Central Import - Heuristics and Biases
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Local Service Business – Heuristics and Biases
March 10, 2022
Background
The previously chosen local service business was Central Import. Located in downtown Toronto, Ontario, Central Import is an auto repair/import shop that specializes in European vehicles. Central Import provides over 80 different services from maintenance to detailing.
Central Import Service Process Flowchart
1. Effort Heuristic
The effort heuristic involves customers choosing services that require greater effort because they are better or worth more. This heuristic can be positioned in the service delivery process. At Central Import, customers are unable to observe their vehicles as they are repaired/modified, however, this heuristic involves allowing the customer to have this option. By
allowing the customer to have a full perspective on the hard work and repairs done by employees, customers can associate employee efforts with more value being added to the service. For instance, Mr. Lube's auto repair shop does not allow customers to view the service or look very effortful as their processes are relatively automated. When customers visit Central Import where the services are all performed by hand from employees, they recognize the difference in value for the same service compared to their competitors.
2. [1]
Cognitive Bias: Risk Compensation Theory (Source Cited below)
The risk compensation theory is the theory that when there is more perceived risk involved with a choice, the harder the choice is to make. Meaning that when there is minimal risk, customers make choices easily. By taking this into an advantage, Central Import can boldly advertise a warranty policy on their website, during the information service process. When customers visit Central Import’s website, the warranty policy is clearly visible, and the customer will be more inclined to choose their services because they understand there is very minimal risk in this decision. Compared to Mr. Lube that offers no warranty on repairs, Central Import’s services stand out clearly to their competitors. As well, having an accessible customer service [1] Cognitive biases in marketing: What you don't know can cost you conversions
. Cognitive Biases in Marketing What You Dont Know Can Cost You Conversions Comments. (n.d.). Retrieved March 10, 2022, from https://ppcexpo.com/blog/cognitive-biases-in-marketing
Local Service Business – Heuristics and Biases
March 10, 2022
line is essential for the risk compensation theory because customers will feel more protected when they can contact the company easily to mitigate risks.
[1] Cognitive biases in marketing: What you don't know can cost you conversions
. Cognitive Biases in Marketing What You Dont Know Can Cost You Conversions Comments. (n.d.). Retrieved March 10, 2022, from https://ppcexpo.com/blog/cognitive-biases-in-marketing
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