Compaq Computer's Decision to Charge Customers for Phone Technical Support

question 78

Multiple Choice

Compaq Computer's decision to charge customers for phone technical support to reduce the high cost of phone support and encourage customers to read documentation was a failure because consumers like the human touch.Customer rebellion forced Compaq to rethink this policy.As a result,Compaq decided to focus its resources on reaching the inexpensive home computer market segment through enhanced customer service.What is Compaq engaging in?

• A) control and evaluation
• B) the search for a differential advantage
• C) strategic planning
• D) alternative selection

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Definitions:

Supplier-Customer Alliance

A strategic partnership between a supplier and a customer focused on shared goals, mutual growth, and collaboration.

Supply Chain

The entire system of producing and delivering a product or service, from the initial sourcing of materials to the delivery of the final product to consumers.

Marketing Channel

A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.

Self-enhancement

A type of motivational process that leads individuals to view themselves positively.