For most consumer services firms, the mode of entry into a foreign market is licensing, franchising, strategic alliances, or direct. This is usually done because
A) services are highly differentiated.
B) services produced cannot be added to inventory.
C) the creation and consumption of services cannot be separated.
D) the inputs used vary to a great extent.
E) services usually do not have any intrinsic value that can be converted into a tangible form.

Question

Quizplus · Accepted Answer

The creation and consumption of services cannot be separated, which means that services need to be delivered in the market where they are consumed, making modes like licensing, franchising, strategic alliances, or direct entry more suitable.

For Most Consumer Services Firms, the Mode of Entry into a Foreign