All of the Following Are Reasons for the General Decline

question 5

Multiple Choice

All of the following are reasons for the general decline in customer satisfaction over the past 20 years EXCEPT:

• A) Customers are much less brand loyal than in the past.
• B) Today's customers are very price sensitive.
• C) Today's customers are exceptionally demanding.
• D) Product quality is much lower now than at any time in the past.
• E) Customers are more cynical, have more information, and have more attitude than ever before.

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Definitions:

Tax Rate

The rate determining the tax payment required from a person or a corporation’s earnings.

Weighted Average Cost of Capital

A calculation of a firm’s cost of capital in which each category of capital is proportionately weighted, including equity, debt, and other forms of financing.

Market Risk Premium

The extra return investors demand for taking the risk of investing in stocks over a risk-free asset.

Common Stock

A form of shares in a corporation that grants the owner voting privileges and entitlement to a portion of the corporation's earnings via dividends.