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A- CASE ]: Concerned about her current customer base, manager Reham started to think of factors that might affect the attractiveness of an auditing rm.

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A- CASE ]: Concerned about her current customer base, manager Reham started to think of factors that might affect the attractiveness of an auditing rm. Of course, the service quality provided, and the fees charged by the auditor seem two important factors. Next, she decides that the reputation of the auditing firm also needs to be included in the framework. As illustrated by the dramatic effects of recent auditing scandals, reputation seems especially important for large auditors (i.e., auditing rms that are large in size). Finally, manager Reham also thinks that the proximity of the auditing rm to the customer is another variable to be included. Proximity very likely affects the possibility for the client to personally meet with the auditors on a regular basis and she knows from her own contact with customers that they perceive personal interactions as quite important. B CASE 2: In recent decades, many service markets have been liberalized. For this reason, incumbent service rms are facing new competitors and must address customer switching. You are discussing the determinants of customer switching with a service rm manager. She believes that product quality, relationship quality, and switching costs are important determinants of customer switching- You agree with the contention that product quality and relationship quality are important determinants of switching. However, you believe that switching costs only affects the relationships between product quality, relationship quality, and customer switching. Questions for CASE 1 & 2: 1. Identify the problem statement. 2. Develop a diagram representing the conceptual model. 3. Develop the hypotheses

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