Some services expand internationally at incredible speed. For example, Lauren Lukes panacea81 became one of the worlds
Question:
Some services expand internationally at incredible speed. For example, Lauren Luke’s panacea81 became one of the world’s most popular YouTu channels in less than 12 months. Today, it has over 135 million views. Luke’s short video tutorials showing viewers how to apply make-up for various occasions have made her an Internet celebrity. She was named the most influential make-up mentor by Allure magazine, the renowned American women's magazine focused on beauty, published in New York City.
While other business models such as Airbnb, Uber and TripAdvisor, went similarly global within a few years, many services may take decades to achieve global distribution. Examples include Starbucks, FedEx and DHL.
Q1 Using services marketing theory, carefully explain why such different activities as those delivered by Starbucks and FedEx are classified as services. (6 marks)
Q2 Classify the core services delivered by Starbucks and FedEx in terms of process and motivation by product type. (3 marks) Justify your answer. (3 marks)
Q3 Use arguments based on the nature of service delivery, and on the need for balancing demand and capacity to explain why different types of services (such as Lauren Luke’s panacea81 and Starbucks or Fedex) experience different challenges in their internationalisation process.(6 marks)
Q4 Lauren Luke was named the most influential make-up mentor by Allure magazine. First justify Lauren Luke’s Internet celebrity status using market segmentation (or focus) theory (3 marks), then justify why it was important for Lauren Luke to be distinguished by the Allure magazine (3 marks).
Q5 Differentiating between important and determinant attributes in service delivery, explain why panacea81’s value proposition makes it possible to achieve competitive advantage by targeting an international market characterised by consumer heterogeneity. (7 marks).
Expert Answer:
1 Answer The American Marketing Association defines services marketing as an organizational function and a set of processes for identifying or creating communicating and delivering value to customers ... View the full answer
