Revisiting Service Quality through the Lens of Experience-Centric Services

The purpose of this research is to revisit prevailing notions of service quality by developing and testing a model of service quality for experience-centric services. By problematizing the service quality literature, a model is developed to capture impacts of outcome-achievement, instrumental performance and expressive performance on customer loyalty. A multi-group structural equation model is tested to establish the moderating effect of perceived service character—utilitarian or hedonic. Outcome-achievement mediates the direct relationships between instrumental and expressive performance, respectively, and loyalty; the strength of these relationships is moderated by perceived service character. Emotional design to improve the experience is effective provided the expected outcome is achieved. However, for services that customers perceive as experience-centric, the outcome may be somewhat ambiguously defined and expressive performance is valued more highly than instrumental performance. Understanding customers’ perception of a service—whether customers seek value related to outcomes or emotions—is crucial when selecting appropriate measures of service quality and performance. Creating a good experience is generally beneficial, but it must be designed according to the character of the service in question. The research presents empirical evidence on how service experience contributes to customer loyalty by testing a model of service quality that is suited to experience-centric services. Furthermore, it identifies the importance of understanding service character when designing and managing services

Analyzing Business Model Components Using the Sensitivity Model

The article deals with the business model and its components as well as the analysis of the relationships between these components using the sensitivity model. For this purpose we define the concept of a business model, paying special attention to its classification and components. Then we discuss the sensitivity model as a practical tool enabling us to define the problem and its elements, to analyze its impact and to explain the possibilities of influence. This research focuses on assessing the relative influence of business model components on each other, thus filling a gap in the literature having to do with the dynamic relationships between business model components

Harnessing the power of experimentation through design thinking and agile methods

Design thinking and agile thinking are approaches that have great value in product innovation management. While they may be widely discussed in practice, it is unclear to what extent they are understood and how they are applied. To answer these questions, qualitative research was conducted with design engineers involved in product innovation. Interviews focused on the type of iterative development used and the extent to which experimentation, with a variety of media, contributes to design and innovation. The research examines experimentation through creation of low-fidelity models. These include mechanisms modelled using construction toys, or scale models created from materials found in a workshop, to test and explore ideas. We use the concept of boundary objects to explain the way that these low-fidelity models facilitate communication between individuals who possess differing sets of knowledge. A variety of experimentation techniques are identified, from hand drawn sketches to simple models, which contrast with computer drawings and simulations. A distinction is revealed between those who trust their own intuition and creativity compared with those who rely on objective measures and trust computer models. A question over the extent to which design involves analysis and synthesis is demonstrated in this distinction. The contributions of this research are as follows. Firstly, it reveals the ways in which technologies – old and new – enrich the armoury of the designer, by facilitating the exploration and communication of ideas. Secondly, it provides insights into the role of experimentation in innovation by examining the use of low-fidelity prototypes. And finally, it draws comparisons between design and agile methods, finding opportunities for cross-fertilisation and suggesting how managers 2 may wish to support designers in innovation projects through agile methods and by encouraging experimentation

Aesthetic Design as an Element of Service Innovation in New Technology-based Firms

The goals of this thesis are to examine new technology-based firms’ use of aesthetic design as an element of service innovation and to explore potential relationships between aesthetic design and performance in this same context. There is a scarcity of research on aesthetic design as an element of service innovation, particularly in new technology-based firms. Because of this scarcity, a hybrid research strategy is appropriate and the empirical basis for this research encompasses multiple case studies, longitudinal quantitative data and evaluations by expert panels. The first phase of the research involves developing an operationalization of design that enables evaluation of aesthetic design as an element of innovation in technology-based firms. The second phase uses case research to explore the role and organization of aesthetic design in service innovation in new technology-based firms. The final phase explores relationships between aesthetic design and performance in the research context. Hypotheses are developed based on existing research, on one hand, and the results of the case research, on the other, and these hypotheses are tested using longitudinal survey-based data. The operationalization of design developed is a three-dimensional model consisting of functional design, visceral design and experiential design. Functional design is concerned with utility, features and delivery; visceral design is concerned with appealing to the human senses; and experiential design is concerned with message, symbols, culture, meaning, and emotional and sociological aspects. Visceral design and experiential design are combined to yield a formative measure of aesthetic design. The findings of the research are that new technology-based firms emphasize functional design over aesthetic design. Emphasis on aesthetic design is related positively with the importance of design in a firms’ sector and founders’ experience of sales and marketing, while it is negatively related with founders’ technical education. In new technology-based firms, aesthetic design can be characterized as being used to exploit or counteract the characteristics that distinguish services from products, namely intangibility, inseparability, heterogeneity and perishability. The application of aesthetic design to counteract these characteristics is more prevalent than exploitation. Aesthetic design in new technology-based firms is found to be primarily silent, meaning that those performing design activities are mostly managers and technical staff engaged in design activities as part of their development efforts and without these activities necessarily being acknowledged as design. The findings regarding the relationship between aesthetic design and performance are that aesthetic design is positively related with competitive advantage, but that this relationship is dependent upon moderating factors. The effectiveness of aesthetic design in achieving competitive advantage through differentiation is found to differ depending on the current stage of commoditization. The greater the level of commoditization of a service the more effectively aesthetic design can be employed to improve competitive advantage. Furthermore, the findings suggest that the objectives underlying managers’ decisions to use aesthetic design in service innovation are attracting new customers, improving firm image and/or retaining existing customers, and doing so at lower cost. Hypothesis testing using longitudinal survey-based data confirms that by and large these benefits are realized by new technology-based firms. This research makes a number of important contributions. The research focus lies in an area where there is little existing research and, thus, the operationalization of aesthetic design developed and the characterization of aesthetic design as an element of service innovation in new technology-based firms constitute important contributions. The characterization provides a picture of the prevalence, roles, organization and actors of aesthetic design in the research context. The research also contributes insight about the relationship between aesthetic design as an element of service innovation and performance of new technologybased firms. The research shows that various positive relationships exist but that they can be contingent upon existing conditions, which act as moderating factors

