- Idea generator
- Co-developer
- Tester
- Marketer
Partner:
- Co-creator
- Joint problem solver
- Co-producer
Resource:
- Informant
- Material
- Financier
Idea screening
Service design
Testing
Commercialization
Front-end activities
Service design
Testing
Idea generation
Service design
Testing
Source: Adapted from Alam, 2002
2722/04/2013
Managerial implications
- Recognize the multiple roles of users and apply versatile methods to involve them
- Make user processes visible and understand experiences instead of just satisfaction
- Build shared understanding within the organization instead of just
This article proposes a new framework and process called consumer experience modeling (CEM) to better understand consumer perspectives on experiences. CEM analyzes consumer interactions within their networks, including important consumer-to-consumer interactions that influence their experiences. The framework shifts the focus from the firm to the consumer. An example uses CEM to analyze the "gap year travel" experience, identifying value enhancers and inhibitors from the consumer perspective. This provides insights beyond the traditional firm focus and informs future marketing initiatives within the experience domain.
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This document presents a four-dimensional model for understanding service innovation. The four dimensions are: 1) the service concept, such as a new idea for organizing a solution to a problem, 2) the client interface, like new account management systems, 3) the service delivery system and organization, like introducing e-commerce capabilities, and 4) technological options, where information technology often plays an enabling role. The model is used to analyze the role of knowledge-intensive business services (KIBS) in innovation, arguing that some KIBS function as co-producers of innovation through their relationships with client firms.
The document discusses the evolution of approaches to public governance from public administration to new public management and now to new public governance (NPG). It outlines some key challenges of delivering public services under NPG including adopting a public service-dominant logic focused on service systems and co-production rather than products, inter-organizational relationships, and policy dominance. The document also discusses implications of NPG for innovation, including focusing on user needs and experience, collaborative innovation, and understanding innovation as socially constructed within social systems.
Sustainable circular economy value propositions in clothing as a service -modelMaria Antikainen
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An Analysis of Consumer Perceptions and Usage of Mobile Telecommunications Br...IOSR Journals
This study examines the consumer perceptions and usage of mobile telecommunication in Maiduguri Township. The study considers consumer demographic variables and service providers’ company brands which include MTN, Zain (Airtel), Globacom, Starcomms, Intercelluler and Mtel. Taking the entire consumers in Maiduguri as the population, it investigates the demographic variables of consumers between the age group of 18 and above currently using mobile telecommunication or who had once used mobile telecommunication services. A sample size of 500 was selected using purposive sampling technique. Specifically, the study targeted consumers at 20 different areas like car packs/stations, markets, and public institutions. Primary data were obtained through structured questionnaire and secondary data were obtained through company publications and standardised published materials from sources other than the company to develop the literature review. The data were then subjected to statistical analysis of Pearson’s correlation, chi-square and descriptive statistics, using statistical package for social sciences (SPSS) version 13. The study reveals that Mobile telecommunication was significantly dominated by three companies with about 97% of market share where by only one company having more than 50% of the market. Generally there was high and positive consumer awareness and perception towards all the mobile telecommunication providers. Consumers’ demographic variables were important especially age and educational background of consumer on identification or knowledge about brand of mobile telecommunication.
This article proposes a new framework and process called consumer experience modeling (CEM) to better understand consumer perspectives on experiences. CEM analyzes consumer interactions within their networks, including important consumer-to-consumer interactions that influence their experiences. The framework shifts the focus from the firm to the consumer. An example uses CEM to analyze the "gap year travel" experience, identifying value enhancers and inhibitors from the consumer perspective. This provides insights beyond the traditional firm focus and informs future marketing initiatives within the experience domain.
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This document presents a four-dimensional model for understanding service innovation. The four dimensions are: 1) the service concept, such as a new idea for organizing a solution to a problem, 2) the client interface, like new account management systems, 3) the service delivery system and organization, like introducing e-commerce capabilities, and 4) technological options, where information technology often plays an enabling role. The model is used to analyze the role of knowledge-intensive business services (KIBS) in innovation, arguing that some KIBS function as co-producers of innovation through their relationships with client firms.
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An Analysis of Consumer Perceptions and Usage of Mobile Telecommunications Br...IOSR Journals
This study examines the consumer perceptions and usage of mobile telecommunication in Maiduguri Township. The study considers consumer demographic variables and service providers’ company brands which include MTN, Zain (Airtel), Globacom, Starcomms, Intercelluler and Mtel. Taking the entire consumers in Maiduguri as the population, it investigates the demographic variables of consumers between the age group of 18 and above currently using mobile telecommunication or who had once used mobile telecommunication services. A sample size of 500 was selected using purposive sampling technique. Specifically, the study targeted consumers at 20 different areas like car packs/stations, markets, and public institutions. Primary data were obtained through structured questionnaire and secondary data were obtained through company publications and standardised published materials from sources other than the company to develop the literature review. The data were then subjected to statistical analysis of Pearson’s correlation, chi-square and descriptive statistics, using statistical package for social sciences (SPSS) version 13. The study reveals that Mobile telecommunication was significantly dominated by three companies with about 97% of market share where by only one company having more than 50% of the market. Generally there was high and positive consumer awareness and perception towards all the mobile telecommunication providers. Consumers’ demographic variables were important especially age and educational background of consumer on identification or knowledge about brand of mobile telecommunication.
