See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/368617579

Understanding Consumer Behavior in the Service Encounter

Chapter · January 2023

DOI: 10.4337/9781802202595.Understanding.Consumer.Behavior

CITATIONS READS

0 14

2 authors:

Jochen Wirtz Patricia YP Chew

National University of Singapore Public Transport Council
352 PUBLICATIONS   15,830 CITATIONS    10 PUBLICATIONS   657 CITATIONS   

SEE PROFILE SEE PROFILE

Some of the authors of this publication are also working on these related projects:

Capturing Value in Advanced Service Economies View project

Customer Feedback Systems View project

All content following this page was uploaded by Jochen Wirtz on 03 March 2023.

The user has requested enhancement of the downloaded file.

Elgar Encyclopedia
of Services

Edited by

Faïz Gallouj
(Editor-in-Chief)
Professor of Economics and member of CLERSE-CNRS, University of
Lille, France
Camal Gallouj
Professor of Management Science and member of CEPN-CNRS,
University of Sorbonne Paris-Nord, France
Marie-Christine Monnoyer
Emeritus Professor of Management Science, University of Toulouse 1
and Catholic Institute of Toulouse, France
Luis Rubalcaba
Professor of Economics, University of Alcalá, Spain
with the assistance of Markus Scheuer
Rheinisch-Westfalisches Institut für Wirtschaftsforschung, Essen,
Germany

ELGAR ENCYCLOPEDIAS IN THE SOCIAL SCIENCES

 Contents
List of contributors xvii
Preface and acknowledgments xxiii
SECTION 1  TERTIARIZATION AND
SERVICES: DEFINITIONS AND THEORIES
1.1  Definitions and classifications
Architectural (or Assembled) Services 3
Faridah Djellal
Characteristics of Services 5
Sabine Benoit
The Concept of Services in EU Legal
Texts 7 Knowledge-Intensive Business
Damien Broussolle
Gadrey’s Service Triangle 9
Faïz Gallouj
Industry Borders and the Size of the
Services-Producing Sector 11
Damien Broussolle
Service Classification 13
Luis Rubalcaba and Ernesto Solano
Service Definition 17
Luis Rubalcaba
Service Ontology 19
Aarre Laakso and Luis Rubalcaba
Services in National Accounts 21
Damien Broussolle
The “Services Worlds” 22
Faïz Gallouj
1.2  Sectors and activities
Big Four Audit and Accounting Firms 25
Camal Gallouj and Nizar Gallouj
Construction as a Service 29
Jan Bröchner
Cultural and Creative Industries 31
Lars Fuglsang
E-Services 33
Ada Scupola
Factoryless Goods Producing Firms 35
Damien Broussolle
Farm Advisory Services 36
Pierre Labarthe
High-Speed Rail Services 38
Marie Delaplace
Hospital Retailing 40
Naïla Gallouj
Industrial Services 42
Heidi M. E. Korhonen
Insurance Services 43
Debora Allam-Firley
Introduction to Web Services 46
Jens Neuhüttler
Services (KIBS) 47
Liudmila Bagdonienė
Knowledge-Intensive Social Services (KISS) 52
Benoît Desmarchelier
M-Tourism Services 53
Stephane Bourliataux-Lajoinie and Arnaud
Riviere
Management Consultants: From Pariah to
Hegemon? 55
Matthias Kipping
The Many Service Dimensions of Agriculture 59
Camal Gallouj
Professional Service Firms 64
Michael Smets, Jeffrey Peo and Ian Rodgers
Public Health Services 65
Ida Gremyr
Publishing and Editing as a Service 66
Marie-Pierre Vaslet
Touristic Services 69
Rimante Hopeniene
Transportation and Logistics Services 71
Bernd Bienzeisler
1.3  Structural change, tertiarization
and markets
Demand-Driven Services 74
Zhaohao Sun
Household Services Consumption 77
Elena Mañas and Patricia Gabaldon
viii  elgar encyclopedia of services
Input-Output and Services 80
José A. Camacho and
Mercedes Rodríguez
Market Forms in Services 83
Henk L. M. Kox
Productivity and Performance in Services 88
Andres Maroto Sanchez
Services Economic Growth 92
Luis Rubalcaba and Ernesto Solano
Servindustrial Economy 96
Aku Valtakoski and Javier Reynoso
Structural Change and Tertiarization in
Developing Countries 97
Gisela Di Meglio and Jorge Gallego
1.4  Services in economic and management
thought: concepts and theories
Alfred Sauvy, Services and the
Spillover Theory 100
Camal Gallouj
Allan Fisher and the Tertiary Sector 101
Camal Gallouj
Circular Economy and Services 102
Camal Gallouj and Céline Viala
Colin Clark and the Generalization of the
Three-Sector Model 103
Camal Gallouj
Complex Systems, Risk Economics and
Services: Giarini’s Contribution 104
Camal Gallouj
Daniel Bell and the Post-Industrial Society 105
Faïz Gallouj
The Experience Economy and Service
Experiences 106
Jon Sundbo
Frédéric Bastiat and Services 110
Jon Murphy
The Functional and Performance Economy
in Services 111
Walter R. Stahel
Harry Greenfield and the Focus on Producer
Services 114
Camal Gallouj
Heinrich Storch and “Internal Goods” 115
Faïz Gallouj
Ibn Khaldun and the Many Ways to Make
a Living 117
Camal Gallouj and Faïz Gallouj
The Increasing Complexity and the
“What-How” Transformation 118
Camal Gallouj
Information Economy, Knowledge Economy,
Intangible and New Economy . . .
What Next? 119
Camal Gallouj
Jean Fourastié and the Logic behind the
Three-Sector Model 122
Camal Gallouj
Jean Gadrey: Characterizing Services
and Service Relationships 123
Camal Gallouj
Joachim Singelmann: Toward a Refined
Classification of Services 126
Camal Gallouj
Jonathan Gershuny and the Self-Service
Society 127
Faïz Gallouj
Public Service Logic 129
Stephen P. Osborne
Quaternary Sector 133
Camal Gallouj
Service-Dominant Logic 134
Angeline Nariswari and
Stephen L. Vargo
Service Ecosystems 137
Kaisa Koskela-Huotari
Service: From Smith to Hill 139
Damien Broussolle
Service Science 142
Paul P. Maglio
Services and Schumpeter 144
Michael Peneder
The Three-Sector Model 145
Camal Gallouj
Victor Fuchs and Services 147
Camal Gallouj
What did Marx Say on Services? 148
Damien Broussole
William J. Baumol and Services 149
Benoît Desmarchelier

