Showing papers in "Journal of Service Management in 2019"

Technological disruptions in services: lessons from tourism and hospitality

Abstract: Technological disruptions such as the Internet of Things and autonomous devices, enhanced analytical capabilities (artificial intelligence) and rich media (virtual and augmented reality) are creating smart environments that are transforming industry structures, processes and practices. The purpose of this paper is to explore critical technological advancements using a value co-creation lens to provide insights into service innovations that impact ecosystems. The paper provides examples from tourism and hospitality industries as an information dependent service management context.,The research synthesizes prevailing theories of co-creation, service ecosystems, networks and technology disruption with emerging technological developments.,Findings highlight the need for research into service innovations in the tourism and hospitality sector at both macro-market and micro-firm levels, emanating from the rapid and radical nature of technological advancements. Specifically, the paper identifies three areas of likely future disruption in service experiences that may benefit from immediate attention: extra-sensory experiences, hyper-personalized experiences and beyond-automation experiences.,Tourism and hospitality services prevail under varying levels of infrastructure, organization and cultural constraints. This paper provides an overview of potential disruptions and developments and does not delve into individual destination types and settings. This will require future work that conceptualizes and examines how stakeholders may adapt within specific contexts.,Technological disruptions impact all facets of life. A comprehensive picture of developments here provides policymakers with nuanced perspectives to better prepare for impending change.,Guest experiences in tourism and hospitality by definition take place in hostile environments that are outside the safety and familiarity of one’s own surroundings. The emergence of smart environments will redefine how customers navigate their experiences. At a conceptual level, this requires a complete rethink of how stakeholders should leverage technologies, engage and reengineer services to remain competitive. The paper illustrates how technology disrupts industry structures and stimulates value co-creation at the micro and macro-societal level.

Platforms in the peer-to-peer sharing economy

Abstract: The purpose of this paper is to examine peer-to-peer sharing platform business models, their sources of competitive advantage, and the roles, motivations and behaviors of key actors in their ecosystems.,This paper uses a conceptual approach that is rooted in the service, tourism and hospitality, and strategy literature.,First, this paper defines key types of platform business models in the sharing economy anddescribes their characteristics. In particular, the authors propose the differentiation between sharing platforms of capacity-constrained vs capacity-unconstrained assets and advance five core properties of the former. Second, the authors contrast platform business models with their pipeline business model counterparts to understand the fundamental differences between them. One important conclusion is that platforms cater to vastly more heterogeneous assets and consumer needs and, therefore, require liquidity and analytics for high-quality matching. Third, the authors examine the competitive position of platforms and conclude that their widely taken “winner takes it all” assumption is not valid. Primary network effects are less important once a critical level of liquidity has been reached and may even turn negative if increased listings raise friction in the form of search costs. Once a critical level of liquidity has been reached, a platform’s competitive position depends on stakeholder trust and service provider and user loyalty. Fourth, the authors integrate and synthesize the literature on key platform stakeholders of platform businesses (i.e. users, service providers, and regulators) and their roles and motivations. Finally, directions for further research are advanced.,This paper helps platform owners, service providers and users understand better the implications of sharing platform business models and how to position themselves in such ecosystems.,This paper integrates the extant literature on sharing platforms, takes a novel approach in delineating their key properties and dimensions, and provides insights into the evolving and dynamic forms of sharing platforms including converging business models.

Frontline Service Technology infusion: conceptual archetypes and future research directions

Abstract: Smart technologies and connected objects are rapidly changing the organizational frontline. Yet, our understanding of how these technologies infuse service encounters remains limited. Therefore, the purpose of this paper is to update existing classifications of Frontline Service Technology (FST) infusion. Moreover, the authors discuss three promising smart and connected technologies – conversational agents, extended reality (XR) and blockchain technology – and their respective implications for customers, frontline employees and service organizations.,This paper uses a conceptual approach integrating existing work on FST infusion with artificial intelligence, robotics, XR and blockchain literature, while also building on insights gathered through expert interviews and focus group conversations with members of two service research centers.,The authors define FST and propose a set of FST infusion archetypes at the organizational frontline. Additionally, the authors develop future research directions focused on understanding how conversational agents, XR and blockchain technology will impact service.,This paper updates and extends existing classifications of FST, while paving the road for further work on FST infusion.