SYDNEY BUSINESS SCHOOL - UNIVERSITY OF WOLLONGONG.docxdeanmtaylor1545
SYDNEY BUSINESS SCHOOL - UNIVERSITY OF WOLLONGONG
NSW Taxi Industry
-
Understanding consumer behaviour and building a
unique selling proposition
MGNT922 - BUSINESS RESEARCH PROJECT
Name: Phuong Nguyen
Student ID: 5961294
Word count: 3,918
Acknowledgement
The research has been conducted under the guidance of Ms. Zeynep Roberts, Coordinator and Lecturer of MGNT922 Business Research Project at Sydney Business School, University of Wollongong. We thank Ms. Roberts for providing knowledge and expertise that substantially assisted this research.
Moreover, we would also like to acknowledge with gratitude the support of all participants. Their insights were of fundamental importance to the understanding of the research problem, and the study would not have been possible without these individuals.
Table of Contents
I. Introduction 5
II. Literature review 5
III. Research methodology 11
IV. Analysis and Interpretation 13
V. Conclusion 16
References 18
Executive Summary
The study aims to understand the competitive position and differentiation of the point-to-point transport service market, which is achieved through the understanding of consumer behaviour and attitudes towards services in the category. The report is divided into five main sections, namely introduction of the industry and problem under study, extensive literature review, research methodology, analysis and interpretation, and conclusion.
The introduction provides an introduction of the research and the overview of the NSW Taxi industry with its challenges to overcome. The report then provides a critical review of four relevant literatures linked to the research problem and questions. In this section, Katz's four functional theories of attitudes acts as a guidance for determining the underlying motives of consumer behaviour and attitudes. The second model reviewed is the innovation adoption model, which is directly linked to the creation of the unique selling proposition. The third model assesses the habitual, cognitive and affective decisions included in the consumer decision making process, while the last model mentioned is the three levels of product, which offers the view that a service is composed of factors beyond physical features, but also a complex combination of attributes and benefits.
The study employs both primary and secondary research, which consists of in-depth interview to collect qualitative data from a sample of 5, and survey to gather quantitative data using SurveyMonkey with a sample of 50. Moreover, secondary research retrieves information from online databases such as journal articles and news articles. The research employs samples of adults living in Sydney who use the taxi service at least monthly, with the sample being drawn using non-probability sample design and online sampling due to its ability to reach a wider range of people within a limited timeframe. However, the research has certa.
This document summarizes a presentation on combining creativity and efficiency in service innovation. The presentation discusses:
1) What service innovation is and why it is important for economic growth and competitiveness.
2) Combining customer-driven and employee-driven innovation approaches to develop new services.
3) Using foresight and futures tools to help innovators design services to meet future customer needs.
4) The need for policy support to promote service sector innovation.
Tuula Jäppinen, Essi Kuure and Satu Miettinen, Designing Local reform of Comm...LabGov
Tuula Jäppinen (Dr. Administrative Sciences)
Senior Adviser, The Association of Finnish Local and Regional Authorities, Helsinki, Finland
Essi Kuure (Industrial Designer, M.A.)
Junior Researcher, University of Lapland, Culture-based Service Design Doctoral School, Rovaniemi, Finland
Satu Miettinen (Dr. of Arts)
Professor of Applied Art and Design, University of Lapland, Faculty of Art and Design, Rovaniemi, Finland
The user's judgment: conceptualization, construction and validation of a meas...Sanae HANINE
The purpose of this article is to construct and validate a measurement scale of judgment and to test it in the context of public service. The challenge of this research lies in the fact that it is about a princeps work. To our knowledge, there isn’t up today a measurement scale of the “judgment” construct in marketing. Regarding its latent nature, the "judgment" construct can not be directly observed and can be apprehended only through indicators to represent it. In addition to its construction, the psychometric properties of the scale have been verified so that it can be used in future studies and predict the judgment of the public service user. From exploratory and confirmatory analysis through structural equations, we arrive at a measure that presents a reliable and stable structure. The results of the exploratory research highlight seven facets of the user's judgment following a public servuction: rationality, jugeability, mood, affectivity, familiarity, hedonism and warmth. Confirmatory factor analysis has endorsed a measurement model that demonstrates that the user's judgment following a public service is composed of five (5) main dimensions: rationality, judgment, affectivity, familiarity and hedonism.
The user's judgment: conceptualization, construction and validation of a meas...Sanae HANINE
Managerial Summary
Understanding the way in which the user judges the public service offer following a servuction is one of the indicators that can be integrated into the management repositories for steering the performance of public administrations. Indeed, in a context marked by the commodification of the public service with its corollary of increased users requirements, public administrations are led forcibily to enhance the operation of servuction during which they come into direct contact with them. The purpose of this article is to develop a scale of the user's judgment following a public servuction and test it in the context of a public administration. A survey was conducted among 422 users who actually have benefited from public service services. It highlights five (5) main dimensions of judgment: rationality, stereotyping, affective valence, value of familiarity and ultimately hedonic value.
