Swipe to navigate through the articles of this issue
In the “experience economy”, effectively delivering memorable and exciting customer experiences has become a key issue for service providers. Service experience delivery involves service encounters through which interactions between service providers and customers can be shaped into interactive artifacts managing customer expectations and dynamically delivering suitable services. Service interaction design aims to optimize customer interactions with services to match customer expectations and yield satisfactory service experiences. On the other hand, service providers typically make profits and cost the priority, despite knowing that high service quality can maximize satisfaction, particularly in markets served by an oligopoly, resulting in customers only accepting existing limited-value services. Hence, the oligopoly market can be regarded as a value-bounded context. Additionally, understanding customer expectations regarding a wide range of interactions is crucial to service providers selecting and designing services that match customer expectations. Therefore, this paper presents a service interaction design mechanism to help oligopoly service providers systematically and effectively manage customer expectations in dynamic interactions, even in value-bounded contexts. The proposed mechanism models this service interaction design problem as a series of Hawk-Dove games that approach an evolutionary stable state. The evaluation results suggest that oligopoly service providers should change their mindsets and design service interactions to manage customer expectations associated with service delivery, not only to ensure high satisfaction and profit but also to engage customers in co-creating value.
Our product recommendations
Berninghaus, S. K., & Ehrhart, K. M. (2003). The power of ESS: An experimental study. Journal of Evolutionary Economics, 13(2), 161–181. CrossRef
Carlsson, B., & Davidsson, P. (2002). Surplus values in information ecosystems. International Journal of Information Technology and Decision Making, 1(3), 559–571. CrossRef
Durham, Y., McCabe, K., Olson, M. A., Rassenti, S., & Smith, V. (2004). Oligopoly competition in fixed cost environments. International Journal of Industrial Organization, 22, 147–162. CrossRef
Frei, F. (2006). Breaking the trade-off between efficiency and service. Harvard Business Review, 84, 92–101.
Grundman, S., Komarkova, L., & Rychtar, J. (2009). A Hawk-Dove game in finite kleptoparasitic populations. Journal of Interdisciplinary Mathematics, 12, 181–201. CrossRef
Haeckel, S. H., Carbone, L. P., & Berry, L. L. (2003). How to lead the customer experience. Marketing Management, 12(1), 18–24.
Hendricks, K., & McAfee, R.P. (2000). A theory of bilateral oligopoly with applications to vertical mergers, mimeo, University of Texas, Austin. http://www.mcafee.cc/Papers/Bin/Vertical/Concentration.pdf. Accessed 26 June 2010.
Hendricks, K., & McAfee, R. P. (2010). A theory of bilateral oligopoly. Economic Inquiry, 48(2), 391–414. CrossRef
Hevner, A. R., March, S. T., Park, J., & Ram, S. (2004). Design science in information systems research. MIS Quarterly, 28(1), 75–105.
Hochman, H. M., & Rodgers, J. D. (1969). Pareto Optimal Redistribution. The American Economic Review, 59(4), 542–557.
Holmlid, S. (2007). Interaction design and service design: Expanding a comparison of design disciplines. http://www.nordes.org/data/uploads/papers/143.pdf. Accessed 9 July 2010.
Hsieh, Y.H., & Yuan, S.T. (2009). Exquisite technology for service innovation using ubiquitous exhibition service system as example. 2009 INFORMS International Conference on Service Science, August 6–8 2009, Hong Kong.
Hsieh, Y. H., & Yuan, S. T. (2010). Design of the customer expectation measurement model in dynamic service experience delivery. Pacific Asia Journal of the Association for Information Systems, 2(3), 1–19.
