Final answer:
Quality service delivery links service firm profits with employee and customer satisfaction by creating a positive feedback loop where satisfied employees provide better service, leading to higher customer satisfaction and repeat business, which drives profits.
Step-by-step explanation:
The link between service firm profits and employee and customer satisfaction is c) Quality service delivery. Quality service is often associated with higher levels of customer satisfaction, leading to repeat business and positive word-of-mouth referrals, which are critical to a firm's profitability. Employee satisfaction is also crucial as satisfied employees tend to provide better service, which enhances customer satisfaction and in turn, benefits the firm's bottom line.
Effective quality service delivery plays a critical role in fostering a positive corporate reputation, reducing customer churn, and ultimately increasing profitability through both cost savings (from retaining existing customers) and revenue generation (from new customer acquisition as a result of positive experiences).