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Antecedents for the Transition from Products to Services
Journal
Journal of Applied Management and Entrepreneurship
ISSN
1077-1158
Type
journal article
Date Issued
2008-07-01
Author(s)
Gebauer, Heiko
Abstract
This study tests specific antecedents that enable product-oriented firms to move along the transition line from products to services. The results suggest that the effect of changes in service-related customer needs is stronger than that of increasing competitive intensity. In business practice, it means that managers should not wait until they lose competitive advantage in the product business, before moving from products to services. Managers focusing only on the service orientation of the organizational structure will not perform as well as those concentrating on corporate culture and human resource management. In terms of service-related performance outcomes which positively affect overall profitability, the high importance of direct service profitability and share of service revenue could be identified as crucial factors, but not the quality of customer relationship. Thus, sales managers should charge service separately, instead of giving services away for free in order to increase customer satisfaction and customer loyalty
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Nova Southeastern University
Publisher place
Fort Lauderdale
Volume
13
Number
3
Start page
4
End page
19
Pages
16
Subject(s)
Division(s)
Eprints ID
49164