Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience...

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Journal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet R. McColl-Kennedy, Lilliemay Cheung, Andrew Gallan, Chiara Orsingher, Lars Witell, Mohamed Zaki, Article information: To cite this document: Ruth N. Bolton, Janet R. McColl-Kennedy, Lilliemay Cheung, Andrew Gallan, Chiara Orsingher, Lars Witell, Mohamed Zaki, (2018) "Customer experience challenges: bringing together digital, physical and social realms", Journal of Service Management, https://doi.org/10.1108/JOSM-04-2018-0113 Permanent link to this document: https://doi.org/10.1108/JOSM-04-2018-0113 Downloaded on: 20 September 2018, At: 08:23 (PT) References: this document contains references to 151 other documents. To copy this document: [email protected] The fulltext of this document has been downloaded 132 times since 2018* Users who downloaded this article also downloaded: ,"Design for service inclusion: creating inclusive service systems by 2050", Journal of Service Management, Vol. 0 Iss 0 pp. - <a href="https://doi.org/10.1108/JOSM-05-2018-0121">https:// doi.org/10.1108/JOSM-05-2018-0121</a> ,"Operating without operations: how is technology changing the role of the firm?", Journal of Service Management, Vol. 0 Iss 0 pp. - <a href="https://doi.org/10.1108/JOSM-05-2018-0127">https:// doi.org/10.1108/JOSM-05-2018-0127</a> Access to this document was granted through an Emerald subscription provided by Token:Eprints:FM89GI6UNX8ICAP44NDS: For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services. Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. *Related content and download information correct at time of download. Downloaded by Doctor Ruth N. Bolton At 08:23 20 September 2018 (PT)

Transcript of Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience...

Page 1: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Journal of Service ManagementCustomer experience challenges bringing together digital physical and socialrealmsRuth N Bolton Janet R McColl-Kennedy Lilliemay Cheung Andrew Gallan Chiara Orsingher LarsWitell Mohamed Zaki

Article informationTo cite this documentRuth N Bolton Janet R McColl-Kennedy Lilliemay Cheung Andrew Gallan Chiara Orsingher LarsWitell Mohamed Zaki (2018) Customer experience challenges bringing together digital physicaland social realms Journal of Service Management httpsdoiorg101108JOSM-04-2018-0113Permanent link to this documenthttpsdoiorg101108JOSM-04-2018-0113

Downloaded on 20 September 2018 At 0823 (PT)References this document contains references to 151 other documentsTo copy this document permissionsemeraldinsightcomThe fulltext of this document has been downloaded 132 times since 2018

Users who downloaded this article also downloadedDesign for service inclusion creating inclusive service systems by 2050 Journal of ServiceManagement Vol 0 Iss 0 pp - lta href=httpsdoiorg101108JOSM-05-2018-0121gthttpsdoiorg101108JOSM-05-2018-0121ltagtOperating without operations how is technology changing the role of the firm Journal of ServiceManagement Vol 0 Iss 0 pp - lta href=httpsdoiorg101108JOSM-05-2018-0127gthttpsdoiorg101108JOSM-05-2018-0127ltagt

Access to this document was granted through an Emerald subscription provided byTokenEprintsFM89GI6UNX8ICAP44NDS

For AuthorsIf you would like to write for this or any other Emerald publication then please use our Emeraldfor Authors service information about how to choose which publication to write for and submissionguidelines are available for all Please visit wwwemeraldinsightcomauthors for more information

About Emerald wwwemeraldinsightcomEmerald is a global publisher linking research and practice to the benefit of society The companymanages a portfolio of more than 290 journals and over 2350 books and book series volumes aswell as providing an extensive range of online products and additional customer resources andservices

Emerald is both COUNTER 4 and TRANSFER compliant The organization is a partner of theCommittee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative fordigital archive preservation

Related content and download information correct at time of download

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Customer experience challengesbringing together digital physical

and social realmsRuth N Bolton

Department of Marketing WP Carey School of BusinessArizona State University Tempe Arizona USA

Janet R McColl-Kennedy and Lilliemay CheungUQ Business School The University of Queensland Brisbane Australia

Andrew GallanDepartment of Marketing Kellstadt Graduate College of Business

DePaul University Chicago Illinois USAChiara Orsingher

Department of Management University of Bologna Bologna ItalyLars Witell

Department of Industrial Engineering and ManagementLinkopings Universitet Linkoping Sweden and

CTF Service Research Center Karlstad University Karlstad Sweden andMohamed Zaki

Department of Engineering Institute for ManufacturingUniversity of Cambridge Cambridge UK

AbstractPurpose ndash The purpose of this paper is to explore innovations in customer experience at theintersection of the digital physical and social realms It explicitly considers experiences involving newtechnology-enabled services such as digital twins and automated social presence (ie virtual assistants andservice robots)Designmethodologyapproach ndash Future customer experiences are conceptualized within athree-dimensional space ndash low to high digital density low to high physical complexity and low to high socialpresence ndash yielding eight octantsFindings ndash The conceptual framework identifies eight ldquodualitiesrdquo or specific challenges connectedwith integrating digital physical and social realms that challenge organizations to create superiorcustomer experiences in both business-to-business and business-to-consumer markets The eight dualities areopposing strategic options that organizations must reconcile when co-creating customer experiences underdifferent conditionsResearch limitationsimplications ndash A review of theory demonstrates that little research has beenconducted at the intersection of the digital physical and social realms Most studies focus on one realm withoccasional reference to another This paper suggests an agenda for future research and gives examples offruitful ways to study connections among the three realms rather than in a single realmPractical implications ndash This paper provides guidance for managers in designing and managing customerexperiences that the authors believe will need to be addressed by the year 2050Social implications ndash This paper discusses important societal issues such as individual and societal needsfor privacy security and transparency It sets out potential avenues for service innovation in these areasOriginalityvalue ndash The conceptual framework integrates knowledge about customer experiences indigital physical and social realms in a new way with insights for future service research managers andpublic policy makersKeywords Service innovation Technological innovation Value creation Service designCustomer experience Service ecosystemPaper type Research paper

Journal of Service Managementcopy Emerald Publishing Limited

1757-5818DOI 101108JOSM-04-2018-0113

Received 24 April 2018Revised 20 July 2018

Accepted 28 July 2018

The current issue and full text archive of this journal is available on Emerald Insight atwwwemeraldinsightcom1757-5818htm

Customerexperiencechallenges

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Customers seek to engage with service brands and interact with service organizations thatenable superior experiences (Lemon and Verhoef 2016) Organizations respond tocustomers and shape markets by designing and delivering unique experiences that providethem with a competitive advantage and lead to favorable business outcomes (eg customerretention and profitability) (Bolton et al 2014 Verhoef et al 2009) Technologicaldevelopments are changing the capabilities of service organizations and systems (Breidbachet al 2018) and transforming the customer experience (Lemon 2016 Van Doorn et al 2017)In the future a customer might simultaneously interact with a service robot sensors builtinto the servicescape a mobile application and a human being who might be an employee ora friend Moreover changes in society will accelerate developments in the digital physicaland social realms In 2050 people worldwide aged 65 or older will outnumber children aged5 and under they will become parents much later in life and most people will live in a largecity and not own a car (Cohen 2014) These population trends will also change the nature ofservices because each customer is an active participant who co-creates value by drawingupon a unique assortment of capabilities and resources available in these realms

These three trends ndash developments in the digital physical and social realms changes inactorsrsquo capabilities and resources and societal changes ndash will stimulate an increase in theneed for customized customer experiences Ultimately organizations are likely to becomemore efficient and effective in serving customers so that consumer and societal well-beingwill improve However to truly understand and co-create value within a customerexperience firms require a comprehensive view of the customer experience over time thatintegrates the digital physical and social realms Without this integration organizationsface many customer experience challenges in both business-to-consumer (B2C) andbusiness-to-business (B2B) markets Predictions abound about the death ofbrick-and-mortar stores how customers will spend more time in virtual reality and theways that robots and artificial intelligence (AI) will replace service employees (Huang andRust 2018) For instance robots are already showing promise in assembling IKEA furniturewithout human assistance (Burdick 2018) New developments in each of these realms arealready causing marketplace disruptions For example as we were writing this paperAmazon Berkshire Hathaway and JP Morgan announced that they will partner totransform healthcare in the US marketplace (Tracer and Son 2018)