Here is the analysis and interpretation of the data collected through the questionnaire:
1. Demographic Profile of Respondents:
- Gender:
- Male: 60%
- Female: 40%
- Age:
- Below 20 years: 10%
- 21-30 years: 50%
- 31-40 years: 30%
- Above 40 years: 10%
- Occupation:
- Student: 20%
- Professional (Doctor, Engineer, etc.): 30%
- Businessman: 20%
- Government employee: 15%
- Private employee: 15%
2. Purchase of Electronic Goods:
- Frequency of purchase in last 2 years:
1. The document discusses the information industry and how it markets information products.
2. It describes how the information industry packages and delivers information through coordinated activities to meet user needs.
3. Several key factors that affect the information industry are discussed, including assessing user needs, identifying users, marketing strategies, and applying marketing concepts.
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Spyros Langkos_Athens Archeological Museum_individual report and reflective c...Spyros Langkos
Spyros Langkos_Athens Archeological Museum_individual report and reflective commentarry
Master in Marketing Management - University of Derby
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A review and integration of the partial models of consumer behaviourAlexander Decker
This document provides an overview of consumer behavior models. It reviews four partial models: the economic model, which views consumers as rational actors seeking to maximize utility within a budget constraint; the linear experimental model, which sees consumers progressing through stages of awareness, interest, evaluation, trial, and adoption; the psychoanalytic model, which examines unconscious motivations; and the sociological model, which considers external social and cultural influences. The document then proposes integrating aspects of these partial models into a more comprehensive consumer behavior model.
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The document discusses citizens' expectations of public services and how governments are responding. Citizens now expect public services to provide choice, convenience, and services that adapt to individual needs, similar to private sector standards. Governments are pursuing initiatives to improve customer service, such as joining up services across organizations and introducing more personalized approaches. New technologies are also enabling new ways for citizens to access services.
The document discusses citizens' expectations of public services and how governments are responding. Citizens now expect public services to provide choice, convenience, and services that adapt to individual needs, similar to private sector standards. Governments are pursuing initiatives to improve customer service, such as joining up services across organizations and introducing more personalized approaches. New technologies are also enabling new ways for citizens to access services.
The document discusses the vision and mission of the Efficiency Unit in Hong Kong, which aims to be the preferred consulting partner for government bureaus and departments, and to advance world-class public services. It then provides an overview of a report on customer service in the delivery of public services based on international experience. The report examines citizens' rising expectations of public services, new initiatives for joining up services across organizations, making public services more personalized, using new technologies to better serve users, and improving the user experience of public service delivery.
The document discusses the evolution of services marketing and the transition from goods-dominant logic to service-dominant logic. It defines services marketing and service science, noting their similarities in focusing on the customer experience but differences in perspectives. Specifically, services marketing focuses on business goals like profitability, while service science emphasizes value co-creation through knowledge exchange. The document proposes a new framework to help firms efficiently adopt service-dominant logic while retaining benefits of services marketing through co-creating customer experiences in service ecosystems.
The document summarizes the results of a participatory scenario development process exploring circular economy in Finland by 2030. Three complementary scenarios were developed: 1) Efficient Service Experience focused on access over ownership through digital platforms and services; 2) New Tribes emphasized sharing and cooperative economies within communities; and 3) Factory of the Future featured resource-efficient, zero-waste production through eco-design and closed material loops. The scenarios illustrate complex interactions between environmental, social and economic systems and highlight potential futures for circular economy in Finland.
Inuse seminar 9.6.2014 - "The Active Energy Citizen:User Innovation, Prosumpt...inuseproject
In the energy sector, the end-user role is changing from passive consumer to active co-provider with de-centralized technologies. This presentation elaborates what kind of forms of active energy usership emerge with renewable micro-generation. The author draws from and contributes primarily to research on energy consumption, social shaping of technology, and user innovation research. The key findings demonstrate how homeowners have an evolutionary approach in building and configuring residential energy systems which should be recognized in energy policy and design. Flexibility to adapt to changes is an important factor and it fosters sustainable development pathways and proliferation of renewable energy generation in households.
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Mikael Johnson @INUSE Seminar 24 Feb 2014inuseproject
The document discusses the benefits of meditation for reducing stress and anxiety. Regular meditation practice can help calm the mind and body by lowering heart rate and blood pressure. Studies have shown that meditating for just 10-20 minutes per day can have significant positive impacts on both mental and physical health over time.
SYDNEY BUSINESS SCHOOL - UNIVERSITY OF WOLLONGONG.docxdeanmtaylor1545
SYDNEY BUSINESS SCHOOL - UNIVERSITY OF WOLLONGONG
NSW Taxi Industry
-
Understanding consumer behaviour and building a
unique selling proposition
MGNT922 - BUSINESS RESEARCH PROJECT
Name: Phuong Nguyen
Student ID: 5961294
Word count: 3,918
Acknowledgement
The research has been conducted under the guidance of Ms. Zeynep Roberts, Coordinator and Lecturer of MGNT922 Business Research Project at Sydney Business School, University of Wollongong. We thank Ms. Roberts for providing knowledge and expertise that substantially assisted this research.
