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