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Delivering Service Through Intermediaries & Electronic Channels

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Presentation on theme: "Delivering Service Through Intermediaries & Electronic Channels"— Presentation transcript:

1 Delivering Service Through Intermediaries & Electronic Channels
Chapter 14 Delivering Service Through Intermediaries & Electronic Channels Service Distribution Direct or Company-Owned Channels Franchising Agents and Brokers Electronic Channels Common Issues Involving Intermediaries Strategies for Effective Service Delivery Through Intermediaries McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

2 Objectives for Chapter 14: Delivering Service Through Intermediaries
Identify the primary channels through which services are delivered to end customers. Provide examples of each of the key service intermediaries. Discuss the benefits and challenges of each method of service delivery. Outline the strategies that are used to manage service delivery through intermediaries.

3 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)

4 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

5 Benefits and Challenges for Franchisers of Service

6 Benefits and Challenges for Franchisees of Service

7 Benefits and Challenges in Distributing Services through Agents and Brokers

8 Benefits and Challenges in Electronic Distribution of Services

9 Common Issues Involving Intermediaries
conflict over objectives and performance difficulty controlling quality and consistency across outlets tension between empowerment and control channel ambiguity

10 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

11 H&R Block: Providing Multiple Service Channel Options

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