The challenges and opportunities facing service organizations are significant andsubstantial because customer experiences arise at the intersection of the digital physical andsocial realms for each customer This paper reviews what we know and do not yet knowabout customer experience with a focus on connections among the digital physical and socialrealms We view the customer experience as encompassing customersrsquo cognitive emotionalsocial sensory and value responses to the organizationrsquos offerings over time includingpre- and post-consumption (Kranzbuumlhler et al 2017 Lemon and Verhoef 2016 Voorhees et al2017) We bring together recent research concerning value co-creation and interactive servicesdigital and social media (augmented and virtual reality) multi-channel marketing (eg storebeacons) service operations (eg leveraging AI in business processes) and technology (eg theInternet of Things (IoT)) In doing so our paper addresses managerial questions such as

bull How do digital physical and social elements interact to form the customer experience

bull How might organizations integrate digital physical and social realms to createconsistently superior customer experiences in the future

bull How do customer experiences at the intersection of digital physical and social realmsinfluence outcomes for individuals service providers and society

bull What are the opportunities challenges and emerging issues in the digital physicaland social realms for organizations managing the customer experience

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Our paper offers a conceptual framework for analyzing the formation of customerexperiences that incorporates the digital physical and social realms and explicitly considersnew technology-enabled services Customer experiences are conceptualized within a threedimensional space ndash low to high digital density low to high physical complexity and low tohigh social presence ndash yielding eight octants This framework leads to a discussion ofspecific opportunities and challenges connected with transitioning from low to high digitaldensity and from low to high social presence environments for both B2B and B2C servicesIt also reveals eight ldquodualitiesrdquo ndash opposing strategic options ndash that organizations face inco-creating customer experiences in each of the eight octants of the framework We reviewrelevant conceptual work about the antecedents and consequences of customer experiencesthat can guide managers in designing and managing customer experiences Moreover weidentify possible future conditions that can significantly impact customer experiencesidentifying heretofore unanswered questions about customer experiences at the intersectionof the digital physical and social realms thereby outlining a research agenda

The customer experienceThe customer experience originates from a series of interactions between a customer and aservice provider (Gentile et al 2007) Researchers agree that a customerrsquos perception ofhisher experience is holistic in nature and involves multiple internal and subjectiveresponses to interactions with an organization (Meyer and Schwager 2007 Schmitt et al2015) The customer experience can thus be conceptualized as holistic comprised of multipleinteractions across touchpoints involving the customerrsquos cognitive affective emotionalsocial and sensory elements (Lemon and Verhoef 2016 Verhoef et al 2009) Voorhees et al(2017) emphasized that the customer experience takes place throughout many interactionsrelevant to a core service offering including multiple ldquomoments of truthrdquo that influencecustomer outcomes Edvardsson et al (2010) not only highlighted the importance of socialinteraction between customers and between customers and employees but they also notedthe role of technology as well as the physical elements of the servicescape

The customer experience can also be viewed from an organizational perspective(Kranzbuumlhler et al 2017) where the focus is on designing and delivering an experience forthe customer (Bolton 2016) Grewal et al (2009) argued that customer experiencemanagement is a business strategy that creates a winndashwin solution for the service providerand its customers Homburg et al (2017) further emphasized the firm-wide managerialimplications of customer experience management through changes in cultural mindsetsstrategic directions and the development of firm capabilities A firm adopting customerexperience management attempts to provide the prerequisites in forms of the digitalphysical and social realms that occur at different ldquomoments of truthrdquo in time and space(Zomerdijk and Voss 2010)

While this prior work makes a valuable contribution to our understanding of the customerexperience in the main it has tended to focus on one or two realms For example literaturehas focused on physical elements such as present in a physical servicescape (eg Bitner 1992Mehrabian and Russell 1974) or social interactions (eg McColl-Kennedy Snyder Elg WitellHelkkula Hogan and Anderson 2017 Rosenbaum andMassiah 2007 Rosenbaum et al 2007)or digital elements (eg Huang and Rust 2018 Ordenes et al 2014 Zaki and Neely 2018)Our customer experience framework integrates these three realms ndash digital physical andsocial ndash and what it may mean for managing customer experiences in the future

Customer experience conceptual frameworkOne way to imagine the future of service from both a customer and organizationalperspective is to consider customer experience scenarios as depicted in Figure 1 This figuredepicts the customer experience in a three-dimensional space The dimensions are

Customerexperiencechallenges

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characterized by low to high digital density low to high physical complexity and low to highsocial presence This section sets the stage by characterizing each dimension and the nextsection expands upon this framework by providing examples and then identifying criticalissues that arise in each octant of the cube As these sections will demonstrate that thedigital physical and social worlds will converge much sooner than we think

Digital realmThe internet is a platform that supports many important marketplaces for goods andservices including information services Hence an organizationrsquos ability to leverage digitaltechnologies is an increasingly important source of competitive advantage becausebusinesses must respond to market dynamics effectively and in a timely manner(Kumar and Reinartz 2016 Leeflang et al 2014) Organizations are adopting innovativedigital technologies such as mobile location-based virtual reality digital twinsblockchains AI wearable technologies neuroscience and business process automation aswell as machine-to-machine interactions through the IoT Digital technologies can provide ahighly personalized and immersive environment that allows for interactivity and richinformation exchange between the organization and consumer (Parise et al 2016) Digitaltechnologies are changing customersrsquo expectations and behavior how organizations andnetworks are organized and the role of ldquohumansrdquo in the marketplace ndash where the linesbetween human and machine are becoming blurred (Lemon 2016)

Organizations are facing a ldquocrisis of immediacyrdquo as they attempt to meet customersrsquoneeds for content expertise and personalized solutions in real time (Parise et al 2016)Todayrsquos digital technologies enable virtual experts that is agents who interact withconsumers to answer questions provide recommendations and deliver advice in any placetime or format (Breidbach et al 2018) Virtual experts range from human experts connectedto the consumer through video conferencing to digital agents that interact with the userthrough mobile apps or augmented reality technology Business managers and researchers

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 1Depiction of thecustomer experiencein digital physicaland social realms witheight octants

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are rethinking theory and practice to accommodate the digital erarsquos increasing complexityhigh information availability high reach frequent interactions and faster speeds oftransactions (Wedel and Kannan 2016) Given these characteristics we view the digitalrealm as ranging from low to high information density

Physical realmThe physical realm includes the arrangement of furnishings and equipment that influencetheir functionality spatial arrangements that enhance convenience and a sense of comfortambient elements and cultural resources that is signs and symbols that invite customers toengage in the service encounter (Bitner 1992) Cues from the physical realm directly influencehow customers act and respond during service encounters (Ballantyne and Nilsson 2017) Forexample customers can use cultural resources as cues that set the rules and expectations ofhow to act and interact within the service environment A sense of place can be facilitated byusing cultural artifacts signs and symbols to create a sense of belonging to a collective brandcommunity or sub-culture enriching shared customer experiences

Many elements of the physical realm are subtle yet pervasive in their effects on thecustomer experience For example the physical realm of a servicescape influences thenature and quality of interactions between customers and employees of the organization(Bitner 1992) as well as customer-to-customer (C2C) interactions (Tombs andMcColl-Kennedy 2003) Successful organizations combine elements of the physical realmto offer an integrative narrative to their customers thereby inviting customers to beimmersed in their own phenomenological experience (Petermans et al 2013) In service andretail contexts the physical servicescape offers customers an immersive experience that candeliver enduring emotional moments and memories (Giraldi et al 2016)

