Modeling the Dynamics of Service: The Creation of Customer Value

Abstract

During recent years, value-based approaches have gained popularity in both research and managerial practice. One of the most influential approaches is service-dominant logic (SDL) that focuses on the co-creation of value between the provider and customer and highlights the context in which value is created and the related resources integrated. Starting from these viewpoints, this chapter provides a framework for a systematic analysis of the value- and service-based business. We apply the system dynamic modeling to study the customer value creation. In particular, we describe the dynamic relationship between value promise given to customer and the customer-experienced value.