NVQ Business Administration Level 3 Unit 325

Hi! I'm currently doing an business admin apprenticeship and I'm stuck on my last unit for the knowledge part of the work. The wording of the questions confuse me. The Unit is 325 - Resolve Customer Complaints. If someone could help explain them, I'd be happy help anyone struggling with other units that I've done!

1.2 explain how to identify those complaints that should prompt a review of the service offer and service delivery
1.5 explain organisational procedures for dealing with customer complaints
1.6 explain when to escalate customers’ complaints
1.7 explain the cost and regulatory implications of admitting liability on the basis of a customer complaint
1.8 explain the advantages and limitations of offering compensation or replacement products and/or services

I don't fully understand what service offer and service delivery is and the other questions I just don't understand. I've read them so many times trying to get it

"Service offer" is the product that the company sells. So for McDonald's, their service offer is burgers. For Clarks, it's shoes. For Santander, it's bank accounts. You need to think about this in relation to your work at your company.
"Service delivery" is the way things are done. This might be customer service, or it might be the speed of delivery, or the way the product is presented.

So question 1 is saying
How do you know if a complaint means that you need to review the product, or the way you offer the product?
This might be if someone complains about having glass in their burger, and the company feels that other burgers could be affected. Or if someone complains their ice cream was melted because it was left sitting on the side for half an hour before being served.

Organisational procedures means what does the company do. Do you keep a log of all complaints, so that the company can see if the same issues are complained about again and again? Are there company policies about compensation amounts?

When to escalate means when do you tell your manager? How would you know if you personally could deal with a complaint, or if it needs to be escalated (passed to someone with more authority)?

Cost implications means how expensive will it be? So if you make the decision to recall all the burgers, that's going to be VERY expensive. But if someone dies from eating glass, that's going to cost a lot in compensation to the family.
Regulatory implications means rules that have been broken. If you admit that your company has glass in the burgers, this will break food hygiene regulations. The food standards authority could then fine the company for breaking the law.

If someone complains, offering compensation will make them happier. This will make them more likely to return. They may tell their friends, and their friends may purchase your company's product. But if you give them £50 compensation, it has cost the company £50.