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

question 127

Multiple Choice

Compaq Computer's decision to charge customers for phone technical support to defray 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.This company is engaging in:

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

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Definitions:

Speculation

The act of investing in financial assets with the hope of profiting from future price changes, often involving significant risk.

Nation's Currency

The legally accepted form of money that circulates within a country and serves as a medium of exchange, store of value, and unit of account.

Exchange-Rate Systems

The rules and conventions that govern how the value of a country's currency is determined in relation to other currencies.

European Euro

The official currency of 19 out of the 27 European Union countries, used as a common currency to facilitate trade and economic stability in the region.