Incorporating the Dual Customer Roles in e-Service Design

E-service involves the delivery of useful services through information technology based service delivery channels such as the Internet. A distinguishing feature of e-service is the active and significant participation of customers in the service co-production process. With increasing customer participation in the e-service co-production process, it is important to incorporate customers’ needs both as a co-producer and as a patron into the design of e-service systems. However, these dual customer roles create a complex decision problem during e-service design. In the current paper we present a customer orientation strategy for e-service design, and propose a corresponding two-stage decision model based upon the customer orientation strategy to evaluate the efficiency and effectiveness of e-service design when the focus of the design is to meet customers’ needs as both co-producers and patrons. The decision model is then applied in an empirical study of the design of e-services of Internet food retailers. Key Words: Service Operations, E-Service, Co-production, Efficiency Analysis, Data Envelopment Analysis