Moreover, we would also like to acknowledge with gratitude the support of all participants. Their insights were of fundamental importance to the understanding of the research problem, and the study would not have been possible without these individuals.
Table of Contents
I. Introduction 5
II. Literature review 5
III. Research methodology 11
IV. Analysis and Interpretation 13
V. Conclusion 16
References 18
Executive Summary
The study aims to understand the competitive position and differentiation of the point-to-point transport service market, which is achieved through the understanding of consumer behaviour and attitudes towards services in the category. The report is divided into five main sections, namely introduction of the industry and problem under study, extensive literature review, research methodology, analysis and interpretation, and conclusion.
The introduction provides an introduction of the research and the overview of the NSW Taxi industry with its challenges to overcome. The report then provides a critical review of four relevant literatures linked to the research problem and questions. In this section, Katz's four functional theories of attitudes acts as a guidance for determining the underlying motives of consumer behaviour and attitudes. The second model reviewed is the innovation adoption model, which is directly linked to the creation of the unique selling proposition. The third model assesses the habitual, cognitive and affective decisions included in the consumer decision making process, while the last model mentioned is the three levels of product, which offers the view that a service is composed of factors beyond physical features, but also a complex combination of attributes and benefits.
The study employs both primary and secondary research, which consists of in-depth interview to collect qualitative data from a sample of 5, and survey to gather quantitative data using SurveyMonkey with a sample of 50. Moreover, secondary research retrieves information from online databases such as journal articles and news articles. The research employs samples of adults living in Sydney who use the taxi service at least monthly, with the sample being drawn using non-probability sample design and online sampling due to its ability to reach a wider range of people within a limited timeframe. However, the research has certa.
This document summarizes a presentation on combining creativity and efficiency in service innovation. The presentation discusses:
1) What service innovation is and why it is important for economic growth and competitiveness.
2) Combining customer-driven and employee-driven innovation approaches to develop new services.
3) Using foresight and futures tools to help innovators design services to meet future customer needs.
4) The need for policy support to promote service sector innovation.
Tuula Jäppinen, Essi Kuure and Satu Miettinen, Designing Local reform of Comm...LabGov
Tuula Jäppinen (Dr. Administrative Sciences)
Senior Adviser, The Association of Finnish Local and Regional Authorities, Helsinki, Finland
Essi Kuure (Industrial Designer, M.A.)
Junior Researcher, University of Lapland, Culture-based Service Design Doctoral School, Rovaniemi, Finland
Satu Miettinen (Dr. of Arts)
Professor of Applied Art and Design, University of Lapland, Faculty of Art and Design, Rovaniemi, Finland
The user's judgment: conceptualization, construction and validation of a meas...Sanae HANINE
The purpose of this article is to construct and validate a measurement scale of judgment and to test it in the context of public service. The challenge of this research lies in the fact that it is about a princeps work. To our knowledge, there isn’t up today a measurement scale of the “judgment” construct in marketing. Regarding its latent nature, the "judgment" construct can not be directly observed and can be apprehended only through indicators to represent it. In addition to its construction, the psychometric properties of the scale have been verified so that it can be used in future studies and predict the judgment of the public service user. From exploratory and confirmatory analysis through structural equations, we arrive at a measure that presents a reliable and stable structure. The results of the exploratory research highlight seven facets of the user's judgment following a public servuction: rationality, jugeability, mood, affectivity, familiarity, hedonism and warmth. Confirmatory factor analysis has endorsed a measurement model that demonstrates that the user's judgment following a public service is composed of five (5) main dimensions: rationality, judgment, affectivity, familiarity and hedonism.
The user's judgment: conceptualization, construction and validation of a meas...Sanae HANINE
Managerial Summary
Understanding the way in which the user judges the public service offer following a servuction is one of the indicators that can be integrated into the management repositories for steering the performance of public administrations. Indeed, in a context marked by the commodification of the public service with its corollary of increased users requirements, public administrations are led forcibily to enhance the operation of servuction during which they come into direct contact with them. The purpose of this article is to develop a scale of the user's judgment following a public servuction and test it in the context of a public administration. A survey was conducted among 422 users who actually have benefited from public service services. It highlights five (5) main dimensions of judgment: rationality, stereotyping, affective valence, value of familiarity and ultimately hedonic value.
Here is the analysis and interpretation of the data collected through the questionnaire:
1. Demographic Profile of Respondents:
- Gender:
- Male: 60%
- Female: 40%
- Age:
- Below 20 years: 10%
- 21-30 years: 50%
- 31-40 years: 30%
- Above 40 years: 10%
- Occupation:
- Student: 20%
- Professional (Doctor, Engineer, etc.): 30%
- Businessman: 20%
- Government employee: 15%
- Private employee: 15%
2. Purchase of Electronic Goods:
- Frequency of purchase in last 2 years:
1. The document discusses the information industry and how it markets information products.
2. It describes how the information industry packages and delivers information through coordinated activities to meet user needs.
