A cost can be assigned to different levels of service

Jin akashini

Senior Member
vietnamese
Hello every body,

I would like you ask you meaning of the clause "a cost can be assigned to different levels of service" in this context. I do not understand what it means correctly. I think, it is something like with 50$, you can buy different levels of service, (like going by bus or train with 50$), but it seems to make no sense :confused:

"Where a cost can be assigned to different levels of service, and customers can realistically be expected to prioritise components within a ‘package’ of options,
there are research techniques that ask customers to ‘trade off’ cost against various service elements, helping an organisation understand more about what
their customers value. ‘Trade off’ research (which often uses a statistical technique called conjoint analysis) is widely used in the private sector to design the optimal service offering for different customer groups."

There above sentence is a document on customer satisfaction measurement, here is link

http://www.tns-bmrb.co.uk/uploads/files/iips-insight-customer-satisfaction-toolkit.pdf.?

Many thanks,
 
  • Egmont

    Senior Member
    English - U.S.
    A company can provide different levels of customer service. For example, suppose you take your car to a garage for service in the morning. The garage can:

    1. Do nothing to help you reach your place of work. That is the lowest possible level of service. It costs the least.
    2. Call a taxi for you. That costs them little, but it doesn't help you much because you could do the same with your mobile phone.
    3. Lend you a car for as long as your car is in the garage.
    4. Provide a car with a driver to take you to work, then to pick you up at the end of the day and bring you back to the garage.

    Each level of service has a cost here.

    Or, they could provide a place for you to wait. At little cost, that place could be a few chairs in a corner of the garage. At higher cost, it could be a separate room with a coffee maker. At still more cost, they could provide a television, wi-fi, a bit of food ... Each higher level of service has a higher cost.

    "Trading off" means evaluating how much more customers will pay for service if it includes the use of a car than they would pay for the same service without the use of a car, and so on.
     
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