SECTION 2  MANAGING SERVICES,
SERVICES IN MANAGEMENT
2.1  Organization and operations
Balancing Demand and Capacity in Services 153
Patricia Chew and Jochen Wirtz
Core Services and Peripheral Services 157
Faridah Djellal and Camal Gallouj
Corporate Digital Responsibility (CDR) in
Services 158
James Tarbit, Nicole Hartley, Werner Kunz
and Jochen Wirtz
Digital Servitization of Manufacturing Firms 162
Theoni Paschou
Front Office Versus Back Office 163
Camal Gallouj and Jean-Claude Pacitto
Lean Management in Services 165
Daryl Powell
Logistics in Service Organizations 166
Gilles Paché
Low Cost in Services 169
Camal Gallouj
Product-Service Systems 172
Valérie Mathieu
Public-Private Partnerships for Service
Provision 173
Veiko Lember
Service Blueprint 176
Faïz Gallouj
Service Growth in Product Firms 178
Christian Kowalkowski
Service Industrialization 180
Uday Karmarkar
Service Operations 183
Richard Metters
Service Outsourcing: Delineating the Scope
of the Firm 187
Bertrand V. Quélin
Servitization and Advanced Services 192
Ahmad Beltagui, Tim Baines,
Andreas Schroeder and Ali Ziaee Bigdeli
Servuction Systems 196
Muriel Jougleux
Smart Product-Service Systems 199
Kentaro Watanabe
contents  ix
Sourcing Business Services 201
Wendy van der Valk
and Kostas Selviaridis
Time and Services 205
Camal Gallouj
Worlds of Production and Performance in
Services 207
Faïz Gallouj
2.2  Service marketing and strategy
Communication in Services 213
Ronan Divard
Consumer Resistance in Services 216
Abdelmajid Amine
Customer Journey 219
Asbjørn Følstad and
Ragnhild Halvorsrud
E-servicescape/Cyberscape 220
Mark S. Rosenbaum and
Germán Contreras Ramírez
Information Asymmetry and Uncertainty in
Service Markets 221
Camal Gallouj
Luxury Service Consumption 223
Jonas Holmqvist, Jochen Wirtz and
Martin P. Fritze
Management of Franchise Chains in
Services 225
Rozenn Perrigot
Multi/Omni and Cross-Channel Distribution 226
Huan Liu and Peter C. Verhoef
Positioning a Service 230
Ronan Divard
Pricing in Services 232
Frédéric Jallat
Quality Signaling on Service Markets 236
Camal Gallouj
Ranking in Services 239
Camal Gallouj and Hind Marzak
Relationship Marketing in Services 242
Adrian Palmer
Satisfaction in Service Experiences 245
Elodie Mallor and Sylvie Llosa
Self-Service and Customer Participation 249
Audrey Bonnemaizon and Sandrine Cadenat
x  elgar encyclopedia of services
Service Climate 252 Employee Empowerment in Services 299
Benjamin Schneider Conrad Lashley
Service Failure, Recovery and Complaint “Good Jobs vs Bad Jobs”: Dualism in
Handling 254 the Service Labor Market 301
Chiara Orsingher Camal Gallouj
Service Franchising 257 Human Resource Management (HRM)
Rozenn Perrigot and Employment in Services 302
John R. Bryson
Service Guarantee 259
Benedetta Crisafulli Human Resource Management (HRM)
Consultants and Private Personnel Services:
Service Level Agreement (SLA) 261
Shaping the Labor Market 305
Gilberto Perez
Camal Gallouj
Service Quality Models 262
Knowledge Management in Management
Emel Yarimoglu
Consultancy 307
Service Robots and AI in the Frontline 265 Szilvia Mosonyi
Stefanie Paluch, Jochen Wirtz and
Pedagogical Servuction in Higher Education 310
Werner Kunz
Catherine Lapassouse Madrid
Services and Customer Deviance 269
Professional Identity in Services 312
Jean-Baptiste Suquet
Per Echeverri
Servicescape 272
Retaining Business and Professional
Mark S. Rosenbaum and
Service Employees 314
Germán Contreras Ramírez
John R. Bryson
Social Franchising 275
Service Employment Systems 315
Rozenn Perrigot
Damien Broussolle
Standards and Certifications for Services 276
Up or Out System in Consultancy 317
Grete Rusten
Camal Gallouj
Strategic Alliances of Service Firms 279
Brian Tjemkes and Olivier Furrer
Strategies for Developing Customer Loyalty SECTION 3  INNOVATION IN SERVICES,
for Services 282 SERVICES IN INNOVATION
Jochen Wirtz and Patricia Chew
3.1  Definitions, concepts, theories and
Understanding Consumer Behavior in the measurement
Service Encounter 286
Jochen Wirtz and Patricia Chew Assimilation Approaches to Innovation in
Services 322
Faïz Gallouj
2.3  Employment, HRM in services The Assimilation-Demarcation-Integration
(ADI) Framework for Innovation in Services 323
“Bullshit Jobs”, Service Jobs? 293
Faridah Djellal
Camal Gallouj
Bricolage and Ad Hoc Innovation 325
Creative Class 294
Lars Fuglsang
Camal Gallouj
Characteristics-Based Approaches for
Customers as “Partial Employees” of
Innovation in Services 327
Service Organizations 295
Paul Windrum
Camal Gallouj, Philippe Jourdan
and Valérie Jourdan Demarcation Approaches to Innovation in
Services 331
Emotional Work and Services 297
Faïz Gallouj
Catherine Maman

