Question detail
Northline Gym serves repeat customers while raising prices; the case evidence includes unit contribution of ?7,030, sales of 365 units, and a 35% change in costs or demand. Which option best applies Explain customer expectations of quality in goods and services?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
The concept of quality
Question
- A. Use customer expectations, quality to judge capacity utilisation, lenders impact, and the business objective in Quality expectations and problems.
- B. Give only a definition of The concept of quality without using the case evidence.
- C. Treat break-even and profit as identical and ignore the effect on lenders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use customer expectations, quality to judge capacity utilisation, lenders impact, and the business objective in Quality expectations and problems.
Explanation
Choose this response because Use customer expectations, quality to judge capacity utilisation, lenders impact, and the business objective in Quality expectations and problems. The case evidence gives ?8,530, 365 units, and 35%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse break-even and profit, miss the lenders, or ignore the business objective.
Common mistake
Quality expectations and problems common mistake 1
Giving a vague answer instead of directly addressing: Explain customer expectations of quality in goods and services..
Answer by clearly explaining how to explain customer expectations of quality in goods and services..
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