3. Several key factors that affect the information industry are discussed, including assessing user needs, identifying users, marketing strategies, and applying marketing concepts.
Mme3 Class3 Deh Hertog Knowledge Intensive Business Services As Coproducers O...atala67
This document presents a four-dimensional model for understanding service innovation. The four dimensions are: 1) the service concept, such as a new idea for organizing a solution to a problem, 2) the client interface, like introducing account management systems, 3) the service delivery system and organization, like introducing e-commerce capabilities, and 4) technological options, where information technology is often an enabler of service innovation. The model serves as a framework to analyze the role of knowledge-intensive business services in innovation processes, as they can function as facilitators, carriers, or sources of innovation, and through close relationships with clients, sometimes function as co-producers of innovation.
Spyros Langkos_Athens Archeological Museum_individual report and reflective c...Spyros Langkos
Spyros Langkos_Athens Archeological Museum_individual report and reflective commentarry
Master in Marketing Management - University of Derby
Mediterranean College, Athens, Greece
A review and integration of the partial models of consumer behaviourAlexander Decker
This document provides an overview of consumer behavior models. It reviews four partial models: the economic model, which views consumers as rational actors seeking to maximize utility within a budget constraint; the linear experimental model, which sees consumers progressing through stages of awareness, interest, evaluation, trial, and adoption; the psychoanalytic model, which examines unconscious motivations; and the sociological model, which considers external social and cultural influences. The document then proposes integrating aspects of these partial models into a more comprehensive consumer behavior model.
A review and integration of the partial models of consumer behaviourAlexander Decker
This document provides an overview of consumer behavior models. It reviews four partial models: the economic model, which views consumers as rational actors seeking to maximize utility within a budget constraint; the linear experimental model, which sees consumers progressing through stages of awareness, interest, evaluation, trial, and adoption; the psychoanalytic model, which examines unconscious motivations; and the sociological model, which considers external social and cultural influences. The document then proposes integrating aspects of these partial models into a more comprehensive consumer behavior model.
The Impact of Co-Creation with Customers on Service Innovation in the Morocca...Dr. Amarjeet Singh
This document summarizes a research paper on the impact of co-creation with customers on service innovation in Morocco. It begins by defining services and discussing how the definition has evolved to include customer involvement. It then discusses elements of service innovation, initially proposed by Miles in 1993, which include organizational, process, and service offering innovations. Subsequent researchers expanded on these categories or incorporated customer interfaces. The document discusses debates around whether service innovation relates to processes or outcomes. It notes that more recent definitions incorporate customers as co-creators rather than just co-producers. Co-creation involves customers upstream in creating new services rather than just downstream in production. The document aims to analyze service innovation through the concept of co-creation and its
Circular economy in Finland 2030 scenario analysisJohanna Kohl
The document summarizes the results of a participatory scenario development process exploring potential futures for the circular economy in Finland by 2030. Three complementary scenarios were developed: 1) An "Efficient Service Experience" scenario focused on access over ownership through digital platforms and services. 2) A "New Tribes" scenario emphasizing sharing and collaborative production/consumption within communities. 3) A "Factory of the Future" scenario oriented around closed-loop, zero-waste production through eco-design and digital/symbiotic processes. The scenarios highlight different dimensions of the circular economy's transformation and were meant to spark new sustainable business ideas.
The document discusses citizens' expectations of public services and how governments are responding. Citizens now expect public services to provide choice, convenience, and services that adapt to individual needs, similar to private sector standards. Governments are pursuing initiatives to improve customer service, such as joining up services across organizations and introducing more personalized approaches. New technologies are also enabling new ways for citizens to access services.
The document discusses citizens' expectations of public services and how governments are responding. Citizens now expect public services to provide choice, convenience, and services that adapt to individual needs, similar to private sector standards. Governments are pursuing initiatives to improve customer service, such as joining up services across organizations and introducing more personalized approaches. New technologies are also enabling new ways for citizens to access services.
The document discusses the vision and mission of the Efficiency Unit in Hong Kong, which aims to be the preferred consulting partner for government bureaus and departments, and to advance world-class public services. It then provides an overview of a report on customer service in the delivery of public services based on international experience. The report examines citizens' rising expectations of public services, new initiatives for joining up services across organizations, making public services more personalized, using new technologies to better serve users, and improving the user experience of public service delivery.
The document discusses the evolution of services marketing and the transition from goods-dominant logic to service-dominant logic. It defines services marketing and service science, noting their similarities in focusing on the customer experience but differences in perspectives. Specifically, services marketing focuses on business goals like profitability, while service science emphasizes value co-creation through knowledge exchange. The document proposes a new framework to help firms efficiently adopt service-dominant logic while retaining benefits of services marketing through co-creating customer experiences in service ecosystems.
