Channels for services

Think about services for a minute. They are intangible activities that are performed by other people for money. They are productive acts that satisfy economic wants.

Because services are intangible, producers aren’t concerned about having to ship and store them. Usually, services are consumed when they are produced. Therefore, most services follow a direct channel of distribution—they move directly from the service provider to the consumer or user.

For example, if you want to have your dog’s hair cut, you take him to a dog groomer. The groomer performs the service directly on your dog. This service could not be handled through channel members.

Can you name other services that move directly from the service provider to the consumer or industrial user?

Agents can assist with the distribution of services. This channel would begin with the service provider, move to the agent, and then to the consumer or user.

An example of this indirect channel would be the services provided by entertainers who work with agents to promote and sell their skills. Travel agents, insurance agents, and stock brokers are also channel members involved in the distribution of specific services.