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Service innovation has become an essential element for firms to promote their business successes, attract new customers, accelerate growth, and increase profitability. Service innovation requires customers to be more deeply involved in service product innovation. Yet, few empirical studies have examined the business outcomes of customer involvement in service innovation. There has been a lack of convincing arguments for firms to improve their service innovation performance by enhancing their internal knowledge absorptive capacity or their external relationship learning. To fill these research gaps, the current work explores the internal mechanisms and contextual conditions of the relationship between customer involvement in service innovation and firms’ service innovation performance. Our findings suggest that (1) higher degrees of customer involvement in service innovation significantly contribute to the improvement of service innovation performance, (2) relationship learning plays a mediating role in the link between customer involvement in service innovation and service innovation performance, (3) greater knowledge absorptive capacity substantially increases the impact of customer involvement in service innovation on relationship learning, and (4) greater knowledge absorptive capacity significantly increases the indirect effects of customer involvement in service innovation on service innovation performance via relationship learning. Drawing on both service-dominant logic (SDL) and resource dependence theory (RDT), our findings contribute to the literature on service innovation for both manufacturing and service sector firms by revealing that the improvement of service innovation performance requires a full understanding not only of customer involvement but also of internal and external organizational learning capacities.

Satisfying consumer needs is the dream of every company. Apart from being an important factor for the company's survival, meeting consumer needs can increase its superiority in competition. Consumers who are satisfied with the facility and location tend to buy back the product and reuse the product when the same needs reappear at a later date. This study aims to determine the effect of facilities and location on the interest in visiting the water boom arema raya bima city. This study uses a quantitative approach with a survey method, while this type of research includes associative research. The population in this study were consumers who had visited the Araema Raya water boom, the number of samples taken in this study were 100 respondents. The sample used in this study was purposive sampling. The research instrument used a questionnaire with a Likert scale. Data analysis used multiple linear regression, correlation test, determination test, partial test analysis with t test and f test (simultaneous). To test the effect between variables using SPSS (Statistical Service Product Solutions) version 26.00. The results of the study based on the t test (partial) show that there is no effect of facilities on interest in visiting, location has an effect on interest in visiting, while facilities and location jointly affect interest in visiting. Keywords: Facilities, Location, Visiting Interest

Due to service product characteristics and a mix of complex sales, it is crucial for hotel firms to efficiently design limited physical spaces that serve multiple purposes to optimize revenue and maximize profit. Since luxury hotel properties have different operation strategies than limited-service hotels, their operational efficiency should be a reference during strategic decision-making processes. Primary research purpose is to identify the most efficient operation model for luxury hotel properties. The study computed operation efficiency scores using the data envelopment analysis approach to rank the property efficiency of 37 fully equipped luxury hotels in the United States. Each property can utilize slack analysis to discover a strategic benchmarking company (best efficient frontier) and intuitive strategic recommendations and gain superior input and output productivity. Tobit model analysis provides supplemental understandings regarding the additional operational factors impacting luxury hotel properties’ efficiency score variations. Operating efficiency was found to be achieved by multiple operating inputs and influenced by relative price, fixed costs, and management systems. Theoretical comprehensiveness of luxury service mix has been empirically tested by highlighting efficiency as a key measure. In addition, RevPAR’s ratio on TRevPAR further highlights the importance for luxury hotels to increase non-room sales and revenues to accomplish efficiency.

Satisfying consumer needs is the desire of every company. Apart from being an important factor for the company's survival, satisfying the needs of consumers can increase its advantage over the competition. Consumers who are satisfied with products and services tend to buy back products and reuse services when the same needs reappear at a later date. This study aims to determine the effect of removal of baggage facilities on customer satisfaction on Air Wings Airline. This research uses a quantitative approach with a survey method. This study uses a quantitative approach with a survey method, while this type of research is categorized as a causal research. The population in this study are consumers who have used air flight services using wing air, the number of samples taken in this study were 50 respondents with the sampling used in this study was purposive sampling. The research instrument used a questionnaire with a Likert scale. Data analysis used simple linear regression, partial test with t test. To test the effect between variables using SPSS (Statistical Service Product Solutions) version 23.00. The results showed that the elimination of baggage facilities had a positive and significant effect on customer satisfaction on the Air Wings airline

In recent years, Islamic banking has experienced positive developments. With a situation like this, conventional banking will face new competition with the presence of Islamic banks. The competition is in its products, one of which is a payroll service product that can help a companies or institutes pay its employees en masse and efficiently at one time. At this time not only conventional banks have payroll service products, Islamic banks also have payroll service products that can meet the needs of companies or institutes in managing finances whose operating processes are adjusted to Islamic sharia principles. This study aims to determine the marketing strategies implemented in BNI Syariah, know the concept of the system of marketing payroll service product in BNI Syariah KCP Jababeka-Cikarang and find out obstacles faced by BNI Syariah in implementing the marketing the market strategy of its products. This study uses a qualitative approach, namely field research and library research. Field research, namely data collection techniques with the method of observation, interviews and documentation with marketing staff and customers of BNI Syariah KCP Jababeka-Cikarang so as to get accurate data in the research process. And library research, namely data collection techniques using written sources. Through interviews and observation it can be seen that the marketing strategy carried out by BNI Syariah KCP Jababeka-Cikarang in marketing their Payroll Service products is by using the Marketing Mix 7P (Product, Price, Place, Promotion, People, Process, Physical Evidance), and the concepts applied in its marketing in the form of needs, wants, demands, products, value, costs, satisfaction, exchange and markets. And the type of payroll system used is BNIDirect which is one of a number of financial management service provided by BNI Syariah KCP Jababeka-Cikarang.

The purpose of this study is to develop an interactive service for people with DM and design a product specifically for the Android operating system. This study employs a research and development (R&D) design. The research phase consisted of a situation analysis, data collection, product design, expert validation, product revision, product tryout, and final revision. The research instrument was a questionnaire. Data analysis involved descriptive quantitative in percentage form. The results of the validation from the Android application experts, which focused on display quality, technical concerns, audio, and video quality, were found at 93.75% (very acceptable). In addition, the results of the validity assessment from the material experts, including general health experts and nutritionists, reached 98.08% (very acceptable) and 86.54% (very feasible), respectively. Based on the results of expert validation, the application design is categorized as very acceptable for development as a DM interactive service product.