The document summarizes the results of a participatory scenario development process exploring circular economy in Finland by 2030. Three complementary scenarios were developed: 1) Efficient Service Experience focused on access over ownership through digital platforms and services; 2) New Tribes emphasized sharing and cooperative economies within communities; and 3) Factory of the Future featured resource-efficient, zero-waste production through eco-design and closed material loops. The scenarios illustrate complex interactions between environmental, social and economic systems and highlight potential futures for circular economy in Finland.
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In the energy sector, the end-user role is changing from passive consumer to active co-provider with de-centralized technologies. This presentation elaborates what kind of forms of active energy usership emerge with renewable micro-generation. The author draws from and contributes primarily to research on energy consumption, social shaping of technology, and user innovation research. The key findings demonstrate how homeowners have an evolutionary approach in building and configuring residential energy systems which should be recognized in energy policy and design. Flexibility to adapt to changes is an important factor and it fosters sustainable development pathways and proliferation of renewable energy generation in households.
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2. 222/04/2013
Topics of the presentation
- the old dispute between technology push and market pull
- users to the fore
- users, customers (clients), consumers, citizens
- early studies on user-based (product) innovation
- newer developments: managerial approaches
- collaboration with users in innovation
- different user groups
- implications to practice
3. 322/04/2013
The old dispute between technology push
and market pull
• Lively discussion in 1970s and 1980s, whether the main source of innovation is
technology push or market pull. Typical was macro-economic orientation – also the
pull factor was analyzed at the level of markets.
• This antagonism has been rejected long ago – nowadays the importance of both
factors is generally recognized, and the pull factor is increasingly analyzed in terms
of user- or customer-based innovation.
• As regards technology, information technology has drastically changed the delivery
of services and facilitated their internationalization. Many service firms are central
actors in the markets of information – mediators between generic knowledge
available in the economy and tacit knowledge buried in the organizations.
4. 422/04/2013
Users to the fore
• Research into service innovation is today carried out both on basis of general
innovation theories (e.g. Gallouj et al.) and on the basis of service marketing theories
which apply the concept of New Service Development (e.g. Edvardsson et al.).
• During recent years, a third approach – service design – has gained ground. This
approach is not rooted in innovation theories or service theories in the first place, but
in the practice of industrial designers, who nowadays aim to extend their expertise
from the traditional design of material products into services (Hollins et al., 2003).
• Service design is one of those approaches that have promoted the idea of user-based
development of services. However, emphasizing users as central drivers of
innovation is today spreading to other approaches as well.
5. 522/04/2013
Multiple roles of service users
• Due to the late development of innovation theories in services, also the concept
of user-based innovation and the views about the significance of user-orientation
were first introduced in the context of material products.
• In services, the development of corresponding views started within the school of
service marketing (applying the NSD framework). Here, the focus is on the
relationship between the provider and the customer (or ‘client).
• Recently, the multiple roles of users have been raised to the discussion. It has been
realized that a specific service relationship provides quite a narrow perspective to the
human world, where people are consumers, citizens and members of various
communities that form their reference groups.
7. 722/04/2013
Defining ’user’ in more detail
• An explicit definition of ‘user’ is difficult to find in literature. The concept refers
to a person/an organization who or which actually or potentially benefits of a service
via receiving it or via participating more or less in its production and development.
• It is important to note that the end result of an innovation process may not benefit the
immediate user only (or even primarily), but there may be a shorter or longer chain or
network of actors. Often the focus is on the last link in the chain – on the end user.
• The concept of end user is linked to business-to-business context. Thus, the concept
of user is applicable not only in consumer services, but also in business-to-business
services. In addition to active users, the concept also involves potential users.
8. 822/04/2013
’User’ of goods and services
• The concept of user cannot be transferred as such from the material world to the
service context. In the material world, using something implies the idea of a tool:
innovation process provides users with new, better tools (Hasu, 2001).
• This holds true in some service cases, too, but not generally. A categorization based
on ‘what is being handled’ or ‘what is being changed’ is helpful here. Goods,
information, and persons are the basic groups (Illeris, 1989; Miles et al., 1995).
1) tangible objects are processed in some way, i.e. transported, transformed,
maintained, repaired etc.
2) information is produced, captured, diffused, stored or revealed.
3) a change takes place in the physical or mental condition (health, skills,
emotions etc.) of a person. This case requires a broader interpretation of use-
related concepts – the idea of a new tool is odd here.
9. 922/04/2013
’User’ of goods and services (cont.)
• Another important difference between material products and services is the nature
of services as entities in which production and consumption coincide. The user of a
service benefits not only from the end result but also from the process (Edvardsson,
1997; Grönroos, 1990).
• In the service process, the user is a more or less active party – the co-production
relationship has been highlighted as a fundament of services (Gallouj and Weinstein,
1997; Sundbo and Gallouj, 2000). Thus, in the service context a ‘user’ actually means
a ‘user-producer’.
• Service-Dominant-Logic (SDL) has supplemented this view from the value creation
perspective: it highlights the value in use and its co-creation. The service provider
cannot create value on behalf of the user, because the value manifests itself only
when the service is consumed. (Vargo and Lusch, 2004)
10. 1022/04/2013
The concept of customer (client)
• The concept of customer (client) is common in service marketing literature. When
the focus is only on the consuming of a service, the customer can be defined as the
buyer of a service, whose role is restricted to the purchasing decision and acting as
the receiver of a service.
