Essay answers

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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

Chapter

14

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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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.

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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)

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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

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Benefits and Challenges for
Franchisers of Service

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Benefits and Challenges for
Franchisees of Service

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Benefits and Challenges in Distributing Services through Agents and Brokers

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Benefits and Challenges in Electronic Distribution of Services

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Common Issues Involving Intermediaries

• conflict over objectives and performance
• difficulty controlling quality and consistency across outlets
• tension between empowerment and control
• channel ambiguity

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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

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H&R Block: Providing Multiple Service Channel Options