The relevance of carrying out marine warranty surveys (MWS) as mandatory insurable practice in mitigating associated operational risks within the offshore oil and gas industry, during the Covid-19 crises, was examined against the potential health risk and the various Covid-19 restrictions resulting from newly formed regulations. The health risk concerns to the surveyor and the impact of the Covid-19 policy restrictions for the surveyor’s business measured are against the risk of excluding MWS in assessing the suitability of procedures, analyses, and vessels involved in typical offshore marine operations. The purpose of any MWS undertakings ensures that all risks in operations, with potential to destroy property, life, and environment, are minimized—if not eliminated. A series of remote interviews across Africa and direct field observations were respectively conducted at the Takoradi port to develop an understanding of the MWS service product, to ascertain the conditions resulting from current challenges, and to determine contingencies and innovations to ensure full service. The study finds MWS service as paramount to the energy industry with its range of risk control checks for high-value assets and operations. Surveyors demonstrated high-levels of awareness for Covid-19 crises and regulatory policies while in adherence but noted challenges of high-cost and delays as by-products of the restrictions. Surveyors deemed site attendances as crucial in their practice at all time, though recognized the several social and technologically innovative approaches adopted industry-wide to facing the pandemic. The study highlights the need for ‘essential worker’ status and the introduction of innovative insurance packages. Supplementary Information The online version contains supplementary material available at 10.1007/s40152-021-00220-7.

The development paradigm in many countries is currently more oriented towards the service sector and industry, including the tourism industry. In the tourism system, the marketing strategy carried out on tourist objects is an important element in supporting the desire of tourists to visit. This study aims to determine and analyze whether expanded marketing affects the visiting decision Lawata Beach. This study uses a mix method quantitative and a qualitative. The population in this study are tourists who have visited lawata beach tourist destinations in Bima City. Sampling with purposive sampling technique, where the determination of the sample based on certain criteria that are tailored to the needs of the study. The sample in this study amounted to 100 people with the research instrument using a questionnaire with a Likert scale. Data analysis used simple linear regression, partial test with t test. To test the effect between variables using SPSS (Statistical Service Product Solutions) version 20.00 and SWOT analysis. The results of the study stated that expanded marketing had a positive and significant effect on the Visiting Decision Lawata Beach Bima City and from the results of the SWOT analysis, the Bima City government had to always develop attractive tourist attractions, making Lawata Beach an economic creative area and adding supporting facilities on the Lawata beach, facilities and infrastructure can add attractiveness and increase competitiveness with tourist objects in other areas.

Los avances tecnológicos, y las nuevas formas de relacionamiento digital propios de las sociedades postindustriales, han encontrado en los videojuegos herramientas interesantes, que pueden ser utilizadas para estimular aprendizajes variados en niños y adolescentes alrededor del mundo. No obstante su atractivo, la construcción de un videojuego con fines educativos es una tarea compleja, que requiere del trabajo colaborativo entre profesionales especializados en los diversos frentes que demanda el desarrollo de un producto pedagógico, innovador en tecnología: científicos de las ciencias exactas, de las ciencias humanas, y artistas. El presente artículo recoge las experiencias del trabajo interdisciplinario de profesionales en psicología, diseño gráfico, ciencias computacionales y música, para la construcción de un videojuego educativo cuyo objetivo es fortalecer competencias socioemocionales en los niños y ayudar a prevenir conflictos escolares. A lo largo de texto compartimos las metodologías de trabajo interdependiente por medio de las cuales logramos transferir los conocimientos disciplinares específicos hacia el desarrollo de un producto de servicio que apunta a la transformación del tejido social de una comunidad.

PurposeThe purpose of this paper is to merge service and product quality concepts as well as problem-solving capabilities and relationship satisfaction into an integrative model and empirically test it in business-to-business (B2B) context.Design/methodology/approachHypothesis testing was performed using a structural equation model based on a LISREL approach applied to a sample of 1,218 industrial buying centers producing and marketing food and beverage products for industrial use in Belgium, France and Holland.FindingsThe model allows a comparison between the relative efficacy of product quality, service and sales quality as well as problem-solving in driving relationship satisfaction. The results demonstrate the relative effectiveness of sales team quality while also emphasizing the importance of problem-solving in building relationship satisfaction.Originality/valueThis study makes theoretical and empirical contributions providing a better understanding of the impact of service/product quality and problem-solving in building relationship satisfaction in a B2B context.

This paper studies joint quality and refund policy design for service products in the presence of customer valuation uncertainty.

The existing schemes show that the application of an Integrated Choice and Latent Variable (ICLV) model in choice behaviors of railway shippers in freight services provided by China Railway Express (CRE) and private logistics enterprises (PLEs) is a challenge. Therefore, this paper focuses on the freight service products of CRE and PLEs and constructs a Fuzzy ICLV model by combining a fuzzy comprehensive evaluation with the ICLV model to analyze choice behaviors in freight services of railway shippers. The Fuzzy ICLV model offered significant advantages because it allowed us to incorporate latent variables that regard perceived convenience and reliability with a traditional discrete choice model (DCM). The results of the Fuzzy ICLV model clearly confirm that shippers’ perceptions of the convenience and reliability of freight service products impact their freight service product choices. The results also show that the freight, time, distance from shippers to the sales department, destination distance, occupation, monthly income level, order quantity, cargo weight, and type are all major factors that affect Chinese railway shippers’ choice behaviors for freight services. The goodness-of-fit measure of the Fuzzy ICLV model is 0.325, which is higher than that of the Nested Logit (NL) model. The results of this study can fill the gaps in choice behaviors in freight services research on Chinese railway shippers and have important implications for operators of CRE to adjust their freight service strategies or products.

