Concept explainers
Interpretation:A business is to be selected where the customers use experience, search and credence quality for evaluating the good or service is to be discussed.
Concept Introduction:
The preferences of some products and services are based on factors such as search, experience and credence quality. These factors are supportive in deciding the best as well as the most suitable option for a given scenario.
Answer to Problem 1DQ
Healthcare is a business where the customer preference will be based on the search, experience and credence quality.
Explanation of Solution
In the health care industry customers will definitely search on different physicians prior making appointments with them. They will analyze the physician’s history in the medical industry, the quality of the service, the knowledge, availability, what hospitals he/she visits, what are the available days and the available times. Most of these details can be searched through online doctor booking options that will make lives easier for the patients.
Experience of the physician will be highly considered, especially by the patients and their families’ who are to go through different types of operation and surgeries. Many patients and their families fear in going through operation and surgeries with less experience physicians. Therefore, experience will be highly considered in such scenarios.
Credence quality is another factor in health care industry that will be considered by most of the junior doctors when recommending senior doctors, physicians and specialists for their patients. Credence quality can be evaluated sometime after the consumption of the product or service. The junior doctors will consider the medical history of their ex patients, how they were treated and their current medical condition when recommending the selected senior doctors, physicians and specialists for their new patients. If they have received a negative feedback from any of their ex patients these junior doctors may refrain from recommendingsuch doctors or physicians to their new patients.
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