Moderate

Successful service companies focus their attention on both their customers and their employees they understand ________ which links service firm profits with employee and customer satisfaction ?

Correct answer: B. service-profit chains

  • A. internal marketing
  • B. service-profit chains
  • C. interactive marketing
  • D. service differentiation

Explanation

The service-profit chain links internal service quality and employee satisfaction with customer value, loyalty, and ultimately profits. Internal marketing is one activity within this chain, not the complete linking framework.

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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.

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