Innovations in Smart Service Systems 333
Jens Neuhüttler and Walter Ganz
Integration Approaches to Innovation in
Services 336
Faïz Gallouj
Inversion Approaches to Innovation in
Services 338
Faridah Djellal
Measuring Innovation in Services 339
Anna Serena Vergori and Nicola De Liso
Public-Private Innovation Networks in
Services (PPINSs) 342
Alessandra Marasco
Public Service Innovation Networks (PSINs) 343
Faïz Gallouj and Nizar Gallouj
The Reverse Product Cycle Model (Barras) 346
Faridah Djellal
Service Innovation in OECD Manuals 347
Anthony Arundel
Services and Community Innovation
Surveys 349
Maria Savona
Social Innovation and Services 351
Luis Rubalcaba
3.2  Organization and strategy for innovation
Artificial Intelligence in Services 356
Cristina Mele and Tiziana Russo-Spena
Blockchain and Innovation in Services 359
Tiziana Russo-Spena and Cristiana Mele
Design Thinking for Public Service
Innovation 360
Maria Taivalsaari Røhnebæk
Dynamic Capabilities for Service
Innovation in the Digital Era 361
Paulo Antônio Zawislak, Carlai de Oliveira
Netto, Rafael Toassi Crispim and Guilherme
Freitas Camboim
Employee Involvement in Service Innovation 363
Marit Engen, Lars Fuglsang and Tiina
Tuominen
Fablabs and Hackerspaces and Innovation
in Services 365
Laure Morel
Global and National Cooperation in Service
Innovation 366
Xavier Vence
contents  xi
Intellectual Property Rights and Service
Innovation 367
Doris Schartinger
Intrapreneurship in Services 371
Jon Sundbo
Living Labs for Service Innovation 372
Lars Fuglsang
New Service Development: Key Concepts
and Performance Drivers 375
Bo Edvardsson and Bård Tronvoll
Practice-Based Innovation in Services 379
Marja Toivonen
Quality Standards and Innovation in Services 382
Christiane Hipp
R&D in Services 383
Jari Kuusisto and Liting Selina Liang
Service Design and Innovation 386
Birgit Mager
Service Innovation and Ethics and
Societal Issues 388
Jacob Dahl Rendtorff
Social Entrepreneurship and Service
Innovation 391
Ada Scupola
“Up or Out” System and Innovation in
Consulting Firms 393
Camal Gallouj
User/Consumer-Based Innovation
in Services 395
Olivier Furrer, Mikèle Landry,
Chloé Baillod, Rodoula Tsiotsou and
Ben Liu
3.3  Sectoral approaches to innovation
in services
The “Retail Accordion” Model of Hollander 401
Camal Gallouj
The “Big Middle” Model of Innovation and
Change in Retailing 403
Camal Gallouj
Creative Innovation in Gastronomy
Services 404
Cheryl Marie Cordeiro and Jaap W. van Hal
Digital Transformation in the Public
Sector 406
Noella Edelmann, Nathalie Haug
and Ines Mergel
xii  elgar encyclopedia of services
Innovation and Knowledge Management in
Consultancy Services 408
Faridah Djellal
Innovation in Financial Services 409
Anne-Laure Mention
Innovation in Health Services 414
José Luis Navarro Espigares
Innovation in Insurance Services 418
Antonio Coviello
Innovation in KIBS 420
David Doloreux, Richard Shearmur
and Gabriel Baldassarri
Innovation in Postal Services 424
Bernhard Bukovc
Innovation in Professional Service Firms 427
Michael Smets, Ian Rodgers and
Jeffrey Peo
Innovation in Restaurants 428
Craig Lee
Innovation in Social Services 429
Andreas Langer and Simon Güntner
Innovation in Tourism and Hospitality 432
Anne-Mette Hjalager
Innovation in Transportation 434
Stephan Müller
KIBS in Innovation Systems 439
Ian Miles
“Local” Theories and Models of Innovation
in Retailing 445
Camal Gallouj
Open Banking Services 448
Gilberto Perez
Platforming: A Logistical Service
Innovation 449
Gilles Paché
Public Service Innovation 452
Antonello Zanfei
Service Innovation in Construction 457
Jan Bröchner
Service Innovation in Manufacturing Firms 458
Lars Witell
The “Wheel of Retailing” Model 461
Camal Gallouj
SECTION 4  SERVICES TRADE,
SERVICES SPACES
4.1  Services: an international perspective
Cloud-Based Services, Digital Platforms
and Internationalization 466
John R. Bryson
The COVID-19 Shock and Services Trade 467
Anirudh Shingal
Digital Services in the Food and Agriculture
Sectors of Developing Countries 468
Heike Baumüller
The General Agreement on Trade in
Services: A Work in Progress 470
Jean Philippe
Global Supply Chains: The Fragility of
Delivery Service 472
Gilles Paché
Gravity Models and Trade in Services 474
Peter M. Smith
Indian Software Services 476
Anthony P. D’Costa
International Branding in Services 477
Mbaye Fall Diallo
International Trade and Services 479
Mercedes Rodríguez and
José A. Camacho
Internationalization of Higher Education 481
Jane Knight
Internationalization of Management
Consultancy 483
Johannes Glückler
Internationalization of Services in
Emerging Countries 486
Cristina Castro-Lucas
Knowledge Services Offshoring 488
Kristin Brandl and Michael Mol
M-Services in Developing Countries 489
Stephane Bourliataux-Lajoinie
and Arnaud Rivière
Medical Tourism 490
Marina Gregoric
Multinational Service Firms 492
Peter Enderwick

