NOTE: Please explain what’s in the image, thank you. HOW SHOULDA SERVICE BE DISTRIBUTED?Here, a key question is: Does the service or the firm's positioning strategy require customers to be in directphysical contact with its personnel, equipment, and facilities? (As we saw in Chapter 1, this is unavoidablefor people-processing services but may not be necessary for other categories.) If so, do customers haveto visit the facilities of the service organization, or will the service organization send personnel andequipment to customers' own sites? Alternatively, can transactions between provider and customer becompleted through the use of either telecommunications or physical channels of distribution? (The threepossible options are shown in the first column of Table 5.1.) For each of these three options, should thefirm maintain just a single outlet or offer to serve customers through multiple outlets at differentlocations?Customers Visit the Service SiteFor services that require customers to visit service sites, firms need to consider key factors such as costs(e.g., rental), customer catchment areas, convenience of service outlet locations for the customer, andoperational hours. Elaborate statistical analyses (including retail gravity models) are used to help firmsmake decisions on where to locate supermarkets or similar large stores relative to the homes andworkplaces of future customers.Service Providers Go to Their CustomersFor some types of services, the service provider visits the customer. When do they do this?Going to the customer's site is unavoidable when the object of the service is some immovablephysical item, such as a tree that has to be pruned (Figure 5.3) or a house that requires pest-control treatment.There may be a profi table niche in serving individuals who are willing to pay a premium for theconvenience of receiving personal visits or home delivery. Th ink of Domino's Pizza's deliveryservice or Starbucks's new system of delivery to offi ce buildings. Th e latter was launched in 2015in Manhattan and Seattle, with workers in the Empire State Building being the fi rst to enjoy theconvenience of having their favorite Espresso Frappuccino Blended Coff ee and other energyboosters delivered directly to their desks.Another example is that of a young veterinary doctor who has built her business around house calls tocare for sick pets. She has found that customers are glad to pay more money for a service that not onlysaves them time but is also less stressful for their pets, compared to waiting in a crowded veterinary clinicfull of other animals and their worried owners. In remote areas like Alaska or Canada's Northwest Territory, service providersoften fly to visit their customers because the latter find it extremely difficultto travel. Australia is famous for its Royal Flying Doctor Service, in whichphysicians fl y to make house calls at farms and sheep stations in the outback. In general, service providers are more likely to visit corporate customers at theirpremises than individuals in their homes. This reflects the larger volume associatedwith business-to-business (B2B) transactions.Agrowing service activity involves the rental of both equipment and labor at the customer's site for specialoccasions or in response to customers who need to expand their capacity during busy periods. ServiceInsights 5.1 describes the B2B services of Aggreko, an international company that rents generating andcooling equipment around the world.

Question

NOTE: Please explain what’s in the image, thank you. HOW SHOULDA SERVICE BE DISTRIBUTED?Here, a key question is: Does the service or the firm's positioning strategy require customers to be in directphysical contact with its personnel, equipment, and facilities? (As we saw in Chapter 1, this is unavoidablefor people-processing services but may not be necessary for other categories.) If so, do customers haveto visit the facilities of the service organization, or will the service organization send personnel andequipment to customers' own sites? Alternatively, can transactions between provider and customer becompleted through the use of either telecommunications or physical channels of distribution? (The threepossible options are shown in the first column of Table 5.1.) For each of these three options, should thefirm maintain just a single outlet or offer to serve customers through multiple outlets at differentlocations?Customers Visit the Service SiteFor services that require customers to visit service sites, firms need to consider key factors such as costs(e.g., rental), customer catchment areas, convenience of service outlet locations for the customer, andoperational hours. Elaborate statistical analyses (including retail gravity models) are used to help firmsmake decisions on where to locate supermarkets or similar large stores relative to the homes andworkplaces of future customers.Service Providers Go to Their CustomersFor some types of services, the service provider visits the customer. When do they do this?Going to the customer's site is unavoidable when the object of the service is some immovablephysical item, such as a tree that has to be pruned (Figure 5.3) or a house that requires pest-control treatment.There may be a profi table niche in serving individuals who are willing to pay a premium for theconvenience of receiving personal visits or home delivery. Th ink of Domino's Pizza's deliveryservice or Starbucks's new system of delivery to offi ce buildings. Th e latter was launched in 2015in Manhattan and Seattle, with workers in the Empire State Building being the fi rst to enjoy theconvenience of having their favorite Espresso Frappuccino Blended Coff ee and other energyboosters delivered directly to their desks.Another example is that of a young veterinary doctor who has built her business around house calls tocare for sick pets. She has found that customers are glad to pay more money for a service that not onlysaves them time but is also less stressful for their pets, compared to waiting in a crowded veterinary clinicfull of other animals and their worried owners.> In remote areas like Alaska or Canada's Northwest Territory, service providersoften fly to visit their customers because the latter find it extremely difficultto travel. Australia is famous for its Royal Flying Doctor Service, in whichphysicians fl y to make house calls at farms and sheep stations in the outback.> In general, service providers are more likely to visit corporate customers at theirpremises than individuals in their homes. This reflects the larger volume associatedwith business-to-business (B2B) transactions.Agrowing service activity involves the rental of both equipment and labor at the customer's site for specialoccasions or in response to customers who need to expand their capacity during busy periods. ServiceInsights 5.1 describes the B2B services of Aggreko, an international company that rents generating andcooling equipment around the world.

Accepted Answer

The product or any services are into retail stores and services are distributed and depending on…