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Service Design for Experience-Centric Services
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Service organizations are increasingly managing customer experiences to promote differentiation and customer loyalty. This article examines the design of experience-centric services, particularly the design of their context. Drawing on relevant literature in service and experience design, the authors develop a theory-based set of propositions for experience design.The propositions are then investigated empirically by means of 17 case studies of design agencies, consulting firms, and experience-centric service providers in different industries. Strong support was found for the designing of “customer journeys” and “touchpoints,” for sensory design, and for the designing of a dramatic structure of events. In addition, the engagement of employees, the management of fellow customers, and the close coupling of backstage employees and frontstage activities represent promising new frontiers in experience design. By identifying the current design practices of leaders in experience design, this study both informs this practice and presents a unique perspective on the design of service delivery systems.
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... Their theorizing focuses on how firms must actively build memorable CXs to suit better consumers' demands (Pine and Gilmore, 1998), implementing effective tactics to manage and affect the phygital experience. Therefore, identifying methods to develop and manage interactions with customers (Patr ıcio et al., 2008), monitoring and responding to the stimuli that are under the firm's control (Becker and Jaakkola, 2020) becomes paramount to triggering the strong, intended extraordinary CX (Zomerdijk and Voss, 2010). In summary, prior research has either focused on the concept of CX in a phygital context or on the role of the firm in building memorable CXs. ...
Purpose
This paper aims to empirically investigate the typologies of phygital (synaeresis of “physical” and “digital”) customer experiences (CXs) that can arise in high-tech retail based on the intensity of consumers' responses and reactions to the stimuli triggered by firms. Moreover, it explores how firms attempt to shape the architecture of the phygital CXs. Notably, this article identifies the flexible and agile strategies implemented by firms to enhance the several typologies of phygital CXs, with the intention of better exploiting physical and digital features to respond to the differences in customers' needs, preferences and expectations.
Design/methodology/approach
This study performs an in-depth exploratory single-case study based on semi-structured interviews with the customers, managers and employees of the Webidoo Store.
Findings
This study develops a framework illustrating the main typologies of ordinary (“hostile”, “controversial” and “disappointing”) and extraordinary (“passionate” and “explorative”) CXs that can arise in phygital contexts. Also, it identifies some key flexible and agile strategies (“decompressive strategy”, “mentoring strategy”, “prompting strategy” and “entertaining strategy”) that companies might follow to adjust their offerings and respond quickly to the different forms of phygital CXs to create a more compelling experience tailored to customers' needs, preferences and expectations.
Research limitations/implications
Among the study's limitations are the single-case study methodology and a specific setting like the Italian one. As a result, future studies could broaden the study to include other research contexts and countries. The paper offers significant managerial insights based on the many forms of CX across ordinary and extraordinary CXs. Thus, it provides critical takeaways for businesses to meet customer demand.
Originality/value
This paper analyzes the different typologies of ordinary and extraordinary CXs that could occur in phygital contexts based on the intensity of consumers' responses and reactions to firms' stimuli. Also, it explores how firms attempt to shape the architecture of the phygital CXs through flexible and agile strategies. From this paper, managers and decision-makers can reflect on successful strategies they could use to affect the stimuli to which customers respond in an agile manner, thus enhancing phygital CXs.
... Modularization often changes the service design experienced by the customer. Services differ in their experiential intensity; in transactional services, customer satisfaction focuses on the efficiency and convenience of the service delivery, whereas in experience-centric services, evoking emotional processes in customers is at the core of the service (Voss et al., 2008;Zomerdijk & Voss, 2010). It has been argued that modularity can be used to increase customization and personalization (cf. ...
The recent event related to the war in Ukraine has further sparked interest in cryptocurrencies and raised questions about their regulatory oversight. In November 2021, the cryptocurrency market capitalization reached a staggering US$3 trillion, which included more than 8,000 cryptocurrencies, and it is one of the most dynamic markets in the world (Crypto Market Sizing Report, 2022). There is significant exposure of the cryptocurrency ecosystem via a multitude of direct and indirect interlinkages into the banking sector. These include activities such as direct issuance and ownership of cryptocurrencies, intermediation services for customers, clearing of contracts that reference cryptocurrencies, or services for cryptocurrency issuers such as underwriting initial coin offerings or stablecoins. However, since 10 January 2020, all existing businesses carrying on cryptocurrency operations in the United Kingdom (UK) must be compliant with the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017 and be registered with the Financial Conduct Authority (FCA) in order to be able to in the business. This change of the rules had a significant impact on the cryptocurrency ecosystem and its effect on the banking industry. The FCA also reported that around £60 million was lost due to social media investment scams in 2020. This leads to the main discussion of this chapter—what is the appropriate level of regulations in the market in the context of the UK as a comparison to recent EU regulatory development? Also, how does the existing regulation impact the real-world cases from the UK banking industry and if there is any possible solution for crypto-risk and how it can be avoided?
