# Assessement 2

#### Which of the following represent hidden costs of retail's trust crisis? (Select all that apply)

* [ ] Direct shipping costs for online orders
* [x] Lost premium pricing when consumers don't believe sustainability claims
* [ ] Store rent and utilities
* [x] Customer service time resolving receipt-related issues
* [ ] Raw material costs
* [x] Unredeemed loyalty points due to program friction
* [x] Emergency regulatory compliance implementation costs

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**Notes to Learners**

Trust-related hidden costs are those that don't appear as direct line items in traditional retail budgets. Shipping costs (A), store rent (C), and raw materials (E) are visible, direct costs. However, the revenue lost when consumers won't pay premium prices for unverified claims (B), the staff time consumed resolving receipt problems (D), the liability and administrative waste from unused loyalty points (F), and the premium costs of emergency compliance implementation (G) are all hidden costs of the trust crisis. They're real expenses impacting profitability but scattered across different budget categories—revenue shortfalls, customer service expenses, loyalty program liabilities, and IT/legal budgets—making them difficult to see as the interconnected trust problem they actually represent.


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