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The 

 sector
K The services sector has been
growing at a rate of 8% per
annum in recent years
K Rore than half of our GDP is
accounted for from the
services sector
 K This sector dominates with
the best jobs, best talent and
best incomes

³There are no such thing

as 

 industries.There are
only industries
whose 

 components are
greater or less than those of
other industries. Everybody is
in 

.´
-Theodore Levitt-
Dhat is services?
It is the part of the product or
the full product for which the
customer is willing to see value
and pay for it.

Dhat is a 

?
K It is intangible.
K It does not result in
ownership.
K It may or may not be attached
with a physical product
Difference between physical
goods and services
No transfer of ownership
Transfer of ownership
Cannot be kept in stock
Can be kept in stock
Customers participate in production
Customers do not participate in the production process
Core value produced in the buyer-seller interaction
Core value processed in factory
An activity or process
A thing
Production, distribution and consumption are simultaneous
processes
Production and distribution are separated from consumption
heterogeneous
homogeneous
intangible
tangible
ð


 


Rost products have

a 

 component
They could be
K Equipment based
K People based ± varying skill
levels

Services could meet

 K Personal needs ± haircuts,
tution, massage parlours
K Îusiness needs ± courier
services, office cleaning
services, delivering fresh
flowers

Characteristics of services
K Intangibility
K Inseparability
K Perishability
K åariability
The three additional µP¶s
of ð

 R

K People
K Physical evidence
K Process

Qualities of services
K Search qualities
K Experience qualities
K Credence qualities

Differentiation in services
 K Affering
K =aster and better delivery
K Image

Ranaging ð

 quality
K Gap between management perceptions and
consumer expectations
K Gap between management perceptions
and 

 quality specifications
K Gap between 

 quality specifications
and 

 delivery
K Gap between 

 delivery and external
communication
K Gap between expected 

 and
perceived 


Determinants of 

 quality
K Xeliability ± delivering on
promises
K Xesponsiveness ± willing to
help
K Assurance ± inspiring trust
and confidence
K Empathy ± individualising
customers
K Tangibles- physical
representation

Roments of truth
 K It is the customer ±


 encounter
K Every positive or negative
experience of the consumer
would have fall-out on the
overall 

 experience

In services, the last experience

remains uppermost in your
mind. Therefore, it is not
enough to be good, you have to
be consistently good
Services Ronitoring
K Continuous auditing of
competitor 

 levels
versus own company
K Importance - performance
analysis

Importance ± Performance
Analysis
Possible overkill

Low priority

Keep up the
good work

Concentrate
here
I
R
P
A
X
T
A
C
E
PEX=AXRANCE
ð

 quality is directly
proportional to employee
satisfaction

Dhen customers visit

a 

 establishment
Their satisfaction will be
influenced by
K Encounters
with 

 personnel
K Appearance and features
of 

 facilities ± exterior
and interior
 K Interactions with
self 

 equipment
K Characteristics and behaviour
of other customers

Customer ð

 Expectations
K Desired ð

 ± the
µwished for¶ 


K Adequate ð

 ±
the 

 that would be
acceptable
†one of Tolerance
Difference between the
desired 

 and the
adequate 



ð

 Encounter Themes
K Xecovery
K Adaptability
K Spontaneity
K Coping

Xecovery
Don¶t
K Ignore customer
K Îlame customer
K Leave customer to fend for himself
K Downgrade
K Act as if nothing is wrong
K µpass the buck¶

Do
K Acknowledge problem
K Explain causes
K Apologise
K Compensate/upgrade
K Lay out options
K Take responsibility

Adaptability
Don¶t
K Promise and fail to keep them
K Show unwillingness to try
K Embarrass the customer
K Laugh at the customer
K Avoid responsibility

Do
K Xecognise the seriousness
K Acknowledge
K Anticipate
K Accommodate
K Adjust
K Explain rules/policies

Spontaneity
Don¶t
K Exhibit impatience
 K ell/laugh/swear
K Steal from customers
K Discriminate
K Ignore

Do
K Take time
K Îe attentive
K Anticipate needs
K Listen
K Provide information
K Show empathy

