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
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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
Benefits and Challenges for
Franchisers of Service
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Benefits and Challenges for
Franchisees 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
Strategies for Effective Service Delivery
Through Intermediaries
 Control Strategies:
 Measurement
 Review
 Partnering Strategies:
 Alignment of goals
 Consultation and
cooperation
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 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