New Balance Hubway Distribution Strategy

Short Essay: Write a minimum 200–250 word discussion responding to each of the essay questions using research from your textbook to help substantiate your understanding of distribution channels and retailing. Apply APA style referencing in your writing.

  1. Visit and browse the site. How does New Balance® Hubway use the online environment to encourage participation? Would you try Hubway without visiting a Kiosk first? Explain.

New Balanced Hubway has employed diverse ways of using online environment to promote and encourage participation. The company uses mostly their Facebook account to provide current information about their services to the customers and any person who visits the site. Similarly, the company has a twitter account and this gives room for people to post their ideas and anything relevant to the company (The Hubway, n.d). It is through the social media that the company is able to market their products and enhance their relationship with people all over the world. Moreover, the company also receives feedback about the products and services offered and this allows them to make changes where necessary.

Ultimately, the company runs its own website and it is very informative. They share information about the prices, benefits of the products and their location in their website. Also, customers can buy products through the same channel. For example if a customer wants to buy a helmet, they will send it directly to the customer. They have applications such as spotcycle app that a customer can download into his/her phone (The Hubway, n.d). After installing the application, the customers can locate bike stations and check if they are available for use. I have researched thoroughly at what New Balance Hubway offers and I am now encouraged. Therefore, I can try it without visiting a Kiosk. The point is that I will be trying the bike out since it is conducive to move around while staying fit. The bike will also be significant during rush hours and I will be able to get around easily.


  1. How does New Balance Hubway strive to provide customer service?

New Balance Hubway has a slogan that customer service is the key product they sell to their clients. They ensure that the process of renting a bike easy and convenient. The company does not necessarily require a person to stand behind the counter to provide customer services since all the services are done online. Additionally, they operate a top class website and social media accounts (The Hubway, n.d). They update their customers about the company through their website that is user-friendly. They ensure their customers are informed on hubs that are down and for how long they will be down. Besides, they update the customers on the availability of the bikes and if they are not available, they find a way to clear the hub.

Hubway employs a strategy that make the process of renting a bike simple to understand. Moreover, if a customer encounters a problem with the bike, there is a simple procedure that a customer should follow to notify them. The customer will simply push the button and the mechanic will fix the problem in the bike as quickly as possible. Therefore, there is no paperwork that might inconvenience the customers. Their services are always easy to understand by the clients. Since there is no complicated procedures and paperwork, the services provided take the least amount of time possible. Therefore, they are always fast and customers love such services.

Defend Your Answer Challenge:

Step 1: Highlight your multiple choice answer in yellow.

Step 2: Write a minimum 100 word discussion in defense of your answer to each of your multiple choice and true/false questions using research from your textbook to help substantiate your understanding of distribution channels and retailing. Apply APA style referencing in your writing.

  1. Based on the number of bike stations, what level of distribution is Hubway aiming for?
  2. Exclusive distribution
  3. Selective distribution
  4. Intensive distribution
  5. Broker distribution

Intensive distribution is a marketing strategy employed by the company to sell its products through various store outlets so that the customers can get them everywhere they go. It is a strategy that New Balance Hubway is aiming for. When the company increases the number of stations, it will record a high number of sales and generate huge profits. At the moment, New Balance Hubway is looking forward to putting more outlets in strategic areas such as Mission Hill Boston. This will allow the customer to make use of the products available. Therefore, more companies are using this strategy to generate more revenue since the more the products are available to the customers, the more the number of sales.

  1. Which type of nonstore retailer is New Balance Hubway?
  2. Automatic Vending
  3. Direct retailing
  4. Shop at home network
  5. telemarketing

New Balance Hubway is an online retailing company that falls under Automatic Vending. For my case I believe this is the best answer for this particular question. Automatic vending entails the use of machines that provide goods and services to people automatically (Lamb, Hair, & McDaniel, 2014). Therefore, it does not involve personal selling. When a person thinks of automatic vending, he/she will start thinking of machines that dispense cigarettes, snacks, lottery tickets and beverages. New Balance Hubway is an automatic vending retailer because before a customer picks or selects a bicycle, he/she will have to insert a card or pin number to access the product.

  1. Which of the following is true about New Balance Hubway?
  2. It has a high level of service with a narrow product line.
  3. It has a low level of service with a wide product line.
  4. It has a low level of service with a narrow product line.
  5. It has a high level of service with a wide product line.

