Lecture 2: Customers

Question 1

What are the 2 dimensions of the 2nd services framework?

Answer 1

• Nature of the service/act
• What or who is the direct recipient

Question 2

What are search attributes?

Answer 2

Characteristics of a product or service that can be easily evaluated before purchase. Examples are price, color, style, size

Question 3

What are experience attributes?

Answer 3

Characteristics that can only be evaluated after the product is purchased and used. Examples are taste, comfort, durability, user experience

Question 4

Credence Attributes

Answer 4

Characteristics that are difficult or impossible for consumers to evaluate accurately, even after purchase and consumption
Examples are: Ethical sourcing, environmental impact, true efficacy of a health product

Question 5

What are the stages in service consumption for the customer?

Answer 5

1. Orientation
2. Choice
3. Consumption
4. Post-consumption evaluation

Question 6

What are the stages in service consumption for the service provider?

Answer 6

1. Attraction
2. Conversion
3. Delivery
4. Retention

Question 7

What does heterogeneity cause during orientation (information search)?

Answer 7

The heterogeneity of service increases the risk for consumers because they might receive a service that does not

Question 8

What does intangiblity cause during orientation (information search)

Answer 8

Due to intangibility and the experience-credence nature of services, consumers face high uncertainty when deciding to purchase a service

Question 8

High motivation to evaluate + low ability to evaluate is applicable to ..

Answer 8

Many services

Question 9

Low motivation to evaluate + high ability to evaluate is applicable to …

Answer 9

Many products

Question 10

Choice sets are divided into which three levels?

Answer 10

1. Universal Set
2. Awareness Set
3. Evoked Set

Question 11

List the 6 choice heuristics

Answer 11

• Disjunctive
• Conjunctive
• Lexicographic
• Elimination by aspects
• Affect Referral
• Linear Compensatory

Question 12

What is an example of a disjunctive choice?

Answer 12

When selecting a restaurant, a consumer may decide that any option with at least one exceptional attribute, like a Michelin star is acceptable.

Question 13

What is an example of a conjunctive choice?

Answer 13

A travel looking for a hotel might have minimum requirements for multiple aspects like free WIFI and Central Location. Only hotels that meet all these criteria will be considered.

Question 14

What is an example of lexicographic?

Answer 14

When buying a smartphone, a consumer might rank camera quality over all other features. They would select the phone with the best camera, but if there are multiple they then consider the next most important attribute, like battery life.

Question 15

What is an example of Elimination by Aspects (EBA)?

Answer 15

In choosing a university, a student might first eliminate options that don’t offer their preferred major. Then, among thoe remaining, they might eliminate universities that don’t offer scholarships. THis process continues till they find their desired choice.

Question 16

What is an example of affect referral?

Answer 16

A consumer might choose a brand of soda not based on price, flavor or variety, but simply because they have positive feelings towards the product or brand.

Question 17

What is an example of linear compensatory choice making?

Answer 17

A consumer might assign different importance weights to attributes like price, processing speed, and battery life. They would then multiply each laptops performance on these attributes by the assigned importance and sum them. Conclude based on this sum .