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Service Satisfaction–Market Share Relationships in Partnered Hybrid Offerings

Rafael Becerril-Arreola¹; Chen Zhou¹; Raji Srinivasan²; Daniel Seldin³

¹ University of South Carolina · ² The University of Texas at Austin · ³ Analytic Center of Excellence, J.D. Power and Associates

Many goods manufacturers and service providers jointly deliver partnered hybrid offerings to achieve competitive advantage and superior performance. In such cases, service providers may emphasize different aspects of service in their offerings. Do service providers and goods manufacturers benefit equally from emphasizing service satisfaction? Do the performance effects of emphases on different aspects of service satisfaction vary across different goods? The authors examine the effects of emphases on two aspects of service satisfaction, relational service (interactions with the service provider's staff) and service environment (service provider's facilities), on the market shares of service and goods components of partnered hybrid offerings. Using multiple secondary data sources from the U.S. automobile industry between 2009 and 2015, the authors find that emphasizing relational service satisfaction increases service market share but decreases goods market share. Counterintuitively, emphasizing service environment satisfaction decreases service market share. Furthermore, the vertical quality of the good moderates these relationships. The findings generate actionable guidelines to improve market shares by adjusting relational service satisfaction and service environment satisfaction in the partnered hybrid offerings context.

DOI

10.1509/jm.15.0537

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