... In these two streams of research, while some contributions have addressed the design of customer-oriented design processes from a methodological point of view (e.g., [4,[32][33][34][35][36]), others have covered specific features, such as operational and administrative [35][36][37], technological (e.g., [35,38]), architectural [39], and social issues (i.e., regarding the human interactions inside the service, [40][41][42][43][44]). Again, although focused on experience (e.g., [45][46][47][48][49]), design choices were aided by systematic methods (e.g., [50,51]). ...
Different design traditions address the design of services. When adopted alone, they can limit design, especially if services systems are complex. Some combinations among service design traditions are theorized in the literature and a cultural synthesis is considered a priority. This paper discusses a practical application of that synthesis: systematic/data-driven methods from engineering and service innovation are applied within a participatory and transformative environment. Intangible versus material and functional versus experience service elements are considered. The case study on urban markets shows that economics and the transactional/functional mechanics of a service system must be understood for proper design actions, and that overcoming separations between strands of literature is necessary to achieve this aim. Moreover, since urban markets are two-sided platforms in a physical setting, the study allows easier investigation than in modern digital platforms regarding how platform economics affect the design of a service system, providing insights for digital services as well. Originality is due to generally scant contributions on urban market design, since markets are often regulated, rather than designed, beyond the rare practical attempts of cultural synthesis.
Purpose
Though many conceptual and empirical studies have been conducted on the servicescape, limited research has focused on how the COVID-19 pandemic has reshaped factors influencing the servicescape. This paper aims to propose an extension of Bitner’s original conceptualization, including pandemic-induced physical and social constraints on servicescape in the form of crowding, consumer risk perception during the crisis and their impact on consumers' and employees’ behavioral changes in retail and hospitality sectors.
Design/methodology/approach
This paper critically reviewed the past and emerging servicescape and risk literature. It then examines and delineates the concepts of crowding, density and associated risk perceptions to offer an extended servicescape framework. Alongside, scales were proposed to measure the constructs and guidelines given to conduct future empirical studies.
Findings
This paper discussed the major impact on servicescape during a pandemic situation, to what extent risk is perceived during consumption and the impact of crowding and store density on employee and customer behavioral responses.
Research limitations/implications
This paper principally contributes by explicitly including specific risk dimensions and crowding and proposes the scales to measure consumers’ understanding of pandemic-induced perceptions of risk, crowding and density within servicescapes for further empirical testing. Alongside this, the identification and concretization of different types of perceived risks under COVID-19 provide critical and useful marketing implications.
Originality/value
This study identifies relevant risk dimensions, proposes crowding as an independent construct apart from servicescape physicality and proposes relevant measures for empirical verification.
Destinationen der Zukunft stehen nicht nur für Erlebnisse und Orte, welche von Personen erlebt, bereist und besucht werden können, sondern auch für Lebensräume für die Bevölkerung und lokalen Gemeinschaften. Darüber hinaus werden Destinationen von verschiedensten Faktoren beeinflusst. Von der technologischen Entwicklung bis hin zur Nachhaltigkeit oder Veränderungen im alltäglichen Leben. Durch kreative Ansätze und Designprozesse können die Destinationen der Zukunft von den verschiedensten Akteuren mitgestalten werden. Auf der einen Seite, um Probleme und Herausforderungen zu lösen, und auf der anderen Seite, um Neues entstehen zu lassen bzw. Bestehendes zu verbessern. Diese Prozesse beeinflussen sowohl die positive Entwicklung von Destinationen, als auch uns Menschen selbst. Entstehen infolgedessen menschenorientierte Produkte, Dienstleistungen, Erlebnisse o. ä., so können dadurch auch wertvolle Momente und Interaktionen für jeden Einzelnen geschaffen werden.