Peer-to-Peer Sharing Platforms, from Gifts
to International Exchanges 493
Daisy Bertrand
The Role of Standards for Trade in Services 495
Knut Blind
Service Innovation in Developing Countries 499
Diego Aboal and Luis Rubalcaba
Service Offshoring 502
Jean Philippe and Pierre-Yves Léo
Service Trade, Gender and Policies 503
Pierre Sauvé
Services in Developing Countries 506
Eduardo Raupp de Vargas
Services in the Balance of Payments 509
Damien Broussolle
Services Internationalisation 511
Jean Philippe and Pierre-Yves Léo
Services SMEs and International Trade 513
Hildegunn Kyvik Nordås
4.2  Services: regional and local perspectives
City as a Service 517
Anna Viljakainen
Coworking, Third Places and Local
Development 518
Christine Liefooghe
E-Services in Urban Areas 521
Tommi Inkinen
The Geography of KIBS 522
Richard Shearmur and David Doloreux
Intra-Urban Localization of Services 524
Lars Winther
Last Mile Delivery Services 525
Emel Aktas
Local Intensive Business Services (LIBS) 526
Magali Talandier
Service Location and Retail Location 529
Jerome Baray
Services and Urban Centers 534
Jean Philippe and Pierre-Yves Léo
Services Geography 536
Bernadette Mérenne-Schoumaker
Services in Regional Development:
From Followers to Engines 538
Camal Gallouj
contents  xiii
Services: Engine of Urban Economic
Growth 540
Jean Philippe and Pierre-Yves Léo
SECTION 5  SOCIETAL CHALLENGES AND
PUBLIC POLICY
5.1  Societal challenges for services
Active Mobility Services 544
Silvia Stuchi and Sonia Paulino
Base of the Pyramid (BoP) Service Research 547
Karla Cabrera, Ana Valdés and
Javier Reynoso
Capturing the Value of Public Services 549
Kirsi Hyytinen
Care Society, Care Services 552
Pascale Molinier
Chinese Culture and its Impacts on the
Service Economy 554
Sen Bao and Marja Toivonen
Cultural Differences and Services 556
Olivier Furrer
Elderly Care Services in the Future:
The Role of Technology 559
Hannamaija Tuovila,
Kentaro Watanabe and Kirsi Hyytinen
Green Platforms Services for
Sustainability 560
Andreas Pyka and Lea F. Stöber
Integration Services for Refugees 564
Klara Foti
Islamic Financial Services 565
Eddy S. Fang
Islamic Touristic Services 570
Camal Gallouj
New Services for Elderly People in Europe 574
Christian Bourret and Thérèse Depeyrot
Resilience and Renewal through Imposed
Service Innovation 576
Kristina Heinonen
Retail Services and Aging Consumers 577
Camal Gallouj
Science Museums as Educational Services 581
José Aureliano Martín Segura and
César Pérez López
xiv  elgar encyclopedia of services
Service and “Servitude” 581
Isabel Pedraza-Acosta
Service and Aging 584
Samuel Guillemot
Services and Religion 588
Camal Gallouj
Service Inclusion 593
Rolf Rønning
Services and Environment (Greening) 596
Brita Hermelin and Patrik Ström
Services and the Environmental Kuznets
Curves 600
Benoît Desmarchelier
Services Sector in Conflict Regions 601
Rabeh Morrar
Sexual Services and Escorts 604
Camal Gallouj
Street Services: Street Vendors and Service
Providers 609
Camal Gallouj
The Sustainability of Logistics and
Transportation Services 612
Corinne Blanquart and
Thomas Zeroual
Women and Services 614
Heike Jacobsen
5.2  Public policy for services
Big Data Services and Policy Making 619
Luis Rubalcaba, Leticia Rubalcaba
and Aarre Laakso
Competition Policy 621
Luis Rubalcaba
Deregulation in Services Network Industries
within the European Union 623
Damien Broussolle
Educational Services and Policies:
Towards a System Approach 625
Oscar Montes Pineda
Employment Policies in the Services Sector 626
Raquel Llorente
Entrepreneurship Policies for Public Libraries 628
Varun Gupta, Chetna Gupta and Leandro
Pereira
Global Services Skills Policies 630
Javier Peña Capobianco
Good Practices in Promoting FDI
in Services 632
Roberto Echandi
Policies for Blockchain Adoption in
Education 635
Varun Gupta, Chetna Gupta and Leandro
Pereira
Policies for Co-Creation in Public
Administrations 636
Francesco Mureddu
Policies for Digital Transformation
in Services 639
David Gago
Policies for Distributive Trades Services 640
Javier Casares
Policies for Health Services 641
Manuel García-Goñi
Policies for Innovation in the
Public Sector 642
Eran Vigoda-Gadot
Policies for Knowledge-Intensive Business
Services 647
Luna Leoni and Urko Lopez Odriozola
Policies for Public-Private Innovation
Networks 650
K. Matthias Weber and
Bernhard Dachs
Policies for Service Innovation in
Developing Countries 652
Luis Rubalcaba and Diego Aboal
Policies for Services Innovation in
Enterprises 653
Luis Rubalcaba and José Franco
Policies for Services Integration in
Global Value Chains 657
Nanno Mulder
Policy Barriers to Trade in Services and
their Impact 659
Martin Roy
Policy for Services Statistics in a Digital
and Borderless Economy 660
Diego Aboal and Luis Rubalcaba
Public Policies for Digital Co-Creation
in Public Services 662
Noella Edelmann and Francesco Mureddu
Public Policies for Service Quality 663
Luis Rubalcaba and Aarre Laakso
 contents  xv
Public Policy and Sustainable Service- Services-Related Policies: An Overall
Oriented Business Model Innovation 666 Framework 675
