Making Services Accessible

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Influencing factors on Service Delivery
Impacts of Service Characteristics
The Role of Intermediaries
The Impact of Technology
Strength & Weaknesses of Delivery Models

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Making Services Accessible

  1. 1. +SERVICESMARKETING Distributing Services Tom Chapman www.marketing101.co.uk Twitter @idlehans
  2. 2. + Introduction  Influencing factors on Service Delivery  Impacts of Service Characteristics  The Role of Intermediaries  The Impact of Technology  Strength & Weaknesses of Delivery Models
  3. 3. + Different Services Places Characteristics Service delivery at Customer’s Place Provider’s Place Third Party’s Place Service Types Services with Services with Services with immovable immovable immovable external factors internal factors external factor at Services with high third party’s process place. standardisation Services where third party determines place Examples House Keeping Hairdresser Airport Elderly Care Bank Legal Services Restaurant (Court)
  4. 4. + Location & Customer Behaviour Characteristics Service delivery at Customer’s Place Provider’s Place Third Party’s Place Quality Less control over Tangibles Responsiveness Dimensions atmospherics. (equipment & Empathy, employees) employee relationship more important. Greater Atmospherics Customer Variability have a greater recruitment effect on buying decision
  5. 5. + Deciding on a Location
  6. 6. + Timing of Service Delivery
  7. 7. + Timing of Service Delivery
  8. 8. + Timing of Service Delivery
  9. 9. + Channels of Service Delivery
  10. 10. + Differences between electronic delivery channels Characteristics Electronic Delivery Channels Service Telephone Internet Mobile Machine Channel Customer Low High Medium High Location Flexibility Breadth of Medium Medium Medium High (Voice, Modalities (Visual) (Voice) (Visual) Visual) Interactivity High High Medium High Responsiveness Low High Medium High “for mobile service delivery, consumers are most concerned with the time- related gains they can obtain.” Kleijnen, De Ruyter, & Wetzels (2007, 42)
  11. 11. + Employees & Customers Employees Customers  They are the service  Productive Resources (Bitner, 1997)  They are the organisation  Contributors (Bitner, 1997)  They are the Brand  Competitors (Bitner, 1997)  They are the marketers  temporary employees (Bettencourt,1997)  Promoter (Bettencourt,1997)
  12. 12. + Customer Characteristics  Physical proximity  Verbal interaction  Varied activities  Heterogeneous customer mix  Core service is compatibility  Waiting times  Share time, space or facilities
  13. 13. + Intermediaries Customer Originating Firm Intermediary Experience Core + Core = Core
  14. 14. + Franchising Benefits Franchisers Franchisees  Leveraged business format  Established business format  Consistency in outlets  Brand marketing  Knowledge of local markets  Minimal start up risks  Shared risk
  15. 15. + Franchising Challenges Franchisers Franchisees  Maintaining & Motivating  Encroachment franchisees  Reduced profits and revenues  Disputes and conflict management  Lack of control  Quality control  High fees  Ownership of customer
  16. 16. + Agents & Brokers Benefits Challenges  Reduced selling & distribution  Loss of control over pricing costs and other aspects of marketing  Intermediary skill & knowledge  Representation of multiple service principles  Wide representation  Knowledge of local markets  Customer choice
  17. 17. + Channel Conflict  Objectives and performance  Costs and rewards  Quality and consistency  Empowerment and control  Channel ambiguity
  18. 18. + Technology Benefits Challenges  Consistent delivery for  Customers are active not standardised services passive  Lack of control in electronic  Low cost (marginal) environment  Price competition  Customer convenience  Inability to customise  Wider distribution  Lack of consistency with customer involvement  Customer choice and ability to  Requires changes in customer customise behaviour  Customer feedback /  Security interaction  Geographic competition
  19. 19. + Technology - Meuter, et al (2005)  “For many firms, often the challenge is not managing the technology but rather getting consumers to try the technology.”  “Managers can use tactical strategies to influence role clarity, motivation, and ability either before or after an SST has been introduced.” Meuter, et al (2005, 78)  Education  Hand Holding  Communicate benefits  Learning from other consumers
  20. 20. + References  Bettencourt, L. A. (1997). Customer voluntary performance: customers as partners in service delivery. Journal of Retailing, 73(3), 383-406.  Bitner, M. J., Faranda, W. T., Hubbert, A. R., & Zeithaml, V. A. (1997). Customer contributions and roles in service delivery. International Journal of Service Industry Management, 8(3), 193-205.  Bruhn, D. M. (2005). Services Marketing: Managing the Service Value Chain. Financial Times/ Prentice Hall.  Kleijnen, M., De Ruyter, K., & Wetzels, M. (2007). An assessment of value creation in mobile service delivery and the moderating role of time consciousness. Journal of Retailing, 83(1), 33-46.  Lovelock, C. H. W., Jochen. (2004). Services marketing (5th ed. ed. Vol. xviii, 652 p. ill. 25 cm.). Upper Saddle River, N.J.: Pearson Education International/Prentice Hall.  Palmer, A. (2007). Principles of Services Marketing. McGraw-Hill Higher Education.  Meuter, M. L., Bitner, M. J., Ostrom, A. L., & Brown, S. W. (2005). Choosing among alternative service delivery modes: An investigation of customer trial of self-service technologies. Journal of Marketing, 69(2), 61-83.

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