Mutated market conditions, the advent of new players, and a significant regulatory push have changed the banking industry profoundly in the past fifteen years. Banking business models have shifted from a vertical integrated paradigm, where production and distribution mostly belong to the same entity, to a platform driven model in which a combination of modular solutions can take place and evolve consequently according to an ecosystem market approach. A higher level of openness toward third parties and an increasing number of modular services bundled together have rebooted the way financial service formats can be conceived, delivered, and consumed by individuals. Digital platforms are driving open innovation and different formats are evolving in the market, driven by multilateral relationships. In this regard, open banking is becoming increasingly popular in many jurisdictions, especially in regard to stages of development, approaches, and scope. This paper explores how, through an affiliative approach, banks are seeking to retain customer loyalty as they respond to the ways in which FinTechs and BigTechs have developed more innovative financial service formats. This is also boosted by new legal frameworks—such as open banking and open finance—where many new services will be developed thanks to the sharing of customer-permissioned data, by offering customers new, more efficient payments; improved online account services, and other set of new services. The first part of this chapter highlights which trends are impacting the next banking frameworks as well as the evolving relationships between banks and FinTechs. The second part outlines the main outcomes of the evolution of new financial services and their impacts on value chains. Finally, the last section presents conclusions and describes upcoming opportunities for all the players, and identifies the next big challenge as the ability of these services to make a difference so that differentiation in value propositions, features, etc., is needed to give the customer a reason to choose a particular service.
Service design is a practice-based discipline developed as a co-creative and human-centred view of service-dominant logic (S-D logic). In the literature, operationalisation of S-D logic requires integration with other approaches that encourage continued interactions with users through the evolution of the design process. Emotional mechanics of gamification can facilitate these interactions, creating a conducive environment for value co-creation. We address the problematization of service design and try to operationalise SD logic as a theoretical framework. Emotional mechanics of gamification and the value co-creation are antecedents of service design. The aim of this study is to analyse the impact of the emotional mechanics of gamification in service design to foster co-creation experiences. Value co-creation is included as a mediating variable in the relationship between the emotional mechanics of gamification and service design. A quantitative approach through structural equation modelling was applied. Simple random sampling and a self-administered questionnaire were used to gather data from 390 users of gamified sports applications. The study contributes to the literature on service design, gamification and value co-creation by proposing and validating a theoretical framework based on a mix of human-centred design and value-co-creation. It can also be applied as a practical tool in customer engagement.
Geçmişten günümüze pazarlama alanında birçok değişim meydana
gelmiş, pazarlama önemli bir evrim geçirmiştir. Pazarlamanın tarihi
süreçte geçirdiği bu evrim geleneksel pazarlama stratejilerinin
önemini yitirmesine, yeni pazarlama stratejilerinin önem
kazanmasına sebep olmuştur. Bu evrim ile beraber pazarlama
fonksiyonel ve faydacı özelliklerinin yanında deneyimlere dayalı bir
kimlik kazanmıştır (Schmitt, 2005:1). Müşterilerin firma ile
karşılaşmaları sonrasında değer algılamaları ve bu karşılaşmayı daha
sonraki karşılaşmalarda anımsamaları olarak değerlendirilebilen
deneyim olgusu günümüzde önemli bir pazarlama stratejisi olarak
değerlendirilmekte, organizasyon başarısında oldukça önemli rol
oynamaktadır.
Günümüz pazar koşullarında müşteri deneyimleri doğrultusunda
müşteri istek ve ihtiyaçlarını anlamak, bu doğrultuda müşteri odaklı
bir yaklaşım sergilemek işletme başarısı için oldukça önemlidir.
İşletmeler için müşteri beklentilerinin karşılanması ve müşteri
memnuniyetinin sağlanması müşteri deneyimlerinin etkin bir şekilde
yönetilmesi ile mümkün olabilmektedir. Özellikle hizmet
ekonomisine geçişin deneyimsel pazarlamanın önem kazanmasında
önemli bir öncül olduğu düşünüldüğünde (Williams, 2006:485);
müşteri yolculuğu bağlamında hizmet süreci deneyimlerinin bir
bütün olarak ele alınmasının da önemli bir işletme öncülü olduğu
söylenebilir. Dolayısıyla müşteri yolculuğu dikkate alınarak deneyim
haritalarının oluşturulması ve deneyim haritasındaki her bir temas
noktasının müşteri bakış açısıyla ele alınması daha etkin bir hizmet
sunumunu da berberinde getirebilir.
Küresel anlamda meydana gelen gelişmeler müşteri bakış açılarında
çeşitli değişimleri de beraberinde getirmiştir. Bu değişimler özellikle
müşteri odaklı yaklaşım sergileyen işletmelerin bakış açılarında
farklılıkların oluşmasına sebep olmuştur. Dolayısıyla küresel
4
anlamda en önemli sektörlerden biri olan sağlık sektöründe hizmet
sürecinin daha etkin yönetilmesi açısından müşteri yolculuğu
kapsamında temas noktalarının belirlenmesi ve değerlendirilmesinin
oldukça önemli olduğu söylenebilir. Son yıllarda ortaya çıkan covid
19 pandemisi birçok kişinin yaşamını kaybetmesine neden olmuştur.