Alberto Peralta Luis Rubalcaba
Regional Policies and the Services Services Trade Policy 677
Sector 668 Matteo Fiorini and Bernard Hoekman
Rubén Garrido-Yserte and
The Single Market and the Services
María-Teresa Gallo-Rivera
Directive 679
Regulation in Services 669 Damien Broussolle
Henk L. M. Kox
Tourism Policies 681
Regulation of False Self-Employment Francisco J. Navarro-Meneses
in Services 673
Anita Wölfl Index 685
286  elgar encyclopedia of services
Understanding Consumer
Behavior in the Service
Encounter1
The service encounter
In marketing, it is important to understand why
customers behave the way they do. There is an
interplay of factors that affect customer behavior
during the service encounter (Wirtz and Lovelock,
2021). Without this understanding, no firm can
hope to create and deliver services that will result
in satisfied customers who will buy again.
During the service encounter stage, the cus-
tomer interacts directly or indirectly with the ser-
vice firm and initiates, experiences and consumes
the service. This entry focuses on key concepts
relevant to the service encounter stage that help
to better understand consumer responses and are
summarized in Figure 1.
Service Encounter Stage
Stages of Service Encounter
• Request for service from
provider or perform self-
service
• Delivery of service by
personnel or self-service
Figure 1 Stages and key concepts of the service encounter
Jochen Wirtz and Patricia Chew
Moments of truth
A service encounter is a “moment of truth” –
the point of time when the customer interacts
with the service firm and this interaction helps
form or change the customer’s impression of
the firm. When a dissatisfied customer calls the
hotline for a mistake to be rectified, the inter-
action with helpful and reassuring service staff
is a moment of truth that can turn a negative
experience into a positive one. It is therefore
important for firms to manage all the service
touchpoints so that the moments of truth are
positive and affirm the customer’s relationship
with the firm.
High-contact to low-contact services
Service encounters with firms can range from a
continuum of high to low contact with the ser-
vice firm. It is important to notice that the same
service like a fund transfer can be delivered with
varying degrees of contact depending on whether
the service encounter took place in a brick-and-
mortar retail bank, through telephone banking
or through online banking. Let us examine both
the level of high and low contact to illustrate the
differences.
Key Concepts
• Moments of truth
• High versus low contact
services
• Servucon system
• Servicescape
• Service as theatre
• Role and script theories
• Perceived control theory
• Customer journey mapping
 understanding consumer behavior in the service encounter  287
High-contact services
In a high-contact service, there are direct inter-
actions between a customer and the service
firm throughout the service delivery. For exam-
ple, a spa experience could last for a few hours.
During the service delivery, all the five senses
are engaged. Customers see the exterior and inte-
rior of the physical environment, its buildings,
equipment and furnishings. They also interact
with service personnel and are exposed to their
appearance and behavior. At times, they may also
interact with other customers. The challenge for
service firms is to create appealing “moments
of truth” through the physical environment and
interactions with service personnel.
Low-contact services
At the other end of the continuum, low-contact
services involve very little or no physical contact
with the firm. Instead, contact takes place at arm’s
length through electronic or physical distribution
channels. For example, people can now complete
online certificate courses offered by universities
without any interaction with faculty and staff. With
the increasing use of chatbots, artificial intelligence
(AI) and service robots, high-contact and medium-
contact services are being transformed into low-
contact services (Wirtz et al., 2018). This trend is
fueled by the importance of convenience to custom-
ers and cost-effectiveness for service firms (Wirtz
and Zeithaml, 2018). The challenge for service
firms is to balance intuitive, easy and convenient
interactions with signals of high-quality service.
The servuction system
Service encounters in high-contact services are
best depicted by the servuction system. The word
“servuction” is a combination of “service” and
“production”. Pierre Eiglier and Eric Langeard
(1977) conceptualized the service business as a
system that integrates marketing, operations and
customers and coined the term servuction system.
In a high-contact service, customers interact with
service personnel, the service environment and
also other customers who are present within the
servuction system. Service firms need to manage
all aspects to design a holistic service experience
(see Figure 2).
The servuction system consists of two parts: (1)
the service operations system, also referred to as
