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This study seeks to explore the idea that consumers select a particular shopping mode – i.e. bricks and mortar versus online outlet – based on their perceptions about whether a product or service is best bought from one or the other. It aims to posit that this perception is associated with the importance allocated to various shopping motivation dimensions.

Data for this study were collected using a self‐administered mail survey from 689 internet‐enabled US households. They represent a 28 percent response from 2,500 households that received the survey. Extensive non‐response analysis ruled out serious bias in the data.

The results from this empirical study suggest that different shopping motivations indeed influence perceptions of service type and shopping mode congruence differently. In addition, the results also suggest that services are more likely to be associated with the online shopping mode, whereas more tangible products are likely to be associated with bricks and mortar stores.

The findings have significant implications for services retail managers of both bricks and mortar and online service outlets in the areas of segmentations, targeting, and retail mix strategies. Apparently, consumers also tend to group related services or products into homogeneous shopping baskets based on their perception of congruence between the product or service and the shopping mode – online versus bricks and mortar store. These findings should help a manager plan for retailing mix strategies, catering to various shopping motivation dimensions, thus enhancing consumer satisfaction. In addition, the results hold important implications in the areas of segmentation and targeting decisions.

The first of a two‐article series addressing important factors in the pricing of services. Success at garnering a high price and margin on a service hinges on important variables. Mistakes in the delivery and pricing of services can have far‐reaching “residual damage” effects quite different from those associated with the delivery of a “tangible” product. Examines a host of issues important in the pricing and sale of services including the differences in the product versus service purchase decision. Discusses factors influencing the acceptable price and purchase decision; customer need fulfilment and satisfaction; elements of risk as well as the importance of the risk for services versus products. Argues that prompting a sale of service at any price depends on a heavy weighing of certain variables of great import to the customer. Provides background information important in the pricing of services. Focuses on how one might maximize perceived favourable attributes of services to influence price favourably. Examines the importance of “residual damages” resulting from errors in delivery of services.

Suggests that the development of new interactive service is stimulating the global convergence of the telecommunications, computer and media markets, creating an integrated industry, but there is some doubt about customer demand and how to approach it. Presents a study which contributes to the discourse on segmentation with a view to targeting. Tests the hypothesis that there is a relationship between the early adoption of previous technological innovations introduced over the past 15‐20 years and the predisposition to use new interactive services. The results of a small scale survey did not lend full support to this hypothesis; associations were established only in a small number of pairs of innovations. There were, however, significant subsegments within the sample which were positively predisposed to using education services, travel, news/information and video‐on‐demand through the new interactive technologies. Within the evidence examined, it could not be established that early adopters of communications and computer products are necessarily a starting target market for emerging technologies. Concludes that exploitation of interactive services requires recognition of the likely existence of differentiated market segments and thus the crafting of focused marketing strategies for different service packages.

The growth of international business, combined with an increase in the number of service offerings, underscores the importance of understanding effective promotional strategies for services versus goods in international markets. The current study examines advertising appeals for services and goods across four different countries: Brazil, Taiwan, Mexico and the USA. Results of a content analysis indicate that the use of rational and emotional appeals differs across both product type and country. It is suggested that culture plays a role in the use of the appeals and that the product type × country interaction is strongly reflected in Taiwanese and US advertising.

Examines the little attention given to services in the marketing literature, concluding that products versus services as a taxonomy, is difficult to sustain and likely to be dysfunctional. Argues the need to develop multi‐dimensional taxonomies that include market characteristics, relating results to the firm's marketing strategy. Proposes to stir discussion of the applicability of this separation of products and services, with particular reference to the characteristics used to make this distinction. Contends that, in terms of marketing, services are not differing too much from products, and develops this contention. Concludes that the literature relating to the distinction between products and services is found wanting and more work needs to be done.

Only limited attention has been paid to the issue of new service development (NSD) in a cross‐national context. To address this critique of the literature a comparative cross‐national study of NSD strategy and process of financial service firms in Australia and the USA was conducted.

The study employs a cross‐sectional, survey‐based methodology. The US sampling frame included 274 large financial service firms situated in the Northeast region of the USA. The Australian sampling frame consisted of 262 firms situated in the Southeast region of Australia.

The data pattern suggests that the firms in both the countries use different new service strategies to compete in the industry and emphasize different sets of development stages in developing new services.

The analysis has been restricted to two countries: Australia and the USA. This suggests the need for further comparative studies of NSD in other cultures/countries.

The findings of this research support the notion that some of the key NSD practices may be common to all countries and cultures whereas others must be adjusted for national variations. The insights from this study can help service managers from both Australia and the US to better understand and manage their NSD programs in a cross‐national context.