The hospitality industry, as an integral and important component of tourism, is gaining increasing socio-economic importance. It is a key component of the tourist product, as the level of service in the hospitality industry is one of the key factors for travelers' satisfaction. The purpose of the article is to identify current trends and the impact of inbound tourist flows on the development of the hospitality industry in Ukraine. The methods of content analysis, statistical and logical analysis have been used in the research process. Reduced flows of foreign nationals entering Ukraine in 2010-2017 have been identified. Only 38 000 people, or 0.27% of the number of foreign nationals who came to Ukraine in 2017, visited Ukraine for tourism, which is 96.4% less than in 2010. As a result, foreigners' demand for the hospitality services, which are mostly used by domestic consumers, is falling. In Ukraine, the outbound tourism is much higher than inbound, both in terms of number of travelers and in terms of cost. It is proved that the objective reasons for the decrease in inbound flows are the unfavorable security image of the country, as well as the low level of tourist competitiveness of Ukraine, accordingly, the domestic hotel industry is poorly realizing its potential. In such a situation, threats to the functioning and development of domains of the hospitality industry are increasing. The choice of accommodation for a temporary stay while in a foreign country depends to some extent on the purpose of the trip. For each category of visitors the different requirements, needs, expectations for the service product of the hotel are set. The necessity of their research and consideration during the transition to the management of hotel activity on the principle of client-orientation is shown. To this end, the search for adequate methods of market segmentation and differentiation of the hotel service product depending on the characteristics of the target audience is actualized. It is revealed that the most difficult problem of domestic hotels is the non-conformity of the level of service to the world standards, which is in some way due to the outdated material facilities and low staff qualification. The necessity of application of world experience and practice of service management, which will increase the attractiveness of hotels for guests, is indicated. It is suggested to manage the service in the hospitality industry on the principles of the consumer value chain and to use the service product circle of the hospitality industry for this purpose. The composition of the service product includes such components as material and technical facilities, staff, process, principles and rules of hospitality. The proposed approach combines quality of service standards with the expectations and impressions of the hotel customer.

Although important to business and economic development, entrepreneurship education has offered its customers (i.e., students) mixed experiences. While some prior studies find entrepreneurship education to have a positive effect on entrepreneurial attitude or activities, others report the opposite, suggesting the need to consider environmental factors. Drawing on the nascent research on customer experience management, this study treats entrepreneurship education as a service product and advocates that service providers take a “touchpoint journey view” in that the providers should manage or influence all touchpoints in the environment—some touchpoints are internal to the providers, while others may be external. This perspective leads to a comprehensive conceptual model that identifies ten student-resource touchpoints across three areas: a) curricular b) regulatory environment, and c) social environment resources. With a unique sample of students who are systematically exposed to all three types of resources through a pilot entrepreneurship program, this study finds empirical evidence to support the proposed model. These findings offer pertinent implications to entrepreneurship education design (e.g., totality of various touchpoints). In addition, with the rising influence of the Chinese economy, this study also represents a meaningful step toward a better understanding of consumers' service goods experience in this strategically important market.

At the moment the growth of HNWI (High Net Worth Individual) is significantly developed. HNWI is a group of rich people having no idea in managing the properties. As a matter of course, this becomes a new prospective field on wealth management business for banking. In fact, banks dominate money market mainly in Indonesia. in accordance to this issue, this article tries to portray the following subject matters---the importance wealth management as a service product for banks customers, the factors supporting the wealth management business in Indonesia, the criteria and characteristics of HNWI, the requirements of Islamic economic principles in applying wealth management syarî’ah base, and the challenge of organizing wealth management syarî’ah -base. From public view, the existence of wealth management syarî’ah base remains significant therefore it has a huge prospect considering the decrease of loan rate. It accelerates public to invent an alternate way instead of saving. On the other hand, there is a challenge of professional profit-share, unavailability of large amount of fresh money from investor, the minimum number of people understanding the proper syarî’ah finance management, and the existence of false assumption among publics that the current syarî’ah finance system has been only symbols interchange from conventional system to Islamic ones.

Purpose The purpose of this paper is to propose and test a theoretical framework to identify the specific aspects of the guest experience at a wellness facility that contribute to well-being. Self-determination theory (SDT) is used as the theoretical framework. According to SDT, basic needs must be met in order for psychological well-being to be achieved. Thus, in addition to the services and amenities offered, the quality of interactions with staff and service providers are integral to wellness vacation outcomes or basic need fulfillment. Design/methodology/approach Psychological precursors, or basic needs, were estimated using structural equation modeling, and these precursors were significant with the model explaining considerable variation in the outcome variable, well-being. Findings The results suggest that guest experiences can be enhanced if management facilitates guest autonomy, helps guests develop a sense of mastery with respect to activities and encourages positive interactions between guests. Research limitations/implications Study limitations include the single venue used for data collection, sample size and a focus on exercise activities as a proxy for staff–guest interactions. Practical implications This study sheds light on an under-researched area, providing managerial guidelines for wellness tourism destinations with respect to service delivery. Originality/value This study extends the wellness tourism literature by suggesting a framework to assess the service product and optimize guest experiences within the niche wellness sector of the tourism and hospitality industry.

The digital age makes communication enter a new phase. The widespread use of gadgets nowadays, making activities through gadgets more often done. New technology is increasingly advanced, the internet is increasingly easy to access, more applications and social media to communicateare also increasingly diverse. One service product that was born thanks to internet acces is social network, namely Instagram. Instagram is a social media that has visual power. With this power, many individuals and companies use it to attract the attention of the public, one of them is the @zilohijab Instagram account. This study wants to reveal the use of Instagram as a means of communication an sales of Muslim fashion on the Instagram account @zilohijab. The method used by researchers in this study is a descriptive qualitative research method. In the discussion of this study resulted in several strategies used by @zilohijab in planning the content of messages on his Instagram account including Instagram @zilohijab with the concept of Trusted Muslim Fashions used as a teaser, approaching through community building, working with influencers to produce content and product curation, as well as designing story to strengthen visual content with an emotionless strategy. The conclusion in this study is that the strategy designed by @zilohijab has been carried out to the maximum because the strategy is based on the concept and character. Keywords : Strategy, Instagram, Media Communications, Sales

Today"s world economy is becoming more of service oriented. This situation can be attributed to the increased importance and significance being witnessed in the service industry by both the developed and the developing economies of the world. In fact, growth in the service sector is often used as an indicator to measure a country"s economic growth. The service industry has since become the main stay of the economy of many nations. The service industry offers services to customers. These customers often expect value for their money. Customer satisfaction is of equal importance in the service industry just like in the product related business. Three forces dominate the prevailing marketing environment in the service sector increasing competition from private players, changing and improving technologies and continuous shifts in the regulatory environment, which has led to the growing customer sophistication. Customers have become more and more aware of their requirements and demand higher standards of services. Their perceptions and expectations are continually evolving, making it difficult for the service providers to measure and manage services effectively. The key lies in improving the service selectively, paying attention to more critical service attributes/dimensions as a part of customer service management. It is an imperative to understand how sensitive the customers are to various service attributes or dimensions. Allocating resources in the fashion that is consistent with customer priorities can enhance the effectiveness in the service operations. In addition, customer service attribute priorities need to be fully explored in service specific contexts. This paper is an attempt to explore relative importance of service quality dimensions across a "select" service context.

