Tips on Decision-Making Process of Managing Services


In the pre-purchase phase of the consumer decision-making process, managers must
understand risk perceived by customers, especially first-time customers, and adopt
appropriate strategies to reduce this risk perception.
1) Choose a ‘service’ organisation and provide examples of the types of risk perceived by
2) What strategies are currently in place to minimise each risk?
3) Devise additional strategies that management may apply to further minimise risk.
The organisation that you choose to analyse in your report may be located in Australia or
overseas, however it is VITAL that you have a very THOROUGH UNDERSTANDING of
your chosen organisation for this assignment.


Service organization: For the completion of the assignment that is based on the pre-purchase behavior of the consumer decision-making process, we will identify the different types of risks that are perceived by the consumer in the Bookplate Restaurant of Australia that is located in Parks ACT Avenue, Australia.


Task 1

Types of risk
Perception of consumers
Financial risk
Financial risk is perceived by the consumers in the sense, as the consumer went to restaurant for dining or for hang out with friends. So always a risk is there in the mind of the consumer that the service that they are availing is fairly paid off, means they are not feel overpaid for the product.
Security risk
This risk is perceived by the consumer when the consumer belong from the high status and is particularly concern about the health ( (2018). So always there is risk in the mind of consumer that the products that are offered in a restaurant are fresh and healthy and do not provide any health hazards in future due to contamination.
Time risk
If the waiting time is more in serving the food, this is called time risk. The customers do not want to wait for a long time, and if they have to wait for long in serving the food, they don’t want to go in that restaurant again.


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Task 2:

Present strategies
Financial risk
For avoiding the perceived financial risk the management of the restaurant has to keep affordable prices for the products, which are similar with that to the competitors, but with excellent service quality so that the customers will not feel that they pay high price for the offered products.
Security risk
In the restaurant business health and hygiene factor is the common security risk that is perceived by the consumers. For eliminating that risk the management has to keep fresh food materials in the kitchen by maintaining proper cleaning facilities so that the ambience of the restaurant will be pleasant and tidy and it will ultimately attract more and more customers (Insure on. (2018). .
Time risk
For avoiding the time risk , the management is providing training to the waiters and the chefs , so that the food is prepared quickly and deliver to the customer table as soon as possible , so that the customer do not have to wait for a long time.


Task 3:

Additional strategies
Food service license- Bookplate restaurant has to take food service license from the local health department, so that the customers feel satisfied that the restaurant is legally genuine and authentic (Mialon,2018).
Update Allergen and Dietary disclosures: according to the Food Allergy Research and Education approx. 30% of Australians have food allergies, and if the business serve the dish with the undisclosed ingredient that will harm the customer, the restaurant could be slapped with lawsuit (Kanyan, 2018). To avoid this the company has to list all the potential allergens in the physical or online menu card, so that the customers can make informed decisions.
After sales customer service: The management has to offer after sales customer service by providing the regular customers with gift coupons and discounts, and by providing the facility of home delivery , so that the regular customer will be converted into loyal customer.



 Insure on. (2018). Risk Management Strategies for Food Businesses | Food Services Business Resources. [Online] Available at: [Accessed 6 Apr. 2018]. (2018). [Online] Available at: [Accessed 6 Apr. 2018].
Kanyan, A., Ngana, L. and Voon, B. (2018). Improving the Service Operations of Fast-food Restaurants.
Mialon, M., Swinburn, B. and Sacks, G., 2018. A proposed approach to systematically identify and monitor the corporate political activity of the food industry with respect to public health using publicly available information. Obesity reviews, 16(7), pp.519-530.

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