Service Satisfaction–Market Share Relationships in Partnered Hybrid Offerings

Abstract

AbstractMany goods manufacturers and service providers jointly deliver partnered hybrid offerings to achieve competitive advantage and superior performance. In such cases, service providers may emphasize different aspects of service in their offerings. Do service providers and goods manufacturers benefit equally from emphasizing service satisfaction? Do the performance effects of emphases on different aspects of service satisfaction vary across different goods? The authors examine the effects of emphases on two aspects of service satisfaction, relational service (interactions with the service provider’s staff) and service environment (service provider’s facilities), on the market shares of service and goods components of partnered hybrid offerings. Using multiple secondary data sources from the U.S. automobile industry between 2009 and 2015, the authors find that emphasizing relational service satisfaction increases service market share but decreases goods market share. Counterintuitively, emphasizing ser...