The findings of the research are expected to advance one's understanding of the service innovation process by shedding light on the question of universality of factors and issues that relate to a firm's NSD programs.

This paper aims to analyze the impact of brand management system (BMS) practices on subjective and objective performance in both service- and product-oriented sectors.

Based on a “grounded-in-practice” approach to BMS, a comprehensive formative BMS scale is developed and its validity is assessed. The impact of BMS on subjective brand performance (i.e. predictive validity) and on objective financial performance is assessed. Data are collected from a sample of 298 brand managers and marketing directors in five business sectors (cosmetics, convenience goods, industry, bank/insurance and media) and from a financial database. Path analysis and multigroup analysis are performed to test mediating and moderating effects.

The results reveal that subjective brand performance (perceived brand performance) mediates the relationship between the BMS and objective financial performance of the firm and on each of the three BMS dimensions; and product-oriented (vs service-oriented) sector positively moderates the relationship between the BMS and subjective brand performance.

The paper offers insights into adapting brand management practices along all BMS dimensions to achieve better business performance and improve objective financial performance in product-oriented activities. It highlights the role of brand management implementation, as well as the role of brand management in hierarchical relationships, in improving performance in service activities.

The formative BMS scale offers a tool which can be used to improve strategic decisions and give practical guidance on product vs service sector specificities. The indirect impact of a BMS on financial objective performance reinforces the legitimacy of brand managers and marketing managers.

This paper shows the impact of the BMS on objective financial performance by using a “grounded-in-practice” BMS scale. It also affords explanation on sectoral effects of brand management practices and their consequences on subjective and objective performance.

This paper aims to provide an empirical investigation into extension category effects on service brand extensions, both to other services (service–service extensions) and to products (service–product extensions), and the extension category’s influence on brand/consumer-level success drivers, as well as the perceived quality of the extension.

This study included an empirical testing of a conceptual framework using a hierarchical linear modeling approach and testing of hypotheses with a multilevel regression analysis. The data set consisted of 216 respondents reporting on both product and service extensions. Data were collected on three levels, namely, consumer level, parent brand level and extension level.

The findings indicate a general and consistent extension category-dependent effect that moderates the importance of brand extension success drivers. The influence of parent brand reliance and perceived parent brand quality were found to have stronger effects, whereas parent brand conviction was weaker in the context of service-to-service extensions.

The study focuses on two brands with four extensions. Further research could replicate the study with a broader range of brands and extensions.

The study provides guidance to service managers to enhance consumers’ extension evaluations through better-positioned communication efforts when extending to different categories.

The study is one of the first empirical investigations into category-extension effects and its moderating role regarding brand and consumer level success drivers. Sparse research has been dedicated to a real-world occurrence of services extending between extension categories; this study thus furthers service brand research in terms of brand management decisions.

Confronted by lower product sales prospects, increased margin pressures and customer demands for free service support, many firms are entering the service business. Yet most of these firms will be unable to scale their service operations to develop a viable stand‐alone services capability. In the rare cases where they are successful in establishing a services business it will often fail to deliver the expected profit margins. However, when properly planned and executed, a products to services business transformation generates impressive results. this paper aims to investigate this issue.

The paper defines how to scale services business. Key challenges and mitigation approaches as well as case studies are provided to effectively execute on services transformation. Various challenges and their effects are examined separately. Several tactics to overcome some of the key challenges identified.

When managed properly, new services businesses can deliver solid economic value to the top and bottom line. In order to capture this value, managers must look at services through a very different lens, understanding that this is a fundamentally different business model than their existing product business. It is recommended managing the entire services value chain to realize the full benefits of creating independent services revenue stream, increased product pull‐through, and deeper customer relationships.

By considering various obstacles a company faces in scaling services business, the paper provides insight into what strategies may be effective as established companies deal with balancing existing product‐centric business while scaling services business.

The purpose of this study is to gain insight into factors that contribute to the success in high contact new service development (NSD) projects.

Data were collected via questionnaires from hospitality managers knowledgeable about NSD in their organization (sample size =183; response rate 38.1 percent). Discriminant analysis was used to identify the factors that are responsible for successful high contact NSD projects in the hospitality industry.

Research results indicate that seven factors play a distinctive role in the outcome of high contact NSD: market attractiveness, strategic human resource management, market responsiveness, empowerment, training of employees, employee commitment and marketing synergy.

This study was conducted in only one industry (hospitality) and one country (Germany) and included only the views of managers.

This study outlines the importance of human resource management factors in high contact NSD success. Findings from previous NSD success studies in low contact service industries have been only partly confirmed.

This study expands the scope of NSD research.