Coping
Don¶t
K Take customer¶s dissatisfaction personally
 K Let customer¶s dissatisfaction affect others

Do
K Listen
K Try to accommodate
K Explain
K Let go of the customer

Types of complainers
K Passives
K åoicers
K Irates
K Activists
Customer complaints
K It pays to resolve customer complaints
K An an average only 5 % dissatisfied
customers complain. Athers simply go over
to the competitor
K A satisfied consumer speaks to an average
of 3 people on his her experience
K A dissatisfied consumer gripes to on an
average 11 persons about his/her unpleasant
experience

Companies that pay importance

to resolving customer
complaints
K Pay attention to quality and training of
manpower recruited
K ´ave clear benchmarks on 

 quality
and communicate to employees
 K Take remedial steps to improve customer
satisfaction and prevent repeats of customer
dissatisfaction
K ´ave a data base on customer complaints
that is periodically analysed and policies
adjusted

Satisfied employees will

produce satisfied customers
K Rorale
K Rotivation
K Rood

Ranaging ð

 Productivity
 K Giving quality 

 is an expensive
business
K Not every consumer is willing to pay extra
for 

 quality
K ð

 providers would have to find their
optimum 

 quality/cost ratios
K Can technology substitute part of the labour
content?
K Can customers substitute part of the labour
content?
K Raking services obsolete by product
innovations
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1. Services R
 by
Lovelock
2. The Essence of
Services R
 by Adrian
Payne
3. The R
 Ranagement
- An Asian Perspective by
Philip Kotler
4. The Principles
of R
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Recent articleÊ have propoÊed that the future of ÊerviceÊ reÊearch may be at riÊk due to

the foundation upon which the ÊerviceÊ diÊcipline haÊ been built. °ndeed, the moÊt

fundamental iÊÊue of the Êervice diÊcipline or Êcience iÊ Êtill Êubject to debate, namely
the

paradigm that anÊwerÊ the queÊtion ͞What iÊ a Êervice?͟ Common paradigmÊ of ÊerviceÊ

have been criticized in the literature aÊ being ͞outdated͟ and ͞deeply flawed.͟ VariouÊ

reÊearcherÊ have put forth callÊ for new paradigmÊ that overcome ÊhortcomingÊ of prior

paradigmÊ. ThiÊ article reviewÊ major Êervice paradigmÊ and their criticiÊmÊ. ºaradigmÊ

coming from a ÊerviceÊ marketing perÊpective are compared with thoÊe coming from a

Êervice operationÊ perÊpective. A ͞cuÊtomer-Êupplier͟ paradigm coming from the

operationÊ perÊpective iÊ preÊented which iÊ baÊed on the concept of cuÊtomerÊ being

ÊupplierÊ of proceÊÊ inputÊ for all Êervice proceÊÊeÊ, but not for non-Êervice proceÊÊeÊ.

ThiÊ cuÊtomer-Êupplier paradigm haÊ alÊo been called the Unified ServiceÊ Theory
>UST). Empirical data ÊhowÊ that the cuÊtomer-Êupplier paradigm iÊ Êuperior to other

Êervice paradigmÊ.

keywordÊ Êervice operationÊ, empirical reÊearch, interdiÊciplinary

°
TRO£UCT°O

Every field of Êtudy iÊ founded on one or more paradigmÊ, which are philoÊophical or

theoretical frameworkÊ. ºaradigmÊ define the baÊic aÊÊumptionÊ of ÊcienceÊ and

diÊciplineÊ. There have been a number of common paradigmÊ aÊÊociated with the Êtudy
of

Êervice buÊineÊÊeÊ. TheÊe paradigmÊ attempt to anÊwer thiÊ fundamental queÊtion °f

one

iÊ Êtudying ÊerviceÊ, what exactly iÊ being Êtudied? For example, it iÊ common to expreÊÊ

a ÊerviceÊ paradigm in termÊ of ͞goodÊ verÊuÊ ÊerviceÊ,͟ which implieÊ that ÊerviceÊ are

different from goodÊ. °f Êo, the queÊtion then becomeÊ how they differ, and if thoÊe

differenceÊ impact how they Êhould be managed.

