Week 4 continued

Question 1

what is being distributed

Answer 1

oInformation and promotion flow - Objective is to get the consumer interested in buying the service

oNegotiation flow. Reaching an agreement on the service features and configuration. Objective is to sell the right to use the service.

oProduct flow. Many services require physical facilities for delivery, therefore distribution requires a network of local sites. Information-processing services are delivered via electronic channels

Question 2

Six types of service delivery

Answer 2

see table 5.1

Question 3

Channel preferences vary between consumers

Answer 3

o For complex and high perceived risk services, people tend to rely on personal channels
o Individuals with higher confidence and knowledge are more likely to use impersonal and self-service channels
o Customers with social motives tend to use personal channels
o Convenience is a key driver of channel choice for the majority of consumers

Question 4

managerial considerations between different channels

Answer 4

o Trading hours and convenience of location (e.g. Perth time zone)
o Customer travel and waiting time
o Physical and mental effort required
o Appeal of facilities
o Appeal of personnel mechanics of service delivery

Question 5

roll of intermediaries

Answer 5

o Allows supplementary services to be outsourced, e.g. trave agent, fed-ex, debt collection, dry cleaning, insurance brokerage
o Makes service more readily available to target markets
o Avoid investments in fixed costs

Question 6

nature of the franchise agreement

Answer 6

The franchise agreement usually grants the franchisee the right to sell certain services in a stated geographic market in a manner established by the supplier

Question 7

BENEFITS of a franchise agreement to a franchisor

Answer 7

• The business format is leveraged to gain expansion and revenue
• Consistency in outlets is maintained
• Knowledge of local markets is acquired
• Financial risk is shared and capital is freed up

Question 8

benefits of a franchise to a franchisee

Answer 8

• Obtain an established business format on which to base their business
• National or regional brand marketing
• Risks of starting a business reduced

Question 9

What is service blue printing

Answer 9

• A visual, graphical approach that maps every activity needed to create and deliver a service, as well as specifying the links between these activities.
All front-stage and backstage processes are included.

• Provides a service organisation with the means of managing and controlling individual parts of the service delivery system; identifying weak points and opportunities for improving or enhancing the efficiency and productivity of the system; and preventing service failures.

Question 10

3 basic requirements for a service blueprinting

Answer 10

1. Must identify and handle errors, bottlenecks, and duplications
2. The current average timing of each principal function and the corresponding responsible personnel (staff memebers) are identified
3. The acceptable customer tolerances for each function’s timing are stated