Question

Because of the inseparability of services, which of the following is true about the place (or distribution) of them?

Multiple choice question.
Distribution is typically ignored in marketing management.
Distribution involves a lengthy and expensive channel.
Intermediaries involved in the distribution are rare.
The distribution site becomes unimportant.

Answer 1

The correct answer is that intermediaries involved in the distribution of services are rare due to the inseparability of services, emphasizing the importance of the distribution site. Distribution channels differ significantly from those of goods, with location playing a critical role in providing services.

Step-by-step explanation:

Because of the inseparability of services, intermediaries involved in the distribution are rare. This is due to the fact that services are typically produced and consumed simultaneously, making it difficult to separate the creation of the service from its consumption. This contrasts with the distribution of goods, which can involve a lengthy and expensive channel with various intermediaries before reaching the consumer. The inseparability of services means that the distribution site is also of paramount importance, as it often dictates where the service is performed or provided, directly affecting the service experience.

Considering the Hotelling Model and Central Place Theory, which describe how retail and services gravitate towards locations that maximize customer potential or address the varying needs of a population, we see that distribution strategy in service marketing requires thoughtful site selection. This is further impacted by globalization and technology, as well as shifts in how markets are defined, with online platforms allowing for a wider distribution of certain services beyond traditional physical boundaries.

Answer 2

Intermediaries in the distribution of services are rare, and the distribution site is important due to the inseparability of services. The choice of location is informed by theories such as the Hotelling Model and the Central Place Theory. However, shifts in technology and globalization have introduced virtual services distribution, changing the traditional concept of place in service marketing.

Step-by-step explanation:

Because services are inseparable, they cannot be stored, transported, or separated from their providers. This characteristic affects the place or distribution in their marketing. Considering the inseparability of services, intermediaries involved in the distribution of services are rare because services often need to be delivered directly from the provider to the consumer. Furthermore, the distribution site becomes very important since customers typically have to go to the service provider to receive the service, which is why location strategies are crucial in services marketing.

To elaborate, the Hotelling Model suggests that businesses tend to agglomerate in locations that maximize their customer base, hence the importance of site selection. In the context of the Central Place Theory, consumers travel to the closest market for lower-order goods but would go to larger centers for higher-order services. Additionally, recent shifts in technology and globalization have partially altered the concept of place with improved communications technologies, such as the internet, allowing certain services to be distributed virtually, increasing competition for local providers.