Analysis of service providing systems considering the interaction with customers

Abstract

There has been an increasing trend in the scientific studies of services. Though the literature emphasizes that service design should be the co-creation between the customer and the provider, the concrete models mainly prescribe the providers and little attention has been paid on the customers' autonomous involvement.
We model the decision making of a customer on giving advices to a service provider to improve the service quality. We then simulate the repeated interaction between the provider and the customer, and observe how different service businesses may differ in the treatment of customer voices.