The effects of service supply on perceived value proposition under different levels of customer involvement |
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| Institution: | 1. School of Business, Renmin University of China, Beijing 100872, PR China;2. School of Marketing, University of New South Wales, Sydney, NSW 2052, Australia;3. School of Agricultural Economics and Rural Development, Renmin University of China, Beijing 100872, PR China;1. Sheffield Management School, The University of Sheffield, Conduit Road, Sheffield S10 1FL, United Kingdom;2. Hull University Business School, University of Hull, Cottingham Road, E. Yorks, Hull HU6 7RX, United Kingdom;1. Leeds University Business School, University of Leeds, Leeds LS2 9JT, United Kingdom;2. Business Ecosystem Research Group, School of Business and Management, Queen Mary University of London, London E1 4NS, United Kingdom;3. mIMP Research Group, Manchester Business School, University of Manchester, Booth Street West, Manchester M15 6PB, United Kingdom;1. Vernon, CT 06066, USA;2. Cardiff, Wales, UK;1. University of Twente, School of Management and Governance, Department of Business Administration, P. O. Box 217, 7500 AE Enschede, The Netherlands;2. University of Groningen, Faculty of Economics and Business, Department of Operations, Nettelbosje 2, 9747 AE Groningen, The Netherlands;1. Division of Management and Engineering, Linköping University, SE-581 83 Linköping, Sweden;2. Operations and Information Management Group, Aston Business School, UK;1. Birmingham Business School, University of Birmingham, Edgbaston, Birmingham B15 2TT, United Kingdom;2. Kedge Business School, Domaine de Luminy-BP 921, 13288 Marseille Cedex 09, France |
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| Abstract: | Based on the resource-based view and service-dominant logic, this paper tries to examine how the process of offering product-centric or knowledge-centric services can integrate heterogeneous resources so as to create customer perceived value. In product-centric service supply, the tangible product itself is central to the provision of an integrated set of services, while in knowledge-centric service supply, intangible knowledge is central to the provision of an integrated set of services. The effects of the two dimensions on customer perceived value are quite different. This paper examines the specific conditions under which these effects arise by highlighting the important role of customer involvement as a way of mobilizing resources between the supplier and the customer. It adopts a large sample survey in the Chinese fine chemical industry. The results show that the two kinds of service supply can yield short-term economic value and technical value to buyers. Long-term relational value, however, can only be achieved through the mediating role of short-term value and only if customers can acquire knowledge-centric services. In addition, the effect of knowledge-centric service supply on technical value is stronger if the customer has a greater rather than lower extent of involvement. |
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