Archives: Literature


Abstract: More and more corporations throughout the world are adding value to their core corporate offerings through services. The trend is pervading almost all industries, is customer demand-driven, and perceived by corporations as sharpening their competitive edges. Modern corporations are increasingly offering fuller market packages or “bundles” of customer-focussed combinations of goods, services, support, self-service, and knowledge. But services are beginning to dominate. This movement is termed the “servitization of business” by authors Sandra Vandermerwe and Juan Rada, and is clearly a powerful new feature of total market strategy being adopted by the best companies. It is leading to new relationships between them and their customers. Giving many real-life examples, the authors assess the main motives driving corporations to servitization, and point out that its cumulative effects are changing the competitive dynamics in which managers will have to operate. The special challenge for top managers is how to blend services into the overall strategies of the company.


Defines the term "servitization" and gives a (non-exhaustive) view of why servitization happens.
Reading time <1 min
Abstract: Purpose – The purpose of this paper is to present and discuss a conceptual model of purchase intentions, trust, and e-servicescape that presents online physical environments as comprising three dimensions. It aims to develop and extend existing research into physical service environments through proposing, operationalizing, and testing a model of online servicescape. Design/methodology/approach – The study utilizes a survey approach to gather data regarding consumers' perceptions of online servicescape. Surveys were administered to 257 respondents regarding a broad range of web sites. Findings – A measure of e-servicescape is evaluated that comprises three dimensions and 52 items while relationships between the dimensions of e-servicescape, trust, and purchase intentions are described. Research limitations/implications – The first contribution of this study stems from the successful operationalization of a comprehensive multi-item (in total 52 items), multi-scale (nine scales), multi-dimensional (three) measure of e-servicescape. Second, a contribution is made through the finding that trust constitutes a key variable during online exchange. Third, we contribute insights into the antecedents of consumers' purchase intentions. Finally, the study reveals that consumers' interpretations of online environments exert a powerful influence over trust and purchase intentions. Originality/value – The findings of this study also have numerous implications for both services managers and internet developers. The findings supply valuable insights into which factors practitioners should focus their attention to better tailor their approaches. This study strongly endorses the view that the loyalty intentions of online customers are linked to the extent to which they trust the service provider.


looks at e-servicescapes
Reading time <1 min
Abstract: A typology of service organizations is presented and a conceptual framework is advanced for the impact of physical surroundings on the behaviors of both customers and employees. The ability of the physical surroundings to facilitate achievement of orhanizational as well as marketing is explored. Literature from diverse disciplines theoretical grounding for the framework , which serves as a base for focussed propositions. By examining the multiple strategic roles that physical surroundings can exert in service organizations, the author highlights key managerial and research implications.


Defines the servicescape
Reading time <1 min
Abstract: We propose and test a parsimonious and comprehensive two-level framework for industrial goods pricing which allows for multiple pricing strategies for a single product. We identify a reduced set of cost, product and information conditions determining which strategy type (new product, competitive, product line,cost-based) is optimal. We further identify a set of unique determinants under which a given principal strategy within each type is optimal. For example, the competitive pricing strategy type (leader, parity or low cost supplier) should be used in the later stages of the product life cycle. Leader pricing should be used by firms with high market share whereas parity pricing should be used by firms with high costs....


Useful categorisation of pricing strategies.
Reading time <1 min