the technical core, which is invisible to customers,
and (2) the service delivery system, which is vis-
ible to customers.
Technical core
The technical core is like the “back stage” of a
theater. Inputs are processed and aspects of the
service product are produced, which is not vis-
ible to customer (e.g., maintenance of vehicles in
transportation services). While customers are not
interested in what goes on back stage, it still may
affect the customer experience. For example, if
vehicle maintenance is not carried out properly, it
will impact the customer if there is a breakdown.
Low-contact services like online shops will have
a large technical core, with front-stage elements
limited to websites, apps, chatbots, telephone and
email contact.
Service delivery system
The service delivery system is like the “front
stage” of a theater and includes the buildings,
equipment, service personnel and possibly other
customers. In a high-contact service like that of a
full-service restaurant, the “front stage” is highly
visible and the numerous interactions with service
personnel are “moments of truth” that service
firms have to manage carefully. The behavior of
other customers also affects the service experi-
ence, like when rowdy groups of customers spoil
an otherwise pleasant dining experience.
Servicescape
The service environment at the front stage is also
called the servicescape. The term “servicescape”
was coined by Mary Jo Bitner (1992) for a com-
prehensive model that she developed, depicting
the impact of the service environment on employ-
ees and customers during a service encounter (see
Figure 3).
Bitner’s servicescape model shows that the
servicescape has an impact on both employees
and customers, affecting the quality of inter-
actions between and among them, which ulti-
mately leads to whether they stay or leave the
service firm. An important contribution of the
model is the inclusion of employee responses to
the servicescape. The model shows that there
are employee and customer response modera-
tors. This means that the same servicescape can
have different impacts on different employees or
Jochen Wirtz and Patricia Chew
288  elgar encyclopedia of services
Service Operaons System
Technical Core
Back Stage
(Invisible)
Source: Wirtz and Lovelock (2021), p. 69, Adapted and expanded from an original concept by Eric Langeard and
Pierre Eiglier.
Figure 2 The servuction system
customers, depending on who they are and what
they like, which is individual and subjective.
The three aspects of the servicescape are ambi-
ent conditions, space/function and signs, symbols
and artifacts. Ambient conditions include tem-
perature, air quality, noise, music, scent and color.
If there are two restaurants, one with soft classi-
cal music playing in the background, with a floral
scent and muted warm colors, and another where
there is loud metal music playing with flashing
neon lights and stark colorful walls, each would
appeal to very different types of customers and
employees.
Space/function refers to spatial layout and
functionality. Spatial layout refers to the floor
plan, the shapes and sizes of furnishing and the
way the furnishings and equipment are placed.
Functionality refers to the way the items facili-
tate service transactions. Mismatched furniture
and little space between pieces of furniture would
impede movement and also not be appealing to
potential customers.
Signs, symbols and artifacts may help to com-
municate the firm’s image and are very useful in
guidance through the service process and also
way-finding, especially for first-time customers.
Many of us would remember the experience of
circling around in a car park without being able
to locate the exit.
Jochen Wirtz and Patricia Chew
Service Delivery System
Customer A
Inanimate
Environment
Service Customer B
Personnel
Front Stage
(Visible)
People are also part of the servicescape, and
the appearance and behavior of the employees
and other customers can positively or negatively
affect the service experience. Hence, in designing
the servicescape, it is important to take a holistic
perspective and ensure that all the elements com-
plement each other. Besides the aesthetics, it is
also important to design servicescapes from the
customer’s perspective to guide them smoothly
through the service processes.
Service as theater
Grove and Fisk (1992) first conceived of the
theater as a metaphor for service delivery as the
customer journey consists of a series of events,
similar to a performance. The service facility is
the stage, while the service personnel are the cast
members. This metaphor is very useful for high-
contact services (e.g., spa and physicians) and the
ones that serve many customers at the same time
(e.g., sporting events and entertainment).
Service facilities
The service facility is the stage on which the
drama unfolds. Some services have a lot of
props (e.g., a luxury hotel with an opulent lobby,
 understanding consumer behavior in the service encounter  289
Environmental Holisc Moderators Internal Behavior
Dimensions Environment Responses

