Questions and Answers
What does distribution refer to in a services context?
What are the three interrelated flows in a sales cycle?
Information and promotion flow, negotiation flow, product flow.
Which of the following is NOT a distribution option for serving customers?
Service providers going to customers is unnecessary when the object of service is immovable.
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What achieves a remote service transaction?
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Places of service delivery can include __________.
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What are key determinants to locating a service facility?
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Which of the following is considered a locational constraint?
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Traditionally, service availability was limited to 24/7 operations.
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What are the five supplementary services that can be distributed electronically?
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Technological innovations have led to the development of __________.
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Among the factors luring customers to virtual stores are:
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What is the role of intermediaries in distributing services?
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Integrating mobile devices into the service delivery infrastructure can be used to __________.
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Study Notes
Distribution Services
- Distribution services in the context of the service industry involve the movement of experiences, performances, and solutions, rather than physical goods.
- A significant increase in informational transactions occurs through electronic channels, reducing the need for physical shipment.
Sales Cycle Flows
- Three interrelated flows in a sales cycle include:
- Information and promotion flow
- Negotiation flow
- Product flow
Customer Contact Distribution Options
- Customer visits to service sites depend on the convenience of service factory locations and operational schedules, especially when physical presence is required.
Service Providers Going to Customers
- Service providers must go to customers when the service involves immovable objects or when serving remote areas.
- There is a higher likelihood of serving corporate customers on-site compared to individual customers.
Remote Service Transactions
- Services can be conducted remotely, leveraging logistics and telecommunications to facilitate the interaction.
Place and Time Decisions in Service Delivery
- Mini-stores and automated kiosks enhance geographic coverage by creating small service factories.
- Separation of front and back operational stages, as seen in fast food chains like Taco Bell, improves efficiency.
- Purchasing space in complementary fields, such as Dunkin Donuts with Burger King, allows for resource sharing.
Locational Strategies
- Proximity to customer residences or workplaces is essential for service delivery; for example, service stations.
Key Determinants for Service Facility Location
- The main factors influencing the location of a service facility include:
- Cost
- Productivity
- Access to labor
Locational Constraints
- Operational requirements can dictate locations, like airports needing specific access points.
- Geographic factors determine placements such as ski resorts.
- Economies of scale, particularly important for hospitals, guide strategic site selection.
Timing in Service Delivery
- Traditional service schedules were limited to daytime hours; however, modern services operate 24/7 to meet customer demands globally.
Delivering Services Online
- Five supplementary information-based services can be distributed electronically:
- Information
- Consultation
- Order-taking
- Billing
- Payment
- Advanced levels of information, consultation, and order-taking are evident in global service industries like hospitality and travel.
Technological Innovations
- Technological advancements, including smart mobile phones and high-speed Wi-Fi, enhance connectivity and user access to services.
- Voice-recognition technology and smart cards also contribute by storing customer information and facilitating digital transactions.
Customer Attraction to Virtual Stores
- Factors enticing customers to online shopping include:
- Convenience and ease of search
- A broader selection of products
- Potential for better prices
- Availability of 24-hour service with quick delivery options
Recent Technological Developments
- Integration of mobile devices with websites and CRM systems improves service delivery by enabling:
- Access to services
- Alerts for opportunities or problems
- Real-time information updates
Role of Intermediaries in Service Distribution
- Intermediaries, such as franchising, offer both advantages and disadvantages in the service distribution model.
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Description
Test your knowledge on distribution services through these flashcards from Chapter 5. Explore key concepts such as the nature of service distribution and the flows involved in a sales cycle. Ideal for marketing students looking to reinforce their understanding.
