Which of the following statements about locating facilities in the service sector is best?
A) The factors that apply to manufacturing firms often also apply to service facilities, but the impact of the location on sales and customer satisfaction is an important addition.
B) Management should avoid locating facilities where competitors are already well established, as illustrated by new car showrooms.
C) Creating a critical mass is a strategy that avoids locating near competing firms.
D) "Site specific" factors are the main reason for locating warehousing and distribution operations near the customer.

Question

Quizplus · Accepted Answer

The factors that apply to manufacturing firms, such as transportation, labor, and utility costs, are also important for service facilities. However, location can also have a significant impact on customer satisfaction and sales, which needs to be taken into account.

Option B is not entirely correct as locating near competitors can also offer benefits like shared customer base and supplier networks. Option C is specific to creating clusters of similar businesses, and option D is not entirely accurate as there may be other reasons like proximity to transportation hubs for warehousing and distribution operations.

Which of the Following Statements About Locating Facilities in the Service