Session 4

Question 1

The Flow Model of Distribution:

Answer 1

1. Information and promotion flow
2. Negotiation flow
3. Product flow

Question 2

Information and promotion flow:

Answer 2

distribution of information and promo materials relating to service offer. Objective: to get the customer interested in buying the service.

Question 3

Negotiation flow:

Answer 3

reaching an agreement on service features and configuration, terms of offer, so purchase contract can be closed. Objective: to sell the right (reservation/tickets) to use a service.

Question 4

Product flow:

Answer 4

services like people/possession processing require a physical facility for service delivery. Objective: to develop a network of local/virtual sites, and/or electronic channels (internet banking).

Question 5

3 options for service delivery:

Answer 5

1. Customer visits the service provider (or intermediary): location convenience is important.
2. Service provider visit the customer (catering services, corporate services, health services etc.).
3. Remote interactions (telephone, virtual calls, internet, mail, white boards etc.) few service encounters, no visit to facilities or meeting personnel.

Question 6

4 key questions in service distribution:

Answer 6

1. What flows through the channel?
2. How should the service(s) reach the customer?
3. Where should the service(s) be delivered?
4. When should the service(s) be delivered?

Question 7

Objectives for pricing of services:

Answer 7

1. Revenue and profit objectives
2. Patronage and user base-related objectives
3. Strategy related objectives

Question 8

Revenue & Profit Objectives:

Answer 8

1. Gain profit
2. Cover costs

Question 9

Patronage and user base-related objectives:

Answer 9

1. Build demand
2. Develop a user base

Question 10

Strategy related objectives:

Answer 10

1. Support positioning strategy
2. Support competitive strategy