Purpose: The study analyzes culinary tourism owned by restaurants in South Tangerang City to find out whether there is tourist satisfaction and what are the factors that can provide culinary tourists’ satisfaction. This research is also to find out, whether a restaurant in South Tangerang City has become a popular culinary destination. Design/Methodology/Approach: Respondent data collected on tabulations, processed and analyzed by SEM Wrap PLS. Findings: The results show a positive and significant relationship between service quality and tourist satisfaction, a positive and significant relationship between service quality and tourist loyalty through tourist satisfaction. The results also show a positive and significant relationship between tourist satisfaction and tourist loyalty. Practical Implications: For entrepreneurs in the field of culinary tourism to develop strategies to increase the value of a culinary tourism service product. Providing benefits for the development of halal culinary tourism. Helping the South Tangerang City government in developing halal culinary tourism. Originality/Value: The study provides a deeper understanding of the desires of culinary tourists to restaurants in South Tangerang City., peer-reviewed

This paper is, to the best of our knowledge, the first to explore the impact of national stereotype contents (perceived warmth and perceived competence) associated with a service product’s country-of-origin, as regards high versus low-contact service type. Specifically, our first field experiment tests for the differential effect of perceived warmth and perceived competence on service quality expectations by US consumers of high-contact versus low-contact telecommunication services originating from the emerging Asian nation of Indonesia versus that of the emerged Asian economy of Japan. A follow-up study tested the effects of priming competence and warmth via online-video advertisements on US consumer evaluations of Indonesian telecommunication services. Results of our studies converge toward a more robust positive effect of both primed and unprimed competence (vs. warmth) perceptions on service evaluations across high and low-contact services. This paper marks a contribution to public diplomacy, the managing of country image and nation-branding, with practical implications to industry and government efforts to effectively market emerging nation-brands to worldwide customers and investors.

PurposeIn an effort to better understand value-oriented general attendees, the purpose of this paper is to propose and empirically test a comprehensive model to examine the effect of three factors of service quality in exhibitions (i.e. service product, service environment and service delivery) on satisfaction through three factors of perceived value (i.e. emotional value, economic value and social value).Design/methodology/approachA confirmatory factor analysis was performed to determine key factors in exhibition service quality, perceived value and satisfaction. A structural equation modeling was conducted to analyze the causal relationships among the factors.FindingsThe empirical results indicated that service product and service environment were significantly and positively associated with all factors of perceived value, which in turn significantly influenced satisfaction. Service delivery, however, was associated only with emotional value. On the other hand, all three factors of perceived value significantly influenced general attendees’ satisfaction. The findings indicated perceived value as an important mediator between exhibition service quality and general attendees’ satisfaction.Originality/valueClearly identifying specific trajectories from service quality to satisfaction through distinct perceived values can be a stepping stone to establishing effective and efficient marketing strategies for general attendees and customizing for their needs. The distinct and clear associations between service quality and perceived value can help exhibition organizers and practitioners understand the process of determining general attendees’ overall satisfaction.

Purpose By adopting retrospective evaluation theories, this study aims to explain how innovations provided by separate suppliers in the tourism value chain influence tourist’s perceived value of the overall experience and further uncover which innovative product attributes are more effective in improving tourist perceptions of the overall value. Design/methodology/approach A survey yielded 584 valid responses from tourists who had experienced specific tourist product innovations during their travels. Structural equation modelling was used to test the proposed theoretical model. Findings The results reveal that tourists evaluate overall travelling experience value either by recalling an intense, impressive moment (i.e. a heuristic approach) or through an evaluation of the overall utility gained from the whole trip (i.e. a normative approach). Furthermore, innovations that are perceived as increasing convenience and enabling learning contribute to tourists’ overall value perception through both normative and heuristic approaches, while immersion resulting from innovation only contributes to overall perceived value through the heuristic approach. Practical implications Given the complex service ecosystem of tourism destinations, each tourism service provider should consider how innovations contribute to the experience of the whole trip and which attributes of innovations increase tourists’ overall perceived experience value. Originality/value This study complements existing knowledge by revealing the relationship between product innovation in tourism sectors and tourists’ perceived value of the whole trip. Moreover, it offers a theoretical framework for further investigation into service product innovation in hospitality and tourism industry.

Hospitality employees make errors given the characteristics of the service product. The way employees handle errors is largely determined by the training they receive. This research examined the impact of three training types on employees’ service recovery performance: errorless training, error avoidance training, and error management training. The mediating effect of perceived fairness between training types and service recovery performance was also examined. A scenario-based experimental research design in a restaurant setting was used in this study. The data was collected from 109 frontline hospitality employees in the United States (in Study 1) and from 155 foodservice professionals in China (in Study 2). Results indicated that error management training has a stronger impact on service recovery performance and perceived fairness compared to errorless and error avoidance training. The mediation effect of perceived fairness was also found. All hypotheses were supported and the findings were consistent in both studies.

Purpose The purpose of this study is to examine the effects of host attributes and travelers’ frequency of past stays and their interaction on the likelihood of repeat purchase of home-sharing services at both the host and listing levels. Design/methodology/approach A combination of econometrics analyses using a large-scale, granular online observational data set collected from a home-sharing platform was performed. Findings Travelers exhibit salient loyalty to home-sharing services. At the host level, host attributes including acceptance rate and listing capacity positively affect travelers’ likelihood of repeat purchase; such effects diminish as travelers’ frequency of past stays with a host/listing increases. At the listing level, confirmation efficiency and acceptance rate are critical, and travelers’ frequency of past stays matters. Research limitations/implications Responding to the call for more research on customer loyalty of sharing economy, this study instantiated on a home-sharing website in China and adds a unique perspective to the research domain, but its findings may not be generalized in other settings. Practical implications This study identifies the factors affecting customers’ repeat purchase behaviors at both the host and listing levels, allowing the hosts, webmasters of home-sharing websites and even hoteliers to advance specific tactics to promote repeat purchase among travelers. Originality/value Loyalty was measured with real-time internet-enabled observational data about travelers’ actual repeat purchase behavior on a home-sharing website, rather than assessing consumers’ behavioral intentions through the conventional survey method. Two specific levels of customer loyalty were analyzed, including the ones towards a service provider (host) and a service product (listing).

