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Service DistributionDirect or Company-Owned ChannelsFranchisingAgents and BrokersElectronic ChannelsCommon Issues Involving IntermediariesStrategies for Effective Service Delivery

Through Intermediaries

ChapterChapter

1414Delivering Service ThroughIntermediaries & Electronic Channels

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Service Provider Participants

service principal (originator) creates the service concept

(like a manufacturer)

service deliverer (intermediary) entity that interacts with the customer in the

execution of the service (like a distributor/wholesaler)

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Services Intermediaries

Franchisees service outlets licensed by a principal to deliver a unique

service concept it has created e.g., Jiffy Lube, Blockbuster, McDonald’s

Agents and Brokers representatives who distribute and sell the services of

one or more service suppliers e.g., travel agents, independent insurance agents

Electronic Channels all forms of service provision through electronic means

e.g., ATMs, university video courses, TaxCut software

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Benefits and Challenges forFranchisers of Service

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Benefits and Challenges forFranchisees of Service

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Benefits and Challenges in Distributing Services through Agents and Brokers

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Benefits and Challenges in Electronic Distribution of Services

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Common Issues Involving Intermediaries

conflict over objectives and performance

difficulty controlling quality and consistency across outlets

tension between empowerment and control

channel ambiguity

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Strategies for Effective Service Delivery Through Intermediaries

Control Strategies: Measurement Review

Partnering Strategies: Alignment of goals Consultation and

cooperation

Empowerment Strategies: Help the intermediary

develop customer-oriented service processes

Provide needed support systems

Develop intermediaries to deliver service quality

Change to a cooperative management structure