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5. Service Distribution - Coggle Diagram
5. Service Distribution
WHAT
Elements
Negotiation flow
Product flow
Information and promotion flow
Distinguishing between Distribution of Supplementary and Core Services
HOW
Types of interactions
Customers visit service site
Service providers go to customers
Service transaction is conducted remotely
6 options for Service Delivery
Customer goes to Service org
Service Org Comes to Customer
Single Site
Multiple Sites
They Transact Remotely
Channel Preferences Vary among Customers
WHERE
Steps
Strategic Location Consideration
Tactical Location Consideration
Location constraints
Operational requirements
Geographic factors
Need for economies of scale
Innovative Location Strategies
Ministores
Locating in multipurpose facilities
Place vs. Cyberspace
WHEN
Factors Encouraging Extended Operating Hours
Economic pressure from consumers
Changes in legislation
Economic incentives to improve asset utilization
Employee availability during unsocial hours
Automation
Technology Revolutionizes Service Delivery
Distribution Strategies in Services
Intensive Distribution
Exclusive Distribution
Selective Distribution
Indirect Distribution
Service Provider Participants
Service deliverer (intermediary)
Service principal (originator)
Key Services Intermediaries
Franchisees
Agents and brokers
Electronic channels
Splitting Responsibilities For Supplementary Service Elements
Challenges for original supplier
Act as guardian of overall process.
Ensure that each element offered by intermediaries fits overall service concept
Key Issues Involving Intermediaries
Conflict over objectives and performance.
Conflict over costs and rewards.
Control of service quality.
Empowerment versus control.
Channel ambiguity(who will do what?)
Direct Distribution
Benifits
Complete control.
Customer relationship.
Expansion without being bound by contractual agreements
Strategies for Effective Service Delivery through Intermediaries
Control Strategies
Partnering Strategies
Empowerment Strategies
Challenges in Distribution of Services
Purchase highly dependent on consumer spending.
Competition from low-cost service providers
Large retailers bypass distributors
Extensive government regulation for some sectors.
Dependence on few large customers
Good locations More Difficult to Find
Distribution is Sensitive to local economic conditions
E-Commerce
Increasing distribution costs