Exam 14: Delivering Service Through Intermediaries and Electronic Channels

Wal-Mart developed a web site ( HYPERLINK "http://www.walmart.com/" walmart.com) that most consumers were unaware of. To entice customers to visit its web site, Wal-Mart sold roses for $29 a dozen the weeks prior to Mother's Day. This price included delivery and was considerably less than what was offered by most other flower retailers. Why did Wal-Mart offer this great deal? A. Wal-Mart realized customers are active and need a reason to visit a web site B. Wal-Mart did not want to engage in price competition at its traditional stores C. Wal-Mart wanted quick customer feedback on how people rated its web site D. Wal-Mart wanted to take advantage of how consistent service offerings become with customer involvement E. Customers are passive and will always locate the best deals

Electronic media is a less efficient means for service delivery than interpersonal distribution.

When are service providers likely to enter a service partnership?

What is the most common type of distribution used by services?

Mike Leven is the president and co-founder of US Franchise Systems, one of the nation's fastest growing hotel companies. Its franchises include Microtel Inn & Suites, Hawthorne Suites and Best Inns and Suites. Which of the following is a problem US Franchise Systems is likely to experience with one of its franchisees?

How do company-owned service providers like Waffle House restaurants differ from franchise-owned service providers like Wendy's restaurants?

Which of the following is a challenge experienced by service providers when delivering services through agents and brokers?

What two approaches are used when the principal and intermediaries engage in a partnering strategy?

Jeff Leathers and Chuck Ellis operate three 9-hole golf courses called The Nightlinks in the Southeastern U.S. These golf courses are specifically designed for night playing and are described as 24-hour courses even though they are only open from 9 a.m. until midnight. It cost almost $5 million to build one of these golf courses. The fees charged each player is $40 and there is usually a waiting list for night play. What advantages would Leathers and Ellis receive if they decide to franchise their 24-hour golf course concept? What advantages would a potential franchisee receive?

Brokers are short-term representatives of buyers and sellers.

A service principal that wanted to adopt an empowerment strategy should:

An agent who negotiates commercial endorsements and speaking engagements for professional athletes is an example of a _____ agent.

Not all services can be franchised. Briefly describe what kind of services can be franchised most effectively.

Franchising works well with services that can be standardized and virtually duplicated.

Unlike the distribution of tangible products, there is no channel ambiguity with service distribution.

Which of the following is NOT a franchising challenge that a franchiser might have to cope with?

What is the greatest impediment to a service provider using a company-owned channel of distribution?

_____ are the most common type of intermediary for services.

Most people who buy franchises view the franchise as a way to get rich quickly.

Which of the following is NOT an example of a service intermediary?