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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.
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Chapter 14 Delivering Service ThroughIntermediaries & 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
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)
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 in Distributing Services through Agents and Brokers
Benefits and Challenges in Electronic Distribution of Services
Common Issues Involving Intermediaries • conflict over objectives and performance • difficulty controlling quality and consistency across outlets • tension between empowerment and control • channel ambiguity
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 Strategies for Effective Service Delivery Through Intermediaries