Service Delivery System

Decisions on where, when and how to deliver service have important effects on the nature of customers service experiences. They determine the types of encounters with service personnel and the price and other costs incurred to obtain the service.

Several factors shape distribution and delivery strategies.

A key question is whether the nature of the service or the firms positioning strategy requires customers to be in direct physical contact with its personnel, equipment and facilities.

Distribution Options for Service Customers 1. Customers Visit the Service Site 2. Service Providers go to Their Customers

3. The Service Transaction is Conducted Remotely

 Channel Preferences Vary Among Consumers

Key Drivers For complex and high-perceived-risk services, people rely on personal channels Individuals with greater confidence and knowledge about a services are likely to use impersonal and self-service channels. Customers who look for the instrumental aspects of a transaction prefer more convenience. Convenience is a key driver of channel choice for the majority of consumers.

 Place and Time Decisions

Factors driving the move toward extended operating hours

1. Economic pressure from consumers.

2. Changes in legislation 3. Economic incentives to improve asset utilization 4. Availability of employees to work during un-social hours 5. Automated self-service facilities

Different factors to be considered for Service Delivery Where should Service be Delivered

Locational Constraints
Mini-stores

 Location with Multipurpose facilities When Should Service Be Delivered

Delivering Services in Cyberspace

Service Delivery Innovations Facilitated by Technology E-commerce : The Move to Cyberspace. The Role of Intermediaries

 The Challenge of Distribution in Large Domestic Markets Distributing Services Internationally - How Service Processes Affect International Market Entry
People Processing Services * Export the service concept * Import Customers * Transport Customers to new locations - Possession Processing Services - 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

Factors Favoring Adoption of Transnational Strategies

1. Market Drivers 2. Competition Drivers 3. Technology Drivers 4. Cost Drivers 5. Government Drivers

How the Nature of Service Processes Affects Opportunities for Internationalization People Processing Services. Possession Processing Services Information Based Services