As organizations move to digital platforms the constituents of the physical realm remaincentral to understanding the customer experience ndash indeed they may act as a referencepoint Ballantyne and Nilsson (2017) noted that functionality use of space and culturalmessaging remain important aspects of the online customer experience They added thatldquo[hellip] the technological development of the Internet and the emergence of new social mediaare shifting the market place for business further towards virtual market spacerdquo (p 227)merging the physical and digital via technology For example retailers are already usingaugmented reality such as smart mirrors for customers to try on clothes and businesses areusing virtual reality to manage workplaces Hence we characterize the physicalenvironment as ranging from low to high physical complexity where technology is anincreasingly important component

Social realmInteractions are at the heart of the social realm of the customer experience Early workconsidered the social realm as a stage where customers and employees performedexperiences (Pine and Gilmore 1998 Solomon et al 1985 Surprenant and Solomon 1987)However researchers now agree that the social realm is defined by the interactions amongactors (eg customers employees and partners) through different interfaces which areincreasingly non-human (De Keyser et al 2015 Lemon and Verhoef 2016 McColl-KennedyGustafsson Jaakkola Klaus Radnor Perks and Friman 2015) Organizations must takeaccount of customersrsquo social environments and their expectations about organization-basedresources such as settings products and atmospherics in order to design serviceexperiences for customers (Verhoef et al 2009)

Since customers actively co-create experiences organizations must facilitate customersrsquointeractions with other actors Customers can influence other customers through smartphonessocial networks and other means (McColl-Kennedy Cheung and Ferrier 2015 Tombs andMcColl-Kennedy 2013) C2C interactions such as reviews or shared evaluations of a service

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can influence customersrsquo ldquoapproach or avoid decisionsrdquo thereby influencing organizationaloutcomes (eg customer acquisition) and customer outcomes such as their attachment to aservice place or environment (Rosenbaum and Massiah 2011) The social realm helpscustomers fulfill utilitarian social and psychological customer needs Moreover in a virtualcontext interactive media devices connect customers both inside and outside the boundaries ofthe physical setting (Benoit et al 2017 Sands et al 2011) giving customers a collective sense ofldquosocial presencerdquo

A sense of social presence arises between humans as well as between human andnon-human entities such as service robots (Van Doorn et al 2017) It can be experienced inboth physical and virtual contexts ndash and it increasingly characterizes service and retailsettings Research has shown that social density may affect the customer experience(Tombs and McColl-Kennedy 2003) For example in high social density contextsinteractions are frequent among several actors such as in a crowded cafeacute or an active socialmedia chat room The effect can be negative (eg crowding) or positive (eg convivial) to thecustomer experience Conversely in low social density contexts infrequent interactionsbetween actors may be negative (eg lonely or isolating) or positive (eg calming or serene)For these reasons we believe that the density of social presence can be quantified from lowto high and that both traditional and technology-mediated service encounters can becharacterized in this way

Customer experience opportunities emerging issues and challengesThe world is undergoing a fourth revolution ndash a technological revolution ndash that isunprecedented in its scale speed and complexity (Department for Business Energy andIndustrial Strategy 2017) Customers can enjoy entertainment shop learn socialize andwork within digital environments that also have an overarching social dimension(Ballantyne and Nilsson 2017) Cognitive systems (AI) will transform the way we live andwork in diverse ways ranging from the diagnosis and treatment of cancer to the security ofonline transactions (Wirtz et al 2018) In the information age people and organizations areable to make better decisions on the design and management of the customer experience(Patriacutecio et al 2018) For example knowing the weather forecast what time a train willdepart or when a broadband outage might occur helps minimize friction (eg wasted timeand effort) allows individuals and organizations to work effectively and also enhances thecustomer experience (National Infrastructure Commission 2017) Since there are manypossibilities this section focuses on exemplar future services that are likely to emerge by theyear 2050 in three service sectors asset-heavy B2B services healthcare and B2C retail andprofessional services We will use each sector to provide a foundation for identifyingopportunities and emerging issues Then we summarize some of the challenges of creatingcustomer experiences at the intersection of the digital physical and social realms

Opportunities and emerging issues in asset-heavy B2B services from traditional supportservice to digital twin serviceOpportunities Opportunities for using digital technologies to improve productivity andefficiency in managing demand and capacity are prevalent in many B2B service sectorsSome examples are located in the digitalphysicalsocial space in Figure 2 This subsectionfocuses on opportunities for asset-heavy B2B services such as construction defense energyand transport services (National Infrastructure Commission 2017) Asset-heavyorganizations design build and deliver an integrated offering that includes the sale orlease of (large) assets integrated with support services such as maintenance and repair Inthese environments traditional repair services have a physical servicescape such as aworkshop or depot with a social dimension such as a team of service experts who work

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with customers to produce comprehensive repair solutions that are critical to the respectivecustomerrsquos day-to-day site experience and productivity (Zaki and Neely 2018)

There are many opportunities for asset management services because asset failuresignificantly disrupts the economy endangers peoplersquos health and safety and incursenvironmental consequences (National Infrastructure Commission 2017) For this reasonorganizations collect vast amounts of data from asset sensors for remote preventivemaintenance and other purposes (Zaki and Neely 2018) For rail services asset failures andrelated incidents costs the UK economy pound13ndashpound19bn a year ($18ndash$26bn) which includesfare losses the cost of passengersrsquo time on delayed or canceled trains and damage to theholistic customer experience (MacDonald 2017) Data are critical inputs to predictive orldquoasset health monitoringrdquo solutions Proactive condition-monitoring services apply existingoperational data real-time sensor data advanced engineering analytics and forward-lookingbusiness intelligence to produce recommendation analyses that identify potential equipmentfaults (Qiu et al 2013) They have many advantages in service networks including timelyscheduling convenient maintenance services monitoring machine health increased uptimeand fuel efficiency and reduced operating costs (Zaki and Neely 2018)

Emerging issues In the future monitoring technologies are likely to be digitallyconnected with assets to diagnose faults in the high physical and low social realm ndash egautonomously stopping equipment in the event of a threat of a strike by employees Anespecially exciting example is a rdquodigital twinrdquo ndash that is a dynamic virtual representation of aphysical object or system across its lifecycle using real-time data to enable understandinglearning and reasoning (National Infrastructure Commission 2017) For exampleRolls-Royce has signed a memorandum of understanding with universities and otherinstitutes with the aim of creating an open source digital platform to develop new ships Theplatform will allow the creation of a digital copy of a real ship including its systems thatsynthesizes the information available about the ship Any aspect of the digital twin ship canbe explored through a digital interface creating a virtual test bench to assess the safety and

Traditional Repair

RemoteMaintenance

B2B PredictiveSolutions

Asset Management(machine to machine)

Simulations ndash BigDiggers Pilots

Digital Asset Twin

SystemSolutionEngineering Services

AutomatedSoftwarePatchesPhysical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 2Future asset-heavy

B2B services inthe digitalphysical

social realms

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performance of a vessel and its systems both before its construction and through itslifecycle (Rolls-Royce 2017) The UK National Infrastructure Commission has suggestedbuilding a digital twin of the entire country which would bring together power water railcommunications meteorological demographic and transport data to give insights andanswer questions such as is it possible to avoid building a new hospital car park bymanaging appointment times and traffic flows How can energy consumption be reduced by10 percent per person over six months What is the impact of closing a specific road in theevent of a water leak (National Infrastructure Commission 2017)

Opportunities and emerging issues in healthcare services from traditional care to digital careOpportunities Health is an important context for service researchers and practitioners(Danaher and Gallan 2016) Traditionally healthcare has been centered on the schedulesand settings of the clinical team and infrastructure However experts forecast that relianceon the physical realm will diminish over the next 20 years due to changes in technologies(Topol and Hill 2012) Today surgeons ldquovirtuallyrdquo assist in operations outside the confinesof the hospital using network links and satellite calls and dermatologists diagnose skincancer in remote areas of Australia using smartphones (Wolf et al 2013) In the futureclinicians will be increasingly less reliant on patients visiting the clinic as health servicesenter the digital realm See Figure 3 which provides healthcare examples located in thedigitalphysicalsocial space

