Considered Service-specific journals were Journal of Service Research, Journal of Service Management, Journal of Services Marketing, Journal of Service Theory and Practice, Service Industries Journal, and Service Science.

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xService-Science_medium.jpg.pagespeed.ic.w2rZ6IIddIBridges, E. and C. F. Hofacker (2016): Service Marketing and Adoption of Promotional Technology: A Qualitative Study, Service Science, 8(4), pp. 368-385

This qualitative research used a grounded theory approach to better understand how adoption of technologies that are new to the service organization can impact the nature of interactions between individuals in information technology (IT) and other functional areas; this study focuses on the interface between marketing and IT. Literature-based conceptual development informed in-depth interviews with executives from both functional areas at five growth-oriented service firms, in regard to periods of change related to adopting new marketing technologies. A total of 14 in-depth interviews were completed, with individuals representing dyads comprised of one manager from marketing and one from IT, who experienced the relationship changes that resulted. Findings suggest that, because of the demands of engaging in more intensive collaboration, there is a realized need to develop new workflow processes to assist in decision making and to reduce the likelihood of internal conflict. The enhanced flexibility and range required by individuals involved in the adoption of new promotional technologies were not always a good fit with their personal styles or goals. For instance, there was a decrease in felt power and independence of individuals in the marketing functional area, owing to the need for greater reliance on skills and capabilities of IT personnel. Individuals in each dyad described how they adapted to their new realities, including how they felt, what changes they had to make to adapt, and the resulting modifications in work processes. Perhaps the most interesting outcome of the research is the characterization of the revised internal interaction processes that were developed to allow for improved communication and understanding. The integration of future technology-based marketing tools into managerial decision making will most likely require similar adaptations of workflow processes. It is anticipated that adoption of new technologies at other internal boundaries may also result in similar need for change. Therefore, future research might empirically test the propositions and conceptual model, examining their applicability to technology adoption and workflow change at other internal boundaries as well as in other industries and other locations.

Link: http://dx.doi.org/ 10.1287/serv.2016.0144 [Google]

Choi, T.-M. (2016): Inventory Service Target in Quick Response Fashion Retail Supply Chains, Service Science, 8(4), pp. 406-419

Different fashion brands have different inventory service targets. To achieve the desirable inventory service level without the need of holding a lot of inventory, fashion companies commonly adopt the quick response practice. In this paper, we conduct an analytical study on the influence played by the inventory service target on quick response fashion retail supply chains. To be specific, we consider the case when the fashion retailer, who is the channel leader, aims to achieve an inventory service target in its inventory planning. We explore impacts of the inventory service-targeted quick response program, in terms of expected profit, and profit risk on the fashion retailer, the fashion manufacturer, and the fashion supply chain system. We also examine the quick response’s impact on social welfare. We show how three practical contracts, namely, the fixed-fee contract, the wholesale pricing contract, and the product variety contract, can be employed to achieve a win–win situation in the fashion retail supply chain system with the adoption of the inventory service-targeted quick response program. Closed-form managerial insights on how the inventory service target affects the expected benefit of quick response, the reduction of profit risk under quick response, the expected gain of social welfare, the achievability of the win–win situation, and the setting of contractual parameters, are derived.

Link: http://dx.doi.org/ 10.1287/serv.2016.0146 [Google]

Jin, Y. and Z. Pang (2016): Smart Data Pricing: The Value of Shared Data Plans, Service Science, 8(4), pp. 386-405

This paper studies a monopoly telecom operator’s decision on the adoption of shared data plans. A shared data plan allows sharing data quota among multiple devices or users, while conventional single device data plans only allow the use of a single device. We develop analytical models and compare a simple shared data plan (i.e., bundling pricing) to single device data plans (i.e., partitioned pricing). We aim to identify key factors that drive the optimal pricing policies under the two pricing plans and the value of data shared plans. We first consider a base model with independent consumer valuations (usages) of different devices. We find a threshold on the unit usage cost below which the shared data plan yields more profits than single device data plans. The optimal price for the shared data plan is less than the sum of the single device data plans. The disparity of the devices’ mean usages reduces the relative value of the shared data plan against the single device data plans. We also show that shared data plans increases the social welfare and consumer surplus when it yields a higher profit. We then examine the effects of complementarity and substitution between consumer valuations of the devices on the value of data shared plans. Two commonly used approaches to modeling the complementarity and substitution in the literature are considered: utility scaling and correlation. We examine how the utility scaling factor and correlation affect the value of shared data plans, respectively. We find that a higher degree of complementarity (or a lower degree of substitution) may not necessarily increase the value of shared data plan, which is counter to our common intuition that shared data plans are more attractive for complementary products. We provide the rationale and managerial insights. We also examine the value of bundling under a quadratic usage cost function.

Link: http://dx.doi.org/ 10.1287/serv.2016.0133 [Google]

Tandon, U., R. Kiran and A. N. Sah (2016): Understanding Online Shopping Adoption in India: Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) With Perceived Risk Application, Service Science, 8(4), pp. 420-437

The purpose of this research is to analyze perceived risk and drivers of online shopping influencing behavioral intention in India. The study empirically validates website design, cash-on-delivery (COD) mode of payment, and different facets of perceived risk with the unified theory of acceptance and use of technology(2) (UTAUT2) of Venkatesh et al. [Venkatesh V, Thong JYL, Xu X (2012) Consumer acceptance and use of information technology: Extending the unified theory of acceptance and use of technology. MIS Quart. 36(1):157–178]. Findings of the study revealed that perceived risk had a negative relation with behavioral intention, whereas the drivers were positively associated with behavioral intention. Besides analyzing cash-on-delivery mode of payment as a construct, it also includes website design to enhance application of UTUAT2 in Indian and other similar developing countries’ context. The study will help online retailers to focus in the right direction by eliminating threats and convert nonshoppers to online shoppers.

Link: http://dx.doi.org/ 10.1287/serv.2016.0154 [Google]

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