服务营销.[英文原版].christopher lovelock.chapter 4

CHAPTER4DISTRIBUTINGSERVICESTHROUGHPHYSICALANDELECTRONICCHANNELSCOMPANIESBESTEQUIPPEDFORTHETWENTYFIRSTCENTURYWILLCONSIDERINVESTMENTINREALTIMESYSTEMSASESSENTIALTOMAINTAININGTHEIRCOMPETITIVEEDGEANDKEEPINGTHEIRCUSTOMERSREGISMCKENNATHINKGLOBALLY,ACTLOCALLYJOHNNAISBITTANIMPORTANTPARTOFTHESERVICEMODELISTHEDISTRIBUTIONOFCOREANDSUPPLEMENTARYSERVICEELEMENTSTHROUGHSELECTEDPHYSICALANDELECTRONICCHANNELSDELIVERINGASERVICETOCUSTOMERSINVOLVESDECISIONSABOUTWHERE,WHEN,ANDHOWTHERAPIDGROWTHOFTHEINTERNETANDBROADBANDMOBILECOMMUNICATIONSMEANSTHATSERVICEMARKETINGSTRATEGIESMUSTADDRESSISSUESOFPLACEANDTIME,PAYINGATLEASTASMUCHATTENTIONTOSPEED,SCHEDULING,ANDELECTRONICACCESSASTOTHEMORETRADITIONALNOTIONOFPHYSICALLOCATIONFURTHERMORE,INTHEHEATOFGLOBALIZATION,IMPORTANTQUESTIONSAREBEINGRAISEDCONCERNINGTHEDESIGNANDIMPLEMENTATIONOFINTERNATIONALSERVICEMARKETINGSTRATEGIESINTHISCHAPTER,WEDISCUSSTHEROLETHATDELIVERYPLAYSINSERVICEMARKETINGSTRATEGIESBOTHLOCALLYANDGLOBALLY,ANDEXPLORETHEFOLLOWINGQUESTIONS1HOWCANSERVICESBEDISTRIBUTEDWHATARETHEMAINMODESOFDISTRIBUTION2WHATARETHEDISTINCTIVECHALLENGESOFDISTRIBUTINGPEOPLEPROCESSINGSERVICES,POSSESSIONPROCESSINGSERVICES,ANDINFORMATIONBASEDSERVICES983WHATARETHEIMPLICATIONSFORAFIRMOFDELIVERINGTHROUGHBOTHPHYSICALANDELECTRONICCHANNELS4WHATROLESSHOULDINTERMEDIARIESPLAYINDISTRIBUTINGSERVICES5WHATARETHEDRIVERSOFGLOBALIZATIONOFSERVICESANDTHEIRDISTRIBUTIONDISTRIBUTIONINASERVICESCONTEXTIFYOUMENTIONDISTRIBUTION,MANYPEOPLEARELIKELYTOTHINKOFMOVINGBOXESTHROUGHPHYSICALCHANNELSTODISTRIBUTORSANDRETAILERSFORSALETOENDUSERSINSERVICES,THOUGH,THERESOFTENNOTHINGTOMOVEEXPERIENCES,PERFORMANCES,ANDSOLUTIONSARENOTPHYSICALLYSHIPPEDANDSTOREDMEANWHILE,INFORMATIONALTRANSACTIONSAREINCREASINGLYCONDUCTEDVIAELECTRONICCHANNELSHOW,THEN,DOESDISTRIBUTIONWORKINASERVICESCONTEXTINATYPICALSALESCYCLE,DISTRIBUTIONEMBRACESTHREEINTERRELATEDELEMENTSINFORMATIONANDPROMOTIONFLOWDISTRIBUTIONOFINFORMATIONANDPROMOTIONMATERIALSRELATINGTOTHESERVICEOFFERTHEOBJECTIVEISTOGETTHECUSTOMERINTERESTEDINBUYINGTHESERVICENEGOTIATIONFLOWREACHINGANAGREEMENTONTHESERVICEFEATURESANDCONFIGURATION,ANDTHETERMSOFTHEOFFER,SOTHATAPURCHASECONTRACTCANBECLOSEDTHEOBJECTIVEISTOSELLTHERIGHTTOUSEASERVICEEG,SELLARESERVATIONORATICKETPRODUCTFLOWMANYSERVICES,