Smart service experience in hospitality and tourism services A conceptualization and future research agenda

Abstract: The purpose of this paper is to offer a discussion, definition and comprehensive conceptualization of the smart service experience, i.e. the way guests and customers in hospitality and tourism experience and value the use of personalized and pro-active services that the intelligent use of data and technology enable.,Based on prior research on service experience, smart services and the differences between regular and smart services, this paper develops a conceptual framework in which the smart service experience is the central construct.,The characteristics of smart services (the intelligent, anticipatory, and adaptable use of data and technology) permit customers to experience services that previous conceptualizations of the service experience could not capture. The smart service experience provides empowerment, a seamless experience, enjoyment, privacy and security, and accurate service delivery. The paper also discusses challenges that service firms face in employing smart services, and proposes a future research agenda.,Both academics and practitioners expect smart services to revolutionize many industries such as tourism and hospitality. Therefore, research is needed to help understand the way customers experience smart services, what values they derive from them and the way service firms can employ them sensibly to enhance customers’ experiences.,This paper synthesizes insights from the literature on customer experience, smart services and co-creation into a conceptualization of the smart service experience, and distinguishes it from previous conceptualizations of regular services.

Reshaping mental models – enabling innovation through service design

Abstract: Purpose: The purpose of this paper is to analyze how service design practices reshape mental models to enable innovation. Mental models are actors’ assumptions and beliefs that guide their behavior ...

An update on customer value: state of the art, revised typology, and research agenda

Abstract: The context of marketing and service research is rapidly changing as a result of advances in academic research and business practice. This has implications for our understanding of customer value. The purpose of this paper is to provide an update on customer value given today’s context (including recent advances such as technologies, human contact, collaborative consumption, service ecosystems and transformative service research); to revise Holbrook’s value typology; and to propose a research agenda.,This paper uses a conceptual approach that is rooted in the service and marketing literature.,The contribution of this paper is threefold. First, this paper presents an evolved view on customer value which accounts for recent advances in academic research and business practice. Second, this paper updates Holbrook’s value typology by revising existing value types as well as identifying additional value types; and offers guidelines for measuring and modeling customer value. Third, this paper proposes a research agenda to guide and stimulate future value research.,This paper provides an update on customer value, which is one of the most fundamental concepts in service and marketing research. This updated perspective has been approved and applauded by Morris B. Holbrook, one of the founding fathers of value research.

Social innovation in service: a conceptual framework and research agenda

Abstract: The purpose of this paper is to provide a framework for guiding social innovation in service (SIS), defined as the creation of novel, scalable and sustainable market based service offerings that solve systemic societal problems.,This research provides a review and synthesis of transdisciplinary literatures to establish a basis for the conceptual framework proposed for SIS.,It is argued that the primary unit of an SIS is the service firm and that there are micro-, meso-, and macro-level actors and enablers in the ecosystem that can help bring about SIS. Examples from the hospitality and tourism industry are used to demonstrate key points.,Benefits of an SIS to companies include growth through new markets and innovative value offerings, sustainable supply chains in production, building consumer value and trust in the company/brand, attracting and retaining talent and being proactive in including social and environmental measures of success in customer metrics and company financial reporting.,This paper contributes to the social innovation and service literature by: offering a new, scientifically supported view of an SIS; providing managers with a framework to guide social innovation within their service firm and for the benefit of their company and its stakeholders; and directing service scholars to research issues necessary to advance SIS.

Transformative service research, service design, and social entrepreneurship: An interdisciplinary framework advancing wellbeing and social impact

Abstract: Purpose The purpose of this paper is to provide an interdisciplinary framework bridging service design and social entrepreneurship with transformative service research (TSR) to create greater syner ...

Leveraging service design as a multidisciplinary approach to service innovation

Abstract: Service design is a multidisciplinary approach that plays a key role in fostering service innovation. However, the lack of a comprehensive understanding of its multiple perspectives hampers this potential to be realized. Through an activity theory lens, the purpose of this paper is to examine core areas that inform service design, identifying shared concerns and complementary contributions.,The study involved a literature review in two stages, followed by a qualitative study based on selected focus groups. The first literature review identified core areas that contribute to service design. Based on this identification, the second literature review examined 135 references suggested by 13 world-leading researchers in this field. These references were qualitatively analyzed using the NVivo software. Results were validated and complemented by six multidisciplinary focus groups with service research centers in five countries.,Six core areas were identified and characterized as contributing to service design: service research, design, marketing, operations management, information systems and interaction design. Data analysis shows the various goals, objects, approaches and outcomes that multidisciplinary perspectives bring to service design, supporting them to enable service innovation.,This paper supports service design teams to better communicate and collaborate by providing an in-depth understanding of the multiple contributions they can integrate to create the conditions for new service.,This paper identifies and examines the core areas that inform service design, their shared concerns, complementarities and how they contribute to foster new forms of value co-creation, building a common ground to advance this approach and leverage its impact on service innovation.

