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What are the two types of cost that a service consumer should evaluate?

OPTIONS

  • The price of the service, and the cost of creating the service
  • The costs removed by the service, and the costs imposed by the service
  • The cost of provisioning the service, and the cost of improving the service
  • The cost of software, and the cost of hardware

Answer:

The costs removed by the service, and the costs imposed by the service

Explanation:

From the service consumer’s perspective, there are two types of costs involved in service relationships: 1. Costs removed from the service consumer by the service (a part of the value proposition). This may include costs of staff, technology, and other resources which are not needed by the consumer. 2. Costs imposed on the consumer by the service (the costs of service consumption). The total cost of consuming a service includes the price charged by the service provider (if any), plus other costs such as staff training, costs of network utilization, procurement, etc.

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