How do Service Encounters Impact on Relationship Benefits

Chao-Hung Wang,Li-Chang Hsu

doi:10.5539/ibr.v5n1p98

Abstract

The literature has generally held that interpersonal-based service encounters strongly affect the relationship benefits, though technology-based service encounters are increasing importance. However, there has been no systematic comparison of the impact of two service encounters on relationship benefits. We test hypotheses about the respective effects of both service encounters on different relationship benefits in two services industries. The results provide support for the proposal model and indicate that there are higher special treatment benefits when the technology-based service encounter is higher. In addition, the interpersonal-based service encounter has significant positive effect on the confidence benefit. However, the technology-based service encounter leads to significant negative effect on the social benefit.

Highlights

As the services marketplace becomes more competitive, it is increasingly important for core solutions such as physical goods or services to be good enough to provide a competitive advantage
It is considered that these two services were sufficiently different between interpersonal-based service encounters (IBSE) and TBSE to allow for generalizing the results beyond a single service setting
IBSE has a mean score of 3.68 showing that customers reported a higher level of information to IBSE than to TBSE

Summary

Introduction

As the services marketplace becomes more competitive, it is increasingly important for core solutions such as physical goods or services to be good enough to provide a competitive advantage. What creates a sustainable competitive advantage is the development of every element in the customer relationship, especially service encounters (Beatson et al, 2007). A service encounter is a process which customers interact directly with a service (Bateson and Hoffman, 2010). If service encounters follow each other in a very brief (e.g., a monthly hair cut service) or over a longer time frame (e.g., an annual tourism package), a relationship may emerge. Developing value-generating service encounters in the process of a service delivery should be one of the highest priorities in a services marketing strategy (Hogg et al, 2003)

Methods

Results

Discussion

Conclusion