Monitoring value-in-use of e-service

Purpose - The purpose of this paper is to develop and evaluate an approach to managerially monitoring customer-experienced value of e-services. The need for this study is based on a lack of models of e-service value applying a value-in-use approach on the one hand, and on the other hand the increasing need for managerially viable techniques to diagnose customers' views of e-service value. Design/methodology/approach - The approach, customized for but not limited to e-services, employs four principal value dimensions (technical, functional, temporal and spatial) anchored in service quality and value research to capture e-service value. The approach has two new characteristics. It focuses on relative joint evaluations of benefits and sacrifice and on the degree of customer activation. The empirical study based on a large-scale web survey of users' evaluations of a travel agency's web service illustrates how the approach can be used. Findings - The theoretically based approach showed in the empirical study that managerially interesting findings could be generated. As respondents in the sample were extensively positive towards the service provider the whole potential of the approach could not be effectively empirically demonstrated. Further empirical studies are needed to investigate the managerial relevance of the approach. Research limitations/implications - The present empirical study represents promising first results from a novel approach to determining customer-experienced service value. These findings raise a number of questions that should be answered in further research in order to further develop the approach. Practical implications - The suggested approach contributes to marketing practice by offering a method to acquiring information about how strongly different service elements add value to the service experienced by the customer. It also reveals value shortcomings or dimensions and sub-dimensions that decrease value and thus provides information of where the company does not meet customers' observations of competing offerings. Originality/value - The paper introduces a novel way of conceptualising value as benefits and sacrifice relative to a reference point represented by the competition. Connecting this to customer action rather than only perceptions represents another new feature. The paper contributes to service marketing by introducing a new technique for capturing customers' service preferences following a value-in-use approach.