Experts in the area of guarantees believe that guarantees are most effective for professional service providers under which of the following conditions?
A) Prices are high.
B) The costs of a negative outcome are high.
C) Buyer resistance is high.
D) Brand recognition is difficult to achieve.
E) All of these conditions apply.
Question 2
Which of the following statements is FALSE regarding the use of the 80/20 rule in managing customer relationships?
A) Advances in technology and data collection techniques allow firms to profile customers in real time.
B) Twenty percent of customers provide 80 percent of business profits.
C) Some customers are too expensive to keep given the low level of profits that they generate.
D) The 20 percent of customers in the bottom tier should be fired so the firm can focus on its top customers.
E) The firm's top customers are the most obvious candidates for retention strategies.
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