Employee
Responses
Employee (Cognive, Approach or
Ambient
Response Emoonal, Avoidance
Condions
Moderators Physiological)

Social Interacons
Space/ Perceived Between and
Funcon Servicescape Among Customers
and Employees

Sign, Customer Customer

Symbols Response Responses Approach or
and Moderators (Cognive, Avoidance
Arfacts Emoonal,
Adapted from Mary Jo Bitner (1992), “Servicescapes: The Impact of Physiological)
Physical Surroundings on Customers and Employees,” Journal of
Markeng, Vol. 56, April, pp. 57–71

Figure 3 The servicescape model

restaurants with exotic interior design and rooms Role theory

with elegant furnishings), while others have mini-
mal props like a self-service vending machine
(box with buttons and slots).
Personnel
The service personnel in direct contact with the
customers are like the actors in a drama, while
the back-stage service personnel are like the pro-
duction team. In some instances, service person-
nel wear uniforms, which are like the special
costumes of actors on stage (e.g., understated
uniforms worn by aesthetic clinicians or fanciful
uniforms often worn by hotel doormen).
The theater metaphor also includes the roles
played by the actors on stage and the scripts they
have to follow, which we will discuss next.
Role and script theories
When actors are familiar with their roles and have
rehearsed their script well, it is likely to result
in a great performance. Likewise, a good under-
standing of the role and script theories can help
service firms design and manage the behaviors of
service personnel and customers during service
encounters.
Both service personnel and customers have roles
to play in the service delivery process. If each acts
out their part in accordance with the expected
behaviors and scripts, it is likely to result in cus-
tomer and employee satisfaction and productiv-
ity. For example, in the context of a hairdressing
salon, customers have to play their part by telling
the hair stylist the kind of style they would like to
have. Hairstylist can then use their skills to create
the desired style, checking with the customer at
intervals. If both play their parts, the end result is
likely to be satisfying for both parties.
Script theory
During service delivery, both service personnel
and customers are expected to follow their scripts,
which specify the sequence of behavior to adhere
to. Service personnel often learn their scripts
through training, while customers learn it from
experience, observing other customers or through
firm-provided communications and education. If
any party deviates from the script, it may lead to
dissatisfaction in the service encounter. When ser-
vice firms decide to change their script (e.g., using
technology to get the customer to use self-help
options in a call center rather than having staff