Customer process management A framework for using customer-related data to create customer value

Abstract: Purpose The proliferation of customer-related data provides companies with numerous service opportunities to create customer value. The purpose of this study is to develop a framework to use this data to provide services. Design/methodology/approach This study conducted four action research projects on the use of customer-related data for service design with industry and government. Based on these projects, a practical framework was designed, applied, and validated, and was further refined by analyzing relevant service cases and incorporating the service and operations management literature. Findings The proposed customer process management (CPM) framework suggests steps a service provider can take when providing information to its customers to improve their processes and create more value-in-use by using data related to their processes. The applicability of this framework is illustrated using real examples from the action research projects and relevant literature. Originality/value “Using data to advance service” is a critical and timely research topic in the service literature. This study develops an original, specific framework for a company’s use of customer-related data to advance its services and create customer value. Moreover, the four projects with industry and government are early CPM case studies with real data.

From words to pixels: text and image mining methods for service research

Abstract: The purpose of this paper is to describe and position the state-of-the-art of text and image mining methods in business research. By providing a detailed conceptual and technical review of both methods, it aims to increase their utilization in service research.,On a first stage, the authors review business literature in marketing, operations and management concerning the use of text and image mining methods. On a second stage, the authors identify and analyze empirical papers that used text and image mining methods in services journals and premier business. Finally, avenues for further research in services are provided.,The manuscript identifies seven text mining methods and describes their approaches, processes, techniques and algorithms, involved in their implementation. Four of these methods are positioned similarly for image mining. There are 39 papers using text mining in service research, with a focus on measuring consumer sentiment, experiences, and service quality. Due to the nonexistent use of image mining service journals, the authors review their application in marketing and management, and suggest ideas for further research in services.,This manuscript focuses on the different methods and their implementation in service research, but it does not offer a complete review of business literature using text and image mining methods.,The results have a number of implications for the discipline that are presented and discussed. The authors provide research directions using text and image mining methods in service priority areas such as artificial intelligence, frontline employees, transformative consumer research and customer experience.,The manuscript provides an introduction to text and image mining methods to service researchers and practitioners interested in the analysis of unstructured data. This paper provides several suggestions concerning the use of new sources of data (e.g. customer reviews, social media images, employee reviews and emails), measurement of new constructs (beyond sentiment and valence) and the use of more recent methods (e.g. deep learning).

Leveraging human touch in service interactions: lessons from hospitality

Abstract: With the ever-increasing adoption of technology and automation radically changing the nature of service delivery, the purpose of this paper is to explore the role of human touch, introducing hospitable service as an enhancement for value creation in service organizations.,Drawing on management, social sciences and hospitality literatures, a four-configuration model is presented to illustrate dimensions which arise from the confluence of different degrees of relationship orientation – shared mental models held by the host organization (self- or other-oriented), and guests’ service preferences (transactional or relational).,A theoretically grounded model of configurations resulting from variations on three key dimensions is offered. These are: employee organization relationships – social exchange processes governing the interactions between employees and their employers; HRM systems – internally consistent combinations of HR practices; and tech-touch trade-off – prioritization of technology vs employees to deliver services.,Embedding hospitable service as a construct to support the leveraging of human touch in service organizations opens up new research opportunities including avenues to further conceptualize the nature and dimensions of hospitable service. Future research that supports further understanding about the role of human touch and value creation in service organizations is proposed.,Through the value-enhancing capability of human in the service encounter, firms can be enabled to accurately position themselves in one of the four relational configurations on offer and then identify opportunities for managers to leverage human touch to combat the diminishing role of the human touch in a technology-ubiquitous service context.,This is among the first papers to explore the influence of technology on the degree of human touch in the interface between hospitality employee and customer, and to develop a configuration model through which researchers and practitioners can operate during this declining era of human to human service interactions.

