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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