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Chapter 7: The Service Delivery Process(SDP) - Coggle Diagram
Chapter 7: The Service Delivery Process(SDP)
Nature of service interactions: Detrimental to the service encounter, for Service Delivery Process
The Level of service contact:
Focuses on the level of face-to-face/physical contact between the service provider and the customer, whilst the service is being provided.
High: Customers presence is essential to the service being performed i.e. haircut, doctors
Medium: Customer presence is needed for a specific part of the service but the whole time. i.e. Car servicing
Low: essentially no physical contact is needed between the service provider and the customer, i.e. banking apps
Types of Service Delivery:
Customers going to licensed intermediaries, i.e. Physiotherapists
service providers that do in-house calls and/or go to customers, i.e. plumbing, DStv installations
Delivering services at an arm's length i.e. customer services, Netflix
the core services compared to the supporting service, focuses on how the customer orders the specific services and pays(supporting services), then delves into how the service(supporting services) is carried out resulting in the overall service the customer experiences
Time-related aspects during service delivery aspects:
the length of service:
base or gauge for pricing and quality, depends on the type of delivery and the service being delivered, Kidney transplant vs a cut on the knee.
Permanence of service availability:
when is the service available(can be done)
Payment considerations:
pay before(mechanic), bill after/ after SD installations, plumbing, Prior to and following SD, Netflix, subscription fees
Customer channel preferences(4 key drivers):
Personal channels when buying complex services i.e. paying mortgages online, prefer in-person help from bank officials
Have the know-how, thus use customer service and electronic channels i.e. comfortable paying bills online not comfortable buying niche products for collection
Strong social needs prefer personal contact i.e. how Koko needed help setting up the decoder, calling for DStv to come in rather than fixing it herself
Need for convenience, prefer self-service and e-SD channels to traditional call-in channels i.e. choosing a better more frequented option i.e. phone over land line
Distribution of services
The intensity of Distribution:
Exclusive distribution: using a number of intermediaries (brokers/agents/ salespersons) to offer the brand's service only. Insurance.
Selective distribution: Makes use of only a limited amount of intermediaries (subsidiaries), to provide services to its customers. for example, British airways allow some airlines so to work under its name i.e. cam air
intensive distribution: ServPs aim to make their services as available as possible by including intermediaries and third parties, i.e. customers can purchase airtime from anywhere not just the dedicated provider, spazas, retailers
intermediaries used in SDPs:
franchising:
franchisors use the brand's name and reputation to provide their services
Advantages: Shared risks, expanded operations, and increased revenue. from a franchisees perspective: national marketing, reduced risk, running an established risk
Disadvantages: Quality inconsistencies, legal disputes, lack of control pt2. encroachment, lower profit profits, and revenue,
Agents and brokers: intermediaries who act on behalf of either the service provider or a customer
2 types of agents:
Purchasing agent,
helps the customer make decisions and settle on the price
selling agents,
work with the ServPs and provide contractual authority to sell its services offerings
Advantages: reduced costs, wide representations, local market knowledge
Disadvantage: reduced control of brokers, offer various services from competitiors
Electronic Channel: service machines(ATMs), cellphones, internet providers.
Advantages: lower costs, wider distribution, consistent delivery of standard services
Disadvantages: trailing electronic services, security and privacy, and concerns, possible price competition