Neuroscience in service research: an overview and discussion of its possibilities

Abstract: The purpose of this paper is to discuss recent developments in neuroscientific methods and demonstrate its potential for the service field. This work is a call to action for more service researchers to adopt promising and increasingly accessible neuro-tools that allow the service field to benefit from neuroscience theories and insights.,The paper synthesizes key literature from a variety of domains (e.g. neuroscience, consumer neuroscience and organizational neuroscience) to provide an in-depth background to start applying neuro-tools. Specifically, this paper outlines the most important neuro-tools today and discusses their theoretical and empirical value.,To date, the use of neuro-tools in the service field is limited. This is surprising given the great potential they hold to advance service research. To stimulate the use of neuro-tools in the service area, the authors provide a roadmap to enable neuroscientific service studies and conclude with a discussion on promising areas (e.g. service experience and servicescape) ripe for neuroscientific input.,The paper offers service researchers a starting point to understand the potential benefits of adopting the neuroscientific method and shows their complementarity with traditional service research methods like surveys, experiments and qualitative research. In addition, this paper may also help reviewers and editors to better assess the quality of neuro-studies in service.

Advancing service design research with design science research

Abstract: Service design is a multidisciplinary approach that is key to service innovation, as it brings new service ideas to life. In this context, the development of new service design methods and models for creating new service futures is an important stream of service design research. Such developments can benefit from a systematized research methodology that builds on existing knowledge and robustly evaluates the suitability of research contributions. To address this challenge, the purpose of this paper is to present design science research (DSR), an established methodology from the information systems field, and examine how it can be useful for service design research by supporting the development of new artifacts, such as service design constructs, methods and models.,This paper presents DSR and related literature and shows how DSR can support service design research through a step-by-step approach. A methodology to develop prescriptive-driven solutions for classes of problems, DSR can support service design research in developing rigorous and relevant research. One illustrative example of a service design research effort using the DSR approach is presented.,Building on DSR’s robust methodological background, this paper discusses how DSR can support service design research, namely, through the development of new methods and models, and how DSR can be adapted to leverage service design research participatory, iterative, human-centric and creative approach.,This paper provides an overview of DSR and proposes it as a methodology to conduct service design research, offering step-by-step guidance on the application of DSR in service design research and discussing how it can be adapted according to the specific characteristics of service design research and drive future research.

The customer experience – loyalty link: moderating role of motivation orientation

Abstract: The purpose of this paper is threefold: first, to examine the effects of different touch points on customer experience, second, effects of customer experience on loyalty intentions, and actual spend, and third, the moderating role of motivation orientation on these effects.,By recognizing the importance of capturing customer experience assessments at the “time of the experience”, a smartphone technology mobile app was developed for the purpose of this study. Real time customer experience data were collected at individual touch points.,The results show that the real-time touch point evaluations significantly effect overall customer experience and that these effects significantly differ for utilitarian and hedonic motivation orientations. The effects of technology, atmospherics, employee–customer interaction and service/product interaction touch points on overall customer experience are significantly stronger for hedonic orientation than for utilitarian orientation. In contrast, the effect of process touch point on overall customer experience is significantly stronger for utilitarian than hedonic orientation. Also, favorable overall customer experience evaluations exert significant positive influence on loyalty intentions, and actual spend, and these influences are significantly stronger for consumers with hedonic than utilitarian motivation orientations.,The findings of this study will enable companies to manage customer experience programs effectively by providing an understanding of the distinct touch points that occur along the customer journey and the relative importance of each of these touch points in enhancing customer experience.,This is the first empirical study that offers important insights on the effects of different touch points on customer experience, and on the moderating role of consumer motivation orientations on the touch points – customer experience – loyalty link by using real-time data.

Bridging the Data-Divide Between Practitioners and Academics: Approaches to Collaborating Better to Leverage Each Other's Resources

Abstract: Purpose: Organizations (data gatherers in our context) drown in data while at the same time seeking managerially relevant insights. Academics (data hunters) have to deal with decreasing respondent participation and escalating costs of data collection while at the same time seeking to increase the managerial relevance of their research. We provide a framework on which managers and academics can collaborate better to leverage each other’s resources. Design/methodology/approach This research synthesizes the academic and managerial literature on the realities and priorities of practitioners and academics with regard to data. Based on the literature, reflections from the world’s leading service research centers, and the authors’ own experiences, we develop recommendations on how to collaborate in research. Findings Four dimensions of different data realities and priorities were identified: research problem, research resources, research process, and research outcome. In total, 26 recommendations are presented that aim to equip academics to leverage the potential of corporate data for research purposes and to help managers to leverage research results for their business. Research limitations/implications: This article argues that both practitioners and academics have a lot to gain from collaborating by exchanging corporate data for scientific approaches and insights. However, the gap between different realities and priorities needs to be bridged when doing so. The article first identifies data realities and priorities and then develops recommendations on how to best collaborate given these differences. Practical implications This research has the potential to contribute to managerial practice by informing academics on how to better collaborate with the managerial world and thereby facilitate collaboration and the dissemination of academic research for the benefit of both parties. Originality/value: Whereas previous literature has primarily examined practitioner–academic collaboration in general, this study is the first to focus specifically on the aspects related to sharing corporate data and to elaborate on academic and corporate objectives with regard to data and insights.

