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Service Delivery System

Decisions on where, when and how to deliver service have

important effects on the nature of customers serviceexperiences.

They determine the types of encounters with service personneland the price and other costs incurred to obtain the service.

Several factors shape distribution and delivery strategies.

A key question is whether the nature of the service or the firmspositioning strategy requires customers to be in direct physicalcontact with its personnel, equipment and facilities.

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Distribution Options for Service Customers

1. Customers Visit the Service Site

2. Service Providers go to Their Customers

3. The Service Transaction is ConductedRemotely

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Channel Preferences Vary Among Consumers

Key Drivers

For complex and high-perceived-risk services, people rely onpersonal channels

Individuals with greater confidence and knowledge about a

services are likely to use impersonal and self-servicechannels.

Customers who look for the instrumental aspects of a

transaction prefer more convenience.

Convenience is a key driver of channel choice for the majorityof consumers.

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Place and Time Decisions

Factors driving the move toward extended operating

hours

1. Economic pressure from consumers.

2. Changes in legislation

3. Economic incentives to improve asset utilization

4. Availability of employees to work during un-social hours

5. Automated self-service facilities

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Different factors to be considered for Service Delivery

Where should Service be Delivered

Locational Constraints

Mini-stores

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Location with Multipurpose facilities

When Should Service Be Delivered

Delivering Services in Cyberspace

Service Delivery Innovations Facilitated by Technology

E-commerce : The Move to Cyberspace.

The Role of Intermediaries

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The Challenge of Distribution in Large Domestic Markets

Distributing Services Internationally

- How Service Processes Affect International Market Entry

People Processing Services

* Export the service concept* Import Customers

* Transport Customers to new locations

- Possession Processing Services- Information-Based Services

* Export the service to a local service factory

* Import Customers

* Export the information via telecommunications and transform it

locally.

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Barriers to International Trade in Services

Factors Favoring Adoption of TransnationalStrategies

1. Market Drivers

2. Competition Drivers3. Technology Drivers

4. Cost Drivers

5. Government Drivers

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How the Nature of Service Processes AffectsOpportunities for Internationalization

People Processing Services.

Possession Processing Services

Information Based Services