Delivering Service Through Intermediaries Electronic Channels Chapter 14

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

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. 14 -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) 14 -3

Services Intermediaries § Franchisees § service outlets licensed by a principal to deliver a unique service concept it has created § e. g. , Jiffy Lube, Blockbuster, Mc. Donald’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, Tax. Cut software 14 -4

Benefits and Challenges for Franchisers of Service 14 -5

Benefits and Challenges for Franchisees of Service 14 -6

Benefits and Challenges in Distributing Services through Agents and Brokers 14 -7

Benefits and Challenges in Electronic Distribution of Services 14 -8

Common Issues Involving Intermediaries § conflict over objectives and performance § difficulty controlling quality and consistency across outlets § tension between empowerment and control § channel ambiguity 14 -9

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 customeroriented service processes § Provide needed support systems § Develop intermediaries to deliver service quality § Change to a cooperative management structure 14 -10

H&R Block: Providing Multiple Service Channel Options 14 -11