Designing, writing-up and reviewing case study research: an equifinality perspective

Abstract: Several researchers struggle with designing, writing-up and reviewing case study research, but constructing a template for describing and justifying methodological choices is – in contrast with quantitative research – undesirable due to the creative nature of qualitative research. Therefore, the purpose of this paper is to provide insight into the multitude of paths to rigorous case study research and promote rigorous case study research in the service community.,Based upon a review of seminal articles and textbooks, different paths to rigorous case study research are identified. Subsequently, these paths are compared with existing practices in case studies in service research published between March 2017 and April 2019.,Seminal articles and textbooks detail different paths to achieve rigor with regard to research purpose, design, data, analyses and write-up. Overall, the most popular paths in the service community are those proposed by Eisenhardt and Yin. Meanwhile, service researchers increasingly challenge the dichotomy between the inductive and deductive logic by choosing an abductive logic. Transparency and reflexivity are the main points of attention among service researchers doing case study research.,By providing insight into the multitude of paths to rigorous case study research along with their popularity in the service community, this paper helps service researchers to balance rigor and creativity when engaging in case study research. Additionally, this paper offers a framework for reviewing case study research in terms of rigor and creativity.

Service system well-being: Conceptualising a holistic concept

Abstract: The purpose of this paper is to develop a concept of service system well-being by presenting its collective conceptualisation and ten key domains.,Service system well-being domains were established using multi-level theory and a qualitative case study research design. To validate the domains initially developed from the literature, 19 in-depth interviews were conducted across two case studies that represented the service systems of a hospital and a multi-store retail franchise chain. A multi-stakeholder approach was used to explore the actor’s perspectives about service system well-being. Key domains of service system well-being were identified using deductive categorisation analysis.,The findings found evidence of ten key domains of well-being, namely strategic, governance, leadership, resource, community, social, collaborative, cultural, existential and transformational, among service system stakeholders.,Service system well-being is a collective concept comprising ten domains that emerged at different levels of the service system. The propositions outlined the classification of and interlinkages between the domains. This exploratory study was conducted in a limited service context and focussed on ten key domains.,Service managers in commercial and social organisations are able to apply the notion of service system well-being to identify gaps and nurture well-being deficiencies within different domains of service-system well-being.,Based on multi-level theory, the study is the first to conceptualise and explore the concept of service system well-being across multiple actors.

Creating innovation that drives authenticity

Abstract: The purpose of this paper is to explore the relationship between innovation and authenticity by developing a conceptual framework that illuminates the key constructs.,The paper adopts a common perspective – the customer – for both innovation and authenticity. A conceptual framework identifying the roles of centrality and distinctiveness in the innovation–authenticity relationship is developed and justified based upon prior research regarding brand extensions and authenticity.,The innovation–authenticity relationship can be visualized and managed using two constructs: centrality and distinctiveness. Centrality is proposed to have a positive relationship, whereas distinctiveness is proposed to have a non-linear (inverted-U) relationship.,The paper contributes a new conceptualization of the innovation–authenticity–loyalty relationship. It applies C–D Mapping in a completely new way to provide managerially relevant visualization of customers’ perceptions of a new innovation vis-a-vis the parent brand to guide strategic decision making. The paper also suggests areas for further research to improve our understanding of successful innovation–authenticity alignment.

Beyond reciprocal: the role of platforms in diffusing data value across multiple stakeholders

Abstract: The purpose of this paper is to assess the role of platforms in diffusing data value across multiple stakeholders.,Seminal theoretical and managerial work has been critically examined in order to justify the need for improving/extending the contemporary understanding of the data value creation process.,The results suggest that existing frameworks and conceptualizations of reciprocal data value provide incomplete understanding of the role of platforms in data value diffusion.,This paper provides service researchers with a better understanding of the role of platforms in data value diffusion. Future research can develop and validate new frameworks that reflect the proposed extended/improved view of data value creation.,Service and hospitality managers will be able to more effectively manage the role of platforms in data value diffusion. Specifically, this paper proposes that, in order for data to become a source of competitive advantage, there must be a symbiotic relationship among all the stakeholders of the data ecosystem.,The authors discuss how data creates value for different stakeholders in the hospitality industry.

