SW2

Question 1

What is „service“?

Answer 1

„Service is the application of knowledge and skills to provide benefits to others.“

The Services shift, from products to services -> Value is created not in the product but in the
job to be done – the problem you solve for customers

Question 2

What is a service in the “phase oriented service concept”?

Answer 2

potential, process, and result.
*potential : *
Ability and willingness of the service provider to
perform service
Ex.: human resources
*process: *
Interactive process between service provider and customer
- customer integrates own resources (“external factor”)
result:
Outcome achieved for the customer as result of finished process
− outcome is always immaterial

Question 3

Why are services important?

Question 4

What are the Economic Sectors?

Answer 4

Primary sector: Agriculture
* Secondary sector: Manufacturing
* Tertiary sector: Services
* Quaternary sector: Information Services ( communications, transport,..)
* Quinary sector: Human Services (health, education,…)

Question 5

What are some factors for the shift from product to service economy ?

Answer 5

*Demography and Society: *
People are getting older = more services in the field of pleasure, wellness, health and care services
People are becoming increasingly mobile= more services like Uber, Flixbus, Car-, Bike- and E-Scooter Sharing
Academisation of society = more education-related services

*Change of cultural values: *
Working women = more family and household related services
Need for sustainability = new services in the field of sharing economy, end of ownership

Prosperity and shift in demand:
Rising per capita income
= furniture, clothing and cars are bought
= demand for travel and entertainment (services) rising

Globalisation and competition
Cross-border trade in goods and services, simplification of imports
= Differentiation and customer loyalty through services (e.g. machine configuration,maintenance, financing services)

• Digitisation and technological progress *
  Innovative tangible assets are combined with product-related services
  = App economy, network, cloud, hosting services, payment, social media services

Question 6

What are the “ 2 roles” in a service?

Answer 6

• provider
• client

Question 7

What does the provider do in a service?

Answer 7

The provider «applies knowledge and skills» to provide a benefit to clients

Question 8

What does the client do in a service?

Answer 8

Typically, clients pay for a service with money, but this is not always the case

Question 9

What are the 5 value dimensions?

Answer 9

1. Functional Value
2. Financial Value
3. Social Value
4. Emotional Value
5. Conditional Value

Question 10

Define functional value

Answer 10

Performs a specific function: “Saves time”. “Makes something easier”.

Question 11

Define Financial value

Answer 11

Creates financial wealth: “Saves money”, “Allows me
to earn money”. “Can be sold later”. “is cheaper than alternative”

Question 12

Define Social Value

Answer 12

Affects my social position: “I am part of a group”, “Others
admire me”

Question 13

Define Emotional Value

Answer 13

Gives me good feelings: Means something to me: “I
feel great when using it”, “Reminds me of my grandpa”

Question 14

Define Conditional Value

Answer 14

specific conditions at the time of making the
decision: “easy to get right now”

Question 15

What are the 2 value concepts?

Answer 15

Value in Exchange and
Value in Use

Question 16

What is value in exchange and how is it generated?

Answer 16

is created in the provider sphere through the production and sale of a product/service
Product or service for a value in exchange (e.g. the price on the market)

Question 17

What is value in use and how is it generated?

Answer 17

is created in the customer sphere through the consumption of the product/service

What is the value that this object/service produces when you use it?
− „Value“ is non-financial in most cases: emotional, social, …
− Value is expressed in the value proposition

Question 18

What is the Service Dominant Logic?

Answer 18

Value is value-in-use
* only the customer creates value by using the service/product. The product/service itself
does not have any intrinsic value
* a provider may only make a „value proposition“. If a customer accepts this proposition, the
provider will realize his promise. Only then value is generated – in an interaction of
provider and client
* thus, value is always co-created!

E.g. a Laptop

SDL believes that the value of a laptop only unfolds through the practical, efficient, secure or
even fun information processing it enables a customer to do. Following this logic, the
individual utility value of the laptop could even be increased over time, e.g. by offering
personalised software.

Question 19

What is the Goods-dominant logic?

Answer 19

Value is value-in-exchange
* value is created when a product is made that can be sold on the market
* value is seen as something “added” to products by the firm
* goods acquire value during the design and manufacturing process
* customer has nothing to do with value creation – in fact, customer destroys value by using a product

E.g. a Laptop
value created from production and is realized
through the exchange of computer for money.
With every year of use the laptop loses transaction value.

Question 20

What is the unit of exchange in the Goods Dominant Logic

Answer 20

The good

Question 21

What is the role of goods in the Goods Dominant Logic

Answer 21

Unit of output that has a value

Question 22

What is the role of the customer in the Goods Dominant Logic

Answer 22

uses the value created by the supplier

Question 23

What is the process of value creation in the Goods Dominant Logic

Answer 23

supplier embeds value in the goods

Question 24

What are the resources used the Goods Dominant Logic

Answer 24

material/ machines,…

Question 25

What is the unit of exchange in the Service Dominant Logic?

Answer 25

the service

Question 26

What is the role of goods in the Service Dominant Logic?

Answer 26

its a “vehicle” for sercives

Question 27

What is the role of the customers in the Service Dominant Logic?

Answer 27

co-creator of value through value intergration

Question 28

What is the process of value creation in the Service Dominant Logic?

Answer 28

supplier proposes value through offerings and customer creates value through the use

Question 29

What are tje resources used in the Service Dominant Logic?

Answer 29

knowledge, capabilities,…

Question 30

What are the IHIP Characteristics of Services?

Answer 30

I – Intangible
H – Heterogeneous
I - Instantaneous
P – Perishable

Question 31

What does the I in the IHIP Characteristics of Services stand for?

Answer 31

I – Intangible: Services cannot be touched. Services are experienced!

Question 32

What does the H in the IHIP Characteristics of Services stand for?

Answer 32

H – Heterogeneous: customer involvement in delivery process results in variability

Question 33

What does the second I in the IHIP Characteristics of Services stand for?

Answer 33

I - Instantaneous: Production, distribution and consumption happen at the same
time

Question 34

What does the P in the IHIP Characteristics of Services stand for?

Answer 34

P – Perishable: services cannot be stored