Service Processes as a Sequence of Events
29 Pages Posted: 18 Jan 2003
Date Written: 19 2002, 11
In this paper the service process is considered as a sequence ofevents. Using theory from economics and psychology a model isformulated that explains how the utility of each event affects theoverall evaluation of the service process. In this model we especiallyaccount for the peak-and-end rule and negative consumer timepreference. This model is tested in the context of telephone servicecalls in the financial service market. Our results show that both theaverage utility and the positive peak of the events positively affectcustomer satisfaction with the service call. Surprisingly, the end ofthe sequence has a negative effect. Theoretical and managerialimplications of these findings are discussed.
Keywords: sequence of events, services, satisfaction, economic psychology, consumers
JEL Classification: M, M31
Suggested Citation: Suggested Citation