Purpose The purpose of this paper is to analyze the influencing factors of new logistics service product design (NLSPD) in China to establish a theoretical framework for the future development of the logistics industry. Design/methodology/approach The paper adopts the multi-case study method based on a sample of four Chinese logistics enterprises, in which the authors consider the logistics service maturity (LSM), a distinct characteristic of logistics enterprises. Findings NLSPD is directly related to the degree of supply–demand matching (SDM) and LSM. Customer demand, service capability and peer competition influence the performance of NLSPD through the SDM degree, whereas LSM moderates these influencing mechanisms. Moreover, the degree of SDM has a positive impact on LSM. Practical implications The findings can help the managers of logistics enterprises and practitioners in the logistics industry understand the complexity of NLSPD. First, they should broaden and deepen their service offering to enhance the degree of LSM. Second, they should pay attention to the factors that affect SDM systematically. Finally, it is vital to balance the relationship between LSM and SDM. Originality/value NLSPD has become an important tool affecting the competitiveness and sustainability of logistics service enterprises. This is the first paper to propose a theoretical framework for NLSPD that considers the characteristic of the logistics industry. It clarifies the mechanisms of influencing factors, and contributes to the literature by filling the research gap.

One of the strengths of drone is the mobility. Drone can fly without avoiding obstacles and provide services in a timely manner. However ironically, the mobility of drone cannot last for long duration due to the low battery capacity and limited loadable products. As a consequence, the use of drones may be extremely limited in a wide field of operation. One of the solutions for complementing such weaknesses of drone is the use of movable stations. Stations move across a wide field of operation and replenish consumables for drones, such as battery and service product. By visiting movable stations and replenishing consumables, drones can provide persistent service in a wide range of operation area. In this study, design and operation issues of movable unmanned aerial system (MUAS) are address for long term and persistent drone service. A two-phase optimization approach is developed to efficiently handle the system complexity. In the phase I, locations of movable stations and allocation of tasks are identified for multi-period of service duration. In the phase II, number of drones for each station and their routings are optimized based on the result of phase I. Mathematical models are proposed and verified with a case study.

This study will discuss and to find out and test whether Online Systems Quality, Banking Service Product Quality and Customer Trust are thought to influence the Success of E-Banking Information System in one of the Shariah Banks in Pangkalpinang City. This research is quantitative research, using primary data, the instrument used is a questionnaire given to respondents. The population in this study is the Customer of BRI Bank Syari'ah PangkalPinang Branch, while the sampling technique used is convenience sampling technique. The data of this study will be processed and analyzed by Multiple Linear Regression tests with the aim to find out how far the knowledge and level of understanding of Online Systems Quality, Banking Service Product Quality and Customer Trust are thought to influence the success of E-Banking Information System in BRI Sharia Banks in Pangkalpinang.

With the emergence of various types of network applications, the user communication requirements for them are becoming more and more diversified and personalized. In order to accommodate the user frequently changing demands for different network applications, the Internet Service Provider (ISP) traditionally purchases and operates new dedicated network equipment, which always incurs high capital expense (CAPEX) and operating expense (OPEX) from the economic viewpoint and also burdens network management. Inspired by the ideas of Software Defined Networking (SDN) and Network Function Virtualization (NFV), we consider dealing with the above challenge by reusing virtualized network functions and selecting appropriate ones to compose the customized routing services on the routing paths for different applications. In this paper, based on SDN and NFV, we propose Routing as a Service (RaaS) as an open framework to customize the specific routing services for applications. Then, we present Routing Service Product Line (RSPL) by introducing Dynamic Software Product Line (DSPL) into the proposed RaaS, so as to rapidly customize a large number of routing services with different characteristics. In addition, according to the proposed framework, we also carry out a case study to customizing routing services with benefits of both the user and the ISP considered. Simulation results show that the proposed RaaS is feasible and efficient.

Dominating markets with a single product is increasingly difficult, and instead numerous industries are evolving towards mass customization, meaning the production of individually customized and highly varied products or services (Pine, 1993). This proliferation of models allows consumers to find a product that best suits their individual needs. The need for increasing product variety and shorter development time brings more complexity to the company than ever. Corporations are striving to bala nce customer satisfaction and cost savings, and product design is becoming essential for accomplishing this. Since developing an entirely different product is often uneconomical. A better method is to develop a product architecture that enables a company to offer highly differentiated products that share a substantial fraction of their components. Therefore, introducing product variety within a robust architecture offers one means of enhancing mass customization. Besides, an increase in product variety brings an increase in the volume of information exchanged between customers, designers and marketing department. Due to such increased information processing load, information technology is needed to tackle this problem. This chapter investigates the product variety design methodologies through the computational design optimization methods, and developing product architecture under the support of information technologies. It aims at providing product designers a rational and systematic methodology in dealing with product variety from both qualitative and quantitative viewpoints.

Many services are difficult to understand and communicate, and as a result, difficult to position, differentiate, and sell. While important, understanding services as well-defined products has hardly received research attention although doing so offers a host of potential benefits. This conceptual article makes the following contributions. First, it synthesizes the literature to develop a better understanding of service productization as a process that transforms variable, ad-hoc services and service products into well-defined service products (i.e., ‘productized services’). Second, it advances that well-defined service products are (1) specified (i.e., have a formalized value proposition and are configured, standardized, systemized, and often also modularized and bundled), (2) branded (i.e., have a name, symbol, or design, and are identifiable by these linguistic, visual, and tangible cues), (3) and priced (i.e., have clearly stated, communicated, and committed prices that can include rate fences and tiering). Third, this article advances managerial practice by exploring the concepts and tools available to productize services and outlining managerial benefits and potential drawbacks of highly productized services.

Fintech is a form of financial service innovation other than banks. The more advanced information technology makes fintech as an alternative for the community in financial services. Fintech in Indonesia is divided into conventional and sharia fintech. The development of Islamic fintech in Indonesia continues to increase even though it is still less than conventional fintech. this fundamental difference from Sharia fintech through initial "akad" or agreements between investors and borrowers. Based on data from the Financial Services Authority (OJK) there are 13 licensed and registered Sharia fintech. The types of services performed are payment channel/system, digital banking, online/digital insurance, Peer-to-Peer (P2P) Lending, and crowdfunding. the chance of developing fintech sharia is quite high if it is associated with the number of Muslim population residing in Indonesia which is the largest Muslim population in the world. However, some challenges must be faced including the low level of financial literacy, regulations and sharia fintech policies, as well as service product innovation.

