A framework for innovative service design

Drawing on research from design science, marketing, and service science, our paper provides an integrated framework for evaluating and directing innovative service design. The main goal of our review is to highlight the strengths of existing frameworks and to suggest how they can be enhanced in combination with design science principles. Based on our review, we propose a new framework for the design of innovative services that integrates several key paradigmatic approaches and identifies fundamental open research questions. Our approach is unique as it combines three service disciplines, namely services marketing, service science, and design science, and provides a new framework that describes step by step the procedure that needs to be taken and the conditions that need to be met for developing innovative services. We believe that providing such a framework is a valuable addition to the literature.     

Competing Online: Studying Consumer Choice Drivers for Online Financial Services

ABSTRACT

Given the rapid increase in the consumer use of online services and the increase in competition between firms that compete online, firms are faced with a crucial challenge. Having invested significant resources in transitioning consumers from using offline services to using online services, they now need to understand what drives consumers to choose between competing online services. Our study seeks an exploratory answer to the above challenge. Specifically, we consider, “what role do factors that drive consumers into using online services play in assisting firms better compete in the online space?” This paper explores the above question by quantifying the value that consumers of an online financial service place on having access to in-depth product information, an affordable online service, an easy to use online service, access to offline capabilities, and available marketing promotions. The results reported in this paper are based on a web-based discrete choice experiment in which 2,209 consumers were asked to compare various online financial service offerings, differing from each other in terms of the relative availability of our critical factors. The results demonstrate that consumer preferences (relative utilities) for various factors of an online financial service are different. Our results enable practicing managers to understand the factors that drive consumer choice when faced with competing online services. We believe that these results have both managerial and research implications for design, management and operations strategy formulation for online services.     

Trajectories for Driving the Diffusion of e-Negotiation Service Providers in Supply Chains: An Action Research Approach

ABSTRACT

The recent proliferation of online-based trade makes negotiations with service providers for global supply networks evermore challenging. The Internet is believed to be a viable means for enabling and facilitating these supply chain interactions. As such, commercial web-based services that support negotiation processes have emerged (i.e., e-negotiation services). Even though these services have promising benefits for supply chain participants, they have not been accepted by most business users. Current e-negotiation studies fail to capture the substantive reasons of this low acceptance as they typically ignore real-world aspects of commercial negotiations. As such, this study argues that an action research approach is a plausible means to study this issue, and to drive changes in the e-negotiations services market. Accordingly, a research plan is outlined with guidelines and recommendations for future action research projects.     

Quality Assurance Certification for Hospitality Marketing,Sales and Customer Services

The article proposes that there is a need to extend quality assurance schemes to encompass marketing and customer services. The hospitality industry's involvement in the consideration of quality assurance schemes is discussed and the degree to which they have been accepted. An explanation of the Marketing Quality Assurance Scheme (MQA) is presented with detailed examples of the objectives to be met in assuring the quality of marketing, sales plans and customer service. The study concludes that quality assurance schemes for services and marketing are essential for the hospitality industry, in order to guarantee the quality of provision and to offer a bridge from quality assurance to the concept of Total Quality Management.     

Establishing a system for innovation in a professional services firm

Professional service firms are facing new competitive challenges in a global market with more value-focused clients, service commoditization, regulatory changes, and new Internet-enabled business models. They increasingly need to improve competitiveness through sustained innovation of the value they provide and the efficiency with which they provide it. But how can firms establish an effective and sustainable innovation system? This Executive Digest shares a best practice model for innovation based on academic research and honed by a decade of practical experience in application across professional service firms in consulting projects. This work covers how to develop innovation strategies by establishing processes and organization to support innovation, providing innovation training, developing new services, and re-engineering existing services. The author, Alastair Ross, details the practices required and shares some of the challenges encountered in realizing them. This article draws heavily on his latest book, Innovating professional services: Transforming value and efficiency.     

