Question 3: What may cause a cognitive dissonance in case of a luxurious restaurant like Kozmo?
Answer: In simple Psychology, cognitive dissonance refers to conflicting attitudes, behaviours or beliefs. The theory of cognitive dissonance states that when someone holds two or more conflicting attitudes or beliefs about one product or service, cognitive dissonance occurs. It is most likely to happen after a customer makes a purchase. The greater the level of commitment the greater is the risk for dissonance. The scenario depicts that Kozmo is a luxurious restaurant which is new in the town and offers a unique dining experience for the customers. Here the level of commitment is higher than the usual restaurants as it is costly to dine at the Kozmo and therefore there is always a chance of dissonance on the part of the customer. In a competitive market, consumers usually have more than one choice to select products and services from. The potential customers then weigh the probable pros and cons of each choice before making a purchase decision. The chance of confliction in the consumer’s mind increase with the amount of attractive choices available and thus the chance of cognitive dissonance also increases. All major purchases result in some sort of discomfort caused by post purchase conflict or cognitive dissonance. Now a number of factors may cause a cognitive dissonance in case of a luxurious restaurant like the Kozmo Lounge. For example, If the quality of the food falls short of the consumer’s decision the consumer will immediately feel a conflict if the purchase decision was prudent. He/she must feel dissatisfaction and might not come back for a second visit. Even if the service provided by the restaurant stuffs does not meet with the expectation the customer must feel the same confliction. In a luxurious restaurant like the Kozmo, the customers are bound to harbour opposing thoughts after purchasing the service. The outcome of these opposing thought paths will be the one that requires the least emotional stress.

Question 4: Which offers will encourage the customers to visit Kozmo Lounge?
Answer: The buyer decision process dictates that the buying process involves several steps like recognising need, information search, evaluation of alternatives and only after going through this steps a consumer makes a purchase decision. In accordance with this theory, it can be said that a business must offer some extra benefits to encourage the customers to buy their products or services. As Kozmo Loung offers a new kind of service, they have already set up a number of offers to attract new customers. But there can be a whole lot of new offers which can encourage a lot of other people to come here and enjoy the exotic dining experience this place claims to offer. Existing offers along with some suggested offers which will bring people to this restaurant are given below- First of all, this restaurant is claimed to be the first of its kind. People could come here from mere interest and if they find out that this place is what it advertises to be then they might come back for later visits. Secondly, a smoking room would be a nice edition for the people who find it hard to spend a single hour without inhaling a cigarette. As of now, people could smoke in the balcony but it could cause dissatisfaction. Thirdly, Kozmo Lounge has to offer a menu abundant with foods from different corners of the world which they claim to be their speciality. This line is capable of drawing a horde of food lovers scampering toward this restaurant. Fourthly, since this is the age of internet and everyone seems to have a smartphone now-a-days, this place could offer free wi-fi internet facility to the customers. This will entice the new generation who hardy seem to find a moment of repose to look up from their smartphone screen. People would love to dine while free browsing on the internet or downloading a music track. Fifthly, the serving style is trendy and it should impress the young people who are most probably going to be largest group of customers of the Kozmo Lounge. It’s a fusion between a lounge, a café and a restaurant. Sixthly, they offer a special package for couples which includes a special meal in the form of a candlelight dinner. Kozmo could arrange some private corners where couples might enjoy a perfect dinner in a homely environment. They can be booked for parties as well which is an added bonus for the customers and likely to attract many people to this place. Lastly, they could offer food take way service. In that way, customers who are in a hurry will be able to buy their food and if they like it they would definitely recommend the place to their family and friends and come back later to enjoy their service.

Question 5: Which characteristic do you think will encourage customers to adopt a new type of restaurant like Kozmo Lounge?
Answer: Product or service characteristics always affect its rate of adoption. Five different characteristics are responsible for influencing a service’s rate of adoption. According to me, how customers will be adopting a new type of restaurant like Kozmo Lounge, depends on this five characteristics as how well Kozmo Lounge scores on this characteristics.
Relative Advantage: Kozmo Lounge has a high relative advantage compared to the other restaurants in the city. It is the degree to which the service or product appears superior to existing products. This lounge offers a more diverse menu and ensures a homely dining experience topped up with a casual serving style. It is decorated unlike any restaurants in the city. So it scores high on the scale of innovation and secures a superior relative advantage to its competitors.
Compatibility: It is the degree to which the innovation fits the values and experiences of potential consumers. Kozmo Lounge is highly compatible with the expectations of food loving people who are prone to try new type of foods as the restaurant offers a cosmopolitan menu consisting of a load of cuisines around the world. At first, the rate of adoption will be slow as our lifestyle yet has not been progressed to the level where all types of people would come to a high end restaurant like this. Only a fragment of our society who have the financial backup to purchase a costly service of a luxurious restaurant will come here.
Complexity: The degree to which the innovation is difficult to understand or use. Gong to a restaurant to dine is not complex as well as the purchase decision. So rate of adoption would be high based on this dimension. Divisibility: It is the degree to which the results of using the innovation or service can be tried on a limited basis. Dining in Kozmo Lounge is quite expensive compared to other restaurants but people can go there to try the experience on a limited basis as there are different range of foods available there. So adoption rate would be higher based on this dimension.
Communicability: It is the degree to which the results of the purchase can be observed or described to others. The experience in Kozmo Lounge will spread faster through internet and other Social Medias as people will share their dining experience with their friends and families. So the rate of adoption would be high for Kozmo Lounge as it does not take much time to communicate the experience of dining in a restaurant.