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Antecedents for the transition from products to services

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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
   
type journal paper
   
keywords
   
language English
kind of paper journal article
date of appearance 11-11-2008
journal Journal of Applied Management and Entrepreneurship
publisher Nova Southeastern University (Fort Lauderdale)
ISSN 1077-1158
volume of journal 13
number of issue 3
page(s) 4-19
review double-blind review
   
citation Gebauer, H. (2008). Antecedents for the transition from products to services. Journal of Applied Management and Entrepreneurship, 13(3), 4-19.