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10 Cards in this Set

  • Front
  • Back

Distribution in a Services Context




Experiences, performances and solutions are not being physically shipped and stored




More & more informational transactions are conducted by electronic ¬ physical channels

Information & Promotion Flow


get the customer interested in buying the service



Negotiation Flow -sell the right to use a service




Product Flow-develop a network of Local Sites

Type of Customer-Service Organization Interaction

Customer goes to Service Org


§  MOA Arena §  Mind Museum


§  David’s Salon §  Jollibee §  NAIA


Service Org goes to Customer


§  Hizon’s Catering §  Event Host


§  FedEx, 2Go, LBC §  Lazada, Amazon


Customer & Service Org transact remotely


§  Visa / MasterCard


§  Netflix, iFlix §  iWant TV §  Spotify 1

Customer goes to Service Org






Important aspects when customer has to be physically present


Convenience of Service Factory Locations


and


Operational Schedules

Unavoidable when object of service is immovable; More expensive and time-consuming for service provider

Service Org goes to Customer

Place (Location) Decisions in Service Delivery




Key determinants to locating a Service Facility

Cost,


Productivity


Access to Labor

First step in Place (Location) Decisions in Service Delivery

Understanding....


1. Customer Needs and Expectations,


2. Competitive Activity


3. Nature of the Service Operation

Service Distribution Channel Options

1. “Ministores” – creating many small service factories to maximize geographic coverage (e.g., ATM network)


2. Separating front &back stages of operation (e.g., Food Bazaars)


3. Purchase space from another provider in a complementing field (e.g., Master Siomai booths at MRT Stations)


4. Multipurpose Facilities – proximity to target customers

Locational Contraints

Operational


Geographic


Need for Economies of Scale

Time Decisions in Service Delivery




Recent Trends in Service Delivery Operations

§  Banking Hours extended (3pm), even Sun


§  Mall / Retailing Hours extend during Peak Season (e.g., Special Sales during Payday, Christmas, Back-to-School)


§  Govt Offices offer “No Lunch Break” service


§  interrupted reg TV programming sched give way Breaking News/continuing News Covrage


§  Video on Demand and streaming services (e.g Netflix, Spotify) made entertainment more flexible and no longer confined to specific schedules

E-Services: Trends and Developments

more known as Self-Service Technologies SSTs




Use of mobile platforms and development of mobile apps for just about anything have allowed consumers more options to avail of certain services.




Bottomline: CONVENIENCE & EFFICIENCY