There is a new understanding of the system and business strategy developing both in the industry and academia, the authors argue. Service is a system for ensuring a business’s stability and profitability, the formation of long-term competitive advantages, and company image, profit, and market share. The space-time system “service” is built from the model of the system of industrial segments, with the concept of the integral principle of constructing modules of segments and the “human”, as the key element. The critical module determines the direction of the industry. The system’s material and technical segment is the foundation on which the technical service system is based. This segment is not just an integral part of the automotive service system but also a critical element, forming the fundamental component of a service product. Companies operating in the segment develop the necessary foundation of the service business, contributing to its effective functioning and dynamic development. The authors describe a new format of relations that take on the character of partnership. The partnership goal is mutual benefit. The essence of the programs of the marked segment offered can be titled as “Program for the Formation, Support, and Development of the Client’s Business.” This program is based on a systematic approach to customer expectations, where the range of proposed solutions is a complete cycle. The program is a mechanism that allows one to learn to look more broadly at a business, understand its underlying patterns, and find optimal solutions. Considerable attention is paid to the technical support of customers through the Service and Training centers, as well as service support in management and marketing, financial and technical audits. As practice shows, in this area, substantial potential and reserves are hidden. Such growth would significantly contribute to a business’s successful operations and, accordingly, competitiveness.

The dynamic service network design problem (D-SNDP) for same-day parcel express is studied based on highway passenger express network within the network-alliance mode. D-SNDP issues focus on the principle of generalized resources especially high-quality resource sharing or complementarity. Discrete time-space networks are applied to reconstruct a dynamic service network by putting into time dimension. Then, a conceptual model and an integer programming design model of dynamic service network are both proposed with multi-arcs given with multi-commodity of same-day parcel express. This model is minimizing the total operation costs of networking with constrains on service elements, including space, cost, capacity etc. The revenue-sharing model for alliance using the generalized resource contribution coefficient V is also proposed at same time. A case analysis shows that the design model and revenue sharing model indeed play a role in improving the efficiency of network resource allocation and promoting cooperation among alliance members.

This study examines the essential characteristics of Virtual Reality (VR) that influence individual visit intention towards a touristic product. Despite the extensive research about VR, however, only little has examined the impact of factors that alter customers&rsquo, attitudes and trigger purchasing intention. This study applied Information Systems Success Model and conducted a survey using the convenience sampling method with international tourists who visited North Cyprus. The data were analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique, and findings demonstrated that VR has great potential to influence visitors&rsquo, final destination by promoting tourism products and services. This paper revealed that VR&mdash, as a marketing medium&mdash, creates positive impacts and stimulates individuals&rsquo, intentions to visit a destination. The study provides implications for tourism sector actors such as tourism planners, policymakers, travel agencies, and hotel managers as well as prosocial guest experience to improve their marketing strategies.

International audience; Complexity of web systems lead to development processes always more tough to test. Testing phases are crucial in software and system engineering and are known to be very costly. While automated testing methods appear to take over the role of the human testers, the issues of reliability and the capability of the testing method still need to be solved. In our paper, we focus on the automation of functional tests of websites. A single web page may contain a huge set of important functionalities leading to the execution of critical web service operations. Besides, testing all of these functionalities implemented in a web page service is highly complex. Two current popular research areas for automation web-based testing are Codeless Functional Test Automation and Machine Learning/Artificial Intelligence (ML/AI) in test automation. We therefore define and implement a framework to figure out how to automate the web service product under test, the machine can detect or predict the change and adapt those changes to suitable generic test cases. In our work, we examine on Selenium and the benefits of using machine learning in automated web application testing.; La complexité des systèmes Web conduit à des processus de développement toujours plus difficiles à tester. Les phases de test sont cruciales dans l'ingénierie des logiciels et des systèmes et sont connues pour être très coûteuses. Alors que les méthodes de test automatisées semblent prendre le dessus sur le rôle des testeurs humains, les problèmes de fiabilité et de capacité de la méthode de test doivent encore être résolus. Dans notre article, nous nous concentrons sur l'automatisation des tests fonctionnels des sites Web. Une seule page Web peut contenir un vaste ensemble de fonctionnalités importantes menant à l'exécution d'opérations de service Web critiques. En outre, tester toutes ces fonctionnalités implémentées dans un service de page Web est très complexe. L'automatisation des tests fonctionnels sans code et l'apprentissage automatique / l'intelligence artificielle (ML / AI) dans l'automatisation des tests sont deux domaines de recherche populaires actuels pour les tests automatisés basés sur le Web. Nous définissons et implémentons donc un cadre pour comprendre comment automatiser le produit de service Web sous test, la machine peut détecter ou prédire le changement et adapter ces changements aux cas de test génériques appropriés. Dans notre travail, nous examinons Selenium et les avantages de l'utilisation de l'apprentissage automatique dans les tests automatisés d'applications Web.

This study discusses the consumer perspective about the marketing activities of MICE packages organised by the Sales and Marketing Department at Aston Madiun Hotel and Conference Center. The component of organising marketing activities to be evaluated refers to the Marketing Mix model developed by Kotler (2014) knows as 4Ps (product, price, promotion, and place). In this study, researchers used quantitative and qualitative data. Data collection is done by distributing questionnaires to 112 respondents determined through purposive sampling, namely visitors who have purchased MICE packages at Aston Madiun Hotel and Conference Center. Data collection was also obtained from interviews with guests and the Sales and Marketing Department as organisers of hotel marketing activities, observation and literature. In order to formulate the overall evaluation steps, an analysis of the four sectors of hotel marketing activities was carried out in the form of analysis, planning, implementation, and evaluation whose results will be described descriptively. The results showed that the overall marketing mix component received a positive response from guests who had purchased the MICE package at the Aston Madiun Hotel. Two questionnaire items obtain quite low scores, namely hotel items routinely offer and update the details of MICE packages directly to companies and hotels utilising all print media for marketing MICE package activities. The data obtained from the study will be used as study material to evaluate the marketing activities of the Marketing Department in marketing an Aston Madiun Hotel service product, in the form of accuracy of analysis, product development that is in line with the main potential of the hotel, implementation of targeted market segmentation and always evaluating every marketing process that has been passed.

