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The purpose of this paper is to investigate the pros and cons of service standardization (vs customization) from the consumer’s perspective, the key factors influencing consumers’ preference for standardized (vs customized) services and the outcomes of service standardization (vs customization).

The authors conducted a qualitative study and two behavioral experiments to test the hypotheses.

The authors find that the advantages of service customization include greater perceived control and higher consumer satisfaction. The drawbacks of service customization include greater perceived risk. These findings also suggest that consumers’ preference for standardized (vs customized) service depends on their consumption goal. Specifically, consumers with a hedonic goal tend to prefer customized services, while those with a utilitarian goal tend to prefer standardized services. These effects are moderated by their need for uniqueness.

The qualitative and experimental studies in this research reveal the antecedents (utilitarian vs hedonic goal) on consumer preference for service standardization versus customization, as well as the consequences in terms of perceived risk, consumer satisfaction and perceived control. The experimental studies were conducted with Chinese and American consumers, respectively, which lend credence to the robustness of the findings.

Results of the present research provide new insights into service standardization versus customization and have significant practical implications. In particular, service organizations should consider designing the appropriate service mode based on consumers’ characteristics, particularly their consumption goals and their need for uniqueness. If the customers focus on efficiency and functionality, the organization should try to provide standardized services. In contrast, for customers who are seeking fun and a novel experience, the service firm should try to tailor to their hedonic needs.

While previous research identifies “heterogeneity” as a key characteristic of services in general, the present findings qualify this received wisdom. In particular, the authors show that consumers’ preference for service standardization versus customization is a function of their consumption goal and need for uniqueness. Thus, the present findings refine the current understanding of service heterogeneity, which makes a significant contribution to the services marketing literature.

Despite the availability and accessibility of standardized screening services, such as preventative health services, many individuals avoid participation. The extant health literature has indicated that health locus of control (HLOC) influences engagement and uptake of health services. The purpose of this paper is to explore how the microfoundation, HLOC, contributes to value co-creation via service-generated and self-generated activities in standardized screening services.

A qualitative study of 25 consumers who have experienced one of the three standardized screening services in Australia was undertaken, followed by thematic analysis of the data.

Service-generated activities elicit reactive responses from consumers – compliance and relinquishing control – but when customers lead co-creation activities, their active responses emphasize protecting self and others, understanding relationship needs and gaining control. Consumers with high internal HLOC are more likely to take initiative for their health, take active control of the process and feel empowered through participating. Consumers with low internal HLOC, in contrast, require more motivation for participation, including encouragement from powerful others through promotion or interpersonal dialogue.

These findings can be used by policymakers and providers of preventative health services for the betterment of citizen health.

The integration of the DART framework, customer value co-creation activities, and the delineation of self-generated and service-generated activities provides a holistic framework to understand the influence of HLOC on the co-creation of value in standardized screening services.

This paper investigates international advertising approaches of USA‐based corporations that offer consumer services in overseas markets. Based on the empirical findings, the data reveal that the majority of the respondent executives tend to follow a localized rather than a standardized advertising approach in marketing such services. Respondents also indicate that companies using such a localized advertising approach take cultural variables more seriously than do companies following a standardized approach. Here, however, respondents on either side of the standardized/localized debate concur. For example, there is virtual unanimity from respondents in terms of their perception that government regulations make it difficult to create and use universal campaigns, and that language diversity necessitates the use of local communication expertise in each market. Furthermore, and perhaps important in terms of the constant stress placed these days upon globalization, both groups seem unconvinced that advertisements can be universally understood, and that an advertising theme can be the same for all markets. Thus, this paper supports the notion that perceived differences in consumers' lifestyles do act as major obstacles to universal advertising campaigns.

While service scholars see modularisation as balancing the efficiency of standardisation with the value added through customisation the relationships between these concepts are under-theorised. In addition, although information and communication technologies can facilitate all three service strategies, the degree to which they codify service knowledge is not explicitly considered in the extant literature. The purpose of this paper is to develop and validate a model that examines service strategy trajectories by specifically considering the ICTs used and the degree of knowledge codification employed.

This study draws on three qualitative case studies of service departments of firms involved in cardiovascular applications, orthopaedic, spinal and neuroscience product development and information technology support. Data collection involved semi-structured interviews, document analysis and non-participant observation.