Setting the stage for service experience:design strategies for functional services

Purpose: The purpose of this paper is to identify service design strategies to improve outcome-oriented services by enhancing consumers’ emotional experience, while overcoming customer variability. Design/methodology/approach: An abductive, multiple-case study involves 12 service firms from diverse online and offline service sectors. Findings: Overall, six service design strategies represent two overarching themes: customer empowerment can involve design for typical customers, visibility, and community building, while customer accommodation can involve design for personas, invisibility, and relationship building. Using these strategies helps set the stage for a service to offer an emotional experience. Research limitations/implications: The study offers a first step toward combining investigations of service experience and user experience. Further research can strengthen these links. Practical implications: The six design strategies described using examples from case research offer managerial recommendations. In particular, these strategies can help service managers address the customer-induced variability inherent in services. Originality/value: Extant studies of experience staging have focused on particular sectors such as hospitality and leisure; this study contributes by investigating outcome-focused services and identifying strategies to create unique experiences that offset variability. It also represents a rare effort to combine research from service management and interaction design, shedding light on the link between service experience and user experience

Overcoming the monetization challenge in freemium online games

Purpose: Online games based on a freemium business model face the monetization challenge. The purpose of this paper is to examine how players’ achievement orientation, social orientation and sense of community contribute to willingness to pay (WtP). Design/methodology/approach: A multi-method study of an online game community is used. Interviews and participant observation are used to develop an understanding of social and achievement orientations followed by the development of hypotheses that are tested using survey data. Findings: The findings indicate that a sense of community is positively related to WtP, whereas satisfaction or dissatisfaction with the service provider is not. The authors examine the moderating role of players’ achievement orientation and social orientation and find that while a stronger connection to the community may encourage achievement-oriented players to pay, the opposite is indicated for socially oriented players. Practical implications: Decision makers need to understand that not all players are potential payers; while socially oriented users can help to maintain and grow the community, achievement-oriented players are more likely to pay for the value they extract from the community. Originality/value: While communities are held together by people with common interests, which intuitively suggests that WtP increases with the strength of connection to the community, the authors find this only applies in the case of players with an achievement orientation. For those with a social orientation, WtP may actually decrease as their connection to the community increases. These perhaps counter-intuitive findings constitute a novel contribution of value for both theory and practice

Articulating the service concept in professional service firms

Purpose: This study proposes a solution to the challenges of Professional Service Firms (PSF), which are referred to as cat herding, opaque quality and lack of process standardization. These result from misalignment in the mental pictures that managers, employees and customers have of the service. The study demonstrates how the process of articulating a shared service concept reduces these challenges. Methodology: A narrative methodology is used to analyze the perspectives of old management, new management and employees during organizational change in a PSF–a website design company growing to offer full-service branding. Group narratives are constructed using longitudinal data gathered through interviews and fieldwork, in order to compare the misaligned mental pictures and show the benefits of articulating the service concept. Findings: Professional employees view growth and change as threats to their culture and practice, particularly when new management seeks to standardize processes. These threats are revealed to stem from misinterpretations caused by miscommunication of intentions and lack of participation in decision making. Articulating a shared service concept helps to align understanding and return the firm to equilibrium. Research Limitations: The narrative methodology helps unpack conflicting perspectives, but is open to claims of subjectivity and misrepresentation. To ensure fairness and trustworthiness, informants were invited to review and approve the narratives. Originality: The study contributes propositions related to the value of articulating a shared service concept as a means of minimizing the challenges of PSFs