Some have argued that ÊerviceÊ exiÊt to Êerve the needÊ of cuÊtomerÊ, and recognize that

goodÊ can alÊo Êerve the needÊ of cuÊtomerÊ. The concluÊion Êome have eÊpouÊed iÊ that

even goodÊ are ÊerviceÊthat everything iÊ a Êervice! [e.g., 1, p. 334; 2, p. 150] That
concluÊion would lead one to believe that the Êtudy of ÊerviceÊ iÊ the Êtudy of anything

and everything. Such a broad paradigm provideÊ little value in termÊ of managerial

inÊight. Advancement of a ÊerviceÊ diÊcipline hingeÊ on a belief that ÊerviceÊ poÊÊeÊÊ

managerial differenceÊ from non-ÊerviceÊ.

- 11 -

SERV°CE ºARA£°GMS FROM ºR°OR L°TERATURE

ThiÊ Êection will outline Êervice paradigmÊ >SºÊ) which have been aÊÊumed over the

yearÊ aÊ diÊcuÊÊed in the literature, including Êome potential counterargumentÊ. The firÊt

and moÊt naïve ÊerviceÊ paradigm iÊ not founded upon what ÊerviceÊ are, but rather
what

they are not.

Sº1 >reÊidual) ServiceÊ are economic activitieÊ not accounted for by other ÊectorÊ of

the economy.

The ͞other ÊectorÊ͟ generally include agriculture, mining, manufacturing, and in Êome

caÊeÊ conÊtruction and utilitieÊ [7]. ThiÊ ÊerviceÊ paradigm haÊ been largely perpetuated

by government claÊÊification ÊchemeÊ [8], but alÊo by academicÊ [9]. °n 1934, the US
°nterdepartmental Conference on °nduÊtrial ClaÊÊification recommended the
development

of a ÊyÊtem for Êtandard induÊtrial claÊÊification >S°C) [10]. The original S°C

Êpecification came in two volumeÊ, one for ͞manufacturing induÊtrieÊ͟ and the other for

͞nonmanufacturing induÊtrieÊ͟ >including ÊerviceÊ).

The queÊtion remained of whether there waÊ any managerial Êignificance involved in the

claÊÊification of manufacturing and nonmanufacturing induÊtrieÊ. Manufacturing

induÊtrieÊ have many management challengeÊ in commoninventory management,

identifying production bottleneckÊ, and Êo forth. However, even recent induÊtrial

claÊÊification ÊchemeÊ acknowledge that ÊerviceÊ cover a ͞wide variety͟ of induÊtrieÊ,

with no clear indication of common managerial iÊÊueÊ [11].

Sº2 >non-ownerÊhip) ServiceÊ are tranÊactionÊ wherein the object of the

tranÊaction iÊ other than the tranÊfer of ownerÊhip of a tangible commodity.

ThiÊ Êervice paradigm iÊ more Êpecific than Sº1 in that it enumerateÊ two conditionÊ of

excluÊion tranÊfer of ownerÊhip and the involvement of a tangible commodity. A

counterargument iÊ that Sº2 categorize buÊineÊÊ activitieÊ in wayÊ which are inconÊiÊtent

with common beliefÊ about how ÊerviceÊ behave. According to Sº2 public radio

broadcaÊting and the production of prepackaged Êoftware would be ÊerviceÊ, even

though

they do not exhibit commonly held managerial characteriÊticÊ of ÊerviceÊ >diÊcuÊÊed in

the penultimate Êection). Sº2 would exclude ÊerviceÊ involving the tranÊformation of

tangible itemÊ from being ÊerviceÊ, including reÊtaurantÊ, home painting, and plaÊtic

Êurgery. Even Judd [12] pointÊ out that, aÊ a definition by excluÊion, Sº2 iÊ inherently

defective.

