A typology of customer-to-customer interaction and its implications for excellence in service provision

Abstract

Whereas the critical role of customer participation and interaction with service providers for the quality of service outcomes and value has been extensively discussed in the literature, an equivalent debate about the implications of customer-to-customer interactions (CCI) has not yet been done. While CCI are recognised as a potential driver of variability and unpredictability in service production systems, the available research on the topic still offers rather anecdotal examples on how to handle CCI. For this reason, the current level of understanding about the consequences associated with different manifestations of CCI, as well as the knowledge about what are the adequate CCI management strategies remains fragmented and largely incomplete for effectively guiding managerial decision. This paper addresses this gap by advancing a CCI typology that characterises customers’ interactions along two dimensions concerning the design of service operations and delivery. The paper builds on a review of the literature on CCI, identifying a range of different customer interaction determinants and circumstances, while characterising the potential implications of CCI for service operations, quality and value. Some recommendations on adequate service management strategies to maximise the positive effects of CCI on value creation, cost reduction and service uniqueness are made.