Jin, Y., & Sendhoff, B. (2008). Pareto-based multi-objective machine learning: An overview and case studies. IEEE Transactions on Systems, Man, and Cybernetics, Part C: Applications and Reviews, 38(3), 397–415. CrossRef
Johnston, R. (1995). The zone of tolerance: Exploring the relationship between service transactions and satisfaction with the overall service. International Journal of Service Industry Management, 6(2), 46–61. CrossRef
Kokko, H., Lopez-Sepulcre, A., & Morrell, L. J. (2006). From Hawks and Doves to self-consistent games of territorial behavior. The American Naturalist, 167(6), 901–912. CrossRef
Kurtz, D. L., & Clow, K. E. (1993). Managing Consumer Expectations of Services. Journal of Marketing Management, 2(2), 19–25.
Kuusisto, A. (2008). Customer roles in business service production-implications for involving the customer in service innovation, Lappeenranta University of Technology. http://akseli.tekes.fi/opencms/opencms/OhjelmaPortaali/ohjelmat/Serve/fi/Dokumenttiarkisto/Viestinta_ja_aktivointi/Julkaisut/Kuusisto_Paeaelllysaho_raportti.pdf. Accessed 18 August 2010.
Lewis, B., & Entwistle, T. (1990). Managing the service encounter: A focus on the employee. International Journal of Service Industry Management, 1(3), 41–52. CrossRef
Marx, K. (1952). Theories of Surplus Value. New York: International Publishers.
Meyer, C., & Schwager, A. (2007). Understanding customer experience. Harvard Business Review, 85(2), 117–126.
Ojasalo, J. (2001). Managing customer expectations in professional services. Managing Service Quality, 11(3), 200–212. CrossRef
Parasuraman, A., Berry, L. L., & Zeithaml, V. A. (1991). Understanding customer expectations of service. Sloan Management Review, 32(3), 39–48.
Pine, B. J., & Gilmore, J. H. (1999). The Experience Economy. Boston: Harvard Business School Press.
Pitt, L. F., & Barbara, J. (1994). Management of customer expectations in service firms: A study and a checklist. Service Industries Journal, 14(2), 170–189. CrossRef
Pullman, M., & Gross, M. (2004). Ability to experience design elements to elicit emotions and loyalty behaviors. Decision Sciences, 35(3), 551–578. CrossRef
Ren, F. (2007). Analysis of the double-oligarch’s output-competition decisions in relevant region. Asian Social Science, 3(5), 45–49.
Rowley, J. E. (1996). Customer compatibility management: An alternative perspective on student-to-student support in higher education. International Journal of Educational Management, 10(4), 15–20.
Rust, R. T., Inman, J. I., Zahorik, J., & Jia, A. (1999). What you don’t know about customer-perceived quality: The role of customer expectation distributions. Marketing Science, 18(1), 77–92. CrossRef
Saffer, D. (2005). The Role of Metaphor in Interaction Design, Thesis, Carnegie Mellon University, Pittsburgh.
Sawaragi, Y., Nakayama, H., & Tanino, T. (1985). Theory of Multiobjective Optimization. New York: Academic.
Schurter, T., & Towers, S. (2006). Customer Expectation Management: Success without Exception. Florida: Meghan-Kiffer Press.
Smith, J. M., & Parker, G. A. (1976). The logic of asymmetric contests. Animal Behavior, 24(1), 159–175. CrossRef
Smith, J. M., & Price, G. R. (1973). The logic of animal conflict. Nature, 246, 15–18. CrossRef
Tan, W. (2006). The effects of taxes and advertising restrictions on the market structure of the U.S. cigarette market. Review of Industrial Organization, 28(3), 231–251. CrossRef
Walker, J., & Baker, J. (2000). An exploratory study of a multi-expectation framework for services. Journal of Service Marketing, 14(5), 411–431. CrossRef
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1993). The nature and determinants of customer expectations of service. Journal of the Academy of Marketing Science, 20, 1–12. CrossRef
Zhao, K., Xia, M., Shaw, M. J., & Subramaniam, C. (2009). The sustainability of B2B e-marketplaces: Ownership structure, market competition, and prior buyer-seller connections. Decision Support Systems, 47(2), 105–114. CrossRef
- Service interaction design: A Hawk-Dove game based approach to managing customer expectations for oligopoly service providers
- Publication date
- Springer US
Neuer Inhalt/© ITandMEDIA