To Reduce the Uncertainty Created by ________ Properties, Service Consumers

question 44

Multiple Choice

To reduce the uncertainty created by ________ properties, service consumers turn to personal sources of information such as opinion leaders, early adopters, and reference group members during the purchase decision process.

• A) search
• B) credence
• C) experience
• D) expertise
• E) quality

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Definitions:

Variable Cost

A cost that varies with the level of output or production volume.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Depreciation

The allocation of the cost of an asset over its useful life, reflecting the reduction in value owing to wear and tear, age, or obsolescence.

Sensitivity Analysis

The study of how the variation in the output of a model can be apportioned, qualitatively or quantitatively, to different sources of variation in the input of a model.