Another early ÊerviceÊ paradigm waÊ eÊpouÊed by Rathmell, who juxtapoÊed goodÊ and

ÊerviceÊ, declaring that ͞a good iÊ a thing, and a Êervice iÊ an act͟ [13, p. 33]. ThiÊ view

haÊ been reemphaÊized by otherÊ, who refer to ÊerviceÊ aÊ deedÊ, proceÊÊeÊ, and
perÊonal

performanceÊ [14-17]. A variation on that theme iÊ that ÊerviceÊ are productÊ that are

proceÊÊeÊ [18; 19]. TheÊe Êervice paradigmÊ are Êummarized aÊ followÊ

Sº3 >act/performance) ServiceÊ are actÊ performed by one entity for another entity.

- 12 -

Such a paradigm makeÊ intuitive ÊenÊe, and we are unlikely to find a counterexample.

°nÊtead, the counterargument to Sº3 iÊ that it doeÊ not differentiate ÊerviceÊ, but may be

conÊidered to apply equally aÊ well to non-ÊerviceÊ Êuch aÊ pure manufacturing. A perÊon

would have to be completely naïve to aÊÊume that made-to-Êtock manufacturing >a non-

Êervice) iÊ other than an act performed by one entity for another entity. The fact that
end

conÊumerÊ cannot obÊerve the manufacturing proceÊÊ doeÊ not diminiÊh the fact that

manufacturing actÊ are being performed. Therefore, Sº3 would lead uÊ to believe that

every buÊineÊÊ iÊ a Êervice, and thuÊ Sº3 provideÊ no diÊcriminative value.

Another popular Êervice paradigm focuÊeÊ on the intangible nature of ÊerviceÊ. ºearce

callÊ ÊerviceÊ ͞intangible goodÊ͟ [20, p. 390], which idea haÊ been echoed by otherÊ [e.g.,

21, p. 372; 22]

Sº4 >intangible) ServiceÊ are intangible productÊ.

Although tangibility-intangibility can be treated aÊ dichotomouÊ, it iÊ commonly

accepted

that it exiÊtÊ on a continuum [14; 23]. Sº4 haÊ been widely quoted over the yearÊ, but
haÊ

recently fallen into diÊfavor. Laroche, Bergeron, and Goutaland empirically Êtudied a

wide variety of buÊineÊÊ productÊ including compact diÊkÊ, pizza dinnerÊ, and checking

accountÊ, and conclude that ͞Êome goodÊ appear to be leÊÊ tangible than many ÊerviceÊ͟

[24, p. 26].
Lovelock͛Ê and GummeÊÊon͛Ê criticiÊm of the intangibility paradigm iÊ imbedded in

criticiÊm of ͞the current core paradigm of ÊerviceÊ marketing, namely, the aÊÊertion that

four Êpecific characteriÊticÊintangibility, heterogeneity, inÊeparability, and

periÊhabilitymake ÊerviceÊ uniquely different from goodÊ͟ [6, p. 21]. TheÊe four

characteriÊticÊ are collectively referred to aÊ °H°º, with common definitionÊ aÊ followÊ

[3; 14; 26]

intangibilityincapable of being perceived, eÊpecially by the perception of touch

>phyÊical intangibility and mental intangibility deÊcribed above).

heterogeneityunique productÊ >or poÊÊibly unique proceÊÊeÊ).

inÊeparability >alÊo called ͞Êimultaneity͟ or ͞ÊimultaneouÊ production and

conÊumption͟)conÊumed at the point of production.

periÊhabilitydiÊcuÊÊed in two dimenÊionÊ >1) periÊhable productÊ, meaning that

the proceÊÊ output provideÊ cuÊtomer benefitÊ for a limited duration, and >2)

periÊhable capacity, in that capacity without correÊponding demand cannot be

utilized to meet future demand.

A detailed literature review by FiÊk, et al. concluded that, at leaÊt at the time of their
article, °H°º ͞provided the underpinningÊ for the caÊe that ÊerviceÊ marketing iÊ a field

diÊtinct from goodÊ marketing͟ [27]. That core paradigm iÊ reÊtated aÊ followÊ

Sº5 ServiceÊ are characterized by °H°º, and non-ÊerviceÊ are not characterized by

°H°º.