Findings show that ICTs were increasingly used to codify both standardised and customised services, though in different ways. For standardised services ICTs codified the service process, making them even more rigid. Due to the dynamic nature of customised services, drawing on experts' tacit knowledge, ICTs codified the possessors of knowledge rather than the service process they undertook. This study also identified a duality between the tacit development of customised services and modular service codification.

The model is validated using case studies from three companies in the medical and information technology sectors limiting its generalisability.

The importance of considering the degree of tacitness or explicitness of service knowledge is important for service codification. The paper provides managers with empirical examples of how ICTs are used to support all three strategies, allows them to identify their current position and indicates possible future trajectories.

The papers main contribution is the development of a model that integrates the literature on service strategies with knowledge management strategies to classify service standardisation, customisation and modularisation in terms of both service orientation and degree of ICT codification.

Internal organisational aspects of service delivery from the employee's perspective have received some attention in the literature. However, there is a need for more detailed empirical research to explore the possible impacts of specific internal service factors (ISFs) on service quality. This paper seeks to consider the overall influence of customer‐employee interactions, and to discuss and test empirically the relative influence of five ISFs that interface with internal marketing strategies.

Empirical data were collected from a sample (n=202) of supermarket employees across a large metropolitan city. The data analysis used bivariate correlations, stepwise regression, and structural equation modelling.

The main research findings, from the employee perceptions of service quality, suggest that there are three main predictor variables, namely, service orientation, service role flexibility, and non‐standardised scripted behaviour. The most important internal service quality predictor variable is employees' service orientation attitude, followed by non‐standardised scripted service behaviour and third by the organisational policy to adopt and change (flexible) service roles.

The research needs to be expanded by investigating simultaneously the viewpoints about service quality by managers and actual consumers.

Retail marketing managers need to be mindful that ISFs have the potential to indirectly influence consumer perceptions through employee behaviours and perceptions of customers' needs. The five ISFs identified in this research can serve as a basis for differentiating a service brand.

The paper highlights the importance of five internal service success factors that influence service quality.

Modularity promises to relieve problems of complexity in service systems. However, limited evidence exists of its application in specialized hospital services. The purpose of this paper is to identify enablers, constraints, and outcomes of modularization in specialized hospital services.

A qualitative comparative study of a hematology unit with modular service architecture and an oncology unit with integral service architecture in a university hospital is performed to analyze the service architectures, enablers and constraints of modularization, and outcomes.

A framework and five propositions combining the characteristics of specialized hospital services, enabling activities, and outcomes of modularization were developed. Modular service architecture was developed through limiting the number of treatment components, reorganizing production of standardized components into a separate service unit, and standardizing communication and scheduling in interfaces. Modularization increased service efficiency but diluted ownership of services, decreased customization, and diminished informal communication. This is explained by the specific characteristics of the services: fragmented service delivery, professional autonomy, hierarchy, information asymmetry, and requirement to treat all.

Modularization can increase efficiency in specialized hospital services. However, specific characteristics of specialized care may challenge its application and limit its outcomes.

The study identifies enabling activities and constraints that hospital managers should take into account when developing modular service systems.

This is the first empirical study exploring the enablers, constraints, and outcomes of modularization in specialized hospital services. The study complements literature on service modularity with reference to specialized hospital services.

The purpose of this article is to empirically examine the influence of consumer involvement on perceived relational benefits across service types.

Based on Bowen's service typology, responses from patrons of fast‐food restaurants and hairdressers/stylists were used to assess the influence of consumer involvement on relationship marketing, specifically perceived service benefits and response behaviors.

Results indicate that highly involved consumers perceive greater relational benefits when engaged in a high contact, customized service (i.e. hairdressers/stylists) versus a more standardized, moderate contact service (i.e. fast‐food restaurant).

Care should be taken when generalizing these findings to other service settings as this study only addressed two service types. Thus, an opportunity for future research could add moderate contact, non‐personalized services to determine if there are significant differences between the three service categories. Additionally, this study was based in the USA, thus cultural differences may influence perceived benefits of service firms selected.

The results of this study suggest that a service firm providing a more standardized service offering is better served by hiring and training competent and trustworthy employees than by adopting relational benefit programs. On the other hand, high contact customized service providers are encouraged to engage in relationship activities with highly involved consumers, specifically those related to confidence benefits.

This study confirms the recommendation that relationship marketing may be inappropriate for all service firms. More importantly, the level of consumer involvement with the service has a significant moderating effect on perceived relational benefits.

