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Companies often provide preferential treatment, such as free upgrades, to customers. The present study aims to identify a costly consequence of such preferential treatment (i.e. opportunistic behavior) and reveal which type of customer is most likely to engage in that negative behavior (i.e. new customers).

Across two experimental studies, the authors test whether preferential treatment increases customers’ entitlement, which in turn increases their propensity to behave opportunistically. Moderated mediation analysis further tests whether that mediated effect is moderated by customers’ prior relationship with the company.

Preferential treatment increases feelings of entitlement, which consequently triggers customers’ opportunistic behaviors. New customers are more likely to feel entitled after preferential treatment than repeat customers, and hence new customers are more likely to behave opportunistically. Preferential treatment also increases customers’ suspicion of the company’s motives, but suspicion was unrelated to opportunistic behavior.

Future research may focus on other marketplace situations that trigger entitlement and explore whether multiple occurrences of preferential treatment provide different effects on consumers.

Present findings demonstrate that preferential treatment can evoke opportunistic behaviors among customers. The authors suggest that preferential treatment should be provided to customers who previously invested in their relationship with a company (i.e. repeat customers) rather than new customers.

Prior research has focused more on the ways companies prioritize their repeat customers than how they surprise their new customers. The present research instead examines preferential treatment based on customers’ relationship with a firm (i.e. both repeat and new customers) and demonstrates behavioral and contextual effects of entitlement.

Purpose – The paper develops a conceptual framework for assessing value-creating service ecosystems that contains four core dimensions: medium, meaning, usage, and network. Its purpose is to identify and discuss the implications of the changes that occur in these dimensions when exchanges within the ecosystem that have long been mediated by physical products become direct instead.

Methodology/approach – The analysis employs the historical method and is based on a systematic investigation of the evolution of the recorded-music market during the past 150 years.

Findings – The analysis shows that the key dimensions of the recorded-music-service ecosystem evolved only gradually and incrementally during the era of physical formats that were dominant until the mid-1990s. With the advent of “liquid” music, the elements of the service ecosystem changed dramatically, leading to instability and redefining roles and exchange mechanisms in the ecosystem.

Research limitations/implications – The investigation focuses on a single ecosystem (music), and conclusions stemming from it are subject to the assumptions inherent in the historical method. Nevertheless, the paper contributes to knowledge in the Service-Dominant Logic (S-D logic) domain by offering a robust framework and a set of core dimensions that are useful for systematically analyzing the nature and consequences of changes that occur in rapidly evolving service ecosystems.

Practical implications – Apart from direct implications for the music market, the proposed framework can help managers working in other ecosystems to adopt a macro perspective in addressing value-creation issues and to pay particular attention to the underlying dynamics that influence value creation in those ecosystems.

Originality/value of paper – The development of a conceptual framework that adopts a macro-level, market-wide perspective for understanding value creation in service ecosystems is a distinct contribution of the paper, as is the application of the historical method in analyzing such an ecosystem.

The purpose of this paper is to analyze the emerging crowd‐funding phenomenon, that is a collective effort by consumers who network and pool their money together, usually via the internet, in order to invest in and support efforts initiated by other people or organizations. Successful service businesses that organize crowd‐funding and act as intermediaries are emerging, attesting to the viability of this means of attracting investment.

The research employs a “grounded theory” approach, performing an in‐depth qualitative analysis of three cases involving crowd‐funding initiatives: SellaBand in the music business, Trampoline in financial services, and Kapipal in non‐profit services. These cases were selected to represent a diverse set of crowd‐funding operations that vary in terms of risk/return for the investor and the type of payoff associated to the investment.

The research addresses two research questions: how and why do consumers turn into crowd‐funding participants? and how and why do service providers set up a crowd‐funding initiative? Concerning the first research question, the authors' findings reveal purposes, characteristics, roles and tasks, and investment size of crowd‐funding activity from the consumer's point of view. Regarding the second research question, the authors' analysis reveals purposes, service roles, and network effects of crowd‐funding activity investigated from the point of view of the service organization that set up the initiative.

The findings also have implications for service managers interested in launching and/or managing crowd‐funding initiatives.

The paper addresses an emerging phenomenon and contributes to service theory in terms of extending the consumer's role from co‐production and co‐creation to investment.

The purpose of this paper is to introduce an alternative novel approach to measurement of customer perceptions of the service experience that links closely with customer loyalty outcomes.

This conceptual paper draws upon prior theory and empirical research to investigate the relevance of using relative metrics compared to absolute metrics in service research.

The findings upon which this paper draws upon show that measuring customer satisfaction, likelihood to recommend, brand preference using absolute metrics explain a very small per cent of the variance in key customer outcome measures such as share of wallet. Instead, a relative approach to these and other measures in service research is proposed.

