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Paul P. Maglio · Cheryl A. Kieliszewski · James C. Spohrer Editors

Handbook of Service Science Foreword by Carl J. Schramm and William J. Baumol

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Editors Dr. Paul P. Maglio IBM Research – Almaden 650 Harry Road San Jose CA 95120-6099 [email protected]

Dr. Cheryl A. Kieliszewski IBM Research – Almaden 650 Harry Road San Jose CA 95120-6099 USA [email protected]

Dr. James C. Spohrer IBM Research – Almaden 650 Harry Road San Jose CA 95120-6099 USA [email protected] Series Editors: Bill Hefley Katz Graduate School of Business & College of Business Administration University of Pittsburgh Mervis Hall Pittsburgh, PA 15260 USA [email protected]

Wendy Murphy IBM c/o 1954 Rocky Cove Lane Denton, NC 27239 USA [email protected]

ISSN 1865-4924 e-ISSN 1865-4932 ISBN 978-1-4419-1627-3 e-ISBN 978-1-4419-1628-0 DOI 10.1007/978-1-4419-1628-0 Springer New York Dordrecht Heidelberg London Library of Congress Control Number: 2010924288 c Springer Science+Business Media, LLC 2010  All rights reserved. This work may not be translated or copied in whole or in part without the written permission of the publisher (Springer Science+Business Media, LLC, 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed is forbidden. The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

Table of Contents Foreword ………………….………………………..……………...………... ix Carl J. Schramm and William J. Baumol Preface ……………….………………………………………….….……….. xiii Contributors ………..………………………………………………….……... xv Introduction: Why a Handbook? ……………………………….…………....... 1 Paul P. Maglio, Cheryl A. Kieliszewski, and James C. Spohrer

Part 1: Context: Origins Revisiting “Where Does the Customer Fit in a Service Operation?” Background and Future Development of Contact Theory ...................... 11 Richard B. Chase The Service Profit Chain: From Satisfaction to Ownership ………..……… 19 James L. Heskett and W. Earl Sasser, Jr. Winning the Service Game: Revisiting the Rules by Which People Co-Create Value ………………………………………..……………... 31 Benjamin Schneider and David E. Bowen Customer Equity: Driving the Value of the Firm by Increasing the Value of Customers ………………………………………………….... 61 Roland T. Rust and Gaurav Bhalla Service Worlds: The ‘Services Duality’ and the Rise of the ‘Manuservice’ Economy ……………………………………………..... 79 John R. Bryson and Peter W. Daniels

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Table of Contents

Part 2: Context: Theory The Unified Service Theory: A Paradigm for Service Science ………….. 107 Scott E. Sa