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The present study sets out to understand how a manufacturing company in the maritime industry utilized creative design principles and developed service design routines to…
The present study sets out to understand how a manufacturing company in the maritime industry utilized creative design principles and developed service design routines to advance digital servitization (i.e. the transition to offering smart product-service-software systems–PSS) and realize subsequent positive growth outcomes.
We build upon a longitudinal single case of a marine solution provider. Using an action research approach, we collected data through in-depth interviews and informal conversations involving senior managers, project members and customer representatives over a three and a half-year period. In addition, secondary data such as documentary data, service design tools and visualization were utilized.
The inductive analysis highlights the underlining role of four service-design routines that drive creativity and an innovative approach to digital servitization transformation. More specifically, we identify (a) user insights through creative customer data acquisition, (b) smart PSS collaboration through co-creation across departments, (c) smart PSS ideation through creative forms of collaboration and (d) effective smart PSS delivery and commercialization through creative concept design as the drivers of the case company digital servitization transformation.
We encourage senior managers within large manufacturing companies to promote the development of service design routines as these promote the transformation process from being a product-centric to service-centric firm. The four service design routines are built on a set of service design sub-activities providing concrete actions that can be applied by senior managers to successfully develop and deliver smart PSS offerings and achieve growth outcomes.
This study contributes by integrating digital servitization and service design literatures. We illustrate how manufacturing firms can drive a transition to digital servitization through service design activities and routines development for smart PSS strategy implementation.
Value co-creation assumes that customers take active roles and create value together with firms. This paper aims to investigate the short- and long-term effects of…
Value co-creation assumes that customers take active roles and create value together with firms. This paper aims to investigate the short- and long-term effects of customer participation on brand loyalty, through brand satisfaction. Participation effects were also examined among social media-using customers with the additional explanatory factor of brand engagement.
Two studies were conducted among insurance customers: a cross-sectional study using a nationwide sample (N = 954) and a subsample of social media users (N = 145) to examine short-term effects, and a longitudinal study using data from three assessment timepoints (N = 376) to enable empirical long-term testing.
The cross-sectional study showed positive short-term effects of customer participation on brand loyalty, mediated by satisfaction. Among customers using social media, positive participation effects gained from brand engagement strengthened brand satisfaction. The longitudinal study did not show similar positive long-term effects of customer participation.
These findings help deepen service marketers’ understanding of the possible short-term effects of customer participation and customer brand engagement, and caution them to not expect that customer participation will have long-term positive satisfaction and loyalty effects.
This research provides interesting short- and long-term findings, due to the complementary cross-sectional and longitudinal study designs.