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People are not always rational, rely on heuristics and are influenced by situational factors being conducive to biased decisions. Hence, the decision outcome cannot be explained by consumers’ preferences exclusively. This offers opportunities to service managers to steer the decision outcome into a desirable direction by a beneficial design of situational factors. In contrast to the discussed opportunities, situational factors can also become a pitfall for researchers and managers. I show that situational factors may compromise the validity of research results based on self reports in a service context, because the reported scores of research participants may be biased. Three perspectives related to service management are distinguished in this thesis: First, the customer independently of the service provider; second, the interaction of customer and service provider; third, the service provider independently of the customer. From the perspective of the customer, I investigate the impact of different defaults in a customization process on the decision outcome of different types of customers. From the perspective of the customer and service provider interaction, I point out a new solution to overcome a dilemma related to service productivity. Finally, from the perspective of the service provider, the possible contamination of service related constructs by socially desirable responding is examined.