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Service Processes as a Sequence of Events

Author

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  • Verhoef, P.C.
  • Antonides, G.
  • de Hoog, A.N.

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.

Suggested Citation

  • Verhoef, P.C. & Antonides, G. & de Hoog, A.N., 2002. "Service Processes as a Sequence of Events," ERIM Report Series Research in Management ERS-2002-105-MKT, 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.
    • Handle: RePEc:ems:eureri:256
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    File URL: https://repub.eur.nl/pub/256/erimrs20021119130842.pdf
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    References listed on IDEAS

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    1. Daniel Kahneman & Peter P. Wakker & Rakesh Sarin, 1997. "Back to Bentham? Explorations of Experienced Utility," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 375-406.
    2. 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.
    3. Verhoef, P.C. & Franses, Ph.H.B.F. & Donkers, A.C.D., 2001. "Changing Perceptions and Changing Behavior in Customer Relationships," ERIM Report Series Research in Management ERS-2001-31-MKT, 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.
    4. Ruth N. Bolton, 1998. "A Dynamic Model of the Duration of the Customer's Relationship with a Continuous Service Provider: The Role of Satisfaction," Marketing Science, INFORMS, vol. 17(1), pages 45-65.
    5. Thaler, Richard, 1980. "Toward a positive theory of consumer choice," Journal of Economic Behavior & Organization, Elsevier, vol. 1(1), pages 39-60, March.
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    Citations

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    Cited by:

    1. Lim, Chiehyeon & Kim, Kwang-Jae, 2018. "Experience Design Board: A tool for visualizing and designing experience-centric service delivery processes," Journal of Retailing and Consumer Services, Elsevier, vol. 45(C), pages 142-151.
    2. Peter Daniels, 2010. "Services Innovation in a Globalized Economy," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 19, Edward Elgar Publishing.
    3. Aparupa Das Gupta & Uday S. Karmarkar & Guillaume Roels, 2016. "The Design of Experiential Services with Acclimation and Memory Decay: Optimal Sequence and Duration," Management Science, INFORMS, vol. 62(5), pages 1278-1296, May.

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    More about this item

    Keywords

    consumers; economic psychology; satisfaction; sequence of events; services;
    All these keywords.

    JEL classification:

    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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