Doctoral thesis: Service profitability calls for facilitation and support of the customers’ value creation activities

"The concept of service profitability should be characterised as the financial outcome of service sales and service provision, wherein the service provider's facilitation and support of the customers' value creation activities is paramount", suggests Henrich Nyman in his doctoral thesis "Service Profitability - An Augmented Customer Lifetime Value Approach".

In his thesis Nyman argues for adopting service logic on profitability and, thus, for studying 'service' (singular) profitability as a separate concept from 'services' (plural) profitability. In contrast to services (plural), which pertain to a distinct category of market offerings, the contemporary perspectives on service (singular) represent various ways of thinking and, logics or mental models of value creation from the customer's point of view, which are founded on value in use.

Nyman adopts a provider perspective on service by conceptualising service as consisting of two distinct processes: the service sales process and the service provision process. Nevertheless, Nyman claims that the customer perspective on these processes is imperative for the financial consequences of the service. From the customers' point of view, the service sales process deals with value propositions, which indicates that service offerings are not the final result of an economic activity but an element that adds value for customers. Moreover, from the customers' perspective, the service provision process comprises value facilitation, i.e. how the process facilitates the customers' value-creation activities.

Nyman conceptualises value facilitation as the customers' perception of the enabling, enhancing and economical support by the service offering as well as the supportiveness by the service provider.

Nyman claims that the concept of service profitability can fruitfully be applied within service design, new service development and service management.

MSc Henrich Nyman will defend his doctoral thesis in marketing: " Service Profitability - An Augmented Customer Lifetime Value Approach" at Hanken School of Economics in Helsinki.

Time: 17 January 2014, at 12
Place: Hanken School of Economics in Helsinki, Arkadiankatu 22, 1st floor auditorium
Opponent: Professor Lynette Ryals, Cranfield University
Custos: Professor Tore Strandvik, Hanken School of Economics

For further information, contact:
Henrich Nyman
+358 400 835 521
henrich.nyman@hanken.fi

A copy of the thesis can be downloaded at: https://helda.helsinki.fi/handle/10138/42359 Opens in new window