Trust reduces costs

Service providers may have the confidence to deliver performance and affordance for a certain price, but they also need trust. Confidence is the belief service providers have in themselves in promising a set of outcomes and experience based on their resources and capabilities. Trust is the belief customers have in such promises. Without confidence, promises…

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O-P/E=N

Outcomes are goods, experience is the packaging. Improving the quality of outcomes increases the benefits. Improving the quality of experiences reduces unnecessary costs. The design of a service should make it possible to deliver superior sets of outcomes and experiences at the lowest possible cost, so both customers and service providers are better off, without…

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Pleasure and pain

Pleasure is the ratio of facility or ease of use over the intolerance. The higher this ratio is the better. Impatience for error, delay and rework is an aspect of intolerance. Intolerance is based on promises and expectations from previous experiences. Higher intolerance requires making this easier. Pain is the ratio of the difficulty and…

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Four Threshold Field Map

The propensity for a service is a customer’s inclination to pay for and use it. So, for example, those who cannot or prefer not to drive to work, have a greater propensity for public transportation, than those who do. Those do own cars and drive them often have the propensity for services that provide parking,…

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