Changing the servicescape : The influence of music, self-disclosure and eye gaze on service encounter experience and approach-avoidance behavior

The purpose of this thesis is to investigate and understand the effect of a servicescape’s ambient and social conditions on consumers’ service encounter experience and their approach/avoidance behavior in a retail context. In three papers, with a total sample of over 1600 participants (including 550 actual consumers) and seven experiments, the author investigates the effect of music (ambient stimuli), employees’ self-disclosure (verbal social stimuli) and employees’ gazing behavior (nonverbal social stimuli) on consumers’ service encounter experience and approach/avoidance behavior in a retail store. Paper I comprised two experiments, and the aim was to investigate the influence of music on emotions, approach/avoidance behavior. Paper II comprised two experiments, and the aim was to investigate the effect of frontline employees’ personal self-disclosure on consumers’ reciprocal behavior. Paper III comprised three experiments, and the aim was to investigate the influence of employee’s direct eye gaze/ averted eye gaze on consumer emotions, social impression of the frontline employee and encounter satisfaction in different purchase situations. The results in this thesis show that music affects consumers in both positive and negative ways (Paper I). Self-disclosure affects consumers negatively, in such a way that it decreases encounter satisfaction  (Paper II) and, finally, eye gaze affects consumers by regulating both positively – and in some cases also negatively – consumers’ social impression of the frontline employee and their encounter satisfaction (Paper III). The conclusions of this thesis are that both ambient and social stimuli in a servicescape affect consumers’ internal responses, which in turn affect their behavior. Depending on the purchase situation, type of retail, and stimuli, the internal and behavioral responses are different.

Having a strategy for new service development : does it really matter?

Purpose – The aim of this study is to investigate the role of key strategic factors in new service development (NSD). In particular, the role of service development strategy, a formalised development process, integrated development teams and customer co-creation were investigated and the results were compared with managers' beliefs. Design/methodology/approach – The study used a sample of more than 500 service development projects to test a NSD conceptual model. Regression analysis was used to test the relative importance of the key strategic factors, and the results were compared with managers' beliefs. Findings – The results show that managers believe that customer co-creation is most important in order to succeed with NSD. However, contrary to management belief, a service development strategy is the “missing link” in improving NSD performance. In addition, the research highlighted an interaction effect between integrated development teams and customer co-creation, which means that project managers should focus on individual competencies on the development team and how they interact with customers throughout the NSD process. Originality/value – For a long time, NSD has failed to receive the attention it deserves, not just in practice but also in service research. This study shows that the number of new services put on the market and then withdrawn because of low sales remains as high as 43 per cent. This paper contributes knowledge on how to reduce the number of failures in NSD by pointing out the key strategic factors that influence NSD performance.

Exploring value propositions and service innovation : a service-dominant logic study

This paper presents an eight-firm study, conducted from the service-dominant logic perspective, which makes a contribution regarding knowledge of the anatomy of value propositions and service innovation. The paper suggests that value propositions are configurations of several different practices and resources. The paper finds that ten common practices, organized in three main aggregates, constitute and fulfill value propositions: i.e. provision practices, representational practices, and management and organizational practices. Moreover, the paper suggests that service innovation can be equated with the creation of new value propositions by means of developing existing or creating new practices and/or resources, or by means of integrating practices and resources in new ways. It identifies four types of service innovation (adaptation, resource-based innovation, practice-based innovation, and combinative innovation) and three types of service innovation processes (practice-based, resource-based, and combinative). The key managerial insight provided by the paper is that service innovation must be conducted and value propositions must be evaluated from the perspective of the customers’ value creation, the service that the customer experiences. Successful service innovation is not only contingent on having the right resources, established methods and practices for integrating these resources into attractive value propositions are also needed.