How to mitigate the positive effect of service separation on consumers’ perceived risk?

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How to mitigate the negative impact of service separation on consumers’ perceived risk?

Post by Frank_Ho on Mon Apr 12, 2010 3:57 am

The literature figure out that customer-service provider relationship can mitigate the negative impact of service separation on consumers’ perceived risk. Could you share another ways to reduce the risk pertained to service separation?
There are some kinds of separated service which can not reduce the risk by customer-service provider relationship such as e-bay, yahoo, and so on. How could we reduce the risk for these services?


Last edited by Frank_Ho on Mon Apr 12, 2010 8:33 pm; edited 1 time in total

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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

Post by MH_Huang on Mon Apr 12, 2010 10:48 am

Probably it is better to phrase the question as "How to mitigate the negative impact of service separation on consumers' perceived risk?" because "positive effect" tends to imply something good, which is not the case here.

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注冊日期 : 2010-02-20

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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

Post by Erin_Lo on Mon Apr 12, 2010 10:54 am

Oh, yap~negative impact will be better when discussing this case.
Thanks for reminding

Lets rephrase this question as

How to mitigate the" negative impact" of service separation on consumers' perceived risk?

Erin_Lo

注冊日期 : 2010-03-08

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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

Post by MH_Huang on Mon Apr 12, 2010 4:13 pm

The discussion is lukewarm. Is your group going to do some promotions?

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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

Post by Erin_Lo on Mon Apr 12, 2010 4:22 pm

MH_Huang wrote:The discussion is lukewarm. Is your group going to do some promotions?

sorry about that cuz most of our group members have unskippable classes or exams during the day. We have difficulties to stay in front of the computer all day. We have several questions left behind, we'll post them one by one later in the day. And we'll work as hard as possible after today's classes and exams. Thanks for reminding.

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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

Post by Frank_Ho on Mon Apr 12, 2010 8:47 pm

To reduce the risk pertained to service separation, I think there might be some mechanism for customer to “believe” as customer-service provider relationship such as confirmation or comments from public. For example, users of “yahoo shopping” can make positive or negative comments of products or seller. By such design, customer can get more trustworthy information of separated services, and reduce the risk pertained to service separation.

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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

Post by Jamie_Tang on Mon Apr 12, 2010 8:54 pm

I think for the most part I'd agree with what Frank says. Usually ratings keep sellers honest and the buyers more comfortable about buying items. Although sometimes I wonder, if someone has a bad rating, can't they just make a new account and then they wouldn't have those bad ratings anymore?

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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

Post by Erin_Lo on Mon Apr 12, 2010 9:11 pm

Well, from my experience, I don't think sellers will do that. Because the system records all ratings attached to the account, and if a seller make a new account just in order to erase those bad ratings, I think it is not an efficient way. If a seller choose to set up a new account everytime after he or she gets bad comments from buyers, this may increase lots of costs. I think it will be better for the seller to increase their quality rather than make an new account.

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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

Post by Jamie_Tang on Mon Apr 12, 2010 9:23 pm

Ah well thats true, I just used to wonder if people ever did that. Well, I used to buy a lot of my textbooks online, and yeah just seeing good ratings for a person will make me feel that person would be trustworthy to buy from and probably won't send me a ripped or horribly damaged book.

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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

Post by Frank_Ho on Mon Apr 12, 2010 11:22 pm

Actually, I think there still might be some risk of shopping on the internet, and seriously speaking, some would be illegal and dangerous. For real example, my sister has been treated and lost $30,000! However, I believe that more efficient the information is, less risky separated service is.

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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

Post by camille_girard on Mon Apr 12, 2010 11:30 pm

A good way to mitigate the negative effect of service separation is to provide to consumer a lot of information about the service delivering how they will process or they can use also example, testimonies or photos. They can also prove that they are very serious on showing certification.
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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

Post by Roy on Tue Apr 13, 2010 12:50 am

People may trust rating or some informaition they received on internet or some kinds of rating, but everyone knows the rating
or appraisal can be manipulated easily in many ways.

I dare not to say I know one way that can mitigate the negative effect of service seperationon consumers' perceived risk, but I know
It's hard to use rating system.

Roy

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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

Post by Raphy_Liang on Tue Apr 13, 2010 12:52 am

I think is insurance or some specified remedy before buying the service. if the service can't satisfy me, at least i can get some compensation.


Last edited by Raphy_Liang on Tue Apr 13, 2010 12:54 am; edited 1 time in total

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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

Post by Nemo_Kuo on Tue Apr 13, 2010 12:53 am

Take Yahoo shopping in Taiwan for example, not only ratings but also Yahoo shopping manager can make customers more easy to believe online sellers and make sellers to be "nice" and honest.
Because customers can appeal their bad shopping experiences to Yahoo's shopping manager, and if a lot of customers have bad criticism towards the same seller, Yahoo shopping manager will stop the seller's right to sell products on Yahoo.

And moreover, if what Jamie said really happends, there is a simple solution to this situation--checking bad seller's IP.
When someone try to register a new account, check his(her) IP.
If his(her) IP is the same as bad seller's IP, most likely they are the same person and Yahoo can prohibit him(her) to have a new account.
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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

Post by chiaying_lin on Tue Apr 13, 2010 12:58 am

i think customers in an established relationship with the service provider are more likely to purchase the separated mode than new customers, because their previous interactions or their friends' interactions can mitigate the negative consequence of separation and thus increase its perceived value.

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Re: How to mitigate the positive effect of service separation on consumers’ perceived risk?

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