Describe How the Three-Stage Model of Service Consumption Could Explain

question 20

Essay

Describe how the three-stage model of service consumption could explain consumer behavior in a low-contact service like investing.

---

Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and entitles the owner to a share of the company's profits.

Corporate Bond

A debt security issued by a corporation to raise financing for capital improvements, expansion, or other operational needs.

Profits

Earnings resulting from the successful management of a business, calculated as total revenues minus total costs.

Retains Earnings

The portion of a company's profits that are kept or withheld from shareholders to reinvest in the business or pay off debt.