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Creating a commercially compelling smart service encounter

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  • Tseng-Lung Huang

    (Yuan Ze University)

Abstract

This study explores the nature and characteristics of smart service encounters and their impact on customer value and price premiums using a task-based laboratory experiment and analyzing 232 valid questionnaire responses. The responses were analyzed using structural equation modeling to test the hypotheses. The empirical results revealed that a smart service encounter incorporates audiovisual, haptic, rehearsability, symbol sets, and reprocessability elements, and increases consumers’ willingness to pay a price premium via hedonic, functional, and social value. Service businesses can create commercially compelling smart service encounters that maximize earnings and profits based on these findings.

Suggested Citation

  • Tseng-Lung Huang, 2018. "Creating a commercially compelling smart service encounter," Service Business, Springer;Pan-Pacific Business Association, vol. 12(2), pages 357-377, June.
    • Handle: RePEc:spr:svcbiz:v:12:y:2018:i:2:d:10.1007_s11628-017-0351-8
    DOI: 10.1007/s11628-017-0351-8
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    References listed on IDEAS

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    Cited by:

    1. Huang, Tseng-Lung, 2019. "Psychological mechanisms of brand love and information technology identity in virtual retail environments," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 251-264.
    2. Maudlin Klissa Dhiandra Putri, 2020. "The Role of Methods of Service Encounter and Surprise in Customer Delight and Customer Loyalty in Indonesian Supermarkets," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 6(1), pages 09-20.

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