Question

Service consumers tend to be more brand loyal than goods consumers because:

A) more choices are available.
B) brand loyalty lowers the amount of perceived risk.
C) each service provider provides many brands.
D) the prices of their main provider are usually less expensive.
E) location of the provider is the major driver in the consumer selection process.

Answer 1

Service consumers tend to be more brand loyal than goods consumers because brand loyalty lowers the perceived risk, service providers offer multiple brands, and location is an important factor in selection.

Step-by-step explanation:

Service consumers tend to be more brand loyal than goods consumers because of the following reasons:

1. Brand loyalty lowers the amount of perceived risk. When consumers have a positive experience with a service provider, they are more likely to continue using that provider in the future and recommend it to others. This reduces the perceived risk of trying new providers.
2. Each service provider provides many brands. In the service industry, providers often offer a range of brands and options to choose from. This gives consumers more opportunities to find a brand that meets their specific needs and preferences, increasing their loyalty to the provider.
3. The location of the provider is a major driver in the consumer selection process. Service consumers often prioritize the proximity and convenience of the provider. When they find a provider that is conveniently located and offers satisfactory service, they are more likely to remain loyal to that brand.