Bu durum sosyal mesafe, temas, maske kullanımı gibi birçok
kavramın da insanların hayatına girmesine sebep olmuştur. Bu
veriler dâhilinde; müşterilerin hem pandemi öncesi döneme ait hem
de pandemi dönemine ait hastane deneyimlerinin incelenmesi ve
müşteri bakış açısı ile değerlendirmeler yapılması önem arz
etmektedir.
Bu doğrultuda oluşturulan kitap toplamda 2 bölümden oluşmaktadır.
Birinci bölümde; deneyimsel pazarlamanın kavramsal olarak
değerlendirilmesi, deneyimsel pazarlamanın ortaya çıkışı ve gelişimi,
deneyimsel pazarlamanın özellikleri, müşteri deneyimi yönetimi,
müşteri yolculuğu, müşteri yolculuğu dizaynı, müşteri yolculuğu
haritası, müşteri yolculuğu temas noktaları, müşteri yolculuğu analizi
başlıklarına yer verilmiştir. Çalışmanın ikinci bölümünde ise
araştırma amaçları doğrultusunda uygulama kısmına yer verilmiştir.
A heightened awareness of the fundamental behavioral science principles underlying human interactions can be translated directly into service design. Service encounter design can be approached with the same depth and rigor found in goods production. Service encounters can be designed to enhance the customer’s experience during the process and their recollection of the process after it is completed. This paper summarizes the key concepts from a panel discussion at the DSI National Meeting in Orlando in November 2000. The panel brought together a number of leading academic researchers to investigate current research questions relating to the human side of the design, development and deployment of new service technologies. Human issues from the customer and service provider vantage are illustrated and challenges to researchers for exploring this perspective are presented.
A typology of a class of service systems is proposed. The typology links strategic operational objectives to the decision to de‐couple work between the front and back offices of a service system. Four specific ideal types of a strategy/de‐coupling mix are described; each of which has distinct operational, marketing and human resource ramifications. A type that has had significant representation in traditional literature is the “Cost Leader” type, where back‐office activities are de‐coupled from the front office for the purpose of lowering costs. Another traditional type representative of the craftsman legacy is the “Personal Service” type, which retains back‐office tasks in the front office to pursue non‐cost‐oriented strategic goals. Theoretical and empirical evidence is also given for two non‐traditional types: the “Kiosk” type, where all tasks remain in the front office to achieve lower costs, and the “Focused Professional” type, which de‐couples front‐ and back‐office activities to enable front‐office workers to provide higher service, rather than to reduce costs. Empirically, retail bank lending systems are analyzed to support the typology.
Case and field research studies continue to be rarely published in operations management journals, in spite of increased interest in reporting such types of studies and results. This paper documents the advantages and rigor of case/field research and argues that these methods are preferred to the more traditional rationalist methods of optimization, simulation, and statistical modeling for building new operations management theories. In the process of describing the constructs of inference and generalizability with reference to case research, we find the existing definitions inadequate and thus extend and refine them to better discriminate between alternate research methodologies. We also elaborate on methods for increasing the generalizability of both rationalist and case/field research studies. A major conclusion is that these alternate research methods are not mutually exclusive and, if combined, can offer greater potential for enhancing new theories than either method alone.
The authors describe commercial friendships that develop between service providers and clients as one important type of marketing relationship. They report results of five studies that employ quantitative and qualitative data analysis. They develop a measure of commercial friendship, identify important correlates, and illustrate how friendships form. Context and tension between instrumental and expressive goals circumscribe commercial friendships, but friendships are associated with satisfaction, strong service loyalty, and positive word of mouth. Qualitative data illustrate varied temporal ordering among satisfaction, loyalty, and friendship for both service providers and clients. The authors identify implications of their findings for an array of industries in which commercial friendships may form.
The service encounter frequently is the service from the customer's point of view. Using the critical incident method, the authors collected 700 incidents from customers of airlines, hotels, and restaurants. The incidents were categorized to isolate the particular events and related behaviors of contact employees that cause customers to distinguish very satisfactory service encounters from very dissatisfactory ones. Key implications for managers and researchers are highlighted.
- This paper describes the process of inducting theory using case studies from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.