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A activity-based costing (ABC) Costing method that breaks down the organization into a set of activities, and activities into tasks, which convert materials, labor, and technology into outputs. activity time The time required to perform one activity at one station. adequate service The level of service quality a customer is willing to accept. aftermarketing Marketing technique that emphasizes marketing after the initial sale has been made. after-sales surveys A type of satisfaction survey that addresses customer satisfaction while the service encounter is still fresh in the customer’s mind. ambient conditions The distinctive atmosphere of the service setting that includes lighting, air quality, noise, music, and so on. anticipating Mitigating the worst effects of supply and demand fluctuations by planning for them. apathetic customers Consumers who seek conve- nience over price and personal attention. apologetic strategies A set of verbal recovery strategies involving apologies from front-line providers and/or upper-level management. approach/avoidance behaviors Consumer responses to the set of environmental stimuli that are characterized by a desire to stay or leave an establishment, explore/interact with the service environment or ignore it, or feel satisfaction or disappointment with the service experience. arousal-nonarousal The emotional state that reflects the degree to which consumers and employees feel excited and stimulated. assurance dimension The SERVQUAL assessment of a firm’s competence, courtesy to its customers, and security of its operations.

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