The transformation of manufacturing enterprises from traditional manufacturing to service-oriented manufacturing is one of the most important ways to upgrade and enhance competitiveness. Whether the manufacturing enterprise outsources the service business to the producer service providers or internalize the service business is an important problem in the transformation process. Based on the profit function of manufacturing enterprises and producer service providers, this paper establishes a two-party asymmetric evolution game model, explores the rules of manufacturing enterprises and producer service providers to implement servitization strategies, and uses MATLAB simulation to deeply study the influence of relevant factors on the implementation of servitization strategy in cooperation between manufacturing enterprises and producer service enterprises. The results show that the successful implementation of service outsourcing strategies in manufacturing enterprises depends on manufacturers’ own conditions and the market environment. The elasticity of demand for service product quality in external markets, and the cost coefficient of enterprises in providing service products are both positively related to the willingness of manufacturing enterprises and producer service providers to cooperate in implementing servitization strategies. The loss caused by unsuccessful cooperation is negatively related to the willingness of cooperation between the two parties.

The demand for women who are in pregnancy transforms form medical birth service to high-quality life gestation. The family-centered approaches to maternity care present an important direction for fitting the needs of pregnant women, the better pregnancy experience, and more emotional care. In this paper, we explore design issues in developing a smart service product system for pregnant women and her family. As a prototype, we have developed a service to provide the family-centered maternity health care link with a pregnant woman, her family, and maternity hospital. The prototype includes an application provide telemedicine support, antenatal report visualization, and maternity information sharing for the whole family. These features are designed and implemented based on the principle of family-centered maternity health care, which will highlight how to dissolve the boundary between the medical system and pregnant women’s family, and how to increase the emotional link between the puerpera and her family members. The contribution of this paper is to research on maternity health service lies in a complete set of smart service design processes based on FCMC mode and discussion on the relationship on medicine, puerpera, and her family.

With big data and predictive analytics, fortune telling has become a new service product. Aside from business and ‘security’, ‘health’ is the main promise that drives data-based predictions. Individual predictions, however, inevitably remain probabilistic. Personal data can only be interpreted in the light of statistics. At the same time, reference to the genome implies that the predictions shed light on the invisible truth about one’s self. They seem to reveal an undetected ‘identity’. Hence, as Kate O’Riordan’s story shows, the genome entangles us in peculiar contradictions: It promises knowledge and predicts uncertain futures; it facilitates verdicts and calls for self-optimization; it is a statistical construct and claims to be personal.

Companies are increasingly concerned with current and future climate change risks and opportunities that have the potential to generate a substantial change in their business operations, revenue and/or expenditure. Against this background, the paper presents and discusses the methodology and results from a joint activity carried out by the Climate Service Center Germany (GERICS), the management consultancy CSR Management Services, as well as the German 2° Foundation and eight of its supporting companies in Germany. Based on the practical requirement to develop a novel approach to increase awareness for companies to adapt to climate change, a questionnaire has been co-developed as a novel “Company Analysis Tool”, which considers the influence of climate change on key business indicators and planning strategies. Additionally, a first implementation and testing of the “Company Analysis Tool” took place, whereby 35 interviews have been carried out with the top-level management involved. Therefore the main objective was to raise awareness for climate change and the need for adaptation measures. The paper presents and discusses the methodology, practical implementation, results and lessons learned as part of this prototype development and testing of a climate service product for companies. One main outcome of the project was to learn about the crucial importance of closely integrating companies in the development of a climate service product at an early stage and on an equal footing. Besides awareness raising and a company-specific analysis, the detailed reflection of climate change opportunities and risks has also been of great interest and importance for the participating companies. Therefore our approach with a clear focus on companies’ specific challenges in different sectors proved to be a useful climate service product, with results of high relevance for adaptation practice and business.

The increasing penetration of distributed energy resources in distribution networks poses new challenges to the secure and efficient operation of distribution networks. One major challenge is the network congestion caused by the non-coordinated operation of flexible demands, such as electrical vehicles and heat pumps. In general, there are two categories of market-based day-ahead congestion management methods for distribution networks: price-based method and incentive-based method. In order to use the synergy of the two types of methods and to resolve potential conflicts against regulations when one type of method is implemented solely, a coordination scheme of the two types of methods is proposed for efficient day-ahead congestion management. In the proposed coordination scheme, the dynamic tariff (DT) as a price signal is used to partly resolve congestion firstly, and the scheduled reprofiling product (SRP) as an incentive-based flexibility service product is used to deal with the remaining congestion. By employing the coordination scheme, the distribution system operator (DSO) holds the profit neutral position in terms of congestion management, denoting that the DSO does not have the congestion management cost or revenue. Based on the DT model and SRP-based model, the coordination problem is formulated as a two-level non-convex mixed-integer non-linear programming (MINLP) model that is transformed into a one-level MINLP model with linear constraints and is solved by a proposed particle swarm optimization-based solution strategy. The Roy Billinton Test System was used to conduct case studies to validate the effectiveness of the proposed coordination scheme for day-ahead congestion management in distribution networks. The case study results demonstrate that the proposed coordination scheme can efficiently resolve congestion by the coordination of the DTs and SRPs while ensuring that the DSO is in a profit neutral position.

As Internet applications have become more diverse in recent years, users having heavy demand for online video services are more willing to pay higher prices for better services than light users that mainly use e-mails and instant messages. This encourages the Internet Service Providers (ISPs) to explore service differentiations so as to optimize their profits and allocation of network resources. Much prior work has focused on the viability of network service differentiation by comparing with the case of a single-class service. However, the optimal service differentiation for an ISP subject to resource constraints has remained unsolved. In this work, we establish an optimal control framework to derive the analytical solution to an ISP's optimal service differentiation, i.e., the optimal service qualities and associated prices. By analyzing the structures of the solution, we reveal how an ISP should adjust the service qualities and prices in order to meet varying capacity constraints and users' characteristics. We also obtain the conditions under which ISPs have strong incentives to implement service differentiation and whether regulators should encourage such practices.

Co-produced climate services are increasingly recognised as a means of improving the effective generation and utilisation of climate information to inform decision-making and support adaptation to climate change, particularly in developing countries. There is a rich literature outlining the theoretical and conceptual evolution of co-production, and experiences of it in a variety of decision contexts – in different sectors and at different scales. However, the extent to which the producers of climate services have engaged with this literature varies. Reflecting the emerging interest and application, particularly in developing countries, this paper reviews the co-production literature to distil some key principles to inform climate services. Whilst we aim to be neither comprehensive nor prescriptive, these principles can inform a normative and pragmatic approach to co-produced climate services. A co-produced climate service product should be decision-driven, process-based and time-managed. The process of co-producing a climate service should be inclusive, collaborative and flexible. Illustrations are also provided of how these principles may be engaged in practice. Evaluation of these emerging examples will help further inform co-production of climate services. Keywords: Co-production, Climate services, Developing countries, Science-society relations, Post-normal science, Producer-user relations

This Business Communication Final Project (BCFP) is made for PT. Mandiri Sekuritas, one of the biggest securities company in Indonesia. The background of the study is the fact the most of the Online Service product’s members are passive, or also called as “sleeping clients”. This problem can affect the AR (Assets Ratio) of the company because they are passive traders. Thus, PT. Mandiri Sekuritas needs to make a promotional video. The video will be uploaded in big websites such as YouTube and e-mail. The video is divided into two parts: The first part is dedicated to the people who are new to stocks and the second part is dedicated to the existing members of Mandiri Sekuritas but rarely do anything with their account. In the video, I highlight two things: the importance of joining stock investment and the importance of being active in stocks trading. By making this video, I want to tell all people especially those who are at young age that investment is important for their future and Mandiri can answer their needs very well. Also, those “sleeping clients” can realize that being active will bring them many benefits and that the company cares for them.

