Active Customer Contact and Personalized Attention Can Lower Cost to the Customer

question 68

Multiple Choice

Active customer contact and personalized attention can lower cost to the customer by:

• A) increasing the capital intensity.
• B) trading fixed costs for an equivalent variable cost.
• C) substituting customer efforts for those of the service provider.
• D) lowering the level of technology involved.

---

Definitions:

Scatter Diagram

A type of graph used in statistics to visually display and compare two or more variables to identify patterns, relationships, or trends.

Linear Model

A mathematical model that assumes a linear relationship between the independent and dependent variables.

Sales

The exchange of goods or services for money, constituting a primary activity for commercial businesses.

Scatter Diagram

A type of graph used in statistics to display values for two variables for a set of data, showing the relationship between the variables.