms without a brand reputation both find it easy to introduce new services.
• E) Service logos and brands must designated by the "®" symbol while consumer products are designated by the "SM" symbol.

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market.

Cost of Equity

The hypothetical payment made by a business to its equity holders as a reward for the risk involved in investing their money.

Risk-Free Rate

The theoretical rate of return of an investment with no risk of financial loss.

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates that the stock's price tends to be more volatile than the market.