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The present challenge for many service firms is to develop an offering that is flexible and open for tailoring by the customers and at the same time achieve efficiency through standardizing processes. This is also the objective of service modularity that is an attempt to develop services by combining the flexibility of tailoring and the efficient production methods of standardizing. The concept became known as a production method of physical products, but recently it has raised interest among the service domain as well. The purpose of this paper is to find answers to the following question: In what ways does modularity of services influence on the customer's value perception? This paper utilizes qualitative research approach and abductive reasoning.
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