Identifying the resource integration processes of green service

Abstract: Purpose: The purpose of this paper is to improve the understanding of green service. In particular, the focus is on identifying homopathic and heteropathic resource integration processes that prese ...

The power of information on customers’ social withdrawal and citizenship behavior in a crowded service environment

Abstract: Crowding in service environments is a constant concern for many firms due to the negative consequences it has on consumers and companies alike. Yet, scant empirical research exists on firm-generated initiatives aimed at improving customer service experiences in crowded situations. The purpose of this paper is to investigate how information, a managerially actionable variable, influences social interactions (in the form of customer social withdrawal and citizenship behavior) and service experience.,Two experimental studies were conducted using an extended service context.,This research demonstrates that receiving information about crowds in advance results in heightened social withdrawal, which improves customer service experience. However, providing consumers with a platform to share crowding information increases customers’ citizenship behavior toward service employees and other customers, which, in turn, improves customer service experience.,For extended service encounters (e.g. air travel) where social interactions are inevitable, companies should encourage customers to share their real-time experiences with other customers in hopes of creating more positive social interactions (e.g. citizenship behavior) within the crowded environment.,Existing investigations of crowding stem from an overemphasis on the physical and atmospheric aspects of the environment by treating crowds as a “fixture” in the servicescape, rather than as “active participants” involved in the crowding environment. While the mere presence of crowds alone has negative effects, this research takes it a step further by examining interactions among and between customers and service employees within the crowded service environment.

A framework for sustainable service system configuration: Exploring value paradoxes with examples from the hospitality industry

Abstract: While innovative service systems may create substantial value for certain stakeholders, they often destroy value for others. This value paradox frequently leads to unsustainable service systems. The purpose of this paper is to explore the use of multiple theories to pinpoint and explain these value paradoxes, build a framework allowing potentially more sustainable value configuration of service systems and develop an agenda for future research. The framework is illustrated with examples from the hospitality industry.,The paper draws on prevalent theories and approaches, including service-dominant logic, business modeling, transaction cost economics, stakeholder theory, configuration theory and set theory, to develop a value configuration framework.,In a service system, the configuration of resources and relationships between these resources (i.e. the set of value propositions for various stakeholders of the system) determines which stakeholders will gain and which will lose and to what extent. For that reason, insight into the range of possible service configurations – or business models – will help decision makers consider the effects on various stakeholders, and, where possible, set their priorities right and make their businesses more sustainable. The research produces a rich research agenda.,Examples from hospitality allow an in-depth examination of a range of dynamic configurational and technological innovations, but some idiosyncratic characteristics of the context may impede the wider applicability of the conceptual framework. Future research could complement this work by studying other service sectors.,The paper aims to provide decision makers in the service industry with a conceptual tool to explore, diagnose and, if needed, adjust the value configuration of their service operations. In practice, this tool may help explicate the service system configuration, thus helping managers determine their organizations’ desired positioning in terms of value creation and destruction, and to choose strategic directions by adapting configurations.,Legislation and regulations are being adapted to various new service configurations. This paper attempts to – at least conceptually – distinguish different service configurations, allowing policy makers to identify the value trade-offs between stakeholders, including society at large.,Previous research focused primarily on value creation by innovative services and business models. Value creation for one stakeholder, however, could lead to value destruction for another. Taking this paradox into consideration may result in more open service ecosystems that explicitly consider sustainability and value implications in multiple dimensions and for a broader group of stakeholders.

Trapped in a service encounter: Exploring customer lock-in and its effect on well-being and coping responses during service encounters

