Hanken Professor Christian Grönroos - Principles of Service Management 2 - The service profit logic


Summary

This video introduces the concept of Service Profit Logic, focusing on the management implications in service-oriented firms. It contrasts customer interfaces in goods manufacturers and service firms, emphasizing the significance of customer interactions in service businesses. The profit logic model in service businesses is explained, emphasizing revenue generation through quality, customer interactions, and internal efficiency management. The shift towards a service-oriented management approach is discussed, highlighting the importance of customer interactions and revenue generation over cost efficiency. It stresses the importance of using service-oriented language and thinking in management practices to align with service business principles.


Introduction to Service Profit Logic

Introduction to the concept of Service Profit Logic and its implications for management in service-oriented firms.

Comparison between Goods Manufacturer and Service Firm

Contrasting the customer interface in goods manufacturers and service firms, highlighting the differences in traditional marketing and sales approaches.

Customer Interaction in Service Business

Exploring the significance of customer interactions in service businesses, emphasizing the impact of quality, atmosphere, and customer experience on revenue generation and customer retention.

Profit Logic in Service Business

Detailed explanation of the profit logic model in service businesses, focusing on revenue generation through quality, customer interactions, and internal efficiency management.

Service-Oriented Management Approach

Discussing the shift towards a service-oriented management approach, emphasizing the importance of customer interactions, external effectiveness, and revenue generation over cost efficiency in service businesses.

Implications of Service Management

Highlighting the implications of service management, including value creation, long-term customer relationships, customer perception, and the shift from inside-out to outside-in management focus.

Semantics and Management Language

Emphasizing the importance of using service-oriented language and thinking in management practices to align with service business principles and avoid product-centric approaches.

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