Under which of the following scenarios is it more likely that a firm would invest the resources necessary to increase its satisfaction ratings from 95% to 98%?
A)Competing firms have 90% and 88% satisfaction ratings.
B)Competing firms have 85% and 75% satisfaction ratings.
C)Competing firms have 96% and 97% satisfaction ratings.
D)There are many opportunity costs associated with the investment.
E)The market share gained has little effect on the firm's bottom-line profits.

Question

Quizplus · Accepted Answer

In scenario C, where competing firms have 96% and 97% satisfaction ratings, the firm would be more motivated to invest resources to increase its satisfaction ratings from 95% to 98% in order to remain competitive and possibly gain a competitive advantage in a market where customer satisfaction ratings are already high and closely contested.

Under Which of the Following Scenarios Is It More Likely