Emerging issues Customers will increasingly shape their own experiences in digitalhealthcare (McColl-Kennedy Snyder Elg Witell Helkkula Hogan and Anderson 2017)Personalized rather than population-based solutions will be available in the treatment andmanagement of disease Improvements in diagnostic accuracy and sensitivity have becomeapparent with advances in genome pattern sequencing and prognostic decision making(Topol and Hill 2012) Today the Mayo Clinic offers grants to organizations to developtechnological applications that can monitor an individualrsquos anatomical changes to detect the

TraditionalNursing

CounselingServices

Simulationsor VR

MedicalTourism

Rural ldquoBarefootrdquoDoctors

HealthcareMonitoring(wearables toys)

DiagnosticServices

RobotSurgery

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 3Future healthcareservices in the digitalphysicalsocial realms

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onset or progression of disease symptoms (Mayo Clinic 2018) In the future smart deviceswill enable patients to quickly make decisions about their healthcare and treatment optionsrather than waiting for results from laboratories or clinics By 2050 healthcareorganizations will leverage AI 3D printing sensory technology real-time data processingand big data repositories to design and deliver services (Antons and Breidbach 2018) Astechnologies become more sophisticated robotic assistants will be in hospital wards in ourhomes and playing a critical role in the operating suite (Lanfranco et al 2004) Today robotshave begun to assist in the operating suite and to fulfill social roles such as cuddlycompanions for the elderly and hotel ambassadors (eg Softbank Roboticsrsquo robot Pepper)In the future they will be carers for the infirmed and assistants to medical consultants

Opportunities and emerging issues in B2C retail and professional services from traditionalservice to digital serviceOpportunities Digital technologies are already prevalent in B2C industries including retailautomotive consumer goods logistics media and professional services (World EconomicForum 2017) Retailing is especially rife with digital service innovations with concomitantorganizational changes In the past in-store and online retailing were characterized by highphysical complexity and high social presence At present both are shifting from low to highdigital density realms (Ballantyne and Nilsson 2017) Figure 4 depicts some examples in thedigitalphysicalsocial spaces Consumers attracted by the convenience of easy digitalaccess to user reviews comparison pricing and endless aisles have come to rely on onlineand mobile shopping

Traditional retailers are bringing digital channels into stores and online retailers areopening brick-and-mortar shops in high-profile locations seeking to create experiences thatcannot be delivered through a device Both traditional and online retailers are working towardthe same goal a highly personalized consistent and integrated shopping experience across allpoints of contact between retailers and customers The integration of digital technologies with

ProfessionalServices

MultiplayerOnline Gaming

Wii gamesWith others

MobileFinancialServices

Custom Build Your Car(or Kitchen or )

Drone DeliveryServices 3D PrintingServices

Light TherapyServices

SalonServices

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 4Future B2C retail andprofessional services

in the digitalphysicalsocial realms

Customerexperiencechallenges

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physical (store) environments will enhance the customer experience and improve employeeperformance For example AmazonGo is a new kind of bricks-and-mortar store with highdigital density so that no physical checkout is required Amazon is also experimenting withcomputer vision sensor fusion and deep learning through a seamless phone application whichmay radically change the customer experience (Amazon 2018)

Emerging issues The World Economic Forum (2017) predicted a dramatic shift fromtraditional services to digital services In the USA professional services are estimated to bethe second-largest employment sector (after healthcare) In the UK they account for15 percent of its gross domestic product and employ 14 percent of its workforceEmployment in professional services is expected to grow to approximately 21m jobs by2024 (US Bureau of Labor Statistics 2015) One reason for this growth is that onlineplatforms offer a convenient alternative to the traditional physical marketplace forhealthcare and professional services Due to the dramatic shift from traditional services todigital services employees and customers will participate in the co-creation of serviceswithin a high digital density environment In Figure 4 this change implies moving from thehigh physical complexity high social presence and low digital density octant to the lowphysical high social presence and high digital density octant

Increasingly many customers are expecting 247 access to professional services Forexample Upwork is a platform connecting 5m client businesses with more than 12mfreelancers (Upwork 2017) In the legal profession virtual courtrooms are replacing the needfor physical ones as lawyers witnesses and judges can now hold hearings via video link(Susskind and Susskind 2015) We speculate that the next transition will be to the lowphysical low social presence and high digital density octant For example the law firm ofBaker and Hostetler recently developed an AI lawyer (ldquoRossrdquo) to handle its bankruptcypractice and replaced 50 human lawyers Ross can read understand analyze language andgenerate responses backed up with legal references It also monitors current litigation tonotify colleagues about recent court decisions (Addady 2016)

Challenges of navigating the path to high digital density environmentsBusiness managers and researchers anticipate that a major benefit of AI and ldquobig datardquowill be service innovations that create new value propositions (Hartmann et al 2016Huang and Rust 2018 Mayer-Schoumlnberger and Cukier 2013) In addition peopleorganizations and society will benefit from the move to high density digital environmentsthrough increased convenience universal access to information to inform decisions andnew solutions However people and organizations must shape the role that technologyplays in the design and delivery of the customer experience Interconnections betweendevices and platforms have the potential to create complex service systems that ndash if theyfail ndash could have far-reaching consequences that could be very destructive For exampleTay the rogue chatbot that Microsoft developed was a female chatbot with its ownTwitter account It is a machine learning project designed for human engagement thatcommunicates with 18-to 24-year-olds learns from them and gets smarter with timeWithin 24 h from its launch Tay tweeted about smoking drugs and claiming that ldquoHitlerwas right [hellip]rdquo and ldquofeminists should [hellip] burn in hellrdquoMicrosoft shut the service the nextday (Regelado 2016)

Organizations cannot access the information they need to co-create services with customersbecause multiple technical solutions exist that are designed to be optimal for well-defined localproblems ndash but these solutions are often disconnected and (consequently) sub-optimal from asystem or network standpoint Although hardware software platform and networkingstandards have been established across organizations each organization and itscustomers typically use their own tools and data standards Consequently data architecture

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is fragmented and there is no integrated enterprise information platformwithin an organizationndash let alone across organizations This misalignment creates challenges because it isunclear which technologies are needed and how they should be implemented and integratedinto the existing information and communication technology infrastructure in organizationsMoreover organizationsrsquo utilization of analytical methods is currently limited rangingfrom descriptive analytics (eg dashboards) applied to high volume high velocity data todiagnostic predictive and prescriptive analytics (eg cognitive systems and optimizationmodels) which require more costly complex methods and typically more structured data(Wedel and Kannan 2016)

Challenges of navigating the path to high social presenceOrganizations have experience with the migration to high social presence environments thatinvolve humans usually when digital density is low Research has shown that the use oftechnology by employees can improve their performance under some conditions (Ahearneet al 2008) thereby improving the customer experience However digital technology canaugment or eliminate the human element thereby changing the roles of customers andemployees Lariviegravere et al (2017) argued that employees and customers are taking on newroles as enablers innovators coordinators and differentiators ndash rather than traditionaldeliverers of the core service For example smart technology has begun to expand frontlineservice interactions in both B2B and B2C contexts and to deepen customerndashorganizationrelationships (Marinova et al 2016)

In addition very little is known about automated social presence ndash such as robotsavatars augmented and virtual reality ndash as opposed to humans Already people areencountering automated social presence when they are served by a robot in a restaurant orhospital consult intelligent virtual assistants interact with others in simulated or virtualenvironments receive medical care through telepresence and so forth (Plambeck 2018Walsh 2018) Indeed many people access technology through a virtual assistant such asSiri and Alexa which exhibit a personality and encourage anthropomorphism Thus socialpresence can now occur digitally rather than due to the physical presence of a human actorso that high social presence can be achieved through automation (Van Doorn et al 2017)Researchers have become especially interested in the ldquouncanny valleyrdquo a term that denotesthe uncomfortable sensation associated with a mismatch between an individualrsquosexpectations and a robotrsquos behavior (Mori et al 2012)

