Microsoft Word Volume 2 Service and Service Quality Final docx

Services as Benefits 
In the Grönroos (2006) definition of service, in addition to emphasizing the process, Grönroos also 
states that services are provided as solutions to customer problems; a value-generating service 
provides a solution to customer problems, irrespective of whether this solution is based on a physical 
product or not. Similarly, Johnston & Clark (2005) state that, from the customers’ perspective, service 
is the combination of the customers’ direct experience of the service process and their perception of 
the outcome of the service, i.e. the result of service delivery to the customer. These views address 
service as solutions, outcomes, benefits or value for the customer. Grönroos (2006) suggests a good 
enough core solution (a physical product, a service, or a combination of goods and services) is 
necessary to compete in the marketplace, but is not sufficient for a competitive advantage. This 
requires an enhanced offering consisting of physical product components, service components, 
information, personal attention and other elements of customer relationships. Grönroos labels this 
combination a ‘service offering’, even when the core solution is based on a physical product, because 
all elements of the offering are combined to provide a value-generating service for customers. Lusch 
and Vargo (2006) also refer in their definition to services being for ‘the benefit of another entity or the 
entity providing the service itself’. Moreover, they state that what matters is value-in-use or value 
created (and determined) at the moment of consumption, not value-in-exchange or value added to 
goods during the production process. Another benefit perspective is provided by Lovelock and 
Gummesson (2004), who present services as ‘offering benefits through access or temporary possession 
rather than ownership, with payments taking the form of rentals or access fees.’