Although business practice has embraced relative measurement much more extensively than has scientific research, the vast majority of customer experience measurement programs today continue to employ absolute measures resulting in suboptimal allocation of firm resources. This paper is a call to rethink these current measurement practices.

It is one of the first papers to argue for changing the widely employed use of absolute metrics in theory and practice in favor of relative metrics. Application to other service research theories is discussed.

This paper seeks to adopt a resource‐based approach to investigate the link between procurement capabilities, internet resources, and performance. It aims to cover two gaps in the operations management literature: the missing links between procurement capabilities and the performance of a firm, and the role of internet resources in shaping such links.

After the identification of two key capabilities in procurement and the introduction of internet resources, the relationships with performance are empirically tested in a sample of 93 firms in the textile and clothing industry in Italy. Data were analysed using a partial least‐squares technique and main and interaction effects were investigated.

First, process efficiency and process integration capabilities provide a significant (and equally important) contribution to firm performance, but there are no complementary effects between them. Second, and contrary to expectations, the internet has been found to enhance the effect of process integration capability, but not that of process efficiency capability. Third, a new finding reveals that the internet not only interacts with each of these capabilities in procurement separately, but it also enhances the synergistic effect between them.

The investigation is based on a self‐reported cross‐sectional analysis, and it is specific to a single industry and the procurement of one type of material. Nonetheless, it suggests a number of different implications. Achieving excellence in procurement requires the development of distinct capabilities, because the management of core purchasing activities and the integration of procurement in the supply chain are not complementary. Contrary to common expectations, employing the internet in procurement has little power to reduce transaction costs, although it can be fruitful for improving inter‐functional coordination. The internet can also help in “putting the pieces together” by exploiting the otherwise latent complementary effects between procurement capabilities.

This paper is unique in that it employs a strategic management theory – the resource‐based view – to unpack the mechanisms through which procurement activities contribute to performance. It represents a first response to the call for research into the use of such theoretical frameworks which has recently been made in the operations management literature. The paper also offers the first empirical test of how the internet interacts with existing capabilities in the procurement domain, providing clear guidance on how to exploit its often undervalued potential.

The purpose of this paper is to offer a reflection on the role that meta-analysis can play in theory building for service phenomena.

The paper illustrates the benefits of conducting meta-analysis, presents its basic steps, and then uses an example to illustrate how meta-analytic findings can be used to enrich and develop theory.

Meta-analytic findings allow identifying gaps in current theories, thereby offering the opportunity to develop new research. Theoretical advancement through meta-analysis can imply theory borrowing, mutual theoretical development with other disciplines, intradisciplinary and multidisciplinary theorizing.

Experienced researchers might use this essay to better understand how meta-analysis can be used to generate new relevant research. Young researchers and PhD students may benefit from a greater use of meta-analysis to gain a thorough knowledge of their research topic and about the areas that require further exploration.

Rather than thinking of meta-analysis mainly as the conclusion of a well-researched domain and a good summary of cites, this essay underlines to the service scholar community how meta-analysis can boost theoretical advancement in services.

Interpersonal relationships can be a key success factor in many service businesses. A capable disc jockey, for example, may help a radio station in improving customer satisfaction. But does he/she help in building customer loyalty too? What happens if this employee leaves the organisation? The purpose of this paper is to assess the overall net effect that customer satisfaction with a key service employee may have on customer loyalty to a service firm.

The radio industry is selected as a specific case where a key service employee exists. A conceptual model is developed and tested on a sample of radio listeners using structural equation modelling.

The results confirm that customer satisfaction with a disc jockey increases personal loyalty to this employee. That outcome, in turn, cancels out part of the positive effects on customer loyalty to the radio station.

The model is tested within a specific service industry and the findings are not generalisable to contexts whose underlying characteristics differ from that industry. The aim is to propose a frame for estimating the net effects of relational trade‐offs with a key service employee. More generally, the study contributes to increased knowledge on the topic of customers' multiple levels of relationships.

When designing a value proposition in service industries where a key employee exists, it becomes especially important to add value elements and satisfaction drivers strictly referable to the firm and not to a specific person (e.g. image and reputation, behavioural consistency, overall experience, etc.).

The concept of “key service employee” is formally introduced and defined. A crossed design to weigh both direct and indirect relational outcomes is proposed. Loyalty to a key employee is explicitly measured as concurrent loyalty toward the firm.

The purpose of this paper is to explore enhancing theory development in service research and provide an overview of the five essays on theorizing initiated by the International Network for Service Research workshop, held at Karlstad, Sweden in September 2014.

A collaborative theorizing process which was initiated at the Karlstad, Sweden workshop.

Six (five from the event and the introduction) original and provocative essays that explore different aspects of theorizing in service research.

Exploring how a collaborative approach to research can be used.