Perception value of product-service systems: Neural effects of service experience and customer knowledge

Digital trends in product-service system (PSS) development focus on developing win-win solutions for both companies and customers, particularly when considering human behavior issues. It is useful for the PSS provider to know the PSS value creation mechanism when customers are buying and utilizing a PSS, particularly in the service-dominant logic (SDL) and cognitive neuroscience perspective. This study solved the PSS implementation that satisfied the demands of both customers and manufacturers and the value cocreation mechanism during product and service configuration with the impacts of consumer learning and the service experience. The proposed neuroscience methodology is based on an ERP (event-related potential) experiment using PSS stimuli, representing the perception value creation process during customer decision making and the PSS configuration process. The effectiveness of the service experience is more important than customer knowledge during PSS value perception due to positive emotions with pleasant memories for the service experience and the conflicting cognition process of customer learning. The combination of service science and neurology may measure and observe human behavior and psychology through the brain science method and effectively solve the human factors in service science. The findings suggest a more objective and personalized understanding of PSS value perception, particularly the practical requirements of a resulted-oriented PSS and an application-oriented PSS.     

Requirements Engineering for Product Service Systems

In recent years, manufacturing companies and service providers have moved towards offering customer-specific problem solutions. These integrated bundles usually consist of hardware, software, and service components and are called product service systems (PSS) or hybrid products. Since the success of the resulting solution depends on the understanding of all requirements, requirements engineering (RE) has become a key factor. The article analyzes the state of the art of RE for PSS based on an extensive literature review in the domains of product-, software-, and service engineering. For this, criteria are derived from the characteristics of PSS and from the task area of RE in the life cycle of PSS. Based on these criteria we analyze the most established RE approaches for their suitability for PSS. An important finding is that integrated/interdisciplinary approaches for RE are missing. Moreover, the maturity of RE approaches in the three domains varies significantly. All analyzed approaches heavily rely on concepts and solution characteristics of their own domain so that a transfer to other domains is hardly possible. This literature review lays the foundation for successful RE for PSS and especially for future research aiming at combining and integrating RE approaches and models of product-, software-, and service engineering. Such requirement models could connect concepts of single domains and enable an integrated and seamless RE for PSS.     

Service value revisited: Specifying a higher-order, formative measure

Recent marketing literature pays particular attention to customer value because of the potential impact on customer behavior and, ultimately, firm performance. Whereas some studies conceptualize customer value in a unidimensional manner, more recent approaches take a multidimensional approach, generally conceptualizing value as composed of various benefits and sacrifices. However, nearly all of these studies consider value components in a reflective manner, which is not only problematic but in many cases conceptually incorrect. In addition, recent customer value research includes service components to define and operationalize the construct. This study suggests that customer value in service contexts, or service value, represents a higher-order, formative construct with benefit and sacrifice components. Specifically, the authors propose a formative model of service value with four components: service quality, service equity, confidence benefits, and perceived sacrifice. A multiple-industry study substantiates the contention that this higher-order, formative approach best models value. The results theoretically and empirically support the conceptualization of service value with formative components, and the measure is robust and works well across multiple service contexts.     

Information theoretics-based technoeconomic forecasting: application to telecommunication service industry

Addressed in this paper is an information-theoretics inspired econometric approach to evolve a forecast model on the growth profiles of telecommunication services. It includes cohesively, both the profile of user-economics as well as the technological framework of service providers; and the forecasting suite is built on the basis of information-theoretics considerations. It refers to a modified Fisher-Kaysen method that accounts for “free-market” principles and uses entropy (stochastic) details of differential changes in the short-run (state) variables of the growth function. Further, the principle of proportional fairness is appropriately invoked and the heuristics of users’ willingness-to-pay for the network resources allocated to them is presumed. A few simulation examples using real-world data are furnished to validate the forecast algorithm developed. The computed results on forecasting presented depict a “cone-of-forecast” in the ex ante regime of the examples considered. Relevance of this method to modern aspects of managerial approach and market penetration vis-à-vis forecast trends is indicated. Shortcomings of the method are identified.     

