Explain four significant benefits a company can enjoy by ensuring its customers are delighted
What will be an ideal response?
Delighted or highly satisfied customers are loyal, continuing to purchase the same brands or to do business with the same provider. Loyal and delighted customers lead to reduced costs, as they incur lower warranty expenses and require less of the company's resources in customer service. Delighted customers are also more likely to purchase other products or services from the company, increasing the company's share of wallet for that consumer. Finally, delighted customers are more likely to become product champions, sharing their positive experiences with the brand with anyone who will listen. This positive word of mouth carries more weight with new potential buyers than any advertising campaign would.
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A customer's desire for a product coupled with the buying power or resources to obtain that product is called a ________
A) benefit B) demand C) need D) stake E) service
________ analysis involves the comparison of different firms' financial ratios at the same point in time
A) Time-series B) Cross-sectional C) Marginal D) Technical
A consumer buys furniture. The store gives the consumer $2,000 credit to be paid back over two years. The store fails to disclose the interest rate that it charges for credit. Under the Truth-in-Lending Act, the store is wrong for not listing the interest:
a. but the customer agreed to it, so there is no violation b. but the consumer's only recourse is to cancel the contract c. and must give the consumer the goods for free as a result d. and may have to pay the consumer up to $1,000 (civil damages) plus attorney fees e. there is no violation here
Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:Activity Cost PoolActivity RateSetting up batches$60.01?per batchProcessing customer orders$73.23?per customer orderAssembling products$4.70?per assembly hour??Data concerning two products appear below: Product K91BProduct F65ONumber of batches98?69?Number of customer orders48?62?Number of assembly hours502?909?How much overhead cost would be assigned to Product K91B using the activity-based costing system? (Round your intermediate calculations and final answers to 2 decimal places.)
A. $5880.98 B. $11,755.42 C. $105,798.78 D. $137.94