Public-Private Partnerships for Service Delivery

This article reports on the performance of services contracted out by the public sector to private sector organisations. The conclusions are based on probably the biggest-ever questionnaire survey on this topic to-date: it covered 7,500 public-private partnerships, and was replicated annually over three years. The private sector organisations providing the services included multinationals like IBM and Andersen Consulting as well as local firms. The public sector "clients" were all from three Australian states or the Australian federal government. The study not only shows that these partnerships are set to go on expanding fast, but also explores the ways in which they have been successful and the pitfalls which the partners need to avoid.     

Which consumers are willing to pay for smart car healthcare services? A discrete choice experiment approach

The technology adoption lifecycle model categorizes consumer groups in the new concept products and services market, based on different characteristics and needs, into innovators, early adopters, early majority, late majority, and laggards, in order of adopting new products and services. This study aims to estimate heterogeneous consumer preferences and willingness to pay for a new concept convergence service, the smart car healthcare service, using a choice experiment questionnaire and a hierarchical Bayesian mixed logit. We found that consumers were willing to pay an additional 3000 to 6000 KRW/month (2.65–5.29 USD/month) for a service that measured both physical movement and vital signs compared to either the former or the latter. It was also found that they were willing to pay about 3000 KRW/month (2.65 USD/month) more for a service that provides health condition predictions compared to one that provides only the current health condition. In addition, customers who were young, innovative, and favored the utility of healthcare services showed a lower sensitivity to service fees than those who were not. Thus, they were found to have a greater willingness to pay for advanced smart car healthcare services.     

Positioning Strategy for Credit Unions

The purpose of this paper is to examine the environment in which credit unions function and how they may position themselves in the tumultuous financial world of the 1990s. Credit unions should not try to be faithful to the old "full service" theme. Instead, they should offer specialized services to a narrow market.     

Independent Financial Advisers – Why They Remain the Strongest Distribution Route for Pensions

Despite financial services companies operating in multiple channels, the Independent Financial Advisers (IFAs) channel remains the most popular distribution route when it comes to pension sales. To understand how they compete and the nature of the strategic groups within this channel, this paper examines how IFAs perceive they add value to the decision making of consumers when purchasing pension products. The paper identifies four strategic groups of the IFA population (operating within the pensions market) based on the benefits they perceive they can add to their service to assist consumer decision making. Using cluster analysis within SPSS from a survey of 468 IFAs, four main groups emerge; these can be classified in terms of (1) analytical skills, (2) value for money, (3) reputation and (4) personalised service.     

‘Do versus Buy’ Decisions in the Demand for Knowledge Intensive Business Services

The search for the maximum use of scale and agglomeration economies and the need to operate firms in the most flexible way have provided a strong impulse for companies to increase their use of external intermediate services. Because of their strategic role, the use of business services that are intensive both in labour qualification and in technological requirements is key for these policies. The purpose of this paper is to analyse the patterns followed by companies in the two relevant decisions on this issue: firstly, whether to use knowledge intensive business services or not and, secondly, whether (and to what extent) to buy these services from another firm or to provide them inside the organisation. In both cases, we intend to identify the factors that affect the ‘do versus buy’ decision with respect to total KIBS as well as particular categories. A specific feature in our study is that it focuses on the behaviour of firms working in a region without a well-developed supply of KIBS. Applying discrete response models to the data obtained in a survey elaborated by the authors, the most relevant variables for the use of KIBS are satisfaction with previous outsourcing experiences and location of the firm in a large urban centre, but they do not affect their external provision. The size of the firm, its export orientation and its technological complexity have opposite effects on use and outsourcing.     

Co-production and customer loyalty in financial services

Recent developments in marketing thought and practice highlight the opportunities that co-production of services provide for creating customer value. The authors propose a model of co-production with which they investigate the links between co-production and customer loyalty and the factors likely to increase the level of co-production in a financial services context, with support from an investigation in the medical services context. Further, the authors consider the relationships of customer expertise, customer–advisor communication, customer affective commitment, and interactional justice with the level of co-production. On the basis of testing with a sample of 1,197 customers of a large multinational financial services organization and 100 patients of medical services, the model is partially supported. Therefore, the authors suggest that co-production may have an important role as a basis for competition in the financial services industry.     