New Balance Hubway has a low level of service with a narrow product line. The company offers only bikes and helmets as their products in all their stations. Their service is low because there is no contact between the employees and the clients. The company has made it easy and simple for the customers to access the bicycle since everything is done online. Similarly, instead of employing more personnel, New Balance Hubway uses computers with a few administrators who monitor the day to day operations of the company. Also, after a client has used the bicycle, he/she will have to return it without asking for help because all the operations have been computerized.

  1. Which channel for consumer products does New Balance Hubway use?
  2. Direct channel
  3. Retailer Channel
  4. Wholesaler Channel
  5. Agent/Broker Channel


The company uses a direct channel for consumer products. New Balance Hubway does not use middle persons in their operations. However, they link with the clients directly since all their products are online and at the kiosk sites. The interaction between the company and the customers is direct and the services are offered directly as well. If the customer wants to use the bicycle, he/she will visit New Balance Hubway website or the stations and pay for the product. Lastly, the company has also made it easy for the customers to contact them directly through their websites and email address. Precisely, a client can reach the company directly in case the bicycle has a problem.

  1. Which factors have the most influence on the method and level of distribution intensity New Balance Hubway uses to distribute its rental service?
  2. Market factors
  3. Product factors
  4. Producer factors
  5. Price factors


One of the factors that have the most influence is the market factors. It is an external factor that determines the demand for and prices of the goods and services offered by the company. The market factors require that New Balance Hubway should consider the following things. The company should consider the geographic location and the size of their stations. Also, they need to employ their strategies well. Therefore, the company should find the best location to put their station. This will make the customers access the area with ease. Since the company wants to add more stations in Boston, they should consider the market factor and make the right decisions.

  1. Which of the following is the best classification of New Balance Hubway’s retail operation?
  2. Department Store
  3. Off-Price retailer
  4. Convenience store
  5. Specialty store

The best classification of New Balance Hubway is a specialty store. A specialty store focuses primarily on a specific type of product (Lamb, Hair, & McDaniel, 2014). Moreover, the breadth of the product offering determines if a company is a specialty store. New Balance Hubway offers its product a specific product that is bikes. It allows self-service and all that the customer should do is to pay and take the product. In the case of a problem with the bicycle, the customers should not bother to talk to anybody, he/she should just push the button since the mechanics are available to fix the problem. Therefore, the company has only one product and that is what they can offer to the customers.

  1. When New Balance Hubway discusses managing how many bikes are in various stations, it is focusing on which aspect of service distribution?
  2. Minimizing wait times
  3. Managing service capacity
  4. Improving service delivery
  5. Data mining the stations

The company focuses in managing service capacity when it discusses on managing how many bikes are in various stations. It helps the company to find and build a plan that will be used to control and maintain the balance between business efficiency and customers’ needs. New Balance Hubway would love to satisfy its customers by giving them the products they request. Similarly, the company is still expanding and they would love to operate at optimum capacity in the future. The company’s goal is to operate efficiently and earn profit from each product they offer. Therefore, they are out to keep a balance between their clients and the efficiency of the organization.

  1. Developing the app Spotcycle, which allows customers to see where the best station to drop off their bike is by rating how full, empty, or nearby stations are is one way that New Balance Hubway minimizes wait times.
  2. True
  3. False

The statement is true because the app spotcycle provide the customers with a wide range of selection places they can easily get the bikes they want. Customers will also get information about the stations that are full and those that are near to them. The app is very useful to the customers since they will know places to drop their bikes and pick them when they are in need. Such an application is convenient to customers since it eliminate issues such as confusion. Some customers might get confused and forget the exact store to return the bike after using it. In a nutshell, the application minimizes time wastage.

  1. New Balance Hubway is a major player in non-traditional service retailing, and demonstrating how new technology can offer new ways of providing great service.
  2. True
  3. False


The statement is true simply because an individual can take care of him/herself. People have been encouraged and also they take cycling as a routine hence it has become more popular. Similarly, most people would love to maintain their health and care for the environment. Therefore, the company has the mission to keep their customers in good shape by allowing them to exercise through cycling and also maintain an environment that is conducive to everyone. New Balance Hubway uses its social media accounts, email addresses and official website to offer great customer services. The spotcycle application helps customers save time and also customers can buy extra products from the website.



Lamb, C. W., Hair, J. F., & McDaniel, C. (2014). MKTG7. Mason, OH: South-Western, Cengage.

The Hubway (n.d). Retrieved from




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