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Service Distribution

Discuss the various ways in which services can be distributed and the challenges faced using the various channels of distribution.

INTRODUCTION

A service can be defined as an essentially intangible benefit either on its own right or as a significant part of a tangible product which through some form of exchange satisfies an identified need (Palmer, 2001).
From the dictionary it is said to be a system or organization that provides for a basic public need.

Distribution is the process of making a product or service available for use or consumption by a consumer or business user.

A channel is simply a route and/or means.

We can therefore say that service distribution channels are the routes through which economic activities are allocated, spread or positioned within a given area to create value and provide benefits to customers thus resulting in a desired change of state on the part of the service recipients by making these activities available.

There are different types of service offers i.e.
• Pure tangible good: These are primarily tangible goods with no accompanying service e.g. toothpaste, sugar, etc.
• Tangible goods with accompanying service.
• Hybrid: consists in equal parts both service and goods e.g. a restaurant offers food (good) as well as ambience (service).
• Major Service with accompanying goods and services e.g. airline travelers get both the service of transport and goods in form of food and magazines etc.
• Pure service: is primarily a service offer e.g. massage, etc.
There are further distinctions of service related to the equipment used, the need met (personal or business), objectives (profit or non-profit), ownership (public or private), among others.
     

CHARACTERISTICS OF SERVICES.

• Intangible: Services cannot be felt, tasted or heard before they are purchased.
• Perishable: They cannot be stored and are available for only that time.
• Inseparable: They cannot be separated from the provider because they...