The happy versus unhappy service worker in the service encounter:Assessing the impact on customer satisfaction

This paper assesses the impact of the service worker's display of emotions (i.e., one aspect of functional service quality) on customer satisfaction under the conditions of different levels of technical service quality by means of an experimental approach (N=600), in which display of emotions (unhappiness vs. happiness) and technical service quality (poor vs. good) were manipulated. The results indicate that the impact of the service worker's emotional display behavior on customer satisfaction is contingent on the level of technical service quality, in the sense that customer satisfaction is affected only when technical service quality is good rather than poor. Encouraging a positive display (e.g., by a smile policy), which many service firms do, is thus not a panacea for improved customer satisfaction. The moderating effect is explained in terms of service encounter congruency, which influences the mediated process by which emotional displays by service workers come to affect customer satisfaction.     

Product service systems: exploring operational practices

Increasingly, original equipment manufacturers (OEMs) are offering integrated solutions of products and services (product service systems (PSS)). To be successful in a service strategy, the OEM has to be able to provide services at a lower cost than the do-it-yourself alternative of the customer. We identify five service operations guidelines to achieve operational excellence in the field of PSS. The guidelines are based on a structured return-on-invested-capital analysis in collaboration with an OEM in the compressed air and generator industry (due to confidentiality reasons the OEM is referred to as AirGen). Each of the guidelines is cascaded into operational practices.     

Understanding the dynamics behind bank branch service quality in Portugal: pursuing a holistic view using fuzzy cognitive mapping

Using fuzzy cognitive mapping, this study aims to create a holistic framework whereby the determinants of bank branch service quality and their cause-and-effect relationships can be identified and dynamically analyzed. The methodology is applied using a group of experts from the banking industry in Portugal. Our results not only indicate the applicability and usefulness of the proposed approach, but identify human resource characteristics (which include collaborators’ personal and professional training) and management team technical skills as particularly relevant driving forces of bank branch service quality. The proposal holds great potential for the operational planning and improvement of bank branch service quality, which is a prime concern for bank administrators, bank branch collaborators, and society at large. Advantages and shortcomings of the framework are also reported.     

A correlated uniqueness model of service quality measurement among users of cloud-based service platforms

This research furthers understanding of whether consumers of cloud-based service platforms can distinguish between gap theory dimensions (i.e., expectation and performance) on these platforms. We build upon and extend the work of (Natesan and Aerts, 2016) by applying confirmatory factor analysis on gap scores from survey data to develop and test an improved approach of measuring service system quality in cloud-based service platforms. Using the IS-adapted SERVQUAL instrument, we apply the correlated uniqueness model, which is part of the multitrait-multimethod (MTMM) framework, to evaluate the validity of using GAP scores and account for the effect of the method. There is significant support for method effects as shown by our suggested model paths in the trait convergent validity model with medium-large factor coefficients. Additionally, the fit of the correlated uniqueness model indicates respondents can distinguish between the gap theory dimensions of the IS-adapted SERVQUAL instrument. The praxis of service quality measurement could benefit by using our measurement approach of incorporating error correlations.     

Co-creation of service recovery: Utilitarian and hedonic value and post-recovery responses

Based on the literature on customer value and service dominant (S-D) logic, this study suggests that hedonic and utilitarian value derived from co-creation of a service recovery contribute to perceived equity and affect toward the service recovery, which, in turn, enhance customers’ repurchase intentions. A scenario-based survey approach was used to collect data from U.S. consumers (N=330). Results show that utilitarian value enhances both equity and affect toward the service recovery while hedonic value contributes only to equity. In addition, the findings reveal that both equity and affect toward the recovery are positively associated with repurchase intentions.     

