Exam 5: Distributing Services through Physical and Electronic Channels

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.

Physical logistics services now find themselves competing with telecommunications services. This is a result of the instantaneous delivery capability of information-based products.

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

Give an example of a service with a locational constraint.