New approaches to reconciling customer experience dualitiesUntil this point we have identified opportunities and challenges for enhancing the customerexperience in the future and considered ways that organizations and customers might makethe most of them In this section we discuss how the intersection of digital physical andsocial realms poses systematic challenges for organizations customers and society Wefocus on tensions that unless addressed may inhibit the conditions necessary for valueco-creation between actors in a network We term these tensions ldquodualitiesrdquo defined as theopposition or contrast between concepts or strategies

We organize our discussion by considering the circumstances in each of the eight octantsbecause they represent different conditions that beget different dualities These aredescribed in Table I (which maps our three-dimensional octants into two-dimensional space)Some dualities may apply in more than one condition We do not aim to unambiguouslyclassify dualities but rather to elucidate how they arise from service design and deliveryopportunities challenges and trade-offs In addition we provide examples and offerguidance on ways to resolve these dualities through innovations in the design andmanagement of customer experiences for probable future conditions

Customerexperiencechallenges

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Base of the pyramid (BoP) or scarcity in digital physical and social realmsThe low digitalphysicalsocial octant represents a condition of scarcity in which resourceconstraints (or uneven distribution of resources) hinder value co-creation in many forms(Gebauer and Reynoso 2013 London et al 2010) There are vast numbers of people who liveevery day with scarce resources sometimes referred to as BoP In addition during naturaldisasters individuals may find themselves temporarily without access to many resources(Cheung et al 2017) We believe that the scarcity duality arises from fundamentallydifferent perspectives on value held by different actors in a service ecosystem For examplefor-profit business objectives (and sometimes non-profit objectives) may not match the goalsof individuals in markets with scarce or unevenly distributed resources due to culturalpolitical issues related to power structures (Arora and Romijn 2011)

New approaches One approach to these challenges is to acquire a partner or engage in anetwork alliance thereby tapping into knowledge resources and capabilities related to thelocal market (Rivera-Santos and Rufiacuten 2010) An example of a successful alliance thatco-creates value with customers who face scarce resources in many countries is the UnitedNations-led initiative to eradicate malaria by 2040 (UN News 2015) Another approach tosuccessfully operating in markets with scarce resources entails the development novelbusiness models especially with respect to pricing For example organizations may enable

Low social presence High social presenceLow digital density High digital density Low digital density High digital density

Lowphysicalcomplexity

Base of the pyramidchallenges

Organization bundlesvs customer bundles

Autonomy(competitive) vsinterdependence(cooperation)

Regulation by actorsvs regulation bycommunity

Customerperspective scarcityof resources valuesincompatibilityOrganizationalperspective fee vsfree potentialsolutions mightinclude partner ornetwork alliances

Customer perspectiveperceived control cancreate paradox ofchoice customer endsup worse offOrganizationalperspective requiresdescriptive anddiagnostic use ofcustomer data

Customer perspectivehighly socialexperience thatrequires high trust tointegrate socialresourcesOrganizationalperspective limited orno digital and physicaltouchpoints to createtrust and aligncustomerorganizationgoals

Requires a digitalplatform forinformation sharing amechanism for risksharing Socialpresence could bedelivered digitallyRequires descriptiveand diagnosticcapabilities but nopredictive analytics

Highphysicalcomplexity

Privacy vstransparency

Standardization vsflexibility

Avoidance vsattraction

Capabilities vsresources

Organizational andcustomer perspectiverequires informationsharing and lowperceived risk Trustbetween serviceproviders andcustomers is critical

Customer perspectivehigh coping abilitiesrequired Theorganizationrsquos decisionsupport systems mustbe excellent to providevalue in real timeOrganizationalperspective customerknowledge andorganizationallearning is required

Customer perspectivefeedback andperceived controlneededOrganizationalperspective how tocreate brandedcustomer experiencesthat fit with customerneeds in the presenceof other customers

Customer perspectivecustomer innovationand creativity throughparticipation Localsolutions may bepossible if services canbe modularizedOrganizationalperspectiveco-creation requiresorganizational learningand effective businessanalytics

Table IDualities in each ofthe eight octants

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customers to share a service and its costs design smaller packages or bundles create pre-paid service plans or develop micro-finance or loan programs (Anderson and Markides2007) Finally actors in markets with scarce resources may turn to the moral economy toco-create value with the limited resources available (Cheung et al 2017)

Bundling services high digital density low physicalsocial resourcesHigh digital density realms are capable of supporting favorable emotional social and sensoryresponses Thus gamification ndash that is adding game-like elements to a task to encouragecustomer participation can be an especially attractive strategy for organizations in B2Cmarkets Research has shown that gamification can lead to customer learning engagementand improved customer experiences (Harwood and Garry 2015 Landers 2014) Games arealso effective in employee training team-building and management However this strategy isonly effective when the goals of the organization and its customers are aligned Games haverules and structure whereas play often does not so organizational and customer goals mayconflict (Hofaker et al 2016 Walz and Deterding 2014) This conflict may cause customers torefuse to participate in games thereby defeating the purpose of the gamification

Hence a duality can arise in balancing a participantrsquos goals (ie entertainment) withorganizational goals such as customer learning or buying (Harwood and Garry 2015) Theunderlying reason for this duality is that gamification implicitly requires the creation ofldquooptimalrdquo bundles of features (ie learning components entertainment components) that arevaluable to both parties This same dilemma ndash optimal service bundling ndash also occurs in highdigital density B2B markets in a very different form B2B customers may be faced with amultitude of bundles that encompass an overwhelming number of options and combinationsso that a non-expert encounters a ldquoparadox of choicerdquo ndash whereby a customer feels betterduring the bundle creation process but (objectively) ends up worse off (Reutskaja andHogarth 2009) In both of these situations complex bundling increases the challenges ofco-creation ndash that is creating value for both parties while successfully monetizing the service

New approaches Organizations must know (or learn) the customerrsquos preferences todetermine the appropriate mix and sequences of entertainment and content (ie the bundle)that will be most effective in creating value (Landers 2014) Since organizations and theircustomers are likely to value bundles (and the underlying components) differentlyorganizations must also adopt a relational approach to mitigate conflicts that influencevalue co-creation (Tuli et al 2007) In sum organizations operating in both B2B and B2Cmarkets characterized by a high digital density environment must intensively developresources and capabilities for leveraging descriptive and diagnostic analytics of customerdata to co-create service bundles and pricing options that are valuable to both parties

Autonomy vs interdependence in high social low digitalphysical environmentsHigh social presence creates a shared experience which requires high levels of trust toaccomplish integration of social resources (Hennig-Thurau et al 2002) When physical anddigital resources are limited organizations are constrained in their capabilities to usetraditional methods of creating trust and integrating social resources For example many oftodayrsquos business models rely on digital platforms to build trust and integrate socialresources (eg Airbnb) and such platforms are absent in this octant Hence a duality mayemerge between autonomy (which frequently implies competition) vs interdependence(which can be more cooperative) Instances of both competition and cooperation can beobserved in markets as social actors work independently or collectively to meet their needs(Cheung and McColl-Kennedy 2015)

New approaches Organizations must find social mechanisms for aligning organizationalcustomer and employee goals Often this requires a significant culture change within

Customerexperiencechallenges

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organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

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offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

Customerexperiencechallenges

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

Customerexperiencechallenges

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

Customerexperiencechallenges

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

Dow

nloa

ded

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2018

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)

imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

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ded

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2018

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)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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JOSM

Dow

nloa

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by D

octo

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uth

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olto

n A

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ber

2018

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Kranzbuumlhler AM Kleijnen MHP Morgan RE and Teerling M (2017) ldquoThe multilevel nature ofcustomer experience research an integrative review and research agendardquo International Journalof Management Reviews Vol 20 No 2 pp 433-456

Kumar V and Reinartz W (2016) ldquoCreating enduring customer valuerdquo Journal of Marketing Vol 80No 6 pp 36-68

Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

Pine BJ and Gilmore JH (1998) ldquoWelcome to the experience economyrdquo Harvard Business ReviewVol 76 JulyAugust pp 97-105

Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

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Schumann JH Wuumlnderlich NV and Wangenheim F (2012) ldquoTechnology mediation in servicedelivery a new typology and an agenda for managers and academicsrdquo Technovation Vol 32No 2 pp 133-143

Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

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Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 2: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Customer experience challengesbringing together digital physical

and social realmsRuth N Bolton

Department of Marketing WP Carey School of BusinessArizona State University Tempe Arizona USA

Janet R McColl-Kennedy and Lilliemay CheungUQ Business School The University of Queensland Brisbane Australia

Andrew GallanDepartment of Marketing Kellstadt Graduate College of Business

DePaul University Chicago Illinois USAChiara Orsingher

Department of Management University of Bologna Bologna ItalyLars Witell

Department of Industrial Engineering and ManagementLinkopings Universitet Linkoping Sweden and

CTF Service Research Center Karlstad University Karlstad Sweden andMohamed Zaki

Department of Engineering Institute for ManufacturingUniversity of Cambridge Cambridge UK

AbstractPurpose ndash The purpose of this paper is to explore innovations in customer experience at theintersection of the digital physical and social realms It explicitly considers experiences involving newtechnology-enabled services such as digital twins and automated social presence (ie virtual assistants andservice robots)Designmethodologyapproach ndash Future customer experiences are conceptualized within athree-dimensional space ndash low to high digital density low to high physical complexity and low to high socialpresence ndash yielding eight octantsFindings ndash The conceptual framework identifies eight ldquodualitiesrdquo or specific challenges connectedwith integrating digital physical and social realms that challenge organizations to create superiorcustomer experiences in both business-to-business and business-to-consumer markets The eight dualities areopposing strategic options that organizations must reconcile when co-creating customer experiences underdifferent conditionsResearch limitationsimplications ndash A review of theory demonstrates that little research has beenconducted at the intersection of the digital physical and social realms Most studies focus on one realm withoccasional reference to another This paper suggests an agenda for future research and gives examples offruitful ways to study connections among the three realms rather than in a single realmPractical implications ndash This paper provides guidance for managers in designing and managing customerexperiences that the authors believe will need to be addressed by the year 2050Social implications ndash This paper discusses important societal issues such as individual and societal needsfor privacy security and transparency It sets out potential avenues for service innovation in these areasOriginalityvalue ndash The conceptual framework integrates knowledge about customer experiences indigital physical and social realms in a new way with insights for future service research managers andpublic policy makersKeywords Service innovation Technological innovation Value creation Service designCustomer experience Service ecosystemPaper type Research paper

Journal of Service Managementcopy Emerald Publishing Limited

1757-5818DOI 101108JOSM-04-2018-0113

Received 24 April 2018Revised 20 July 2018

Accepted 28 July 2018

The current issue and full text archive of this journal is available on Emerald Insight atwwwemeraldinsightcom1757-5818htm

Customerexperiencechallenges

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Customers seek to engage with service brands and interact with service organizations thatenable superior experiences (Lemon and Verhoef 2016) Organizations respond tocustomers and shape markets by designing and delivering unique experiences that providethem with a competitive advantage and lead to favorable business outcomes (eg customerretention and profitability) (Bolton et al 2014 Verhoef et al 2009) Technologicaldevelopments are changing the capabilities of service organizations and systems (Breidbachet al 2018) and transforming the customer experience (Lemon 2016 Van Doorn et al 2017)In the future a customer might simultaneously interact with a service robot sensors builtinto the servicescape a mobile application and a human being who might be an employee ora friend Moreover changes in society will accelerate developments in the digital physicaland social realms In 2050 people worldwide aged 65 or older will outnumber children aged5 and under they will become parents much later in life and most people will live in a largecity and not own a car (Cohen 2014) These population trends will also change the nature ofservices because each customer is an active participant who co-creates value by drawingupon a unique assortment of capabilities and resources available in these realms

These three trends ndash developments in the digital physical and social realms changes inactorsrsquo capabilities and resources and societal changes ndash will stimulate an increase in theneed for customized customer experiences Ultimately organizations are likely to becomemore efficient and effective in serving customers so that consumer and societal well-beingwill improve However to truly understand and co-create value within a customerexperience firms require a comprehensive view of the customer experience over time thatintegrates the digital physical and social realms Without this integration organizationsface many customer experience challenges in both business-to-consumer (B2C) andbusiness-to-business (B2B) markets Predictions abound about the death ofbrick-and-mortar stores how customers will spend more time in virtual reality and theways that robots and artificial intelligence (AI) will replace service employees (Huang andRust 2018) For instance robots are already showing promise in assembling IKEA furniturewithout human assistance (Burdick 2018) New developments in each of these realms arealready causing marketplace disruptions For example as we were writing this paperAmazon Berkshire Hathaway and JP Morgan announced that they will partner totransform healthcare in the US marketplace (Tracer and Son 2018)

The challenges and opportunities facing service organizations are significant andsubstantial because customer experiences arise at the intersection of the digital physical andsocial realms for each customer This paper reviews what we know and do not yet knowabout customer experience with a focus on connections among the digital physical and socialrealms We view the customer experience as encompassing customersrsquo cognitive emotionalsocial sensory and value responses to the organizationrsquos offerings over time includingpre- and post-consumption (Kranzbuumlhler et al 2017 Lemon and Verhoef 2016 Voorhees et al2017) We bring together recent research concerning value co-creation and interactive servicesdigital and social media (augmented and virtual reality) multi-channel marketing (eg storebeacons) service operations (eg leveraging AI in business processes) and technology (eg theInternet of Things (IoT)) In doing so our paper addresses managerial questions such as

bull How do digital physical and social elements interact to form the customer experience

bull How might organizations integrate digital physical and social realms to createconsistently superior customer experiences in the future

bull How do customer experiences at the intersection of digital physical and social realmsinfluence outcomes for individuals service providers and society

bull What are the opportunities challenges and emerging issues in the digital physicaland social realms for organizations managing the customer experience

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Our paper offers a conceptual framework for analyzing the formation of customerexperiences that incorporates the digital physical and social realms and explicitly considersnew technology-enabled services Customer experiences are conceptualized within a threedimensional space ndash low to high digital density low to high physical complexity and low tohigh social presence ndash yielding eight octants This framework leads to a discussion ofspecific opportunities and challenges connected with transitioning from low to high digitaldensity and from low to high social presence environments for both B2B and B2C servicesIt also reveals eight ldquodualitiesrdquo ndash opposing strategic options ndash that organizations face inco-creating customer experiences in each of the eight octants of the framework We reviewrelevant conceptual work about the antecedents and consequences of customer experiencesthat can guide managers in designing and managing customer experiences Moreover weidentify possible future conditions that can significantly impact customer experiencesidentifying heretofore unanswered questions about customer experiences at the intersectionof the digital physical and social realms thereby outlining a research agenda

The customer experienceThe customer experience originates from a series of interactions between a customer and aservice provider (Gentile et al 2007) Researchers agree that a customerrsquos perception ofhisher experience is holistic in nature and involves multiple internal and subjectiveresponses to interactions with an organization (Meyer and Schwager 2007 Schmitt et al2015) The customer experience can thus be conceptualized as holistic comprised of multipleinteractions across touchpoints involving the customerrsquos cognitive affective emotionalsocial and sensory elements (Lemon and Verhoef 2016 Verhoef et al 2009) Voorhees et al(2017) emphasized that the customer experience takes place throughout many interactionsrelevant to a core service offering including multiple ldquomoments of truthrdquo that influencecustomer outcomes Edvardsson et al (2010) not only highlighted the importance of socialinteraction between customers and between customers and employees but they also notedthe role of technology as well as the physical elements of the servicescape