Operationalisation of service innovation: a systems thinking approach

This paper initialises an effort to explore the impact of an innovative systems thinking approach for service operations design on creating innovation. A qualitative exploratory case study approach in two of the UK’s service sector departments was conducted, using face-to-face semi-structured interviews, focus groups, and extractions from both observations and documents. The results identify that operationalising service innovation is positively linked with applying the Vanguard Method for service operations design. Twelve micro-determinants for service innovation operationalisation have been identified that reside at three different levels in the service organisation, namely employees level (i.e. Micro), the functional level (i.e. Meso), and corporate level (i.e. Macro). The value of this paper is the introduction of a step-by-step guidance on how to build service operations design to operationalise service innovation, the paper also theorises service innovation with systems thinking methodology that emphasises holistic, multi-disciplinary, and integrative characteristics of the service system.     

表层扮演对员工离职倾向的影响：情绪耗竭的中介作用与组织支持的调节效应

随着消费经济的兴起与服务业的发展，企业服务性岗位员工因情绪劳动引发的负面效应越来越受到理论界和实践界的关注。文章基于资源保护理论与组织支持理论，以通讯公司客服人员为研究对象，探讨表层扮演对离职倾向的影响机制，重点分析情绪耗竭的中介作用与组织支持的调节效应。研究发现：表层扮演会影响员工的离职倾向；情绪耗竭在表层扮演与离职倾向的正向关系间具有完全中介作用；组织支持感和主管支持感对表层扮演和情绪耗竭的关系具有调节效应。研究结论丰富和发展了情绪劳动的理论模型，并提出企业可以采取相应的干预措施缓解员工由于表层扮演带来的情绪耗竭和离职倾向问题。     

An evaluation scheme for product–service system models: development of evaluation criteria and case studies

A product–service system (PSS) integrates products and services to fulfill customer needs and create sustainability. PSS evaluation requires the use of diverse criteria because PSSs are complex systems with multiple stakeholders and perspectives. This paper proposes an evaluation scheme for PSS models that consists of a set of 94 evaluation criteria and an evaluation procedure. The proposed set of criteria encompasses both provider and customer perspectives, all of the 3P (profitability, planet, and people) values and various PSS lifecycle phases, whereas existing studies only partially cover these aspects of PSS. The proposed set serves as an evaluation criterion repository, and users can easily identify the criteria relevant to the evaluation targets. Using the proposed set is more efficient than starting from scratch. The proposed evaluation scheme can be used either to compare different PSS models or to evaluate a single model. Case studies show that the proposed scheme can sufficiently evaluate both existing and newly launched PSS models as well as models under development. The proposed scheme is expected to serve as an efficient and effective aid for practitioners in PSS development.     

Process completeness: Strategies for aligning service systems with customers’ service needs

Increasingly, customers are expecting more and better service. As such, enterprises need guidelines and frameworks for addressing these expanding requirements. The concept of process completeness helps us to consider service from the customer's viewpoint; arguably, the only perspective to take. Process completeness is achieved when a firm's service delivery system matches the typical customer's breadth of expectations. While customers think in sets of services (e.g., I need a flight, a hotel, airport parking, wireless Internet), firms think in terms of single services (e.g., we can provide a flight). There are four basic service systems: (1) transaction—execute a basic request and nothing else, (2) process—handling all firm-related service requests through one touch point, (3) alliance—handling service requests through a single touch point via stitching together a static firm-selected alliance of service partners, and (4) agility—handling service requests through a single touch point via stitching together a dynamic customer-selected alliance of service partners. In addition to exploring the four service systems, this article guides executives regarding the selection and implementation of the appropriate service strategy that meets their typical customer's process completeness expectations.     

Service encounters,experiences and the customer journey: Defining the field and a call to expand our lens

Service researchers have emphasized the importance of studying the service experience, which encompasses multiple service encounters. Although the reflection on a series of service encounters has increased, the scope of research in this space remains narrow. Service research has traditionally concentrated on understanding, measuring and optimizing the core service delivery. While this focused lens has generated extraordinary knowledge and moved service research and practice forward, it has also resulted in a narrowly focused research field. The authors present a framework to guide comprehensive service experience research. Broadly, they define (1) pre-core service encounter, (2) core service encounter, and (3) post-core service encounter as distinct periods within a service experience. Further, they review the literature and put forward important research questions to be addressed within and across these periods. Finally, they argue that researchers need to consider simultaneously all periods of the service experience to make valuable contributions to the literature.     