Jochen Wirtz and Patricia Chew

290  elgar encyclopedia of services
attend to calls), it is necessary to educate person-
nel and customers about the new script to mini-
mize frustration arising from the new process.
Role and script theory are complementary
The role and script theories describe behavior
during the service encounter from two different
perspectives. For example, the role of a counsel-
lor is to listen and help clients work through their
problems. The client’s role is to be open to shar-
ing and listening to the counsellor and to execute
changes to help them overcome their problems.
The opening portion of the script for the coun-
sellor would be to invite the client into the room,
reassure the client and make them comfortable,
have opening questions that prompt and encour-
age clients to open up to share with them and lis-
ten attentively. The client should arrive on time
at the session, relax and have an open mind to
respond to the questions by the counsellor and
also listen to what the counsellor has to say.
Excellent service marketers understand that
achieving customer satisfaction and service pro-
ductivity necessitates communicating and train-
ing service personnel and customers in their roles
and service scripts in order for both parties to play
their parts effectively.
Perceived control theory
Perceived control has a major impact on customer
satisfaction. Many of us can recall standing in
line waiting to be served, or encountering delays
in service. The loss of control can lead to feel-
ings of anxiety, frustration and dissatisfaction.
The higher the level of perceived control during a
service encounter, the higher the level of satisfac-
tion is likely to be. Service firms can manage the
perception of control including behavioral, deci-
sional and cognitive control.
Behavioral control can be managed through
allowing customization of a service firm’s typical
offering (e.g., making university classes acces-
sible for a student with hearing loss). Decisional
control can be managed by providing the customer
with a choice between two or more standardized
options, without customizing either option (e.g.,
choose between two set menus in a fine-dining
restaurant). Cognitive control is managed by help-
ing the customer to understand the reason for an
unexpected change in service delivery (e.g., a
train delay due to a technical fault in the signaling
Jochen Wirtz and Patricia Chew
system) and knowing what will happen next (also
known as predictive control, e.g., knowing how
long the train will be delayed).
For low-contact services like mobile app ser-
vices, users would like to know that their pay-
ment is being processed, for example, so there
is a message stating that processing is underway.
Even self-service machines like ATMs use sounds
to indicate that they are processing a request. In
services where customization is not possible for
behavioral control, services firms can make up for
it by offering decisional (e.g., a few fixed options)
or cognitive (e.g., always explain why there is a
delay) and predictive control (e.g., provide an esti-
mated waiting time).
Customer journey mapping
In service encounters, customers go through a
series of processes as they obtain the service.
Mapping a customer’s journey helps the service
firm to document service processes and identify
areas of improvement to the service encounter
and service delivery. Customer journey mapping
can be done through service blueprints that map
customer, employee and service system interac-
tions both front and back stage, bringing together
marketing, operations and human resource man-
agement within a service firm.
Service blueprints usually have the fol-
lowing elements as proposed by Kingman-
Brundage (1989):
● Front-stage activities – these comprise
actions by customers and service person-
nel, as well as their interactions. Front-
stage activities are mapped according to
the sequence of service delivery as the cus-
tomer moves through different steps of their
service experience.
● Physical evidence of front-stage activities –
servicescape elements that can be seen and
used to assess service quality.
● Line of visibility – separates front-stage ser-
vice personnel, activities and processes, that
can be seen by customers, from back-stage
ones invisible to customers. Understanding the
line of visibility helps service firms to manage
the visible elements to provide the desired ser-
vice experience and service quality.
● Back-stage activities – these are performed
to support front-stage activities (e.g.,
checking seat availability for restaurant
reservation).
 understanding consumer behavior in the service encounter  291
● Support processes and supplies – informa-
tion is needed in many support processes.
Without the right information (e.g., bank
transaction history) that can be accessed
when needed, service personnel like call
center staff will not be able to help with
customer queries or problem resolution.
Supplies are needed for front- and back-
stage activities. For example, movie theaters
need a supply of fresh snacks and booster
seats for children.
● Potential fail points – fail points are where
there is a risk of something going wrong
in the service encounter, which would
lead to dissatisfaction with the service.
Blueprinting helps service firms to identify
areas where fail points could potentially
occur and to either design them out of the
system or provide contingency plans for
failures that cannot be prevented.
● Customer wait points – wait points are steps in
the blueprint where customers normally have
to wait. Identifying wait points allows pro-
cesses to be redesigned to reduce wait times. If
they cannot be avoided, waiting can be made
more pleasant (e.g., have videos or artifacts
that customers can look at along the queue).
● Service standards and targets – service
blueprints allow marketers and operations
personnel to develop service standards
and targets. These could include duration
for a specific step in the customer journey
or maximum wait times that will meet or
exceed customer expectations.
Jochen Wirtz and Patricia Chew
View publication stats
Note
1. This entry is based on Jochen Wirtz and Christopher
Lovelock (2021), Services Marketing: People,
Technology, Strategy, 9th ed., New Jersey: World
Scientific, Chapters 2, 8 and 10.
References
Kingman-Brundage, J. (1989), “The ABCs of service
system blueprinting,” in Bitner, M. J., Crosby, L.
A. (Eds.), Designing a Winning Service Strategy,
Chicago: American Marketing Association,
30–33.
Bitner, M. J. (1992), “Servicescapes: the impact of
physical surroundings on customers and employees”,
Journal of Marketing, 56 (April), 57–71.
Eiglier, P., Langeard, E. (1977), “Services as systems:
marketing implications,” in Eiglier, P., Langeard,
E., Lovelock, C. H., Bateson, J. E. G., Young, R. F.
(Eds.), Marketing Consumer Services: New Insights,
Cambridge, MA: Marketing Science Institute,
83–103.
Grove, S. J., Fisk, R. P. (1992), “The service
experience as theater”, in Sherry, J. F. Jr.,
Sternthal, B. (Eds.), Advances in Consumer
Research, Vol. 19, Provo, UT: Association for
Consumer Research, 455–461.
Wirtz, J., Lovelock, L. (2021), Services Marketing:
People, Technology, Strategy, New Jersey: World
Scientific, 9th edition.
Wirtz, J., Patterson, P., Kunz, W., Gruber, T., Lu, V. N.,
Paluch, S., Martins, A.(2018), “Brave new world:
service robots in the frontline”, Journal of Service
Management, 29 (5), 907–931.
Wirtz, J., Zeithaml, V. (2018), “Cost-effective service
excellence”, Journal of the Academy of Marketing
Science, 46 (1), 59–80.
Jochen Wirtz and Patricia Chew