Skip to main content
SpringerLink
Log in

Modeling the Dynamics of Service: The Creation of Customer Value

  • Conference paper
  • First Online:
Serviceology for Services (ICServ 2013)

Included in the following conference series:

Abstract

During recent years, value-based approaches have gained popularity in both research and managerial practice. One of the most influential approaches is service-dominant logic (SDL) that focuses on the co-creation of value between the provider and customer and highlights the context in which value is created and the related resources integrated. Starting from these viewpoints, this chapter provides a framework for a systematic analysis of the value- and service-based business. We apply the system dynamic modeling to study the customer value creation. In particular, we describe the dynamic relationship between value promise given to customer and the customer-experienced value.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Hoover WE, Eloranta E, Holmström J, Huttunen K (2001) Managing the demand-supply chain - value innovations for customer satisfaction. Wiley, New York

    Google Scholar 

  2. Kim WC, Mauborgne R (1999) Strategy, value innovation, and the knowledge economy. Sloan Manage Rev 40(3):41–54

    Google Scholar 

  3. Vargo S, Lusch R (2004) Evolving to a new dominant logic for marketing. J Mark 68(1):1–17

    Article  Google Scholar 

  4. Vargo S, Lusch R (2008) Service-dominant logic: continuing the evolution. J Acad Mark Sci 36(1):1–10

    Article  Google Scholar 

  5. Vargo S (2013) Service-dominant logic reframes (service) innovation. VTT Service Highlights, VTT

    Google Scholar 

  6. Maglio PP, Spohrer J (2013) A service science perspective on business model innovation. Ind Mark Manage 42(5):665–670

    Article  Google Scholar 

  7. Normann R, Ramirez R (1998) Designing interactive strategy- from value chain to value constellation. Wiley, Chichester

    Google Scholar 

  8. Payne A, Storbacka K, Frow P (2008) Managing the co-creation of value. Acad Mark Sci J 36(1):83–96

    Article  Google Scholar 

  9. Sundbo J, Gallouj F (2000) Innovation as a loosely coupled system in services. In: Metcalfe JS, Miles I (eds) Innovation systems in the service economy – measurement and case study analysis. Kluwer Academic, Boston

    Google Scholar 

  10. Vargo S (2009) Toward a transcending conceptualization of relationship: a service-dominant logic perspective. J Bus Ind Mark 24(5/6):373–379

    Article  Google Scholar 

  11. Vargo S, Lusch R (2011) It’s all B2B…and beyond: toward a systems perspective of the market. Ind Mark Manag 40:181–187

    Article  Google Scholar 

  12. Lusch R, Vargo SL, Tanniru M (2010) Service, value networks and learning. J Acad Mark Sci 38(1):19–31

    Article  Google Scholar 

  13. Helkkula A, Holopainen M (2011) Service innovation as an experience: differences between employee and user narratives. In: Sundbo J, Toivonen M (eds) User-based Innovation in Services. Edward Elgar, Cheltenham, pp 281–302

    Google Scholar 

  14. Anderson JC, Kumar N, Narus JA (2007) Value merchants: demonstrating and documenting superior value in business markets. Harvard Business School, Boston

    Google Scholar 

  15. Park C, Jaworski B, MacInnis D (1986) Strategic brand concept-image management. J Mark 50(4):135–145

    Article  Google Scholar 

  16. Allee V (2008) Value network analysis and value conversion of tangible and intangible assets. J Intellect Cap 9(1):5–24

    Article  Google Scholar 

  17. Kothandaraman P, Wilson D (2001) The future of competition, value-creating networks. Ind Mark Manag 30:379–389

    Article  Google Scholar 

  18. Sheth J, Newman B, Gross B (1991) Why we buy what we buy: a theory of consumption values. J Bus Res 22(2):159–170

    Article  Google Scholar 

  19. Smith J, Colgate M (2007) Customer value creation: a practical framework. J Mark Theory Pract 15(1):7–23

    Article  Google Scholar 

  20. Sterman J (2000) Business dynamics: systems thinking and modeling for a complex world. Irwin McGraw-Hill, Boston

    Google Scholar 

  21. Anderson J, Narus J, van Rossum W (2006) Customer value propositions in business markets. Harv Bus Rev 84(3):90–99

    Google Scholar 

  22. Frow P, Payne A (2011) A stakeholder perspective of the value proposition concept. Eur J Mark 45(1):223–240

    Article  Google Scholar 

  23. McDougall G, Levesque T (2000) Customer satisfaction with services: putting perceived value into the equation. J Serv Mark 14(5):392–410

    Article  Google Scholar 

  24. Fielt E (2012) A “Service Logic” rationale for business model innovation, EURAM annual conference 2012. Erasmus University, Rotterdam

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. VTT Technical Research Centre of Finland, 1000, 02044, VTT Espoo, Finland

    Peter Ylén, Ossi Koivula, Marja Toivonen & Karo Tammela

Authors
  1. Peter Ylén
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Ossi Koivula
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Marja Toivonen
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Karo Tammela
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Peter Ylén .

Editor information

Editors and Affiliations

  1. National Institute of Advanced Industrial Science and Technology, Koto-ku, Tokyo, Japan

    Masaaki Mochimaru  & Takeshi Takenaka  & 

  2. The University of Tokyo, Kashiwa, Chiba, Japan

    Kanji Ueda

Rights and permissions

Reprints and permissions

Copyright information

© 2014 Springer Japan

About this paper

Cite this paper

Ylén, P., Koivula, O., Toivonen, M., Tammela, K. (2014). Modeling the Dynamics of Service: The Creation of Customer Value. In: Mochimaru, M., Ueda, K., Takenaka, T. (eds) Serviceology for Services. ICServ 2013. Springer, Tokyo. https://doi.org/10.1007/978-4-431-54816-4_29

Download citation

  • DOI: https://doi.org/10.1007/978-4-431-54816-4_29

  • Published:

  • Publisher Name: Springer, Tokyo

  • Print ISBN: 978-4-431-54815-7

  • Online ISBN: 978-4-431-54816-4

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation