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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.

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Delivering Service Through Intermediaries & Electronic Channels

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  1. 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

  2. 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)

  3. 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

  4. Benefits and Challenges forFranchisers of Service

  5. Benefits and Challenges forFranchisees of Service

  6. Benefits and Challenges in Distributing Services through Agents and Brokers

  7. Benefits and Challenges in Electronic Distribution of Services

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

  9. 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

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