Purpose This paper aims to discuss the customer satisfaction drivers of Russian tourists choosing hotels in Europe. Design/methodology/approach The study is focused on tangible aspects of the hotel service product adopted from the European Hotel Guest Satisfaction Index by J.D. Power. Research methodology is based on the Kano model that enables satisfaction driver classification based on the level of their impact. Data collection was conducted via online panel representative for 1 million+ Russian cities, totaling 1,238 respondents. Findings This paper reveals groups of customer satisfaction drivers by their impact from attractive to expected and indifferent, as well as customer preference profile by age, overall travel experience and trip purpose (recreational, sightseeing or active tourism). Research limitations/implications This paper focuses on the tangible attributes of hotel experience; the survey sample composed of Russian tourists that evaluated their satisfaction with hotels in Europe. Practical implications As a result of the study, the authors test Kano model application in the hospitality and tourism industry, providing hotel managers with an advanced yet easy to use customer satisfaction measurement tool. Also, the authors demonstrate substantial differences in customer satisfaction drivers by groups that can be used to plan product development. “Expected” and “one-dimensional” groups of product features would cause customer dissatisfaction if missing and should be the first priority of management. Interestingly after a certain level, “expected” factors have no marginal value, so their improvement by the hotel management should be limited. On the other hand, “attractive” factors boost customer satisfaction while present but with no negative impact if they are absent; that makes this group the second priority for hotel management. Factor distribution by group is different for various customer segments that can also be taken into consideration when designing the marketing communications of a hotel. Originality/value In this research, the authors use the Kano model to identify customer satisfaction drivers in the hospitality and tourism industry. This methodology enables in-depth analysis of the factors’ impact and provides understanding of the accommodation product improvement potential based on customer perception. The authors suggest several groups of factors and demonstrate that certain high-impact satisfaction drivers have zero incremental value for customers.

This study introduces three cooking process improvements for a multiproduct traditional Japanese cuisine restaurant to improve labor productivity and to assess relations between offered process changes and service product characteristics. Restaurant productivity is the lowest among service industries because restaurants are labor-intensive. Therefore, the industry is affected by service product characteristics. Combining line and cell cooking systems, batch cooking using partial freezers, and combining built-to-order and built-to-plan cooking are introduced into actual multiproduct traditional Japanese cuisine restaurants to change cooking operations and improve labor productivity. Results show that all cooking process changes reduce work hours. The correlation coefficient between work hour and sales revenue improved by line and cell cooking, but it is degraded by batch cooking and built-to-order and built-to-plan cooking. Line and cell cooking enhance simultaneity and reduce the influence of perishability because the system adopts hourly work hours to fluctuation of hourly sales by changing cooking systems (line/cell). However, the system does not resolve heterogeneity and intangibility difficulties because the system is intended to resolve quantitative difficulties of cooking operation systems. Batch cooking systems reduce the influence of simultaneity and perishability of service products because the method reduces cooking frequency using partial freezers. Furthermore, the system improves heterogeneity because the restaurant can provide head-chef-made dishes even if the chef is not working at the restaurant. However, the system does not resolve difficulties of intangibility because the system is not designed to improve customers’ subjective evaluation for service. Built-to-order and built-to-plan cooking reduce the respective influences of simultaneity, perishability, and heterogeneity of service products to some degree because built to plan teams also practice batch cooking using partial freezers. However, the system does not resolve the difficulty of intangibility because the system is not intended to improve customers’ subjective evaluation for service.

Nowadays, service oriented architecture (SOA) has become one mainstream paradigm for developing distributed applications. As the basic unit in SOA, web services can be composed to construct complex applications. The quality of web services and their compositions is critical to the success of SOA applications. Testing, as a major quality assurance technique, is confronted with new challenges in the context of service compositions. In this paper, we propose a scenario-oriented testing approach that can automatically generate test cases for service compositions. Our approach is particularly focused on the service compositions specified by Business Process Execution Language for web services (WS-BPEL), a widely recognized executable service composition language. In the approach, a WS-BPEL service composition is first abstracted into a graph model; test scenarios are then derived from the model; finally, test cases are generated according to different scenarios. We also developed a prototype tool implementing the proposed approach, and an empirical study was conducted to demonstrate the applicability and effectiveness of our approach. The experimental results show that the automatic scenario-oriented testing approach is effective in detecting many types of faults seeded in the service compositions.

Several firms across different product-focused industries, such as Dell, GM and Keurig, offer associated services along with their products. Given that firms routinely offer a portfolio of vertically differentiated products, a crucial question facing such firms is whether such differentiation should also be extended to associated services. Service differentiation lowers cannibalization of the high-quality product by the low-quality product and increases revenues, but it requires dedicated capacity which increases the cost of offering service. This tradeoff is further confounded by the potential loss of service performance due to complexity involved in single set of resources serving multiple segments. Thus, we examine this service strategy decision along the two dimensions: cannibalization concerns and complexity involved in serving multiple segments together. We consider a firm whose customers vary in their willingness-to-pay (WTP) for product quality and their sensitivity to service levels, and can self-select across offered products. We find that even when there is no complexity involved in serving multiple segments, the differentiated service strategy may be preferred purely to prevent cannibalization. With high complexity, cannibalization concerns may increase or decrease the firm’s preference for the differentiated service strategy depending on the demand mix of higher and lower WTP customers. Cannibalization also makes the role of total demand size in the service strategy decision more pronounced. Specifically, changes in capacity costs, customer heterogeneity and product differentiation may make the differentiated service strategy more or less attractive depending on the total demand size as well as the demand mix.