• The co-production relationship implies, however, that customers are important actors
in production as well (Lengnick-Hall, 1996): they act as a resource (providing
information) and as a co-producer (performing work). In addition, customers are
increasingly involved in innovation and development activities.
• The concept of customer has its roots in private business. Customers are suggested
to be sovereign and rational, being able to decide whether or not they want to do
business with a specific firm and having the option to choose between different
services. (Alford, 2002)
11. 1122/04/2013
The concept of consumer
• The literature based on the concept of consumer points out that even though value is
essentially created in cooperation of the provider and the customer, the value network
external to the dyad is important to take into account.
• The so-called cultural consumption theory highlights value drivers beyond financial
aspects: social, cultural, moral and political values that influence both individual
consumers and consumer groups. The latest discussions in relationship marketing
come close to this view (Kaijanen, 2010).
• However, in business sciences the starting point is still that there is enough rationality
to secure manageability of consumer behaviour. Consumer researchers argue that
unpredictability and inconsistency characterise today’s consumption; the notion of
average consumer is a fiction (Gabriel and Lang, 2008).
12. 1222/04/2013
The concept of citizen
• The concept of customer has been transferred to the public sector. New management
models highlight that the recipients of public services have the right and obligation to
be active participants in planning and producing these services.
• Also ideas linked to consuming have been applied - freedom to decide between public
services like a consumer in a market (Newman and Clarke, 2009).
• The concept of citizen is, however, linked with public services, and complicates
the situation. Citizens are not only individuals but members of a collective; they are
not always sovereign actors but restrained by power structures (Rosenthal and Peccei,
2007). Thus, the rights and responsibilities of citizens, and the relationship between
citizens and the state, are very different from those of customers and consumers.
14. 1422/04/2013
Early studies on user-based (product) innovation
• There are two main ways in which user-based innovation has been understood in
literature: taking user needs as the starting point and relating to users as innovators.
Both viewpoints are old and still extensively applied.
• The former can be traced back to the emergence of interest in ‘user feedback’ in the
1970s and early 1980s (Nelson and Winter, 1977). Empirical studies indicated that the
most important factor in the success of innovations is the understanding of user needs.
• The early findings also formed the basis for von Hippel’s studies (e.g. 1978, 1986,
1988), which focused on the analysis of the role users as innovators. According to von
Hippel, users may supply an innovating firm with the identification of a problem or
need, product-related specifications, or even a complete product design. Lead users
are particularly important.
15. 1522/04/2013
Customer-orientation – the view of service marketing
• Service marketing scholars have developed managerially oriented research based
on the importance of user feedback. Relationship marketing has pointed out that using
customers as informants secures the success of services and the loyalty of customers.
• Methods of acquiring and structuring customer information have been developed
within this framework. The versatility of information has been emphasized: both facts
about the profile of customers (demographic data and business figures), and
behavioural and relationship information should be included (Xu and Walton, 2005).
• Information should be gathered not only of the customers, but also from the customers
(Rowley, 2002) – customer information often includes weak signals about the future,
enabling the analysis of potential customers. Client interface as an arena for the
acquisition of versatile customer understanding has been emphasized besides surveys.
16. 1622/04/2013
User experience and shared understanding
• In the newer studies, two additional perspectives have come to the fore: 1) the role
of user experience, and 2) the importance of elaborating information on user needs
into shared understanding within the provider organisation.
• The first perspective focuses on the phenomenological side of the service and on
social networks as the framework for experiences (Payne et al., 2008). It highlights
that novelties are not perceived in the similar way - there are novelties that providers
define as innovations, but which users do not consider useful from their viewpoint.
• The second new perspective highlights that information gathering does not guarantee
its purposeful application, but customer information has to be elaborated and
interpreted within the organisation. The formation of shared understanding is often
much more demanding than the gathering process. (Nordlund, 2009)
17. 1722/04/2013
Collaboration in innovation: stage-gate models
• In addition to the ‘sources of innovation’approach, the interaction between producers
and users during the innovation process is gaining foothold increasingly.
• Several empirical studies have confirmed that users can and should come into the
picture earlier than at the point where a new service is brought to the markets. The
linear model of innovation has been modernized into more flexible stages models
where the input from users can be taken in at every stage (Alam and Perry, 2002).
• Often the innovation process is divided into two main parts: the so-called fuzzy front
end that emphasises creative problem-solving, and the more systematic development
that highlights rational planning (Koen et al. 2001). In this context, user input has
been considered to be valuable first and foremost in the front-end.
18. 1822/04/2013
A customer-oriented stage-gate model
1. Strategic planning
2. Idea generation
3. Idea screening
4. Business analysis
5. Formation of a
cross-functional
team
6. Service design
and process system
design
7. Personnel training
8. Service testing
and pilot run
9. Test marketing
10.
Commercilization
Feedback on financial data
State needs, problems and solutions. Criticize, identify gaps in the market, wish
lists etc.
