Asked by KAREN NOELIA PINEDA on Jun 22, 2024
Verified
Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor?
A) Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances.
B) Few people will travel out of state for a haircut.
C) Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital.
D) Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers.
E) Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source.
Service Firms
Companies that provide intangible products or services to customers rather than physical goods.
- Recognize the critical role that strategic positioning of business clusters plays.
Verified Answer
VC
Vitor CamargoJun 28, 2024
Final Answer :
B
Explanation :
The proximity rule for service firms emphasizes the importance of being close to customers because services are often directly consumed and cannot be transported. Few people traveling out of state for a haircut exemplifies this principle, as it highlights the necessity for service firms, like hair salons, to be located near their customers to be accessible.
Learning Objectives
- Recognize the critical role that strategic positioning of business clusters plays.