KE is a bus tour company in New Zealand that transports travelers between destinations. The document discusses KE's business model and challenges. It notes that KE cannot rely on customer retention or repeat business, as it is typically a one-time experience for travelers. The questions posed focus on ways for KE to attract more customers, overcome issues related to the service industry like variability in quality, and maintain growth given its reliance on new customers each time.
KE is a bus tour company in New Zealand that transports travelers between destinations. The document discusses KE's business model and challenges. It notes that KE cannot rely on customer retention or repeat business, as it is typically a one-time experience for travelers. The questions posed focus on ways for KE to attract more customers, overcome issues related to the service industry like variability in quality, and maintain growth given its reliance on new customers each time.
KE is a bus tour company in New Zealand that transports travelers between destinations. The document discusses KE's business model and challenges. It notes that KE cannot rely on customer retention or repeat business, as it is typically a one-time experience for travelers. The questions posed focus on ways for KE to attract more customers, overcome issues related to the service industry like variability in quality, and maintain growth given its reliance on new customers each time.
Attracting customers is important for KE as they cannot rely on customers coming back. Retention of customer is very unlikely. As the case states it is very unusual for passengers to travel on KE for a second time. Basically KE is a one-off experience that actually dissuades customers from taking the trip again. 1. What could KE characteristics?
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2. What methods does KE used to attract customers?
3. How else could they stimulate sales?
4. What are some distinctive aspects of services that are relevant to this case? 5. How do they overcome problems in : a. people as part of the product b. quality-control problems c. hard for customers to evaluate d. no inventory 6. How important are the drivers as part of the service experience ? a. How do KE ensure that the variability is reduced and motivation is maintained ? 7. This case does suggest that some service organisations are more suited to relationship marketing than others. Why and what types? 8. KE cannot rely on most customers returning, so relationship marketing may be a fruitless activity. Their resources may be better spent on other activities such as? 9. What are some of the factors that may limit the growth of KE?
10. What other ways can you think of to maintain or expand KEs business using services marketing principles e.g. demand management, positioning etc.