The customer experience can also be viewed from an organizational perspective(Kranzbuumlhler et al 2017) where the focus is on designing and delivering an experience forthe customer (Bolton 2016) Grewal et al (2009) argued that customer experiencemanagement is a business strategy that creates a winndashwin solution for the service providerand its customers Homburg et al (2017) further emphasized the firm-wide managerialimplications of customer experience management through changes in cultural mindsetsstrategic directions and the development of firm capabilities A firm adopting customerexperience management attempts to provide the prerequisites in forms of the digitalphysical and social realms that occur at different ldquomoments of truthrdquo in time and space(Zomerdijk and Voss 2010)

While this prior work makes a valuable contribution to our understanding of the customerexperience in the main it has tended to focus on one or two realms For example literaturehas focused on physical elements such as present in a physical servicescape (eg Bitner 1992Mehrabian and Russell 1974) or social interactions (eg McColl-Kennedy Snyder Elg WitellHelkkula Hogan and Anderson 2017 Rosenbaum andMassiah 2007 Rosenbaum et al 2007)or digital elements (eg Huang and Rust 2018 Ordenes et al 2014 Zaki and Neely 2018)Our customer experience framework integrates these three realms ndash digital physical andsocial ndash and what it may mean for managing customer experiences in the future

Customer experience conceptual frameworkOne way to imagine the future of service from both a customer and organizationalperspective is to consider customer experience scenarios as depicted in Figure 1 This figuredepicts the customer experience in a three-dimensional space The dimensions are

Customerexperiencechallenges

Dow

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characterized by low to high digital density low to high physical complexity and low to highsocial presence This section sets the stage by characterizing each dimension and the nextsection expands upon this framework by providing examples and then identifying criticalissues that arise in each octant of the cube As these sections will demonstrate that thedigital physical and social worlds will converge much sooner than we think

Digital realmThe internet is a platform that supports many important marketplaces for goods andservices including information services Hence an organizationrsquos ability to leverage digitaltechnologies is an increasingly important source of competitive advantage becausebusinesses must respond to market dynamics effectively and in a timely manner(Kumar and Reinartz 2016 Leeflang et al 2014) Organizations are adopting innovativedigital technologies such as mobile location-based virtual reality digital twinsblockchains AI wearable technologies neuroscience and business process automation aswell as machine-to-machine interactions through the IoT Digital technologies can provide ahighly personalized and immersive environment that allows for interactivity and richinformation exchange between the organization and consumer (Parise et al 2016) Digitaltechnologies are changing customersrsquo expectations and behavior how organizations andnetworks are organized and the role of ldquohumansrdquo in the marketplace ndash where the linesbetween human and machine are becoming blurred (Lemon 2016)

Organizations are facing a ldquocrisis of immediacyrdquo as they attempt to meet customersrsquoneeds for content expertise and personalized solutions in real time (Parise et al 2016)Todayrsquos digital technologies enable virtual experts that is agents who interact withconsumers to answer questions provide recommendations and deliver advice in any placetime or format (Breidbach et al 2018) Virtual experts range from human experts connectedto the consumer through video conferencing to digital agents that interact with the userthrough mobile apps or augmented reality technology Business managers and researchers

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 1Depiction of thecustomer experiencein digital physicaland social realms witheight octants

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are rethinking theory and practice to accommodate the digital erarsquos increasing complexityhigh information availability high reach frequent interactions and faster speeds oftransactions (Wedel and Kannan 2016) Given these characteristics we view the digitalrealm as ranging from low to high information density

Physical realmThe physical realm includes the arrangement of furnishings and equipment that influencetheir functionality spatial arrangements that enhance convenience and a sense of comfortambient elements and cultural resources that is signs and symbols that invite customers toengage in the service encounter (Bitner 1992) Cues from the physical realm directly influencehow customers act and respond during service encounters (Ballantyne and Nilsson 2017) Forexample customers can use cultural resources as cues that set the rules and expectations ofhow to act and interact within the service environment A sense of place can be facilitated byusing cultural artifacts signs and symbols to create a sense of belonging to a collective brandcommunity or sub-culture enriching shared customer experiences

Many elements of the physical realm are subtle yet pervasive in their effects on thecustomer experience For example the physical realm of a servicescape influences thenature and quality of interactions between customers and employees of the organization(Bitner 1992) as well as customer-to-customer (C2C) interactions (Tombs andMcColl-Kennedy 2003) Successful organizations combine elements of the physical realmto offer an integrative narrative to their customers thereby inviting customers to beimmersed in their own phenomenological experience (Petermans et al 2013) In service andretail contexts the physical servicescape offers customers an immersive experience that candeliver enduring emotional moments and memories (Giraldi et al 2016)

As organizations move to digital platforms the constituents of the physical realm remaincentral to understanding the customer experience ndash indeed they may act as a referencepoint Ballantyne and Nilsson (2017) noted that functionality use of space and culturalmessaging remain important aspects of the online customer experience They added thatldquo[hellip] the technological development of the Internet and the emergence of new social mediaare shifting the market place for business further towards virtual market spacerdquo (p 227)merging the physical and digital via technology For example retailers are already usingaugmented reality such as smart mirrors for customers to try on clothes and businesses areusing virtual reality to manage workplaces Hence we characterize the physicalenvironment as ranging from low to high physical complexity where technology is anincreasingly important component

Social realmInteractions are at the heart of the social realm of the customer experience Early workconsidered the social realm as a stage where customers and employees performedexperiences (Pine and Gilmore 1998 Solomon et al 1985 Surprenant and Solomon 1987)However researchers now agree that the social realm is defined by the interactions amongactors (eg customers employees and partners) through different interfaces which areincreasingly non-human (De Keyser et al 2015 Lemon and Verhoef 2016 McColl-KennedyGustafsson Jaakkola Klaus Radnor Perks and Friman 2015) Organizations must takeaccount of customersrsquo social environments and their expectations about organization-basedresources such as settings products and atmospherics in order to design serviceexperiences for customers (Verhoef et al 2009)

Since customers actively co-create experiences organizations must facilitate customersrsquointeractions with other actors Customers can influence other customers through smartphonessocial networks and other means (McColl-Kennedy Cheung and Ferrier 2015 Tombs andMcColl-Kennedy 2013) C2C interactions such as reviews or shared evaluations of a service

Customerexperiencechallenges

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can influence customersrsquo ldquoapproach or avoid decisionsrdquo thereby influencing organizationaloutcomes (eg customer acquisition) and customer outcomes such as their attachment to aservice place or environment (Rosenbaum and Massiah 2011) The social realm helpscustomers fulfill utilitarian social and psychological customer needs Moreover in a virtualcontext interactive media devices connect customers both inside and outside the boundaries ofthe physical setting (Benoit et al 2017 Sands et al 2011) giving customers a collective sense ofldquosocial presencerdquo

A sense of social presence arises between humans as well as between human andnon-human entities such as service robots (Van Doorn et al 2017) It can be experienced inboth physical and virtual contexts ndash and it increasingly characterizes service and retailsettings Research has shown that social density may affect the customer experience(Tombs and McColl-Kennedy 2003) For example in high social density contextsinteractions are frequent among several actors such as in a crowded cafeacute or an active socialmedia chat room The effect can be negative (eg crowding) or positive (eg convivial) to thecustomer experience Conversely in low social density contexts infrequent interactionsbetween actors may be negative (eg lonely or isolating) or positive (eg calming or serene)For these reasons we believe that the density of social presence can be quantified from lowto high and that both traditional and technology-mediated service encounters can becharacterized in this way

