A brand emerges from the interactions between the organization’s proposition, which is manifested through the service interaction, and the customers’ perceptions, as the reflex of their past experiences with the branded offerings. However, despite its role as a proposition, the brand value is grounded on the meanings associated by the customers to the brand name, and especially, by the power that these associations have to influence their attitudes – in other words, customers value a brand for its ability to deliver consistent experiences. This chapter proposes a model for the development of brand-based service interactions, which reinforces the customers’ experiences with the brand, strengthening their trust in the brand’s ability to deliver as expected.
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Per Egil Pedersen, Birgit Apenes Solem and Kristin Bentsen
A variety of definitions and meanings are associated with the business model (BM) concept, and business model innovation (BMI) as a new type of innovation. The general literature on BMI and the literature on BMI in retailing is unclear regarding what BMI is, and how it is different from other types of innovation. The authors attempt to fill this gap by surveying examples of BMI from studies in the retailing sector. They apply a service-dominant logic perspective, arguing for a more holistic approach to value creation and a systemic approach to innovation in general. A typology of BMI is proposed to explore how the different types of BMI depend on different types and mechanisms of trust. The analysis indicates that radical value creation, as one type of BMI, is underrepresented in the literature. The results have implications for retailing managers as well as for policy makers.
Dimitra Chasanidou and Amela Karahasanović
Tor W. Andreassen, Simon Clatworthy, Tore Hillestad and Marika Lüders
Camilla A.C. Tepfers
For any given organization acting upon a future narrative, trust in the process and the findings is essential. To make a future narrative actionable, the futures study should encompass both creativity and analysis. Each step of the process will emphasize the two differently. (1) Scoping, analytical: deciding which futures study method is best suited for the question at hand – the matrix approach or uncovering the strategic blind spot. (2) Evidence, analytical: challenge implicit assumptions and habitual thinking through trend analysis. (3) Prioritizing, intuitive: making a collective judgement on which trends are important to the organization. (4) Customer foresight, creative: create visual narratives of the future as seen through the eyes of the customer. (5) Experimentation, creative and analytical: managing uncertainty by involving the customers in early concept testing.
The use of websites for crowdsourcing user input for service innovation purposes has become popular. Customers and other stakeholders are invited to propose, comment on and vote for suggestions and ideas for product and service innovations. Catchphrases such as ‘the smartest people do not work for you’ and ‘the wisdom of crowds’ epitomize the ambition, yet companies might find it surprisingly difficult to manage and convert heterogeneous insights from the crowd into actual innovations. The chapter examines the experiences of two companies: an IT company using a company-internal website for gathering and elaborating ideas from their 10 000 employees, and a bank with four years of experience with an ideation website for engaging its customers in contributing ideas for service innovation. Findings suggest that companies experience trust-related issues because of the expectations raised by inviting an extended network of people into innovation work. The companies as trustees need to ensure they can be trusted by following up on contributions, or else the innovation websites become empty tokens of employee and customer involvement and empowerment.
Tina Saebi, Herbjørn Nysveen, Mohammad Touhid Hossain and Annita Fjuk
Delivering great customer experience is essential in gaining the trust of customers. In an attempt to deliver superior customer experience, companies often end up focusing on redesigning the front-end of the business model while neglecting to realign their organizational design, capabilities and skills with the different dimensions of their business model. By adopting a business model perspective, we derive important lessons on how companies can shift towards more ‘experience-centric’ business models.
Sveinung Jørgensen and Lars Jacob Tynes Pedersen
Developing innovative and adaptable cultures, especially in service providers with long, and often proud, histories and traditions of product and control orientation, might cause tensions and be in conflict with current and past cultures. Thus, the very legacy of organizations that seek to be more service-oriented and innovative may represent a barrier to revolutionary transformation and to develop more adaptable and innovative cultures. Conflicts and tensions obviously represent barriers, but they are ultimately unavoidable in cultural transformations that challenge basic assumptions and institutionalized beliefs. Consequently, trust appears to be a novel mechanism for overcoming and balancing these challenges, as organizations seek to transform towards more adaptable and innovative cultures. In the chapter, the author argues that trust could potentially create favorable conditions for organizations that seek to be more service-oriented and experience-centric and develop more adaptable and innovative cultures.
Siv E. Rosendahl Skard and Herbjørn Nysveen
The chapter presents a conceptual model proposing a relationship between risk, trust, and benefits in self-service technology (SST). The authors make five propositions for future SST research. First, they argue that SST risk dimensions should be investigated as separate first-order factors that will have unique effects on SST acceptance. The next two propositions concern the moderating effect of customers’ perceptions of SST benefit on the relationship between SST risk and SST acceptance. The authors propose that higher levels of utilitarian benefit perceptions will increase the effect of risk on SST acceptance, whereas higher levels of hedonic benefit perceptions will reduce the effect of risk on SST acceptance. The fourth proposition suggests that the relationships between SST risk and SST acceptance will be moderated by corporate trustworthiness along three dimensions: ability, integrity, and benevolence. The final proposition argues that the nature of risk and trust is important when considering the interaction between the two constructs.