love lock 07
TRANSCRIPT
-
8/14/2019 Love Lock 07
1/18
Chapter7
Distributing Services
-
8/14/2019 Love Lock 07
2/18
-
8/14/2019 Love Lock 07
3/18
Information and Physical Processes of theAugmented Service Product
Exceptions
Billing
Paymen
t
InformationProcesses
InformationConsultation
Safekeeping
PhysicalProcesses
Order-Taking
Core
Hospitality
-
8/14/2019 Love Lock 07
4/18
-
8/14/2019 Love Lock 07
5/18
Options for Service Delivery
Customer goes to the service provider (or intermediary)
Service provider goes to the customer Interaction at arms length (via the Internet, telephone, fax,
mail, etc.)
There are 3 types of interactions between customers and
service firms
-
8/14/2019 Love Lock 07
6/18
Method of Service Delivery
Availability of Service OutletsNature of Interactionbetween Customerand ServiceOrganization
Single Site Multiple Sites
Customer goes to serviceorganization
Theater
Barbershop
Bus service
Fast-food chain
Service organization goes tocustomer
House painting
Mobile car wash
Mail delivery
Auto club road service
Customer and serviceorganization transact at armslength
Credit card company
Local TV station
Broadcast network
Telephone company
-
8/14/2019 Love Lock 07
7/18
Place vs. Cyberspace
Place- customers andsuppliers meet in a physicalenvironment
Cyberspace- customersand suppliersdo businesselectronically in virtual
environment created byphone/internet linkages
Required for people processingservices
Offers live experiences, socialinteraction, e.g., food services
More emphasis on eye-catching
servicescape, entertainment
Ideal for info-based services
Saves time
Facilitates information gathering
May use express logistics serviceto deliver physical core
products
-
8/14/2019 Love Lock 07
8/18
24/7 - Factors EncouragingExtended Operating Hours
Economic pressure fromconsumers
Changes in legislation
Economic incentives toimprove asset utilization
Availability of employeesto work nights, weekends
Automated self-service
-
8/14/2019 Love Lock 07
9/18
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 sitesprovide informationtake orders and accept paymentdeliver information-based services
Smart cards that can act as electronic wallets
-
8/14/2019 Love Lock 07
10/18
E-Commerce:Factors that Attract Customers to Virtual Stores
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
-
8/14/2019 Love Lock 07
11/18
Splitting Responsibilities for DeliveringSupplementary Services
As created byoriginating firm
As enhancedby distributor
As experiencedby customer
+Core = Core
-
8/14/2019 Love Lock 07
12/18
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
-
8/14/2019 Love Lock 07
13/18
Service Process and Market Entry
People Processing Services Export the service concept Import customers Transport customers to new locations
Possession Processing ServicesMost 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
-
8/14/2019 Love Lock 07
14/18
Barriers to International Trade in Services
Operating successfully in international markets remainsdifficult for certain services despite efforts of the WTO and
control relaxations
Barriers includeRefusal by immigration offices to issue work permitsHeavy taxes on foreign firmsDomestic preference policiesLegal restrictions
Lack of broadly-agreed accounting standardsCultural differences (esp. for entertainment industry)
-
8/14/2019 Love Lock 07
15/18
Forces for Internationalization
Market drivers
Competition drivers
Technology drivers
Cost drivers
Government drivers
Impact will vary by servicetype (people, possessions,information)
-
8/14/2019 Love Lock 07
16/18
Modes of Internationalization
Export information-based services transmit via electronic channels store in physical media, ship as merchandise
Use third parties to market/deliver service concept licensing agents brokers franchising alliance partnersminority joint ventures
Control service enterprise abroad direct investment in new business buyout of existing business
-
8/14/2019 Love Lock 07
17/18
Impact of Globalization Drivers on DifferentService Categories
GlobalizationDrivers
People Processing PossessionProcessing
Information Based
Competition Simultaneity ofproduction andconsumption limitsleverage of foreigncompetitive advantage,but management systemscan be globalized
Technology drivesglobalization ofcompetitors withtechnical edge.
Highly vulnerable toglobal dominance bycompetitors withmonopoly orcompetitive advantagein information.
Market People differeconomically andculturally, so needs forservice and ability to paymay vary.
Level of economicdevelopments impactsdemand for services toindividually ownedgoods
Demand for manyservices is derived to asignificant degree fromeconomic andeducational levels.
-
8/14/2019 Love Lock 07
18/18
Impact of Globalization Drivers on DifferentService Categories
GlobalizationDrivers
People Processing PossessionProcessing
InformationBased
Technology Use of IT for delivery ofsupplementary servicesmay be a function ofownership and familiarity
with technology.
Need for technology-based service deliverysystems depends onpossessions requiring
service and the costtrade-offs in laborsubstitution
Ability to deliver coreservices throughremote terminals maybe a function of
investment incomputerization etc.
Cost Variable labor rates mayimpact on pricing in labor-sensitive services.
Variable labor rates mayfavor low-cost locations.
Major cost elementscan be centralized &minor cost elementslocalized.
Government Social policies vary widelyand may affect labor costetc.
Policies maydecrease/increase cost&encourage/discouragecertain activities
Policies may impactdemand and supplyand distort pricing