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Service Processes as a Sequence of Events

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Author Info
Verhoef, P.C.
Antonides, G.
Hoog, A.N. de (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)

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Abstract

In this paper the service process is considered as a sequence of events. Using theory from economics and psychology a model is formulated that explains how the utility of each event affects the overall evaluation of the service process. In this model we especially account for the peak-and-end rule and negative consumer time preference. This model is tested in the context of telephone service calls in the financial service market. Our results show that both the average utility and the positive peak of the events positively affect customer satisfaction with the service call. Surprisingly, the end of the sequence has a negative effect. Theoretical and managerial implications of these findings are discussed.

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File URL: http://hdl.handle.net/1765/256
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Publisher Info
Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2002-105-MKT Revision_Date: 2009-11-14.

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Date of creation: 19 Nov 2002
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Handle: RePEc:dgr:eureri:2002265

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Related research
Keywords: sequence of events; services; satisfaction; economic psychology; consumers;

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  1. Loewenstein, George F & Sicherman, Nachum, 1991. "Do Workers Prefer Increasing Wage Profiles?," Journal of Labor Economics, University of Chicago Press, vol. 9(1), pages 67-84, January. [Downloadable!] (restricted)
  2. Kahneman, Daniel & Wakker, Peter P & Sarin, Rakesh, 1997. "Back to Bentham? Explorations of Experienced Utility," The Quarterly Journal of Economics, MIT Press, vol. 112(2), pages 375-405, May.
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This page was last updated on 2009-12-16.

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