INTRODUCTION
THE PROGRESSION OF ECONOMIC VALUE
PRODUCT SERVICE
MANUFACTURER SERVITIZATION or PROVIDER
SERVICE INFUSION or
SERVICE BUSINESS DEVELOPMENT
SERVICE EXPERIENCE
Service delivery Stage experiences
Intangible Memorable
Customized Personal
Delivered on demand Revealed over a duration
Provider Stager
Client Guest
Perception vs expectations Emotions and experiences
e.g. Space mountain @Disneyland: If we talk about service, we think about some ‘rational’ elements,
such as the waiting time, the friendliness of the employees,… Whether or not the Space mountain is
a good experience depends on a lot of factors One of them is individual. I have stomach problems if I
am sitting on a roller coaster… Whatever the level of service, my experience won’t be good at the
end.
Managing Service Organisations 2020-2021 Tessa Casier
1
,SERVICE: WHAT IS IN THE NAME?
The application of specialized competences, knowledge and skills through deeds, processes and
performances for the benefit of a customer.
FROM GOODS-DOMINANT LOGIC (GDL)…
Manufacturer
Customer provides product
purchases and possibly
product services
The customer’s footprint of responsibilities
People exchange for goods
Goods are an end-product to be ‘owned’ by the user
The customer is the (passive) recipient of goods
Value is determined by the producer and is defined in terms of ‘exchange value’
Managing Service Organisations 2020-2021 Tessa Casier
2
, … TO SERVICE-DOMINANT LOGIC (SDL)
Manufacturer
Customer provides
buys integrated
capability product and
service
The manufacturer’s footprint of responsibilities
→ you need to understand what the business of the customer is
People exchange to acquire the benefits of specialized competences (knowledge and skills)
Goods are a distribution mechanism for services
The customer is a co-producer and a co-creator
Value is perceived or determined by the consumer (‘value in use’)
MANAGING SERVICE ORGANIZATIONS
Managing Service Organisations 2020-2021 Tessa Casier
3
THE PROGRESSION OF ECONOMIC VALUE
PRODUCT SERVICE
MANUFACTURER SERVITIZATION or PROVIDER
SERVICE INFUSION or
SERVICE BUSINESS DEVELOPMENT
SERVICE EXPERIENCE
Service delivery Stage experiences
Intangible Memorable
Customized Personal
Delivered on demand Revealed over a duration
Provider Stager
Client Guest
Perception vs expectations Emotions and experiences
e.g. Space mountain @Disneyland: If we talk about service, we think about some ‘rational’ elements,
such as the waiting time, the friendliness of the employees,… Whether or not the Space mountain is
a good experience depends on a lot of factors One of them is individual. I have stomach problems if I
am sitting on a roller coaster… Whatever the level of service, my experience won’t be good at the
end.
Managing Service Organisations 2020-2021 Tessa Casier
1
,SERVICE: WHAT IS IN THE NAME?
The application of specialized competences, knowledge and skills through deeds, processes and
performances for the benefit of a customer.
FROM GOODS-DOMINANT LOGIC (GDL)…
Manufacturer
Customer provides product
purchases and possibly
product services
The customer’s footprint of responsibilities
People exchange for goods
Goods are an end-product to be ‘owned’ by the user
The customer is the (passive) recipient of goods
Value is determined by the producer and is defined in terms of ‘exchange value’
Managing Service Organisations 2020-2021 Tessa Casier
2
, … TO SERVICE-DOMINANT LOGIC (SDL)
Manufacturer
Customer provides
buys integrated
capability product and
service
The manufacturer’s footprint of responsibilities
→ you need to understand what the business of the customer is
People exchange to acquire the benefits of specialized competences (knowledge and skills)
Goods are a distribution mechanism for services
The customer is a co-producer and a co-creator
Value is perceived or determined by the consumer (‘value in use’)
MANAGING SERVICE ORGANIZATIONS
Managing Service Organisations 2020-2021 Tessa Casier
3
