Experience Differentiation

question 90

Multiple Choice

Experience differentiation

• A) isolates the consumer from the delivery of a service.
• B) is an extension of product differentiation in the service sector.
• C) uses only the consumer's senses of vision and sound.
• D) keeps consumers from becoming active participants in the service.
• E) is the same as product differentiation, but applied in the service sector.

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Definitions:

Raw Material

Basic materials used in the production process of goods, often processed in intermediate steps before fabrication of the final product.

Fixed Overhead

Charges that keep the same level despite the degree of manufacturing or sales activities, including space rental, worker wages, and protection plans.

Predetermined Overhead Rate

An estimated overhead cost rate used in cost accounting to allocate overhead expenses to products or job orders.

Direct Labor Costs

Compensation and perks given to workers directly engaged in creating products or services.