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Which industrial product service system fits best?: Evaluating flexible alternatives based on customers' preference drivers

Article Information:

Title:

Which industrial product service system fits best?: Evaluating flexible alternatives based on customers' preference drivers

Author(s):

Mario Rese, Wolf-Christian Strotmann, Markus Karger

Journal:

Journal of Manufacturing Technology Management

Year:

2009

Volume:

20

Issue:

5

Page:

640 - 653


ISSN:

1741-038X


DOI:

10.1108/17410380910961037

Publisher:

Emerald Group Publishing Limited


Acknowledgements:

Financial support from the German Science Foundation (DFG) through SFB/TR29 is gratefully acknowledged.

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Abstract:

Purpose – Industrial product service systems (IPS2) are required to meet current customer needs in order to provide solutions to current customer problems. Furthermore, adaptability to changing customer decision drivers is required in order to account for customers' preference changes over time. The purpose of this paper is to present an approach where customer preference drivers for different IPS2 are identified and their directions analyzed.

Design/methodology/approach – A theoretical, literature-based analysis, drawing on different fields of economic research, is made use of. A tool to anticipate customer decisions based on the identified preference drivers is devised.

Findings – Nine main preference drivers are identified. These are customer resources, know-how, number of employees, core competences, value-based figures, process intricacy, process standardization, process frequency and process significance.

Research limitations/implications – The drivers identified on a theoretical basis should be investigated empirically. Special consideration should be given not only to the direction of their effect, but also their strength and interdependency.

Practical implications – The paper helps IPS2 suppliers to analyze customers' preferences and helps decide about the design and the business model for the IPS2.

Originality/value – The paper is the first paper that focuses on the relevant influence factors of a customer's decision about the IPS2-design.

Keywords:

Customers, Decision making, Industrial services, Services


Article Type:

Research paper


Article URL:

http://www.emeraldinsight.com/10.1108/17410380910961037

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