Question

Moonlight Catering has increased the deposit it requires before agreeing to cater an event to $300. This amount is nonrefundable and must be paid when Moonlight Catering is hired for the job. This increase in deposit will help Moonlight Catering achieve its goal of:

A. Customer enhancement
B. Prospecting
C. Increasing its value-added service
D. Customer satisfaction
E. Customer retention

Answer 1

Moonlight Catering's increase in the nonrefundable deposit to $300 is a strategy likely aimed at customer retention, ensuring customers are committed and providing the company with reliable cash flow.

Step-by-step explanation:

The increase in deposit required by Moonlight Catering before agreeing to cater an event is a strategic move that is likely aimed at customer retention. By increasing the nonrefundable deposit to $300, the company ensures that there is a financial commitment made by the customer, which may discourage them from canceling the service. Furthermore, this upfront payment provides the business with a more reliable cash flow, enabling it to manage its resources and services more effectively, thereby potentially enhancing customer satisfaction through improved service delivery. However, based on the options provided, the most fitting goal that the increased deposit helps to achieve for Moonlight Catering would be customer retention, as it filters out less serious customers and secures a more committed clientele.