What are services: inputs, processes or outputs?

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Article Addressing complexity and taking a systemic view in service research

What is meant by the term “service”? The answer could be traced to an old definition, which considered service as “a deed, a performance or effort” (Rathmell, 1966, p. 33). The conventional thinking of service has changed with the inclusion of the concept of service quality, as Lewis and Booms (1983) consider that service is a measure of how well the service delivered that can match with customer expectations. However, Edvardsson and Gustavsson (2003, p. 150) argue that “service is actually a process, which is the result of production and consumption”. As production and consumption of service take place simultaneously, where service employees and customers are interdependent, therefore, there are views that employees should also be part of the service (Edvardsson and Gustavsson, 2003; Sierra and McQuitty, 2005).

Furthermore, Vargo and Lusch (2004; 2008) provide a broader conceptualization that service is the application of a service employee’s knowledge and competences through processes; and the provision of information to customers. In addition to the service that should create value for customers, Vargo and Lusch (2008) contend that an important contribution of a good service is its ability to create value-in-use. More specifically, additional value of the service can be co-created by customers and the service-provider (Vargo and Lusch, 2008; Schumann et al, 2012).

The following sources should also be helpful in a more understanding on the term of service, namely: views of service over the last two hundred years ago/recent thoughts (Spohrer and Maglio, 2010).

• Edvardsson, B. and Gustavsson, B. (2003). Quality in the work environment: A prerequisite for success in new service development. Managing Service Quality, 13, 2, pp. 148-163.
• Judd, R. C. (1964). The Case for Redefining Services. Journal of Marketing, 28, 1, pp. 58-59.
• Lewis, R. C. and Booms, B. H. (1983). The marketing aspects of service quality. In: Berry, L., Shostack, G. and Upah, G. (eds.) Emerging Perspectives on Services Marketing. Chicago, USA: American Marketing Association, pp. 99-107.
• Rathmell, J. M. (1966). What is meant by services? Journal of Marketing, 30, 10, pp. 32-36.
• Schumann, J. H., Wünderlich, N. V. and Wangenheim, F. (2012). Technology mediation in service delivery: A new typology and an agenda for managers and academics. Technovation, 32, 2, pp. 133-143.
• Shostack, G. L. (1984). Designing services that deliver. Harvard Business Review, 62, 1, pp. 133-139.
• Sierra, J., J. and McQuitty, S. (2005). Service providers and customers: social exchange theory and service loyalty. The Journal of Services Marketing, 19, 6/7, pp. 392-400.
• Spohrer, J. C. and Maglio, P. P. (2010). Toward a science of service systems. In: Maglio, P. P., Kieliszewski, C. A. and Spohrer, J. C. (eds.) Handbook of service science. New York: Springer, pp. 157-194.
• Vargo, S. L. and Lusch, R. F. (2004). The Four Service Marketing Myths: Remnants of a Goods-Based, Manufacturing Model. Journal of Service Research, 6, 4, pp. 324-335.
• Vargo, S. L. and Lusch, R. F. (2008). Why “service”? Journal of the Academy of Marketing Science, 36, 1, pp. 25-38.

Kenneth has given a very detailed answer. Service could both be a process or an input.

The paper suggested by @Han focuses the systemic view of service research, especially under the influence of recent (since 2000) developments - the so-called paradigm 3 approach that recognizes the complexity of service systems - including three pillars: (1) S-D logic (Vargo and Losch, 2006, 2008), (2) Service Science (Spohrer and Maglio, 2008, 2010), and (3) Network Theory and Systems Theory (various authors).

Even though the systemic view is underlined, no one line of the paper says what are services in relation to three systemic elements: inputs, processes or outputs. I do not share the phrases like that of @Emmanuel - which are only opinions without any reference - and I do not agree with @Goli in his 'conclusion', which is not right in my opinion (inputs are no/never results).

One must read Sampson (2010) and Spohrer and Maglio (2010) - the latter suggested also by @Kenneth - to really see that services have to be considered as processes, which is totally different from the Operations Management textbooks that consider them as outputs under the I/O model, distinguishing services from products. Sampson (2010) suggested the paradigm of UST (Unified Service Theory) instead of IHIP (Intangibility, Heterogeneity, Inseparability, and Perishability) and this definition of services under the UST approach: "Services are production processes wherein each customer supplies one or more input components for that customer’s unit of production..."

I thank @Han and @Kenneth for indicating several useful sources, each of which address the reader to many other interesting ones. However, I think that many research work is to be done in service science within a systemic view in order to well distinguish all parties and various inputs they offer, benefits they gain and dammages they cause through service and production processes.

A question remains: If services are to be considered as processes or inputs, which are then to be considered as the outputs of them?

Another more important question arises in the case of services as processes: May they be transferable or movable? That is, may the exchange of services have sense in this case?

Check out this article on the OECD site: "Services In Global Value Chains: From Inputs to Value-Creating Activities".

Dear @Francisco Campos,

First, I thank you for your contribution in that question, though you did not gave your own opinion with a specific answer that could be your own thoughts.

I have seen the title you cited, but not all of it, for being sincere with you. The simple reason of that is that in this working paper, as in many other papers and books, not to say quasi all of what exist as written source on services, you find phrases like "service exports or exportation", which is the main source of my question, as in my absolute conviction the services are something to be consumed one and for all during the time they are produced and in the place they are produced: therefore, they cannot be transported and, by consequence, they cannot be exported nor imported.

Furthermore, in order to find the share of services in trade, which by consequence of what I said above, cannot be an international trade, in the sense of something to be transported from a country to another, as we cannot move the place where it is altogether produced and consumed, exception made only of the transport itself, which is by excellence the process of moving from one place to another, we should know what is the service in order to include it or not as such in the overall trade or production of the society during a given period, usually one calendar year.

It is in this point of view that I am asking to gather the opinion of other on what the service is, not in any other sense.

So, if you really have your opinion, be it formed only on the basis of the paper you mentioned, you are still asked to give it, without fearing whatsoever or whoever.

I thank you for your contribution,

Kind regards,

Krenar