Answer the following statements true (T) or false (F)
1. The zone of tolerance is the allowable minor service failures that still result in a guest’s experience being a positive one.
2. Fixing a service failure before the guest leaves is the best way to diminish the negative impact and prevent the loss of the customer forever.
3. Organizations should not encourage complaints, but once they receive them treat them as opportunities to improve service.
4. The unhappier a customer is about a specific experience, the less likely they are to tell other people and more likely they are to complain to the organization directly to obtain a comp or resolution.
1. True
2. True
3. False
4. False
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The state of Ohio has passed a law requiring that every automobile be inspected at least once a year for pollution control. Anson Enterprises is considering entering into this type of business. After extensive studies, Mark Anson has developed the following set of projected annual data on which to make his decision: Direct service labor $363,000.00 Variable service overhead costs 270,000.00 Fixed
service overhead costs 280,000.00 Marketing expenses 120,000.00 General and administrative expenses 170,000.00 Minimum profit 90,000.00 Cost of assets employed 500,000.00 Anson believes that his company will inspect 100,000 automobiles per year. The company earns an average of 18.75 percent return on its assets. The projected cost for inspecting each automobile would be A) $11.13. B) $12.03. C) $12.93. D) $10.03.
A(n) ________ is a subsidiary company that in turn owns other subsidiaries
A. agency B. representative office C. branch D. holding company