Distrubuting Service Through Physical And Electronic Channels.ppt

Distribution in a Services Context Distribution in a Services Context In a services context, we often don’t move physical products - dentist Experiences, performances, and solutions are not being physically shipped and stored - hotel More and more informational transactions are conducted through electronic and not physical channels -education Applying the Flow Model of Distribution 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 Most core services require physical locations Many supplementary services are informational; can be distributed widely and cost-effectively via other means such as telephone or the Internet Information and Physical Processes of Augmented Service Products Order-Taking Make/confirm reservations Submit applications Order goods, check status Safekeeping Track package movements Check repair status CORE: Use Web to deliver information-based core services Core Consultation Conduct e-mail dialog Use expert systems Hospitality Record preferences Billing Receive bill Make auction bid Check account status Exceptions Make special requests Resolve problems Payment Pay by bank card Direct debit Information Read brochure/FAQ; get schedules/ directions; check prices Distribution Options for Serving Customers Customers visit service site - dentist Convenience of service factory locations and operational schedules important when customer has to be physically present Service providers go to customers – house cleaning Unavoidable when object of service is immovable More expensive and time-consuming for service provider Service transaction is conducted remotely – call centres - Austar Achieved with help of logistics and telecommunications Place Decisions of Service Delivery Cost, productivity, and access to labour are key determinants to locating a service faci