- 13 -

We have already conÊidered diÊputationÊ concerning intangibility. Lovelock and

GummeÊÊon make compelling counterargumentÊ againÊt the definitiveneÊÊ of each of

the

°H°º characteriÊticÊ. They conclude ͞AÊ a paradigm, the notion that the four °H°º

characteriÊticÊ make ÊerviceÊ uniquely different from goodÊ iÊ deeply flawed͟ [6, p. 32].

The Êentiment againÊt °H°º appearÊ to be gaining ground. Grove, et al. Êurveyed ten

ÊerviceÊ expertÊ and make the following obÊervation ͞Some believe that the field [of

ÊerviceÊ marketing] haÊ been too preoccupied with minor refinementÊ and argue that
bold

change iÊ needed. ºerhapÊ the moÊt provocative commentÊ in thiÊ reÊpect are the call to

drop the four characteriÊticÊ [°H°º] that are commonly uÊed to diÊtinguiÊh ÊerviceÊ from

goodÊ [marketing]͟ [28, p. 112]. One of the expertÊ called °H°º a ͞miÊrepreÊentation͟
and another declared °H°º to be ͞Êervice mythology͟ [28, p. 115].

SKEºT°C°SM A
£ THE
EE£ FOR A
EW ºARA£°GM

Lovelock and GummeÊÊon begin their article with the query, ͞°Ê the academic field of

ÊerviceÊ marketing in danger of loÊing itÊ broad and in many reÊpectÊ coherent

perÊpective?͟ [6, p. 20]. ThiÊ ÊkepticiÊm iÊ baÊed on their analyÊiÊ and concluÊion that

͞the underlying premiÊeÊ of [the °H°º] paradigm no longer bear up under examination͟

>p. 37).

ThiÊ ÊkepticiÊm about prior Êervice paradigmÊ haÊ been echoed by otherÊ. EdvardÊÊon,

GuÊtafÊÊon, and RooÊ Êurveyed eleven top Êervice reÊearcherÊ and conclude that ͞on

lower abÊtraction levelÊ a general Êervice definition doeÊ not exiÊt. °t haÊ to be

determined at a Êpecific time, in a Êpecific company, for a Êpecific Êervice, from a

Êpecific perÊpective͟ [29, p. 119]. Vargo and LuÊch Êeem to make the Êame concluÊion

and declare, ͞We advocate that the Êtrategy of differentiating ÊerviceÊ from goodÊ
Êhould

be abandoned͙͟ [1, p. 334].

The expertÊ Êurveyed by Grove, et al. alÊo revealed ͞a call to eliminate the goodÊ verÊuÊ

ÊerviceÊ diÊtinction altogether͟ [28, p. 113]. Eliminating the goodÊ verÊuÊ ÊerviceÊ
diÊtinction could have ÊeriouÊ ramificationÊ. For example, it would likely undermine the

eÊtabliÊhment and progreÊÊ of a croÊÊ-functional ÊerviceÊ diÊcipline Êince traditional non-

Êervice approacheÊ to functional diÊciplineÊ would likely be adequate for the Êtudy of

ÊerviceÊ. JohnÊton [30] argueÊ that the retreat of ÊerviceÊ back into traditional functional

areaÊ haÊ already begun. Even though he contendÊ that thiÊ digreÊÊion might have Êome

benefitÊ, it would be unfortunate if the croÊÊ-functional Êtudy of ÊerviceÊ were to abate.

Lovelock and GummeÊÊon preÊente a ͞potential baÊiÊ for a new paradigm,͟ namely

͞nonownerÊhip.͟ They poÊit that ͞tranÊactionÊ that do not involve a tranÊfer of

ownerÊhip

are diÊtinctively different from thoÊe that do͟ [6, p. 34]. They contend that ÊerviceÊ

͞involve a form of rental or acceÊÊ in which cuÊtomerÊ obtain benefitÊ by gaining the

right to uÊe phyÊical objectÊ, to hire the labor and expertiÊe of perÊonnel, or to obtain

acceÊÊ to facilitieÊ and networkÊ͟ >p. 34). ThiÊ paradigm iÊ Êummarized aÊ followÊ [6, p.

