One of the key assumptions in the service business is that success depends on how well employees deliver their services to customers. However, according to the service-profit chain, success depends on ____________ .
A) the availability of factors of production
B) autocratic management
C) a high degree of centralization
D) how well employees are treated
E) market size

Question

Quizplus · Accepted Answer

The service-profit chain model suggests that success in service business depends on how well employees are treated. This includes providing training and development opportunities, fair compensation, and a supportive work environment, which in turn leads to increased employee satisfaction, loyalty, and motivation. This employee satisfaction ultimately results in improved service quality, customer satisfaction, and overall financial performance. Factors of production (A), autocratic management (B), and high degree of centralization (C) are not specific to the service business and do not directly impact the service-profit chain model. Market size (E) may be a contributing factor but it is not the main driver of success according to this model.

One of the Key Assumptions in the Service Business Is