Delivering Services via Internet: New Distribution Channel for Traditional Services

Traditionally, services have been characterised as low tech and high face-to-face contacts. Today, information technology offers many opportunities for service providers. Thus, Internet presents new way for production, communication and distribution of services. In terms of distribution, for many traditional services (e.g. banking, insurance, travel, retail, etc.) Internet encourages disintermediation to certain extent, since it enables direct, two-way-communication without the need of going to the service outlet. But, this also means that customers must be motivated, willing and capable of using the Internet in their buying decisions and processes. In Croatia, Internet is relatively recent innovation available to consumers for household use.