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Published on January 9, 2009

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Chapter 7 : Chapter 7 Distributing Services ?0? ?????? : ?0? ?????? ????(marketing channel) ??????(distribution channel),???????????,??????????????,????????????? Slide 3: ???? Slide 4: ???????? Slide 5: ?????? Slide 6: ???????? Applying the Flow Model of Distribution to Services : Applying the Flow Model of Distribution to Services Information and promotion flow Negotiation flow Product flow Distribution embraced three interrelated elements Distinguishing between Distribution of Supplementary and Core Services : Distinguishing between Distribution of Supplementary and Core Services Many core services require a physical location which severely restricts distribution. Many of the supplementary services are informational in nature and can be distributed widely and cost-effectively via other means. Information and Physical Processes of the Augmented Service Product (Fig. 7.1) : Information and Physical Processes of the Augmented Service Product (Fig. 7.1) Options for Service Delivery : Options for Service Delivery Customer goes to the service provider Convenience and operational schedules Service provider goes to the customer More expensive and time More likely to visit corporate customers than individuals Interaction at arm’s length via the Internet, telephone, fax, mail, etc. There are 3 types of interactions between customers and service firms Method of Service Delivery (Table 7.1) : Method of Service Delivery (Table 7.1) Channel Preferences Vary among Consumers : Channel Preferences Vary among Consumers The more complex and higher perceived risk associated with a service, the higher the reliance on personal channels. Consumers with higher confidence and knowledge about a service are more likely to use impersonal and self-service channels. Customers who prefer more convenience tend to use impersonal and self-service channels. Customer with social motives tend to use personal channels. Convenience is the key driver of channel choice for the majority of consumers. (including convenience times and places) Decisions about Place and Time : Decisions about Place and Time Where should service be delivered in a bricks-and-mortar context? Locational constraints: operational requirements, economies of scale Mini-stores: automation, link between the front- and backstage operation Locating in multipurpose facilities: close to where customers live or work (next page) When should service be delivered? “24/7” - Factors Encouraging Extended Operating Hours (Mgt Memo 7.1) : “24/7” - Factors Encouraging Extended Operating Hours (Mgt Memo 7.1) Economic pressure from consumers Changes in legislation Economic incentives to improve asset utilization Availability of employees to work nights, weekends Automated self-service Service Delivery in Cyberspace : Service Delivery in Cyberspace Service delivery innovations facilitated by Technology E-commerce: the move to cyberspace Technology Revolutionizes Service Delivery: Some Examples : Technology Revolutionizes Service Delivery: Some Examples Smart mobile telephones to link users to Internet Voice recognition software Automated kiosks for self-service (e.g. bank ATMs) Web sites provide information take orders and accept payment deliver information-based services Smart cards that can act as “electronic wallets” E-Commerce: the Move to Cyberspace : E-Commerce: the Move to Cyberspace Convenience (24-hour availability, save time, effort) Ease of obtaining information on-line and searching for desired items Better prices than in bricks-and-mortar stores Broad selection “5I” Principles for Developing Internet Channel : Information Individuality Interest Interactive Integration “5I” Principles for Developing Internet Channel The Role of Intermediaries : The Role of Intermediaries Delegating specific service elements Franchising The challenge of national distribution in large markets Splitting Responsibilities for Delivering Supplementary Services (Fig. 7.2) : Splitting Responsibilities for Delivering Supplementary Services (Fig. 7.2) As created by originating firm As enhanced by distributor As experienced by customer Franchising : Franchising Resources are limited Long-term commitment of store managers is crucial Local knowledge is important Fast growth is necessary to pre-empt competition Franchising is a fast growth strategy, when The challenge of national distribution in large markets : The challenge of national distribution in large markets Physical logistics Multiculturalism Law or tax rates How Service Process Affect International Market Entry : How Service Process Affect International Market Entry People Processing Services Export the service concept Import customers Transport customers to new locations Possession Processing Services Most require an ongoing local presence, whether it is the customers dropping off items or personnel visiting customer sites Information Based Services Export the service to a local service factory Import customers Export the information via telecommunications and transform it locally Barriers to International Trade in Services : Barriers to International Trade in Services Operating successfully in international markets remains difficult for certain services despite efforts of the WTO and control relaxations Barriers include Refusal by immigration offices to issue work permits Heavy taxes on foreign firms Domestic preference policies Legal restrictions Lack of broadly-agreed accounting standards Cultural differences (esp. for entertainment industry) Forces for Internationalization : Forces for Internationalization Market drivers Competition drivers Technology drivers Cost drivers Government drivers Impact will vary by service type (people, possessions, information) Impact of Globalization Drivers on Different Service Categories (Table 7.2) : Impact of Globalization Drivers on Different Service Categories (Table 7.2) Impact of Globalization Drivers on Different Service Categories (Table 7.2, cont’d) : Impact of Globalization Drivers on Different Service Categories (Table 7.2, cont’d)

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