The strategic evolution of large US law firms

In recent years, large US law firms have been undergoing significant changes. Most have switched from a professional model (P2 form) to a corporate business model, employing competitive strategies and a profit orientation. As the market for corporate legal services became more competitive, many large US law firms began to diversify the services they offer and expand their operations into new geographic regions of the country and into international markets. They even engaged in acquisitions and learned to manage and leverage their critical resources, human capital and relational capital. As a result, most of these law firms have added more professional management. All in all, the services law firms offer and the rivals with which they must contend have changed substantially over the last 15 years.     

An investigation into the compatibility of consultation and performance comparison in the UK's policy of Best Value

The policy of Best Value (BV) has been at the centre of the modernization of English and Welsh local government since 1999. At the heart of BV, is a performance management framework aimed at securing continuous improvement in the delivery of local services. This article critically examines the performance comparison – comprising performance indicators, audits and inspections – and consultation elements of this framework from the perspective of how they provide separate avenues to confirm the achievement of continuous improvement in local services. Three key issues are singled out for particular attention and investigated from a conceptual and empirical basis. The first issue relates to the construct validity of the performance comparison and consultation process in terms of the extent to which they are able to identify failing local services. The second issue involves an examination of whether the performance comparison elements of BV are conducted consistently between authorities, auditors and inspectors and thus the extent to which they provide accurate information about the performance of local services. The third issue identifies the impact of the consultation and performance comparison elements of BV on aspects of service delivery not subjected to these two confirmatory processes. Survey findings drawn from the views of 389 BV lead officers across local authorities in the UK reveal that whilst most respondents believe that the performance comparison elements of BV are able to accurately ‘identify failing services’, they strongly dispute the consistency of the performance comparison elements of BV. In addition, the survey findings reveal that more respondents than not believe that the performance comparison processes of BV serve to adversely skew resources away from areas of activity subject to less formal measurement. Detailed case study evidence drawn from three local authorities involved in the completion of the entire BV process offer further insights into the compatibility of the performance comparison and consultation processes of BV.     

A Client Driven Model for Service Pricing

The pricing of services is perhaps the most important and perplexing issue facing marketers today. Success depends on setting it correctly. Although economic principles do provide pricing guidelines, they are often too general to apply in everyday business settings. This article presents an alternative by describing a pricing model meant to help the front-line marketer. The model is "Client Driven" because it is built on client response to price, namely the quantity of services used and the number of clients gained or lost. Its objective is to set a price level, both short and long-term, to maximize profits. It works equally well for the marketing of either services or products. This article explores the model's structure, major findings and implications. A number of interesting results are obtained; for example the relationship between optimal price and market share. The article also illustrates with an actual case how to use the model in practical settings. The model can easily be set up on a personal computer, and is a useful simulation tool for exploring pricing strategy.     

An Examination of Participation in Homebuyer Education and Counseling Services

Homebuyer education and counseling aims to help potential homebuyers understand benefits and risks of homeownership, choose a home and an appropriate mortgage, and build the financial know‐how needed for sustainable homeownership and financial health. U.S. Department of Housing and Urban Development's (HUD's) First‐Time Homebuyer Education and Counseling Demonstration found that women and individuals with greater education were generally more likely to participate in services. Enrollees referred to in‐person services are more likely to participate if they are early in the homebuying process or if they planned to purchase a home without a coborrower. They may perceive benefits of services to outweigh the costs of scheduling, traveling to, and attending in‐person services. Enrollees offered remote services (phone, online) are more likely to participate if they are “better off,” having higher mortgage literacy and credit scores. Results may inform agencies' messaging, outreach, and approach to providing services and meeting consumers' needs, federal policy, and interpretation of future impact estimates.     