This paper aims to explore the role of six sigma in the assembly of service components, during the service exchange. Specifically, it seeks to examine whether applying six sigma principles to customer‐facing processes enhances customer satisfaction.

The paper uses a field study to examine the relationship between conformance with a standardized service assembly process and customer satisfaction. Data were collected over a two‐month period using participant observation at the front desk of a leading hotel, and were analyzed using logistic regression.

The results of the study provide a basis for discussion of the issues associated with applying six sigma to the service assembly process. The results suggest that the application of six sigma to customer‐facing processes does not improve customer satisfaction.

Much of the documented success of six sigma has focused on its application to processes with minimum or no customer involvement. In contrast, this paper focuses on the application of six sigma in the service exchange, which typically encompasses a high degree of customer involvement. The paper also adopts a customer‐centric view and differentiates two different processes in a service exchange. This novel view suggests fresh theorizing and research directions. The intent is to encourage discourse among academics and practitioners regarding the applicability of six sigma in a service setting, and identify avenues for future research in this domain.

In an increasingly budget-constrained environment, the Department of Defense (DoD) must maximize the value of fiscal resources obligated on service contracts. Over half of DoD procurement spending between 2008 and 2012 was obligated on service contracts (GAO, 2013). Many services are common across the enterprise and recurring in nature; however, they are treated as unique and procured individually at the base level, year after year, rather than collectively in accordance with a larger, enterprise-wide category management strategy. The purpose of this paper is to focus on creating a methodology that treats common, recurring service requirements in a more strategic manner.

The authors develop a standardized, repeatable methodology that uses relevant cost drivers to analyze service requirements to identify more efficient procurement strategies. Furthermore, they create a clustering continuum to organize services based on proximity between the customer-supplier bases. This paper uses a commercial business mapping software to analyze cost driver data, produce visualizations and illustrate strategic opportunities for category management initiatives. DoD requirements for Integrated Solid Waste Management (ISWM) within the Los Angeles area are evaluated using the software and methodology to demonstrate a model for practical application.

The authors find that commercial software can be used to cluster requiring activities needing common, recurring services. This standardized, repeatable method can be applied to any category of services with any number of cost drivers. By identifying optimal requiring activity clusters, procurement agencies can more effectively implement category management strategies for service requirements.

The initial approach of this paper was to develop a macro-level, one-size-fits-all model to centralize procurement. The authors found this approach inadequate as they tried to group service requirements of wildly differing characteristics. They experienced other significant limiting factors related to data availability and data collection.

Clustering common and recurring DoD service requirements would result in standardized levels of service at all installations. The demand savings from clustering would promote the implementation of best practices for that service requirement across the DoD, which would eliminate non-value-added activities currently performed at some installations, or gold-plating of requirements, which is also likely occurring.

This paper is the first to use an analytics-based methodology to cluster common, recurring public services. It is the first method that offers a standardized, repeatable approach to implementing category management of service requirements to achieve cost savings.

Service modularity promotes efficiency at the provider end of the supply chain and customisation at the customer end. The purpose of this paper is to investigate how logistics service modularity contributes to sustainable development through the means of energy efficiency. This is analysed in the context of logistics services for household waste collection.

A single case study methodology with embedded units is adopted where semi-structured interviews were conducted with a waste service provider (WSP) and buyers (municipalities) in Sweden, focussing on five types of logistics services for waste collection: collection of food and residual waste at apartments and one-family houses, as well as collection of gardening waste. Service modules are identified and analysed by blueprinting the service.

The findings show different service modules – standardised or customised – and their contribution to sustainable development operationalised through energy efficiency. Principles for an energy-centric service design are proposed.

The research is limited to Swedish household waste collection setting. Promising efficiency through standardisation, logistics service modularity has a potential to improve energy efficiency as well. This neglected link between sustainability and service modularity offers fruitful research avenues.

This research is of practical relevance to waste logistics service providers and the municipality by suggesting principles for energy-centric service design. The service blueprint enables using logistics service modularity for improving energy efficiency in different logistics service settings.

This research incorporates an environmentally sustainable development perspective into logistics service modularity and contributes to the literature by exploring how energy efficiency is improved by modular design of logistics services. Furthermore, the study is one of the first to use service blueprinting to analyse logistics service modularity, providing a methodological contribution to that field in general and logistics in particular.