Discuss how the five distinctive characteristics of a service firm are illustrated by Village Volvo and explain the implications for Village Volvo managers.

Discuss how the five distinctive characteristics of a service firm are illustrated by Village Volvo and explain the implications for Village Volvo managers.

The five distinctive characteristics of a service firm are:

•    Customer Participation
•    Simultaneity
•    Heterogeneity
•    Intangibility
•    Perishability
Give one example of a service firm that either uses a focus/differentiation strategy or a focus/cost leadership strategy.  Briefly describe the market segment served by the firm.   Rate the complexity and rate the divergence of the firm’s service operation as either “high” or “low” and justify your ratings.

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