黑龙江省农业院校服务新农村建设研究

全国各地方农业院校均不同程度地开展服务本省或本地区新农村建设的研究工作,但从整体上仍然处于摸索阶段,服务效果尚未得以充分展现。以黑龙江省建设社会主义新农村为背景,基于黑龙江省农业院校服务新农村建设现状与问题分析,从宏观与微观层面为黑龙江农业院校有效开展新农村服务工作提供建议。     

Consumer Support Networks: assessment of need for consumer information and advice service

Research evidence suggests that UK consumers are facing significant problems with goods and services and are in need of information and advice to avoid or redress such situations. Consumers are not always aware of their rights nor where they can access consumer advice services. In 2000, the Department of Trade and Industry launched the Consumer Support Network (CSN) programme in Great Britain to improve consumer access to expert, accurate and timely advice. One challenge faced by these Networks and many other agencies is to assess the needs of consumers for consumer information and advice services. A needs assessment is required as a key element in the effective planning and development of services in each Network at a local level. The focus of the needs assessment at the local level is to encourage Networks to consider suitable solutions to meet the needs of people in their communities. This paper provides a review of the development of Consumer Support Networks in Great Britain and discusses the importance of needs assessment to service providers such as CSNs and other agencies. It reveals the complexity associated with conducting effective needs assessments including the various aspects of needs, consumer segmentation and characteristics of consumer information and advice. Further research is being carried out at Queen Margaret University College, UK, with a view to the development of a scientific model for the assessment of need for consumer information and advice services.     

Planning for the baby boomers' healthcare needs: a case study

Will the impact of baby boomers, as they age, be a bonanza or a bust for the healthcare system? A range of perspectives prevail, from increasing in-patient admissions capacity to accommodate the sheer numbers, to the creation of a variety of healthcare services and delivery channels that address their unique requirements. This case study presents a top 100, regional hospital's approach to this dilemma. The strategic marketing process using segmentation, targeting, and positioning (STP) was employed to guide the administration's planning and decision making.     

Targeting the College Market for Banking Services

ABSTRACT

College students have long been recognized as a significant market for products and professional services. Their sheer number alone, estimated to reach 15.7 million by the year 2000, makes them a viable market for many companies.

However, there are many other attractions from a marketing perspective to targeting college students. They are relatively easy to locate, concentrated in reasonably well defined geographic areas, and accessible through campus newspapers and bulletin boards. And, because they are at the beginning of their careers, firms which establish business relationships with them have long-term opportunities to maintain those links.

This study examined selected banking attributes of college students, including factors affecting patronage decisions, perceptions as to the quality of services available, and sources students use to obtain information about financial services. Surveys were conducted at a large west coast university among a diverse set of students.

Results of the study found that a sizable percent of students maintain substantial balances in their checking and savings accounts. Additionally, economic factors, such as monthly charges and interest rates on deposits, weigh heavily on decisions concerning banking patronage.

The study also found that large, state-wide banking institutions appear to have the advantage in attracting the college student market. And, while bank patronage loyalties appear to be reasonably strong, a sizable percentage of students use more than one institution. Finally, the most useful source of information for reaching the college market appears to be direct mail.     

The Performance of Trading Firms in the Services Sectors – Comparable Evidence from Four EU Countries

We examine trade complexity and the implications of adding additional dimensions of trade for firm performance among services producers. We use unique firm‐level data to compare these patterns across four EU countries. Overall, services firms are relatively less engaged in trade than manufacturing firms; they mostly trade goods and are more likely to import than to export. Trade in services is quite rare; services are more likely to be traded by firms already trading goods. Trading firms in the services sectors are significantly larger, more productive and pay higher wages than non‐traders. Two‐way traders outperform one‐way traders. Changes in trading status by either adding another dimension of trade (imports, exports) or another type of product (goods, services) are infrequent and are associated with significant preswitching premia. In contrast, learning effects from switching trading status are uncommon. This points to significant fixed cost of being engaged in trade and confirms some previous findings that trading services firms have similar traits as their manufacturing counterparts. Apart from greater trade participation in smaller countries, we do not observe systematic differences in terms of trade or switching premia between the four countries that might be attributable to differences in country characteristics.