📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    A bank advertises “Zero Hidden Charges” to

    differentiate itself from competitors. This strategy primarily aims to reduce:
    A Market segmentation Correct Answer Incorrect Answer
    B Perceived risk Correct Answer Incorrect Answer
    C Distribution cost Correct Answer Incorrect Answer
    D Operational complexity Correct Answer Incorrect Answer
    E Product development time Correct Answer Incorrect Answer

    Solution

    In services like banking, customers cannot physically evaluate quality before purchase. Transparent pricing reduces uncertainty and perceived financial risk, encouraging trust.  Why Other Options Are Incorrect • A: Segmentation is unrelated to transparency. • C: Distribution cost is operational. • D: Complexity may remain same. • E: Product development is unaffected.  Banking Example: Clear disclosure of loan processing fees increases customer confidence.

    Practice Next
    ask-question