Given the nature of their products, service firms base their facility location decisions primarily on:
A) proximity to their customers.
B) quality of life issues.
C) the availability of natural resources.
D) the possibilities of outsourcing their business operations.

Question

Quizplus · Accepted Answer

Service firms rely heavily on their proximity to customers as their products are intangible and cannot be shipped or stored. Being close to customers also allows for better communication and faster response times to customer needs. Quality of life issues, availability of natural resources, and outsourcing considerations are not as important for service firms in their facility location decisions.

Given the Nature of Their Products, Service Firms Base Their