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Delivering service through intermediaries and electronic channels
 

Delivering service through intermediaries and electronic channels

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    Delivering service through intermediaries and electronic channels Delivering service through intermediaries and electronic channels Presentation Transcript

    • Chapter 13 Delivering Service Through Intermediaries and Electronic Channels
      • Service Intermediaries
      • Direct or Company-owned Channels
      • Common Issues Involving Intermediaries
      • Key Intermediaries for Service Delivery
      • Strategies for Effective Service Delivery Through Intermediaries
    • Objectives for Chapter 13: Delivering Service through Intermediaries and Electronic Channels
      • Identify the primary channels through which services are delivered to end customers.
      • Provide examples of each of the key service intermediaries.
      • View delivery of service from two perspectives--the service provider and the service deliverer.
      • Identify the benefits and challenges of each method of service delivery.
      • Outline the strategies that are used to manage service delivery through intermediaries.
    • 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)
    • Key Issues Involving Intermediaries
      • conflict over objectives and performance
      • conflict over costs and rewards
      • control of service quality
      • empowerment versus control
      • channel ambiguity
    • Services Intermediaries
      • franchisees
        • e.g., Jiffy Lube, H&R Block, McDonald’s
      • agents and brokers
        • e.g., travel agents, independent insurance agents
      • electronic channels
        • e.g., ATMs, university video courses, TaxCut software
    • Table 13.1 Benefits and Challenges for Franchisers of Service
      • Leveraged business format for greater expansion and revenues
      • Consistency in outlets
      • Knowledge of local markets
      • Shared financial risk and more working capital
      • Difficulty in maintaining and motivating franchisees
      • Highly publicized disputes and conflict
      • Inconsistent quality
      • Control of customer relationship by intermediary
      Benefits Challenges
    • Table 13.1 ( Continued ) Benefits and Challenges for Franchisees of Service
      • An established business format
      • National or regional brand marketing
      • Minimized risk of starting a business
      • Encroachment
      • Disappointing profits and revenues
      • Lack of perceived control over operations
      • High fees
      Benefits Challenges
    • Table 13.2 Benefits and Challenges in Distributing Services through Agents and Brokers
      • Reduced selling and distribution costs
      • Intermediary’s possession of special skills and knowledge
      • Wide representation
      • Knowledge of local markets
      • Customer choice
      • Loss of control over pricing and other aspects of marketing
      • Representation of multiple service principals
      Benefits Challenges
    • Table 13.3 Benefits and Challenges in Electronic Distribution of Services
      • Consistent delivery for standardized services
      • Low cost
      • Customer convenience
      • Wide distribution
      • Customer choice and ability to customize
      • Quick customer feedback
      • Customers are active, not passive
      • Lack of control of electronic environment
      • Price competition
      • Inability to customize with highly standardized services
      • Lack of consistency with customer involvement
      • Requires changes in consumer behavior
      • Security concerns
      • Competition from widening geographies
      Benefits Challenges
    • Strategies for Effective Service Delivery through Intermediaries
      • Measurement
      • Review
      Control Strategies
      • Alignment of goals
      • Consultation and cooperation
      • Help the intermediary develop customer-oriented service processes
      • Provide needed support systems
      • Develop intermediaries to deliver service quality
      • Change to a cooperative management structure
      Empowerment Strategies Partnering Strategies