ESPECIALLYTHOSEINVOLVINGPEOPLEPROCESSINGORPOSSESSIONPROCESSING,REQUIREPHYSICALFACILITIESFORDELIVERYHERE,DISTRIBUTIONSTRATEGYREQUIRESDEVELOPMENTOFANETWORKOFLOCALSITESFORINFORMATIONPROCESSINGSERVICES,SUCHASINTERNETBANKING,DISTANCELEARNING,BROADCASTNEWS,ANDENTERTAINMENT,THEPRODUCTFLOWCANBEUNDERTAKENVIAELECTRONICCHANNELS,EMPLOYINGONEORMORECENTRALIZEDSITESDISTINGUISHINGBETWEENDISTRIBUTIONOFSUPPLEMENTARYANDCORESERVICESDISTRIBUTIONCANRELATETOTHECORESERVICEASWELLTOSUPPLEMENTARYSERVICESTHATSANIMPORTANTDISTINCTION,ASMANYCORESERVICESREQUIREAPHYSICALLOCATION,WHICHSEVERELYRESTRICTSDISTRIBUTIONFORINSTANCE,YOUCANONLYCONSUMECLUBMEDHOLIDAYSATCLUBMEDVILLAGES,ANDALIVEPERFORMANCEOFABROADWAYSHOWMUSTTAKEPLACEATATHEATERINMANHATTANUNTILITGOESONTOURHOWEVER,MANYSUPPLEMENTARYSERVICESAREINFORMATIONALINNATUREANDCANBEDISTRIBUTEDWIDELYANDCOSTEFFECTIVELYVIAOTHERMEANSPROSPECTIVECLUBMEDCUSTOMERSCANGETINFORMATIONANDCONSULTATIONFROMATRAVELAGENT,EITHERFACETOFACE,ONLINE,BYPHONE,OREVENBYMAIL,ANDTHENMAKEABOOKINGTHROUGHONEOFTHESESAMECHANNELSINSIMILARFASHION,YOUCANPURCHASETHEATERTICKETSTHROUGHANAGENCYWITHOUTTHENEEDFORANADVANCETRIPTOTHEPHYSICALFACILITYITSELFWHENYOULOOKATTHEEIGHTPETALSOFTHE“FLOWEROFSERVICE,“YOUCANSEETHATNOFEWERTHANFIVESUPPLEMENTARYSERVICESAREINFORMATIONBASEDFIGURE41INFORMATION,CONSULTATION,ORDERTAKING,BILLING,ANDPAYMENTEG,VIACREDITCARDCANALLBETRANSMITTEDUSINGTHEDIGITALLANGUAGEOFCOMPUTERSEVENSERVICEBUSINESSESTHATINVOLVEPHYSICALCOREPRODUCTS,SUCHASRETAILINGANDREPAIR,ARESHIFTINGDELIVERYOFMANYSUPPLEMENTARYSERVICESTOTHEINTERNET,CLOSINGPHYSICALBRANCHES,ANDRELYINGONSPEEDYBUSINESSLOGISTICSTOENABLEANEWSTRATEGYOFARMSLENGTHTRANSACTIONSWITHTHEIRCUSTOMERS1THEDISTRIBUTIONOFINFORMATION,CONSULTATION,ANDORDERTAKINGORRESERVATIONSANDTICKETSALESHASREACHEDEXTREMELYSOPHISTICATEDLEVELSINSOMEGLOBALSERVICEINDUSTRIES,REQUIRINGANUMBEROFCAREFULLYINTEGRATEDCHANNELSTARGETEDATKEYCUSTOMERSEGMENTSFORINSTANCE,STARWOODHOTELSITALSODRAMATICALLYAFFECTSTHENATUREOFTHESERVICEEXPERIENCEFORTHECUSTOMERBANKINGSERVICES,FORINSTANCE,CANBEDELIVEREDREMOTELYVIACOMPUTERORMOBILEPHONE,AVOICERESPONSESYSTEM,ACALLCENTER,ANDAUTOMATICTELLERMACHINESORFACETOFACEINABRANCH,OR,INTHECASEOFPRIVATEBANKINGTHROUGHADIRECTVISITTOAWEALTHYCUSTOMERSHOMERECENTRESEARCHHASEXPLOREDHOWCUSTOMERSCHOOSEAMONGPERSONAL,IMPERSONALANDSELFSERVICECHANNELSANDHASIDENTIFIEDTHEFOLLOWINGKEYDRIVERS2FORCOMPLEXANDHIGHPERCEIVEDRISKSERVICES,PEOPLETENDTORELYONPERSONALCHANNELSFOREXAMPLE,CUSTOMERSAREHAPPYTOAPPLYFORCREDITCARDSUSINGREMOTECHANNELS,BUTPREFERAFACETOFACETRANSACTIONWHENOBTAININGAMORTGAGEINDIVIDUALSWITHGREATERCONFIDENCEANDKNOWLEDGEABOUTASERVICEAND/ORTHECHANNELAREMORELIKELYTOUSEIMPERSONALANDSELFSERVICECHANNELSCUSTOMERSWHOLOOKFORTHEINSTRUMENTALASPECTSOFATRANSACTIONPREFERMORECONVENIENCE,ANDTHISOFTENMEANSTHEUSEOFIMPERSONALANDSELFSERVICECHANNELSCUSTOMERSWITHSOCIALMOTIVESTENDTOUSEPERSONALCHANNELSCONVENIENCEISAKEYDRIVEROFCHANNELCHOICEFORTHEMAJORITYOFCONSUMERSSERVICECONVENIENCEMEANSSAVINGTIMEANDEFFORTRATHERTHANSAVINGMONEYACUSTOMERSSEARCHFORCONVENIENCEISNOTJUSTCONFINEDTOTHEPURCHASEOFCOREPRODUCTSBUTALSOEXTENDSTOCONVENIENTTIMESANDPLACESPEOPLEWANTEASYACCESSTOSUPPLEMENTARYSERVICES,TOOESPECIALLYINFORMATION,RESERVATIONS,ANDPROBLEMSOLVINGSERVICEPROVIDERSHAVETOBECAREFULWHENCHANNELSAREPRICEDDIFFERENTLYINCREASINGLY,SOPHISTICATEDCUSTOMERSTAKEADVANTAGEOFPRICEVARIATIONSAMONGCHANNELSANDMARKETS,ASTRATEGYKNOWNASARBRITRAGING3FOREXAMPLE,CUSTOMERSCANASKTHEEXPENSIVEFULLSERVICEBROKERFORADVICEANDPERHAPSPLACEASMALLORDERANDTHENCONDUCTTHEBULKOFTHEIRTRADESVIATHEMUCHLOWERPRICEDDISCOUNTBROKERSERVICEPROVIDERSNEEDTODEVELOPEFFECTIVESTRATEGIESTHATWILLENABLETHEMTODELIVERVALUEANDCAPTUREITTHROUGHTHEAPPROPRIATECHANNELPLACEANDTIMEDECISIONSHOWSHOULDSERVICEMANAGERSMAKEDECISIONSONTHEPLACESWHERESERVICEISDELIVEREDANDTHETIMESWHENITISAVAILABLETHEANSWERSTARTBYUNDERSTANDINGCUSTOMERNEEDSANDEXPECTATIONS,COMPETITIVEACTIVITY,ANDTHENATUREOFTHESERVICEOPERATIONASWE103NOTEDEARLIER,THEDISTRIBUTIONSTRATEGIESEMPLOYEDFORSOMESUPPLEMENTARYSERVICEELEMENTSMAYDIFFERFROMTHOSEUSEDTODELIVERTHECOREPRODUCTITSELFFORINSTANCE,ASACUSTOMER,YOUREPROBABLYWILLINGTOGOTOAPARTICULARLOCATIONATASPECIFICTIMETOATTENDASPORTINGORENTERTAINMENTEVENTBUTYOUPROBABLYWANTGREATERFLEXIBILITYANDCONVENIENCEWHENRESERVINGASEATINADVANCE,SOYOUMAYEXPECTTHERESERVATIONSSERVICETOBEOPENFOREXTENDEDHOURS,TOOFFERBOOKINGANDCREDITCARDPAYMENTBYPHONEORTHEWEB,ANDTODELIVERTICKETSTHROUGHPOSTALORELECTRONICCHANNELSWHERESHOULDSERVICEBEDELIVEREDINABRICKSANDMORTARCONTEXTDECIDINGWHERETOLOCATEASERVICEFACILITYFORCUSTOMERSINVOLVESVERYDIFFERENTCONSIDERATIONSFROMLOCATINGTHEBACKSTAGEELEMENTS,WHERECOST,PRODUCTIVITYANDACCESSTOLABORAREOFTENKEYDETERMINANTSINTHEFIRSTINSTANCE,CUSTOMERCONVENIENCEANDPREFERENCEAREKEYFIRMSSHOULDMAKEITSHOULDBEEASYFORPEOPLETOACCESSFREQUENTLYPURCHASEDSERVICESFACINGACTIVECOMPETITION4EXAMPLESINCLUDERETAILBANKSANDFASTFOODRESTAURANTSHOWEVER,CUSTOMERSMAYBEWILLINGTOTRAVELFARTHERFROMTHEIRHOMESORWORKPLACESTOREACHSPECIALTYSERVICESLOCATIONALCONSTRAINTSALTHOUGHCUSTOMERCONVENIENCEISIMPORTANT,OPERATIONALREQUIREMENTSSETTIGHTCONSTRAINTSFORSOMESERVICESAIRPORTS,FORINSTANCE,AREOFTENINCONVENIENTLYLOCATEDRELATIVETOTRAVELERSHOMES,OFFICES,ORDESTINATIONSBECAUSEOFNOISEANDENVIRONMENTALPEOPLEGETUPSETWHENELECTRONICDISTRIBUTIONSYSTEMSLETTHEMDOWN104FACTORS,FINDINGSUITABLESITESFORCONSTRUCTIONOFNEWAIRPORTSOREXPANSIONOFEXISTINGONESISAVERYDIFFICULTTASKAGOVERNOROFMASSACHUSETTSWASONCEASKEDWHATWOULDBEANACCEPTABLELOCATIONFORASECONDAIRPORTTOSERVEBOSTONHETHOUGHTFORAMOMENTANDTHENRESPONDED,“NEBRASKA“ONEWAYTOMAKEAIRPORTACCESSMORECONVENIENTISTOINSTALLFASTRAILLINKS,SUCHASSANFRANCISCOSBARTSERVICE,LONDONSHEATHROWEXPRESS,ORTHEFUTURISTIC260MPH420KM/HSERVICETOSHANGHAISNEWAIRPORT,THEFIRSTINTHEWORLDTOUSEMAGNETICLEVITATIONTECHNOLOGYADIFFERENTTYPEOFLOCATIONCONSTRAINTISIMPOSEDBYOTHERGEOGRAPHICFACTORS,SUCHASTERRAINANDCLIMATEBYDEFINITION,SKIRESORTSHAVETOBEINTHEMOUNTAINSANDOCEANBEACHRESORTSONTHECOASTTHENEEDFORECONOMIESOFSCALEISANOTHEROPERATIONALISSUETHATMAYRESTRICTCHOICEOFLOCATIONSMAJORHOSPITALSOFFERMANYDIFFERENTHEALTHCARESERVICESATASINGLELOCATION,REQUIRINGAVERYLARGEFACILITYCUSTOMERSREQUIRINGCOMPLEX,INPATIENTTREATMENTMUSTGOTOTHESERVICEFACTORY,RATHERTHANBETREATEDATHOMEHOWEVER,ANAMBULANCEOREVENAHELICOPTERCANBESENTTOPICKTHEMUPMEDICALSPECIALISTS,ASOPPOSEDTOGENERALPRACTITIONERS,OFTENFINDITCONVENIENTTOLOCATETHEIROFFICESCLOSETOAHOSPITALBECAUSEITSAVESTHEMTIMEWHENTHEYNEEDTOTREATTHEIRPATIENTSMINISTORESANINTERESTINGINNOVATIONAMONGMULTISITESERVICEBUSINESSESINVOLVESCREATINGNUMEROUSSMALLSERVICEFACTORIESTOMAXIMIZEGEOGRAPHICCOVERAGEAUTOMATEDKIOSKSREPRESENTONEAPPROACHATMSOFFERMANYOFTHEFUNCTIONSOFABANKBRANCHWITHINACOMPACT,SELFSERVICEMACHINETHATCANBELOCATEDWITHINSTORES,HOSPITALS,COLLEGES,AIRPORTS,ANDOFFICEBUILDINGSANOTHERAPPROACHRESULTSFROMSEPARATINGTHEFRONTANDBACKSTAGESOFTHEOPERATIONTACOBELLSINNOVATIVEKMINUSSTRATEGYINVOLVESRESTAURANTSWITHOUTKITCHENS5FOODPREPARATIONTAKESPLACEINACENTRALCOMMISSARYFROMWHICHMEALSARESHIPPEDTORESTAURANTSWHICHCANNOWDEVOTEMOREOFTHEIREXPENSIVEFLOORAREATOCUSTOMERUSEANDTOOTHER“POINTSOFACCESS“SUCHASMOBILEFOODCARTS,WHERETHEFOODCANBEREHEATEDBEFORESERVINGINCREASINGLY,FIRMSOFFERINGONETYPEOFSERVICEBUSINESSAREPURCHASINGSPACEFROMANOTHERPROVIDERINACOMPLEMENTARYFIELDPERHAPSYOUVENOTICEDSMALLBANKBRANCHESINSIDESUPERMARKETS,ANDFOODOUTLETSSUCHASDUNKINDONUTSANDSUBWAYSHARINGSPACEWITHAFASTFOODRESTAURANTSUCHASBURGERKINGLOCATINGINMULTIPURPOSEFACILITIESTHEMOSTOBVIOUSLOCATIONSFORCONSUMERSERVICESARECLOSETOWHERECUSTOMERSLIVEORWORKMODEMBUILDINGSAREOFTENDESIGNEDTOBEMULTIPURPOSE,FEATURINGNOTONLYOFFICEORPRODUCTIONSPACEBUTALSOSUCHSERVICESASABANKORATLEASTANATM,ARESTAURANT,AHAIRSALON,SEVERALSTORES,ANDMAYBEAHEALTHCLUBSOMECOMPANIESEVENINCLUDEACHILDRENSDAYCAREFACILITYTOMAKELIFEEASIERFORBUSYWORKINGPARENTSINTERESTISGROWINGINSITTINGRETAILANDOTHERSERVICESONTRANSPORTATIONROUTESANDINBUS,RAIL,ANDAIRTERMINALSWITHMANYDOMESTICAIRLINESINTHEUNITEDSTATESEITHERABANDONINGONBOARDFOODSERVICEONSHORTFLIGHTSORCHARGINGFORMEALSONLONGERFLIGHTS,ENTREPRENEURSNOWSTAFFSMALLRETAILSTANDSINAIRPORTCONCOURSES,SELLINGPASSENGERSPACKAGEDSALADS,SANDWICHES,ANDBEVERAGESBEFORETHEYBOARDTHEIRFLIGHTSMOSTMAJOROILCOMPANIESHAVEDEVELOPEDCHAINSOFRETAILSTORESTOCOMPLEMENTTHEFUELPUMPSATTHEIRSERVICESTATIONS,THUSOFFERINGCUSTOMERSTHECONVENIENCEOFONESTOPSHOPPINGFORFUEL,VEHICLESUPPLIES,FOOD,ANDASELECTIONOFBASICHOUSEHOLDPRODUCTSTRUCKSTOPSONMAJORHIGHWAYSOFTENINCLUDELAUNDRYCENTERS,TOILETS,ATMS,INTERNETACCESS,RESTAURANTS,ANDINEXPENSIVEACCOMMODATION,INADDITIONTOAVARIETYOFVEHICLEMAINTENANCEANDREPAIRSERVICESINONEOFTHEMOSTINTERESTINGNEWRETAILINGDEVELOPMENTS,AIRPORTTERMINALSDESIGNEDASPARTOFTHEINFRASTRUCTUREFOR105SERVICEPERSPECTIVES42FROMAIRPORTSTOAIRMALLSAIRTRANSPORTATIONSERVICESAREBEINGTRANSFORMEDINTOVIBRANTSHOPPINGMAILSABIGCHANGEFROMTHENONDESCRIPTAREASWHEREPASSENGERSANDTHEIRBAGSUSEDTOBEPROCESSEDSEESERVICEPERSPECTIVES42WHENSHOULDSERVICEBEDELIVEREDINTHEPAST,MOSTRETAILANDPROFESSIONALSERVICESININDUSTRIALIZEDCOUNTRIESFOLLOWEDATRADITIONALSCHEDULEOFBEINGAVAILABLEABOUT40OR50HOURSAWEEKINLARGEMEASURE,THISROUTINEREFLECTEDSOCIALNORMSANDEVENLEGALREQUIREMENTSORUNIONAGREEMENTSASTOWHATWEREAPPROPRIATEHOURSFORPEOPLETOWORKANDFORENTERPRISESTOSELLTHINGSTHESITUATIONINCONVENIENCEDWORKINGPEOPLE,WHOHADTOSHOPEITHERDURINGTHEIRLUNCHBREAKORONSATURDAYSHISTORICALLY,SUNDAYOPENINGWASSTRONGLYDISCOURAGEDINMOSTCHRISTIANCULTURESANDWASOFTENPROHIBITEDBYLAW,REFLECTINGALONGTRADITIONBASEDONRELIGIOUSPRACTICETODAY,THESITUATIONHASCHANGEDFORSOMEHIGHLYRESPONSIVESERVICEOPERATIONS,THESTANDARDHASBECOME24/7SERVICE24HOURSADAY,7DAYSAWEEK,AROUNDTHEWORLDFORANOVERVIEWOFTHEFACTORSBEHINDTHEMOVETOMOREEXTENDEDHOURS,SEESERVICEPERSPECTIVE43SOMEFIRMS,HOWEVER,HAVERESISTEDTHETRENDTOSEVENDAYOPERATIONSATLANTABASEDCHICKILLA,AHIGHLYSUCCESSFULRESTAURANTCHAIN,DECLARESTHAT“BEINGCLOSEDONSUNDAYISPARTOFOURVALUEPROPOSITION“ANDCLAIMSTHATGIVINGMANAGERSANDCREWSADAYOFFISAFACTORINTHEFIRMSEXTREMELYLOWTURNOVERRATE106SERVICEPERSPECTIVES43FACTORSTHATENCOURAGEEXTENDEDOPERATINGHOURSDELIVERINGSERVICESINCYBERSPACEDEVELOPMENTSINTELECOMMUNICATIONSANDCOMPUTERTECHNOLOGYHAVESPURREDMANYNEWAPPROACHESTOSERVICEDELIVERYINTHEHOSPITALITYINDUSTRY,FORINSTANCE,RESERVATIONSAREINCREASINGLYHANDLEDVIAFIRMSWEBSITESFOREXAMPLE,SWISSHOTELHOTELSINPARTSOFNEWBRUNSWICK,WHICHISOFFICIALLYBILINGUALANDINNORTHEASTERNONTARIOFINALLY,THEREAREDIFFERENCESWITHINEACHCOUNTRYBETWEENTHELAWSANDTAXRATESOFTHEVARIOUSSTATESORPROVINCESANDTHOSEOFTHERESPECTIVEFEDERALGOVERNMENTSTHECHALLENGESINAUSTRALIAANDCANADA,HOWEVER,PALEINCOMPARISONTOTHOSEFACINGSERVICEMARKETERSINTHEMEGAECONOMYOFTHEUNITEDSTATESVISITORSFROMOVERSEASWHOTOURTHEUNITEDSTATESAREOFTENOVERWHELMEDBYTHEIMMENSESIZEOFTHECOUNTRY,SURPRISEDBYTHEDIVERSITYOFITSPEOPLE,ASTONISHEDBYTHECLIMATICANDTOPOGRAPHICVARIETYOFTHELANDSCAPE,ANDIMPRESSEDBYTHESCALEANDSCOPEOFSOMEOFITSBUSINESSUNDERTAKINGSCONSIDERSOMEOFTHESTATISTICSMARKETINGATANATIONALLEVELINTHE“LOWER48“STATESINVOLVESDEALINGWITHAPOPULATIONOFSOME300MILLIONPEOPLEANDTRANSCONTINENTALDISTANCESTHATEXCEED2,500MILES4,000KMIFHAWAIIANDALASKAAREINCLUDED,THEMARKETEMBRACESEVENGREATERDISTANCES,COVERINGSIXTIMEZONES,INCREDIBLETOPOGRAPHICVARIETY,ANDALLCLIMATICZONESFROMARCTICTOTROPICALFROMALOGISTICALSTANDPOINT,SERVINGCUSTOMERSINALL50STATESMIGHTSEEMATLEASTASCOMPLEXASSERVINGCUSTOMERSTHROUGHOUT,SAY,EUROPE,NORTHAFRICA,AND112THEMIDDLEEAST,WEREITNOTFORTHEFACTTHATTHEUNITEDSTATESHASANEXCEPTIONALLYWELLDEVELOPEDCOMMUNICATIONS,TRANSPORTATION,ANDDISTRIBUTIONINFRASTRUCTURETHEUNITEDSTATESISLESSHOMOGENEOUSTHANNATIONALSTEREOTYPESMIGHTSUGGESTASAFEDERALNATION,THECOUNTRYHASADIVERSEPATCHWORKOFGOVERNMENTPRACTICESINADDITIONTOOBSERVINGFEDERALLAWSANDPAYINGFEDERALTAXES,SERVICEBUSINESSESOPERATINGNATIONWIDEMAYALSONEEDTOCONFORMTORELEVANTSTATEANDMUNICIPALLAWSANDPLANFORVARIATIONSINTAXPOLICIESFROMONESTATETOANOTHERHOWEVERUSFIRMSOPERATINGINMULTIPLESTATESMAYFINDTHISEXPOSUREANADVANTAGEWHENEXPANDINGOVERSEASSEEFIGURE45BECAUSECITIES,COUNTIES,ANDSPECIALDISTRICTSSUCHASREGIONALTRANSITAUTHORITIESHAVETAXINGAUTHORITYINMANYSTATES,THEREAREALSOTHOUSANDSOFVARIATIONSFIGURE45THEGIANTUSLAWFIRMWILMERCUTLERPICKERINGHALEANDDORRLLPNOWOPERATESINFIVECOUNTRIESONTHREECONTINENTSCOURTESYOFWILMERHALE113INSALESTAXACROSSTHEUNITEDSTATESSOMESTATESDELIBERATELYSEEKOUTNEWBUSINESSINVESTMENTSBYPROMOTINGTHEIRLOWERTAXRATESOROFFERINGTAXINCENTIVESTOENCOURAGEFIRMSTOESTABLISHORRELOCATEFACTORIES,CALLCENTERS,ORBACKOFFICEOPERATIONSASTHEUSPOPULATIONHASBECOMESINCREASINGLYMOBILEANDMULTICULTURAL,MARKETSEGMENTATIONISSUESHAVEBECOMEMORECOMPLEXFORUSSERVICEMARKETERSOPERATINGONANATIONALSCALEASTHEYENCOUNTERGROWINGPOPULATIONSOFIMMIGRANTSASWELLASVISITINGTOURISTSWHOSPEAKMANYLANGUAGES,LEDBYSPANISHUSECONOMICSTATISTICSSHOWAWIDERRANGEOFHOUSEHOLDINCOMESANDPERSONALWEALTHORLACKTHEREOFTHANALMOSTANYWHEREELSEONEARTHCORPORATECUSTOMERS,TOO,PRESENTCONSIDERABLEDIVERSITY,ALTHOUGHTHERELEVANTVARIABLESMAYBEDIFFERENTFACEDWITHANENORMOUSANDDIVERSEDOMESTICMARKETPLACE,MOSTLARGEUSSERVICECOMPANIESSIMPLIFYTHEIRMARKETINGANDMANAGEMENTTASKSBYTARGETINGSPECIFICMARKETSEGMENTSSEECHAPTER7SOMEFIRMSSEGMENTONAGEOGRAPHICBASISOTHERSTARGETCERTAINGROUPSBASEDONDEMOGRAPHICS,LIFESTYLE,NEEDS,ORINACORPORATECONTEXTINDUSTRYTYPEANDCOMPANYSIZESMALLERFIRMSWISHINGTOOPERATENATIONALLYUSUALLYCHOOSETOSEEKOUTNARROWMARKETNICHES,ATASKMADEEASIERTODAYBYTHEGROWINGUSEOFWEBSITESANDEMAILHOWEVER,THELARGESTNATIONALSERVICEOPERATIONSFACETREMENDOUSCHALLENGESASTHEYSEEKTOSERVEMULTIPIESEGMENTSACROSSAHUGEGEOGRAPHICAREATHEYMUSTSTRIKEABALANCEBETWEENSTANDARDIZATIONOFSTRATEGIESACROSSALLTHEELEMENTSEMBRACEDBYTHE8PSANDADAPTATIONTODIFFERENTSEGMENTSANDLOCALMARKETCONDITIONSDECISIONSTHATAREESPECIALLYCHALLENGINGWHENTHEYCONCERNHIGHCONTACTSERVICESINWHICHCUSTOMERSVISITTHEDELIVERYSITEINPERSONDISTRIBUTINGSERVICESINTERNATIONALLYWHATARETHEALTERNATIVEWAYSASERVICECOMPANYCANTAPTHEPOTENTIALOFINTERNATIONALMARKETSTHEYDEPENDINPARTONTHENATUREOFTHEUNDERLYINGPROCESSESANDDELIVERYSYSTEMPEOPLE,POSSESSION,ANDINFORMATIONPROCESSINGSERVICESHAVEVASTLYDIFFERENTREQUIREMENTSINANINTERNATIONALDISTRIBUTIONSTRATEGYHOWSERVICEPROCESSESAFFECTINTERNATIONALMARKETENTRYPEOPLEPROCESSINGSERVICESPEOPLEPROCESSINGSERVICESREQUIREDIRECTCONTACTWITHTHECUSTOMERTHEREARETHREEOPTIONSEXPORTTHESERVICECONCEPTACTINGALONEORINPARTNERSHIPWITHLOCALSUPPLIERS,THEFIRMESTABLISHESASERVICEFACTORYINANOTHERCOUNTRYTHEOBJECTIVEMAYBETOREACHOUTTONEWCUSTOMERS,ORTOFOLLOWEXISTINGCORPORATEORINDIVIDUALCUSTOMERSTONEWLOCATIONSORBOTHTHISAPPROACHISCOMMONLYUSEDBYCHAINRESTAURANTS,HOTELS,CARRENTALFIRMS,ANDWEIGHTREDUCTIONCLINICS,FORWHICHALOCALPRESENCEISESSENTIALINORDERTOBEABLETOCOMPETEFORCORPORATECUSTOMERS,THEINDUSTRIESARELIKELYTOBEINFIELDSSUCHASBANKING,PROFESSIONALSERVICES,ANDBUSINESSLOGISTICSAMONGOTHERSIMPORTCUSTOMERS17CUSTOMERSFROMOTHERCOUNTRIESAREINVITEDTOCOMETOASERVICEFACTORYWITHDISTINCTIVEAPPEALORCOMPETENCESINTHEFIRMSHOMECOUNTRYPEOPLETRAVELFROMABROADTOSKIATOUTSTANDINGNORTHAMERICANRESORTS,SUCHASWHISTLERBLACKHOLMINBRITISHCOLUMBIAORVAILINCOLORADOIFTHEYCANAFFORDIT,THEYMAYALSOTRAVELFORSPECIALIZEDMEDICALTREATMENTATFAMOUSUSHOSPITALSANDCLINICS,SUCHASTHEMASSACHUSETTSGENERALHOSPITALORTHEMAYOCLINICINCREASINGLY,ATWOWAYTRAFFICISDEVELOPINGINHEALTHCARE,WITHAGROWINGNUMBEROFPATIENTSFROMNORTHAMERICA,EUROPE,ANDAUSTRALASIATRAVELINGTOCUSTOMBUILTMODEMHOSPITALSINASIANCOUNTRIESFORANARRAYOFMEDICALINTERVENTIONSBYWESTERNTRAINEDSPECIALISTS,RANGINGFROMHIPREPLACEMENTSTOCOSMETICSURGERYEVENAFTERPAYINGFORTRAVELANDACCOMMODATION,THETOTALCOSTUSUALLYAMOUNTS114TOFARLESSTHANPATIENTSWOULDPAYINTHEIRHOMECOUNTRIES,WITHTHEADDEDATTRACTIONOFRECUPERATINGUNDERVACATIONLIKECONDITIONSATANOFTENEXOTICLOCATIONPROSENJITDATTAANDGINAKRISHNANSARHDE,“THEHEALTHTRAVELLERS“REPRODUCEDONPP207210,PROVIDESAFASCINATINGPERSPECTIVEONTHESEDEVELOPMENTSTRANSPORTCUSTOMERSTONEWLOCATIONSINTHECASEOFPASSENGER,TRANSPORTATION,EMBARKINGONINTERNATIONALSERVICETAKESTHEFORMOFOPENINGNEWROUTESTODESIREDDESTINATIONSTHISSTRATEGYISGENERALLYUSEDTOATTRACTNEWCUSTOMERS,INADDITIONTOEXPANDINGCHOICESFOREXISTINGCUSTOMERSBESTPRACTICEINACTION42DESCRIBESSOMEOFTHEWAYSINWHICHGROUPEACCOR,AMAJORINTERNATIONALHOTELCHAIN,HASDEVELOPEDAGLOBALPRESENCEPOS