Behavioral implications of the transition process from products to services

Abstract

Purpose: This paper attempts to provide a better understanding of behavioral processes and their impact on the transition from products to services. Design/methodology/approach: Case studies are the main tool of theory development. The paper focuses mainly on German and Swiss product manufacturers, whose products require a high level of customer investment. Findings: The objective was merely to explain behavioral dimension of transition. The paper indicated seven behavioral processes which play a critical role during the transition. Managerial service awareness and role understanding, as well as employee service awareness and role understanding seem to be the right triggers to change the behavioral processes in the desired manner. Research limitations/implications: The main focus was on the German and Swiss machinery and medical equipment manufacturing industries, and the remarks are limited to these sectors. Practical implications: The key managerial implications and recommendations can be formulated as follows: establish a “value-added” managerial service awareness; change managerial role understanding – from traditional customer support to business manager; establish a “value-added” employee service awareness; and change employee role understanding – from selling products to providing services. Originality/value: The authors were able to add a complementary perspective to existing literature on the transition process from products to services. For service management theorists, it is suggested that the transition from product manufacturers into service providers is influenced strongly by several behavioral processes. A complete theory of the transition process requires an interdisciplinary theory that integrates service management and human decision making.