Exam 5: Distributing Services Through Physical and Electronic Channels

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Discuss the impacts of the cost globalization driver on people processing, possession processing, and information-based processing service categories.

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People processing may be affected by cost because of variable labor rates in labor-intensive services. There would be a large difference in the cost of running a service in a third-world country versus a developed nation. Variable labor rates may also affect possession processing, as in automotive services. Skilled labor may be difficult to come by, as in Somalia, or may be abundant, as in Germany. Major cost elements of information-based services can be centralized and minor cost elements localized.

List the six options for service delivery (three natures of interaction between the customer and service organization; two availabilities of service outlets) and provide an example of a service that falls into each category.

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Single Site Multiple Sites
Customer goes to the service organization theater bus service
Service organization comes to customer house painter mail delivery
Remote transaction credit card telephone

Banks seeking to move into investment services will often act as the distributor for mutual fund products created by an investment firm that lacks extensive distribution channels of its own.

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First Direct is an example of a bank with too many branches.

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Service delivery is shifting to arm's length transactions for many services due to advances in telecommunications.

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List three ways that Starwood Hotels & Resorts Worldwide manages customer relationships and reservations.

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Franchising is not an appealing strategy for growth-oriented service firms because franchisees tend to be less motivated and less concerned about quality than managers in company-owned stores.

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Being open on Sunday is part of Chick-fil-A's value strategy.

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First Direct describes itself as the largest virtual bank in the world.

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List two of the four service delivery innovations facilitated by technology that are described in the chapter.

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DHL is known for using a single transport mode to create its logistics solutions for its global customer base.

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A local presence may be necessary when exporting information-based services for which of the following reasons?

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What three interrelated elements does distribution embrace in a typical sales cycle?

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Give an example of a firm that imports customers to its service facility.

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The Internet is superior to traditional channels because ____________.

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Which of the following is NOT listed as a factor in favoring adoption of transnational strategies?

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Describe the key drivers of how consumers choose between personal, impersonal, and self-service channels.

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A truck stop is a good example of a ____________.

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Describe arbitrage in the context of service provider pricing.

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List the five factors that encourage extended operating hours.

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