Final answer:
A service breakdown indeed occurs when there is a failure in meeting customer expectations, which can stem from poor business practices or shifts in market conditions.
Step-by-step explanation:
The statement that a service breakdown happens whenever a product or service delivered fails to meet customer expectations is True. A breakdown in service can occur due to a range of factors, including poor design decisions made early in the process that fail to address the customers' needs adequately. Moreover, businesses can fail for various reasons such as poor management, unproductive workers, or intense domestic or foreign competition. Shifts in market demand and supply can also cause businesses to falter, leading to changes in the prices of inputs or outputs that businesses depend on. While individual business failures can be challenging for those directly involved, they are often seen as a necessary aspect of an efficient economic system that strives to satisfy customers, keep costs low, and foster innovation.
It's important to recognize that technology plays a significant role in businesses, and the failure of critical devices like phones or computers, as suggested by Figure 8.7, can lead to service breakdowns affecting customers and revenues.