An overview of Web 2.0 social capital: a cross-cultural approach

This is an introductory paper for this Special Issue on Web 2.0 Social Capital. We present a general discussion of motivations for and barriers to applying an Enterprise 2.0 approach. Focus then shifts to the specific fields of knowledge sharing and e-commerce. The article continues with an examination of social capital 2.0 issues. Discussion centers on the employee’s perspective of using Web 2.0 applications and on the adoption of corporate Web 2.0 tools for collaboration. Finally, the paper presents a brief background for each of the topics covered in the five articles selected for this special issue on Web 2.0 social capital.     

How novel actors achieve a positive reputation: A case of prep schools with elite‐level hockey programs

How are novel organizations able to build a positive reputation while attempting to enter into a system with established organizations? To address this, we examined the field of elite‐level amateur hockey. Private Secondary Schools (PSS) are novel in that they offer a nontraditional pathway for players with respect to fielding elite‐level hockey teams. Findings from interviews with PSS with elite‐level hockey programs revealed that PSS highlight their Selection Processes, Player Development Practices, and the enhanced Player Experience in an effort to build a positive reputation. This study contributes to the literature on reputation by showing that novel organizations can build a reputation through highlighting the unique value they add. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

Service Quality Perceptions of Foreign Direct Investors

ABSTRACT

In this article, the potential disparity between foreign direct investment (FDI) clients' service quality expectations and the actual service experienced (Gap 5) and how these impacts FDI inflows are investigated. Methodological triangulation encompassing quan-titative and qualitative methods is used. Contrary to the quantitative findings, the qualitative findings indicate that Gap 5 exists among the FDI clients. This is the first time the service quality model (performance-based construct) has been used to study FDI issues. Rather than applying the predominant “inside-out” mindset, the model adopts an “outside-in” mindset that uses perceived (actual) service as a reference point for clients' evaluation of service quality.     

The service triad: modelling dialectic tensions in service encounters

Models of service encounters are often fraught with reductionism, describing business relationships as mathematical combinations of dyadic constellations. Metaphors of ideal social relationships (marriages or friendships) are highlighted to stress normative aspects of equal, balanced and long-term business partnerships. However, these approaches are limited in their analytical sensitivity, as they cannot address the complexity of multipart relationships, where meanings, roles and relationships are continuously constructed and reconstructed. In order to understand the ambivalent quality of business interactions, this article analyses the corporate travel market by applying Simmel's depiction of the triad as a specific social form. Triadic constellations and more complex service networks involve dialectic tensions, simultaneously exhibiting loyalty and disloyalty, trust and distrust, empowerment and disempowerment. It is argued that a qualitative methodology is a more adequate approach to grasp such dynamic and contextual social realities, because (opposed to a quantitative approach) it is not confined to operate with mutually exclusive analytical categories.     

International expansion of transnational advertising agencies in China: An assessment of the stages theory approach

This paper examines the expansion of multinational enterprises (MNEs) in a service industry to a country which is both developing and in transition—i.e. the advertising industry in China—to assess how useful the stages theory is in understanding internationalisation issues in today's globalised world. Three of our findings are consistent with the expectations and formal denouement of the stages approach: (a) the agencies increased their involvement in the China market over time; (b) the agencies went through organisational structure change through an incremental process; and (c) the internationalisation process was much faster for late entrants. On the other hand, some findings are not congruent with the theoretical explanations or logic of the theory. The main reason why agencies change their form of operations to a more involved mode, according to executives, was that their clients’ investment in China had increased. They argued that change in operational form is client-driven, rather than being driven by an increase in market knowledge. In sum, form must not be taken for the substance, although some aspects of the Uppsala model can explain the stages and changes of modality in MNE operations in China.