All of the following are benefits associated with empowerment except:
A) empowered employees are more customer focused and quicker in responding to customer needs.
B) empowered employees are more likely to respond in a positive way to service failures and to engage in effective service recovery strategies.
C) empowered front-line employees gain a false sense of power, in turn aiding the customer.
D) empowered front-line service employees can be key to new service ideas and a cheaper source of market research than going to the consumer directly.
E) empowered employees tend to feel better about their jobs and themselves, which is automatically reflected in the way they interact with customers.
Question 2
The inherent goal of product differentiation is to make the demand curve for a product more inelastic. This happens because increased differentiation:
A) reduces the number of perceived substitutes for a product.
B) makes the product more expensive than its competitors.
C) increases the quality of the product, making it worth the expense.
D) reduces the time and effort required to obtain the product.
E) increases the just noticeable differences among competing products.
This chart illustrates the four quadrants in which we can place the relationships between the state
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