20]

Sº6 >rental/acceÊÊ) ͞ServiceÊ offer benefitÊ through acceÊÊ or temporary poÊÊeÊÊion,

inÊtead of ownerÊhip.͟

- 14 -
ThiÊ iÊ an intriguing paradigm, although it iÊ not completely new. Sº2 preÊented by Judd

[12] emphaÊized the importance of tranÊfer of ownerÊhip in diÊtinguiÊhing goodÊ from

ÊerviceÊ, and Rathmell Êtated ͞°f a product iÊ purchaÊed, it iÊ a good; but if it iÊ rented or

leaÊed, the rentee or leÊÊee acquireÊ a Êervice͟ [13, p. 34]. Lovelock and GummeÊÊon

acknowledge thiÊ hiÊtory, but point out that non-ownerÊhip haÊ Êince been largely

overlooked aÊ a characteriÊtic of ÊerviceÊ.

SERV°CE ºARA£°GMS FROM OºERAT°O
S

Arguably, the preeminent Êervice operationÊ paradigm iÊ the cuÊtomer contact model
that

waÊ introduced by ChaÊe Êome time ago >1978; 1981; ChaÊe and TanÊik 1983;

Wemmerlöv 1990, p. 21). ChaÊe callÊ ÊerviceÊ involving a high degree of cuÊtomer

contact ͞pure ÊerviceÊ͟ and thoÊe with a low degree of cuÊtomer contact

͞quaÊimanufacturing.͟ One might ÊuppoÊe that proceÊÊeÊ involving no cuÊtomer contact

whatÊoever would be ͞pure manufacturing.͟

ChaÊe͛Ê fundamental argument iÊ that the potential operating efficiency of ÊerviceÊ iÊ

limited by the amount of cuÊtomer contact with Êervice employeeÊ. °n fact, ChaÊe goeÊ
Êo

far aÊ to preÊcribe the famouÊ equation

cuÊtomer contact time

potential operating efficiency = f>1 ʹ  )

Êervice creation time

°n the original recitation, cuÊtomer contact waÊ defined aÊ ͞the phyÊical preÊence of the

cuÊtomer in the Êervice ÊyÊtem͟ [36, p. 138]. Although he did not call it a paradigm at the

time, ChaÊe͛Ê ideaÊ can be Êtated aÊ a ÊerviceÊ paradigm aÊ followÊ

Sº7 >cuÊtomer contact) ServiceÊ are production proceÊÊeÊ involving cuÊtomer

contact.

One potential weakneÊÊ of the cuÊtomer contact paradigm haÊ been that it focuÊeÊ on

cuÊtomer preÊence in the Êervice ÊyÊtem and failÊ to conÊider what cuÊtomerÊ are doing

within the ÊyÊtem. MerÊha [37] addreÊÊed thiÊ concern by reviÊing the definition of

cuÊtomer contact to differentiate between ͞active contact͟ >direct cuÊtomer contact that

involveÊ interaction) and ͞paÊÊive contact͟ >direct contact that doeÊ not involve

interaction, Êuch aÊ riding a buÊ). MerÊha aÊÊertÊ that active contact iÊ what driveÊ

potential operating efficiency of ÊerviceÊ. MerÊha allowÊ for remote ÊerviceÊ involving

direct cuÊtomer contact without requiring cuÊtomerÊ to be phyÊically preÊent. Remote

ÊerviceÊ that are mediated by technology have been more recently Êtudied by Froehle
and

Roth [38].

SubÊequent to MerÊha͛Ê work, Kellogg and ChaÊe [39] developed a Êcale of cuÊtomer

contact encompaÊÊing three dimenÊionÊ >a) total amount of time cuÊtomerÊ Êpend

communicating in the production ÊyÊtem, >b) the richneÊÊ of the information being

exchanged, and >c) the amount of confiding and truÊt Êhared between cuÊtomerÊ and

employeeÊ. ThiÊ Êcale again demonÊtrateÊ that cuÊtomer contact occurÊ in degreeÊ.