Abstract: The purpose of this paper is to explore the reasons why customers often cannot or do not exit a negative service encounter (lock-in) and to discuss how this affects their well-being and coping responses. This contributes to the research on how negative service encounters emerge and evolve and how such encounters impact customer well-being and subsequent responses.,An inductive, exploratory approach was used. Interviews with 20 service customers yielded over 90 detailed lock-in experiences across 25 different services. A multi-step, iterative coding process was used with a mixture of coding techniques that stem from a grounded theory approach.,Four categories of factors that caused customers to endure a negative event were identified (physical lock-in, dependency on the service, social lock-in and psychological lock-in). Customers either experienced inner turmoil (if they perceived having the option to stay or leave) or felt captive; both impacted their well-being and coping strategies in different ways. Three characteristics of negative events that caused lock-in to persist over time were identified.,This is a qualitative study that aims to identify factors behind customer lock-in, reduced well-being and coping strategies across different types of service encounters. Future research may build on these themes to investigate lock-in during specific service encounters in greater depth.,This research provides insights regarding how service providers can anticipate lock-in situations. In addition, the findings point to several ways in which frontline employees can assist customers with the coping process, during lock-in.,Customer lock-in during a service encounter is a common, yet unexplored phenomenon. This research contributes to a better understanding of why customers endure negative events and how such perceptions are reflected in their experiences and behaviors.

Defining the antecedents of experience co-creation as applied to alternative consumption models

Abstract: The purpose of this paper is to propose a conceptual framework of experience co-creation that captures the multi-dimensionality of this construct, as well as a research process for defining of the antecedents of experience co-creation.,The framework of experience co-creation was conceptualized by means of a literature review. Subsequently, this framework was used as the conceptual basis for a qualitative content analysis of 66 empirical papers investigating alternative consumption models (ACMs), such as renting, remanufacturing, and second-hand models.,The qualitative content analysis resulted in 12 categories related to the consumer and 9 related to the ACM offerings that represent the antecedents of experience co-creation. These categories provide evidence that, to a large extent, the developed conceptual framework allows one to capture the multi-dimensionality of the experience co-creation construct.,This study underscores the understanding of experience co-creation as a function of the characteristics of the offering – which are, in turn, a function of the consumers’ motives as determined by their lifeworlds – as well as to service design as an iterative approach to finding, creating and refining service offerings.,The investigation of the antecedents of experience co-creation can enable service providers to determine significant consumer market conditions for forecasting the suitability and viability of their offerings and to adjust their service designs accordingly.,This paper provides a step toward the operationalization of the dimension-related experience co-creation construct and presents an approach to defining the antecedents of experience co-creation by considering different research perspectives that can enhance service design research.

Investigating the on-demand service characteristics: an empirical study

Abstract: Purpose: Technological developments and new customer expectations of immediacy have driven businesses to adopt on-demand service models. The purpose of this paper is to study the characteristics of a range of on-demand services in order to better understand the meaning of “on-demand” and its implications for service management. This enables the on-demand service logic to be applied to other service contexts, where it may add value for customers. Design/methodology/approach: The study starts with a focused literature review and continues with a multiple case study methodology, as the on-demand service concept is in the early stages of theory development. Seven cases were studied, based on a maximum variation sampling strategy. Findings: The results show that on-demand services are characterized by three interrelated characteristics: being highly available, responsive and scalable. Analysis further reveals that on-demand services display differences within the conceptual boundaries of these characteristics, i.e. they vary in terms of their availability, responsiveness and scalability. Originality/value: Drawing on these findings, the study contributes to the service literature by being the first to specifically conceptualize and define the on-demand services concept and reveal three key characteristics that clarify the distinctive nature of this service type. Accordingly, on-demand services are clearly differentiated from other services. Additionally, the paper discusses the variety within on-demand services and develops an on-demand service continuum that gives detailed insights into the conceptual variations within such services. © 2019, Robbert-Jan van der Burg, Kees Ahaus, Hans Wortmann and George B. Huitema.

Successful referral behavior in referral reward programs

Abstract: Referral reward programs (RRPs) incentivize existing customers (inductors) to refer new customers (inductees). The effectiveness of RRPs is not well understood as previous studies either focused on referral intent and/or ignored inductee responses. However, an RRP is only effective if inductors recommend and inductees respond with buying the service. The purpose of this paper is to examine the drivers of existing customers’ successful referral behavior.,This study combines a bank’s customer relationship management (CRM) data which were used to identify successful inductors and non-inductors. Then, observed behavioral and customer background data from the CRM database (including successful referrals, deposits in euros, number of products held, relationship duration, income, age, and gender) were combined with survey data capturing attitudinal variables (i.e. perceived relationship quality, reward attractiveness, referral metaperception, opportunism, and involvement). This approach allowed for the simultaneous testing of all hypothesized drivers of successful referral behavior.,Metaperception (i.e. the process by which individuals determine the impressions other might form of them and their behavior) was the strongest and most significant driver of successful RRP participation, followed by attractiveness of the reward. That is, inductors recommended successfully when they believed that their incentivized referral did not look bad (or even looked good) and incentives were perceived as attractive. This finding is important as metaperception so far has only been examined in theoretical and experimental studies with intent as dependent variables. Second, latent class analysis (LCA) revealed that there were two segments of inductors of which one was opportunistic. Opportunism as a driver of referral behavior has not been shown in past research using more traditional analyses, whereas LCA uncovered it as a driver for one-third of all respondents.,The findings offer managers a better understanding of the key determinants of successful referral behavior with important RRP design implications that counter frequent practice (e.g. designing RRPs with high face value but then reducing its usefulness through terms and conditions). Furthermore, managers may consider segment-specific reward structures to improve the effectiveness of their RRPs.,This study is the first to examine inductor determinants of successful referral behavior and identify inductor segments.

