Exam 14: Delivering Service Through Intermediaries and Electronic Channels

Which of the following is a franchising benefit to the franchisee?

Which of the following statements about agents is true?

Which of the following functions do service intermediaries typically perform for service principal?

Which of the following is NOT a benefit offered by agents and brokers to service principals?

Encroachment and lack of perceived control are _____ of franchising to the _____.

How do vandalism, penetration, eavesdropping and impersonation affect electronic channels?

One of the challenges inherent in distributing services through electronic channels is the fact that customers are active, not passive and must be enticed.

Terri Franciosa owns and operates a McDonald's restaurant franchise in New Jersey. Franciosa is the service:

Which of the strategies for effective service delivery through intermediaries should be used when the principal is new or lacks sufficient power to govern the strategy using control strategies?

There are many sites on the Internet where consumers can buy plane tickets at a reduced rate. Travelocity is the only Internet site where consumers can go to purchase airplane tickets, hotel reservations, amusement park tickets and admission to other tourist places. Consumers get to pick from a wide array of services. What benefit does Travelocity offer to travelers?

A retail travel agent is a _____ agent.

Heffner Funeral Homes uses the Internet to sell some 300 different products including jewelry, urns, coffins and funeral memorabilia as well as a complete line of funeral services. How would the use of electronic channels challenge the funeral home chain?

Which of the following is NOT a franchising benefit to the franchiser?

In a franchise, the intermediary controls customer relationships rather than the service principal.

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 costs almost $5 million to build one of these golf courses, but the fees charged each player is $40 and there is usually a waiting list for night play. What challenges will Ellis and Leathers potentially face if they decide to franchise The Nightlinks? What challenges will The Nightlinks franchisee potentially face?

Mike Leven is the president and co-founder of US Franchise Systems (USFS), one of the nation's fastest growing hotel companies. Its franchises include Microtel Inn & Suites, Hawthorne Suites and Best Inns and Suites. If a franchisee were to conduct market research on the motel preferences of a frequent business traveler, conflict could arise as the franchisee and USFS decide who own the research results. This would be an example of:

_____ are the only service distributors that do not require direct human interaction.

The largest impediment to most direct service channels is the loss of economies of scale.

There are two challenges associated with the distribution of services through agents and brokers. List them.