MKT 723 Chapter Notes - Chapter 14: Franchising, Starbucks
13 May 2013
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Chapter 14 delivering service through intermediaries and electronic channels. Two distinct services are involved in delivering service through intermediaries: Thus, service distribution doesn"t involve moving items through a chain of firms, from manufacturer to consumer, as in goods distribution. In contrast to channels for goods, service channels are often direct. Although the functions provided by intermediaries for goods manufacturers are irrelevant for service firms, intermediaries often deliver services and perform very important functions for service principals. They may coproduce services, fulfilling promises to customers. Services such as haircutting are provided by the intermediary, using a process developed by the service principal. Intermediaries also make services locally available, providing convenience for the customer. Franchisees service outlets licensed by a principal to deliver unique service concept it has created or popularized. (fast food, hotels, etc) Agents & brokers representatives who distribute and sell the services of one or more service suppliers. (insurance, financial, travel, etc)