Trust recovery tactics after double deviation: better sooner than later?

Abstract: The purpose of this paper is to examine when (i.e. after a shorter or longer length of time) organizations should offer an apology or a promise of non-recurrence of a failure to recover trust following a failed service recovery (a double deviation).,This paper reports the results of a pilot study with a convenience sample and two experiments with samples from different populations, students and employees of a financial institution in one study and workers recruited through Mechanical Turk in the other.,An apology was most effective to recover trust when offered shortly after the double deviation (e.g. Study 1: after two days; Study 2: immediately and after two days), while making a promise was most effective when offered at a later time after the double deviation (e.g. Study 1: after 30 days; Study 2: after 15 days). Consumers consider an apology offered shortly after the double deviation as a sign of integrity and a promise communicated sometime after the double deviation as a sign of competence.,This paper complements prior research that demonstrates the effectiveness of apology and promise as trust recovery tactics. The findings show that managers should carefully consider the time at which they use these tactics to recover trust following a double deviation.

Towards a shared understanding of the service experience – a hospitality stakeholder approach

Abstract: The purpose of this paper is to start a conversation on achieving a shared understanding among hospitality service co-creation participants. Adopting a stakeholder and service eco-systems approach, attention is drawn to the necessity for all service experience participants to have a shared understanding of the service experience and their role within it, for a sustained competitive advantage to be realized. Informed by community of practice (CoP) thinking, a road map of research questions is advanced encouraging insight into a macro level phenomenon that, traditionally, is only ever considered at the micro service encounter level.,A thorough multidisciplinary review of the literature was undertaken, providing an opportunity to present a viewpoint on the strategic implications of providing a sustainable competitive advantage via the hospitality service experience.,To achieve a shared understanding across the Hospitality Service Experience Eco-System, potential tensions among stakeholders are highlighted. Accounting for such barriers, institutional arrangements, combining organizational CoPs that are bridged by designated boundary objects, is advanced. Given the novel approach of applying a traditionally organizational phenomenon at a macro multi-stakeholder level, several research questions are proposed to inform thinking about this neglected perspective.,Acknowledging the innovation, agility and resources required to maintain a competitive service experience, the paper emphasizes the importance of adopting a macro perspective to effective service management. The hope is to stimulate academic interest to inform understanding as to how to build this capability as well as enhance practitioner interest in promoting stakeholders’ CoP for the benefit of the entire Hospitality Service Experience Eco-System.

The impact of occupational stereotypes in human-centered service systems

Abstract: The purpose of this paper is to explore the impact that occupational stereotypes held by customers have on value co-creation processes in human-centered service systems (HCSSs) like hospitals. Specifically, by exploring if and how customers’ (i.e. patients’) stereotypes toward frontline employees (e.g. nurses) affect their satisfaction as co-creators of value, this study responds to current service research priorities attempting to understand value co-creation in collaborative contexts like healthcare, and addresses calls to investigate the changing role of health care customers therein.,A field study was conducted in the context of German hospitals, which provides unique empirical evidence into the relationship between patients’ stereotypes toward healthcare professionals and their satisfaction with health services as well as the mediating mechanisms through which such stereotypes affect patient satisfaction.,Negative (positive) stereotypes patients hold toward healthcare occupations decrease (increase) their satisfaction and are associated with perceptions of reduced (improved) patient orientation and patient participation in co-creation. However, only perceived patient orientation partially mediates the link between occupational stereotypes and patient satisfaction.,This study develops and tests new hypotheses related to occupational stereotyping in complex HCSSs, and extends previous research on stereotypes in service by exploring the previously unknown mediating mechanisms through which these impact value co-creation processes overall. It furthermore provides important guidance for future research about stereotyping in general, and its impact on value co-creation and HCSS, in particular.