distribution of services
TRANSCRIPT
14-2Service Distribution through intermediariesCoproduce services using a process
developed by service principal (franchisee: haircutting, key making, dry-cleaning).
Make services locally available (Time & space convenience).
Build trusting relationships.
14-3
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)
14-4
Services Intermediaries Franchisees
service outlets licensed by a principal to deliver a unique service concept it has created e.g., Javed Habib’s, Blockbuster, McDonald’s, KFC
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 like TV,
telephone, interactive multimedia and computers. e.g., ATMs, university video courses, TaxCut software
14-5
Direct or Co. – owned channels
Many services are distributed directly from provider to consumer.
Local doctors, CA, hairstylists, drycleaners, Starbucks in USA
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Analysis – Direct channels
Benefits: Complete control Consistency in
delivery and execution.
Control over hiring, firing and motivating employees.
Co. owns customer relationships.
Disadvantages: Co. alone bears
the financial risk Lack of knowledge
in local markets
14-7
Franchising
Most commonFor services that can be standardized and
duplicated through delivery process, policies, branding, etc.
It’s a relationship where service provider (franchiser) develops and optimizes a service format that it licenses for delivery by other parties (franchisees)
14-8
Benefits and Challenges forFranchisers of Service
14-9
Benefits and Challenges forFranchisees of Service
14-10
Benefits and Challenges in Distributing Services through Agents and Brokers
14-11
Benefits and Challenges in Electronic Distribution of Services
14-12
Common Issues Involving Intermediaries
conflict over objectives and performance
difficulty controlling quality and consistency across outlets
tension between empowerment and control
channel ambiguity
14-13
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
14-14
H&R Block: Providing Multiple Service Channel Options