Diagnosing the supplementary services model: Empirical validation, advancement and implementation

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Abstract:

Since the publication of Levitt’s (1980) ‘total product concept’, there has been an increasing recognition that additional supplementary elements, beyond the core product, can have a profound impact on customer value. Lovelock’s (1995) supplementary services model further develops this concept by providing more specific guidelines regarding where to seek value enhancement. However, there is little empirical validation of his theoretical model across the services sector. Our paper addresses this gap in three ways. First, we assess the soundness of Lovelock’s model across different service businesses by adopting a form of interaction research. Second, drawing upon findings from this process, we then develop a revised model of supplementary services. Finally, we propose an implementation framework for our revised model of supplementary services.

Keywords: differentiation; flower of service; product augmentation; supplementary services

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/0267257X.2013.814703

Affiliations: 1: University of Sydney Business School, Australia 2: University of New South Wales, Kensington, Australia

Publication date: February 3, 2014

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