Transcript
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Chapter 5:
DistributingServices ThroughPhysicalAndElectronic Channels
Services Marketing 7e, Global Edition
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Overview Of Chapter 5
Distribution in a Services Context
Options for Service Delivery
Place and Time Decisions
Delivering Services in Cyberspace
The Role of Intermediaries
The Challenge of Distribution in Large Domestic Markets
Distributing Services Internationally
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What is Distribution ?
Distribution: The way in which something is shared out among
a group or spread over an area.
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Distribution in a Services
Context
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Distribution in a Services Context
In a services context, weoften don’t move physicalproducts
Experiences, performances,
and solutions are not beingphysically shipped andstored
More and more informational
transactions are conductedthrough electronic and notphysical channels
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Applying the Flow Model ofDistribution to Services
The three interrelated elements of distribution are:
Information and promotion flow
To get customer interested in buying the service
Negotiation flow
To sell the right to use a service
Product flow
To develop a network of local sites
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Distinguishing(unique) betweenDistribution of Supplementary andCore Services
Most core services requirephysical locations
Many supplementaryservices are informational;
can be distributed widelyand cost-effectively viaother means
Telephone
Internet
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Information and Physical Processesof Augmented(increased) Service Products
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Using Websites for Service Delivery
Order-TakingMake/confirm reservationsSubmit applicationsOrder goods, check status
SafekeepingTrack package movementsCheck repair status
Information ProcessPhysical Process
Core
ConsultationConduct e-mail dialogUse expert systems
Hospitality
Record preferences
BillingReceive billMake auction bid
Check account status
ExceptionsMake special requests
Resolve problems
PaymentPay by bank card
Direct debit
InformationRead brochure/FAQ; get schedules/
directions; check prices
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Options for Service Delivery
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Channel Preferences Vary AmongCustomers
For complex(multifaceted) and high- perceived(supposed) risk services,people tend to rely(trust) on personal channels (e.g. mortgage dealingthey will use face to face)
Individuals with greater confidence and knowledge about a
service/channel tend(have a habit of)to use impersonal(easy to use)and self-service channels
Customers with social motives(reasons)tend to use personal channels
Convenience is a key driver of channel choice
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Place and Time Decisions
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Place Decisions of Service Delivery
Cost, productivity, and access to labor are key determinantsto locating a service facility
Location constraints(limitations)
Operational requirement (e.g., airports)
Geographic factor (e.g.,ski resorts)
Need for economies of scale (e.g., hospitals)
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Time of Service Delivery
Traditionally, scheduleswere restricted
Service availability limited todaytime, 40-50 hours a week
Today
For flexible, responsiveservice operations: 24/7
service, 24 hours a day, 7days a week, all around theworld
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Delivering Services in
Cyberspace
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Service Delivery InnovationsFacilitated by Technology
Technological Innovations Development of “smart” mobile telephones and PDAs, and
presence of Wi-Fi
Voice-recognition technology
Websites
Smart cards- Store detailed information about customer- Act as electronic purse containing digital money
Electronic channels can be offered together with physicalchannels, or replace physical channels
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E-Commerce: Move to Cyberspace
What are the factors that encourage you to use virtualstores?
Convenience
Ease of search
Broader selection
Potential for better prices
24-hour service with prompt (quick) delivery
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Role of Intermediaries(Mediators)
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Franchising
Definition: An authorization granted by a government orcompany to an individual or group enabling them to carry outspecified commercial activities, for example acting as an agentfor a company's products.
"Toyota granted the group a franchise“
“Mobily, STC & Zain telecome granted the group a franchise.
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Franchising
Franchisor provides training, equipment, and supportmarketing activities.
Franchisees invest time and finance, and follow copy andmedia guidelines of franchisor.
Advantages:
Expand delivery of effective service concept without a high level ofmonetary investment
Franchisees are motivated to ensure good customer service andhigh-quality service operations
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Franchising
Disadvantages of franchising Loss of control over delivery system and how customers
experience actual service
Effective quality control is difficult
Conflict between franchisees may arise especially as they gainexperience
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Challenge of Distribution in
Large Domestic Markets
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