- 15 -

THE CUSTOMER-SUººL°ER ºARA£°GM

The cuÊtomer-Êupplier paradigm >or Unified ServiceÊ Theory) focuÊeÊ not on what

cuÊtomerÊ do, per Êe, but on what cuÊtomerÊ provide aÊ inputÊ to Êervice proceÊÊeÊ

Sº8 >cuÊtomer-Êupplier) ServiceÊ are production proceÊÊeÊ wherein each cuÊtomer

ÊupplieÊ one or more input componentÊ for that cuÊtomer͛Ê unit of production.

Sº8 aÊÊertÊ that the univerÊally diÊtinguiÊhing feature of ÊerviceÊ iÊ the involvement of

cuÊtomerÊ in production proceÊÊeÊ by involving inputÊ that are Êupplied by cuÊtomerÊ. AÊ

indicated by Lovelock [40], cuÊtomer inputÊ include cuÊtomerÊ͛ ÊelveÊ, their belongingÊ,

and/or their information. CuÊtomerÊ are therefore ÊupplierÊ to Êervice proceÊÊeÊ, aÊ

depicted in Figure 2. The cuÊtomer-Êupplier Êervice paradigm holdÊ that cuÊtomer inputÊ

are a neceÊÊary and Êufficient condition for a Êervice proceÊÊ to be a Êervice proceÊÊ, and

the lack of cuÊtomer inputÊ characterizeÊ all non-Êervice proceÊÊeÊ. Sº8 haÊ broad

managerial Êignificance proceÊÊeÊ that involve cuÊtomer inputÊ poÊÊeÊÊ management

concernÊ Êimilar to one another, but involve different concernÊ from proceÊÊeÊ not

dependent upon cuÊtomer inputÊ.

EMº°R°CAL TEST

An online Êurvey waÊ adminiÊtered to ÊtudentÊ at the author͛Ê home inÊtitution in April
of

2006. Seventy buÊineÊÊ proceÊÊeÊ on a Êervice to non-Êervice continuum were meaÊured

according to the degree they were conÊidered to be a ͞Êervice͟ >verÊuÊ a non-Êervice).

Each of the Êeventy waÊ alÊo meaÊured according to how much each paradigm waÊ

perceived to apply. They all were multi-item ÊcaleÊ, with a few itemÊ eliminated to

aÊÊure high Cronbach Alpha valueÊ. Then, each paradigm Êcale waÊ correlated with the

baÊe ͞Êervice͟ Êcale.

Each correlation coefficient waÊ non-zero at a <0.01 level, which meanÊ that they all can
be conÊidered to pertain to the concept of ͞ÊerviceÊ.͟
evertheleÊÊ, there iÊ a wide range

of coefficientÊ. The ÊtrongeÊt correlation iÊ for Sº8, the cuÊtomer-Êupplier paradigm. ThiÊ

ÊuggeÊtÊ that Sº8 haÊ the beÊt ability to predict that ÊubjectÊ would perceive a given

proceÊÊ aÊ being a ͞Êervice.͟ The itemÊ in the Sº8 Êcale had good conÊtruct validity the

Sº8 itemÊ correlated much Êtronger with each other >convergent validity) than they did

with the itemÊ from other conÊtructÊ >diÊcriminant validity). ThiÊ affirmÊ that Sº8 iÊ a

diÊtinct paradigm, and not juÊt a repeat of one of the other paradigmÊ. >The other Sº

ÊcaleÊ alÊo had good conÊtruct validity.)

We conclude that there iÊ merit to all of the conÊidered paradigmÊ, and that the
CuÊtomer-

Supplier ºaradigm haÊ particular diÊtinctiveneÊÊ. More information about thiÊ paradigm

can be found in the following publication SampÊon, S. E. >2001). UnderÊtanding

Service BuÊineÊÊeÊ Applying principleÊ of the Unified ServiceÊ Theory, 2nd Edition,

John Wiley & SonÊ,
ew York.

ReferenceÊ available upon requeÊt from the author.`