The ProServVal Framework

The measures in this customer value centred framework do not include the logic of expectation matching as in the disconfirmation approach and is focusing on the customer’s instant perception of value, without taking expectations to a specific consideration. This is due to findings of perception scores to have larger impact on service evaluation than the disconfirmation between perceptions and expectations (Cronin and Taylor, 1992).

3.5.1.1 Value for the customer.

Value is the bearing construction of this framework, as earlier described. The understanding of value is what the customer perceives as value adding. The logic is that the customer

constantly is assessing value propositions, unconscious and conscious, from which it receives and from which he gives in the service exchange process.

There does not exist any consensus in the literature for a single definition of value (Lapierre, 2001). The inclusion of both monetary and non-monetary costs seem to be accepted in the literature (Lapierre, 1997; Lapierre et al., 1999; Sonne, 1999; Czerniawska & Smith, 2010), although a few authors isolate value to be cost over benefit (Patterson et al., 1997; La et al., 2008). Perceived sacrifice is included as an own main dimension in Lapierre et al.’s (1999) work, but will be incorporated in the customer’s constant value assessment, in order to simplify the framework.

This constant value evaluating follows the full service exchange process, at multiply or constant service encounters, from pre-purchase-stats through the exchange to positive effects, leading back to a pre-purchase state again. The returning process is in thread with the works of e.g. the International Marketing and Purchasing Group (Ford & Håkansson, 2006), Lapierre (1997) and the Service Profit Chain (Heskett, Jones, Loveman, Sasser & Schlesinger 1994).

Findings from previous research point in the direction of the definition of value depending upon professional experience of the customer, hierarchical level of the person questioned, type of project and industrial sector (E.g. Czerniawska & Smith, 2010; Lapierre, 1997) who supports La et al.’s (2008) contingency approach where they identify several significant mediatising variables on perceived performance and value.

3.5.1.2 The constant circular service exchange process.

The longitudinal nature of professional service exchange is an on-going process, taking place over several potential values adding service encounters, often over a long period

of time (Szmigin, 1993). Lapierre (1997) states that it is important to evaluate the service also after the service exchange phase. This framework is built on an assumption that the customer perceives value instantly during a constant service exchange process, with the same factors affecting value assessments before, during and after service exchange.

This can be exemplified by a situation where an engineering consultant suggests a specific solution for cost reduction and sustainability to the customer on a certain part of a project. In a state of service delivery the customer is likely to conscious or unconscious perceive whether the service exchange process will add value in terms of cost reduction and increased sustainability or not.

But due to the intangibility and measurement problems of professional services, it is hard for the customer to evaluate whether the exchanged service actually caused a ‘cost reductions’ in the project or not. Nevertheless the customer will still have a value perception for the specific solution after the service exchange has been done, and this is based on the instant perceptions of the value at the being point.

This leads to a framework where the value creation process is continuous and where the same dimensions, factors and variables are affecting costumer’s value perceptions throughout the service exchange process. This conceptualising also shares the idea of a circular exchange process where the positive outcome of value adding factors, lead to re-purchase, among other benefits, and will then lead to re-purchase and repeated service delivery.

3.5.1.3 Positive effects.

It seems to be an overall agreement in the literature fields of service that behaviour intentions are subsequent of customer satisfaction, whether this is conceptualized as re-purchase, word-of-mouth or behaviour intentions in general (E.g. Patterson et al., 1997; Woo & Ennew, 2005). Woo and Ennew (2005) place behaviour intentions and customer satisfaction

subsequent to their construct of business-to-business service quality. The service profit chain (Hesket et. al 1994) emphasises the recirculation of the different positive effects as well as putting customer satisfaction before customer loyalty leading to revenue growth and profitability.

In this conceptualization behaviour intentions among other beneficial effects of customer satisfaction are conceptualized under the dimension of positive effects. This is due

to the viewpoint of this thesis; the ultimate goal for any service is satisfied customers as such, and not various marketing effects.

3.5.1.4 ProServVal.

The overall logic of this framework is that the customer derives value from the service exchange process, perceived at seven different dimensions. The framework is leaning on an approach of the customers constant evaluate value, as perceived benefits compared perceived sacrifices. . The framework uses seven different dimensions that include different factors of potential value adding factors for the customer in a business-to-business professional service.

These dimensions all lead to customer value and is the value the customer perceives from the service exchange, which works as a subsequent to the seven dimensions in the model.

-­‐ Core service can be described as a dimension encompassing many different factors all related to the actual service that is purchased. This dimension is inspired by and fairly similar to Grönroos’ technical dimension.

Figure 8: The seven different dimensions that affect the perceived value in the ProServVal-framework.

-­‐ Peripheral service is largely including a wide range of different elements of how the service exchange process is conducted. This dimension is inspired by Grönroos’

functional dimension.

-­‐ Relationship is representing many different kind of factors, which the customer can perceive value adding within the relationship. This is inspired by the relationship’s importance due to work from organisational buying behaviour-research.

-­‐ Trust is representing a central part of service exchange processes with the willingness to trust the business partner. This dimension has also been pointed out in

organisational buying behaviour.

-­‐ Adaptation can be described as the ability the service provider has got in order to understand and adjust the service delivery to deliver what the customer actually needs.

This dimension has also been emphasised by the organisational buying behaviour literature.

-­‐ Fairness is representing the customer’s perception of justice towards a service

exchange process perceived fair or not, based on what the customer gives compared to what he receives in return. Patterson et al. (1997) and equity theories inspired this dimension.

-­‐ Commitment is a dimension that represents elements of engagement, enthusiasm and supplier involvement. A high degree of consultant commitment are likely to lead to value for the customer in terms of extra service.