Suggest sales guide and market size, suggest features, benefits, attributes, show
reaction and preference
Limited feedback on financial data and profitability.
Join top management in selecting team members.
Review and jointly develop the blueprints, suggest improvements by identifying
fail points.
Observe and participate in mock service delivery process, suggest improvements.
Participate in a simulated service delivery processes. Suggest final improvements
and design change.
Comments on marketing plan and satisfaction on marketing mixes. Suggest
desired improvements.
Adopt the service as a trial; feedback about overall performance of the service
along with desired improvements, if any; word of mouth communication to other
potential customers.
Source: Alam and Perry, 2002
19. 1922/04/2013
Collaboration in innovation: rapid application
• Stage-gate models are based on a planning process. Several researchers (e.g. Engvall
et al., 2001) have pointed out that these model systematize the form but do not help in
tackling the unknown content. They suggest an alternative which enables the creation
of shared experience of the object to be developed.
• The creation of shared experience means that planning and implementation are
merged to some extent. It is not self evident that planning always occurs first and is
followed at a later time by implementation.
• These views have led to innovation models which assume a process relying on real-
time experience (the effectual approach and bricolage). They consider that intuition
and flexibility are essential on the uncertain path through shifting markets and
technologies. (e.g. Read et al., 2009)
20. 2022/04/2013
The effectual model
Interact
with people
I know or
meet
What
can I do
New
means
New
goals
Obtain
partner
commit-
ments
Assess
means:
•Who I am
•What I
know
•Who I
know
Converging
cycle of
constraints
Start
Innovations
Expanding
cycle of
resources
Source: Read et al., 2009
21. 2122/04/2013
’After’ innovation
• Newer user-centric views have also discussed the continuance of the innovation
process after the launch.
• Tuomi (2002) has described this phenomenon in the technological context: new
technologies are not unchangeable artefacts, but modified and reinvented in use.
Technological novelties are also actively interpreted by the users; one artefact has
different meanings for different user groups.
• Sundbo (2008) has examined the same phenomenon – after-innovation – in the
context of services: innovation in services is not completed when it is launched
on the market. The reason is that customers cannot say beforehand what they want
and they even have difficulties in assessing prototypes. They react by suggesting
ideas for improvements when they use the service in practice.
23. 2322/04/2013
Making the service user’s (customer’s)
process visible
• The process of the user (the customer) essentially differs from the process of the
provider. Realizing this is the first stage in the building of customer understanding.
• The old method of service blueprinting is nowadays developed further and provides
quite a versatile tool for making the customer’s process visible. It shows, among
others, how much time the customer devotes for the service.
• Blueprinting also reveals the service vs. goods -dominant orientation of the provider:
the extent to which the provider emphasizes the customer experience and the
interaction with the customers (cf. Vargo and Lusch, 2008).
24. 2422/04/2013
Source: Bitner et al. 2008
Service blueprinting as a way to create
user understanding
Physical
evidence&outputs
Customer:
preparatory actions
Customer: face-to-
face actions
Employee:
front-office actions
Employee:
back-office actions
Development needs
in the service process
Steps in the service
delivery process
Customer interface
Concrete outputs of the
service for a customer
Line of visibility
25. 2522/04/2013
Different user groups
• Recent research has also emphasized that there are very different user groups.
In addition to lead users, there are ordinary users, advanced users, critical users,
unresponsive users and non-users (Heiskanen et al., 2007).
• Besides individual users, user communities are increasingly sources of innovations –
both existing communities and new communities that are grown around the service.
• A common feature between different schools is that emphasis is moving away from
the question ‘can the user cope with the service’ to usage motivations and user
attitudes towards the service throughout its lifecycle. Designers are replacing the
concept of ‘usability’ with the broader concept ‘user experience’. Also in marketing
research, the focus is increasingly on customer value and customer experience instead
of customer satisfaction. (Kaasinen et al., 2010)
26. 2622/04/2013
Different roles of customers in service innovation
Efficient acquisition of
customer information
Focus on structuring and
using knowledge, not
only on acquiring it
Knowledge about
customers’ future needs,
not only about the
present situation
Efficient utilisation of
CRM systems
From customer
information to customer
understanding
Building in-house
understanding how the
company links customer
knowledge with its own
business systems
Common understanding
between the company’s
customer service and the
R&D personnel is essential
Co-development of
services together with
customers
Customers can be
involved in services
innovation in three ways:
1) The innovative idea
comes from a customer
2) Customers actually
participate in the
innovation process
2) Customers develop the
innovation further
Source: Nordlund 2009, modified
27. 2722/04/2013
Implications of service-dominant logic
1) Moving the focus of providers from making something (goods or services)
to assisting customers in their value creation process.
2) Seeing value as co-created with customers and partners instead of thinking
it as produced and sold.
3) Relating customers to the context of their networks instead of understanding
them as isolated entities.
4) Considering organizational resources in terms of knowledge and skills,
not primarily as tangibles.
5) Appreciating customers as resources, not handling them as targets. Three
roles of customers: co-creator of value, co-producer and co-innovator.