Transcript Chapter 14
Delivering Service Through
Intermediaries & Electronic Channels
Chapter14-1
14
Service Distribution
Direct or Company-Owned Channels
Franchising
Agents and Brokers
Electronic Channels
Common Issues Involving Intermediaries
Strategies for Effective Service Delivery
Through Intermediaries
14-2
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)
14-3
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
Benefits and Challenges for
Franchisers of Service
14-4
Benefits and Challenges for
Franchisees of Service
14-5
Benefits and Challenges in Distributing
Services through Agents and Brokers
14-6
Benefits and Challenges in Electronic
Distribution of Services
14-7
14-8
Common Issues Involving Intermediaries
conflict over objectives and performance
difficulty controlling quality and consistency
across outlets
tension between empowerment and control
channel ambiguity
Strategies for Effective Service Delivery
Through Intermediaries
Control Strategies:
Measurement
Review
Partnering Strategies:
Alignment of goals
Consultation and
cooperation
14-9
Empowerment
Strategies:
Help the intermediary
develop customeroriented service
processes
Provide needed support
systems
Develop intermediaries
to deliver service quality
Change to a cooperative
management structure