Customer experience opportunities emerging issues and challengesThe world is undergoing a fourth revolution ndash a technological revolution ndash that isunprecedented in its scale speed and complexity (Department for Business Energy andIndustrial Strategy 2017) Customers can enjoy entertainment shop learn socialize andwork within digital environments that also have an overarching social dimension(Ballantyne and Nilsson 2017) Cognitive systems (AI) will transform the way we live andwork in diverse ways ranging from the diagnosis and treatment of cancer to the security ofonline transactions (Wirtz et al 2018) In the information age people and organizations areable to make better decisions on the design and management of the customer experience(Patriacutecio et al 2018) For example knowing the weather forecast what time a train willdepart or when a broadband outage might occur helps minimize friction (eg wasted timeand effort) allows individuals and organizations to work effectively and also enhances thecustomer experience (National Infrastructure Commission 2017) Since there are manypossibilities this section focuses on exemplar future services that are likely to emerge by theyear 2050 in three service sectors asset-heavy B2B services healthcare and B2C retail andprofessional services We will use each sector to provide a foundation for identifyingopportunities and emerging issues Then we summarize some of the challenges of creatingcustomer experiences at the intersection of the digital physical and social realms

Opportunities and emerging issues in asset-heavy B2B services from traditional supportservice to digital twin serviceOpportunities Opportunities for using digital technologies to improve productivity andefficiency in managing demand and capacity are prevalent in many B2B service sectorsSome examples are located in the digitalphysicalsocial space in Figure 2 This subsectionfocuses on opportunities for asset-heavy B2B services such as construction defense energyand transport services (National Infrastructure Commission 2017) Asset-heavyorganizations design build and deliver an integrated offering that includes the sale orlease of (large) assets integrated with support services such as maintenance and repair Inthese environments traditional repair services have a physical servicescape such as aworkshop or depot with a social dimension such as a team of service experts who work

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with customers to produce comprehensive repair solutions that are critical to the respectivecustomerrsquos day-to-day site experience and productivity (Zaki and Neely 2018)

There are many opportunities for asset management services because asset failuresignificantly disrupts the economy endangers peoplersquos health and safety and incursenvironmental consequences (National Infrastructure Commission 2017) For this reasonorganizations collect vast amounts of data from asset sensors for remote preventivemaintenance and other purposes (Zaki and Neely 2018) For rail services asset failures andrelated incidents costs the UK economy pound13ndashpound19bn a year ($18ndash$26bn) which includesfare losses the cost of passengersrsquo time on delayed or canceled trains and damage to theholistic customer experience (MacDonald 2017) Data are critical inputs to predictive orldquoasset health monitoringrdquo solutions Proactive condition-monitoring services apply existingoperational data real-time sensor data advanced engineering analytics and forward-lookingbusiness intelligence to produce recommendation analyses that identify potential equipmentfaults (Qiu et al 2013) They have many advantages in service networks including timelyscheduling convenient maintenance services monitoring machine health increased uptimeand fuel efficiency and reduced operating costs (Zaki and Neely 2018)

Emerging issues In the future monitoring technologies are likely to be digitallyconnected with assets to diagnose faults in the high physical and low social realm ndash egautonomously stopping equipment in the event of a threat of a strike by employees Anespecially exciting example is a rdquodigital twinrdquo ndash that is a dynamic virtual representation of aphysical object or system across its lifecycle using real-time data to enable understandinglearning and reasoning (National Infrastructure Commission 2017) For exampleRolls-Royce has signed a memorandum of understanding with universities and otherinstitutes with the aim of creating an open source digital platform to develop new ships Theplatform will allow the creation of a digital copy of a real ship including its systems thatsynthesizes the information available about the ship Any aspect of the digital twin ship canbe explored through a digital interface creating a virtual test bench to assess the safety and

Traditional Repair

RemoteMaintenance

B2B PredictiveSolutions

Asset Management(machine to machine)

Simulations ndash BigDiggers Pilots

Digital Asset Twin

SystemSolutionEngineering Services

AutomatedSoftwarePatchesPhysical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 2Future asset-heavy

B2B services inthe digitalphysical

social realms

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performance of a vessel and its systems both before its construction and through itslifecycle (Rolls-Royce 2017) The UK National Infrastructure Commission has suggestedbuilding a digital twin of the entire country which would bring together power water railcommunications meteorological demographic and transport data to give insights andanswer questions such as is it possible to avoid building a new hospital car park bymanaging appointment times and traffic flows How can energy consumption be reduced by10 percent per person over six months What is the impact of closing a specific road in theevent of a water leak (National Infrastructure Commission 2017)

Opportunities and emerging issues in healthcare services from traditional care to digital careOpportunities Health is an important context for service researchers and practitioners(Danaher and Gallan 2016) Traditionally healthcare has been centered on the schedulesand settings of the clinical team and infrastructure However experts forecast that relianceon the physical realm will diminish over the next 20 years due to changes in technologies(Topol and Hill 2012) Today surgeons ldquovirtuallyrdquo assist in operations outside the confinesof the hospital using network links and satellite calls and dermatologists diagnose skincancer in remote areas of Australia using smartphones (Wolf et al 2013) In the futureclinicians will be increasingly less reliant on patients visiting the clinic as health servicesenter the digital realm See Figure 3 which provides healthcare examples located in thedigitalphysicalsocial space

Emerging issues Customers will increasingly shape their own experiences in digitalhealthcare (McColl-Kennedy Snyder Elg Witell Helkkula Hogan and Anderson 2017)Personalized rather than population-based solutions will be available in the treatment andmanagement of disease Improvements in diagnostic accuracy and sensitivity have becomeapparent with advances in genome pattern sequencing and prognostic decision making(Topol and Hill 2012) Today the Mayo Clinic offers grants to organizations to developtechnological applications that can monitor an individualrsquos anatomical changes to detect the

TraditionalNursing

CounselingServices

Simulationsor VR

MedicalTourism

Rural ldquoBarefootrdquoDoctors

HealthcareMonitoring(wearables toys)

DiagnosticServices

RobotSurgery

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 3Future healthcareservices in the digitalphysicalsocial realms

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onset or progression of disease symptoms (Mayo Clinic 2018) In the future smart deviceswill enable patients to quickly make decisions about their healthcare and treatment optionsrather than waiting for results from laboratories or clinics By 2050 healthcareorganizations will leverage AI 3D printing sensory technology real-time data processingand big data repositories to design and deliver services (Antons and Breidbach 2018) Astechnologies become more sophisticated robotic assistants will be in hospital wards in ourhomes and playing a critical role in the operating suite (Lanfranco et al 2004) Today robotshave begun to assist in the operating suite and to fulfill social roles such as cuddlycompanions for the elderly and hotel ambassadors (eg Softbank Roboticsrsquo robot Pepper)In the future they will be carers for the infirmed and assistants to medical consultants

Opportunities and emerging issues in B2C retail and professional services from traditionalservice to digital serviceOpportunities Digital technologies are already prevalent in B2C industries including retailautomotive consumer goods logistics media and professional services (World EconomicForum 2017) Retailing is especially rife with digital service innovations with concomitantorganizational changes In the past in-store and online retailing were characterized by highphysical complexity and high social presence At present both are shifting from low to highdigital density realms (Ballantyne and Nilsson 2017) Figure 4 depicts some examples in thedigitalphysicalsocial spaces Consumers attracted by the convenience of easy digitalaccess to user reviews comparison pricing and endless aisles have come to rely on onlineand mobile shopping

Traditional retailers are bringing digital channels into stores and online retailers areopening brick-and-mortar shops in high-profile locations seeking to create experiences thatcannot be delivered through a device Both traditional and online retailers are working towardthe same goal a highly personalized consistent and integrated shopping experience across allpoints of contact between retailers and customers The integration of digital technologies with

ProfessionalServices

MultiplayerOnline Gaming

Wii gamesWith others

MobileFinancialServices

Custom Build Your Car(or Kitchen or )

Drone DeliveryServices 3D PrintingServices

Light TherapyServices

SalonServices

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 4Future B2C retail andprofessional services

in the digitalphysicalsocial realms

Customerexperiencechallenges

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physical (store) environments will enhance the customer experience and improve employeeperformance For example AmazonGo is a new kind of bricks-and-mortar store with highdigital density so that no physical checkout is required Amazon is also experimenting withcomputer vision sensor fusion and deep learning through a seamless phone application whichmay radically change the customer experience (Amazon 2018)

Emerging issues The World Economic Forum (2017) predicted a dramatic shift fromtraditional services to digital services In the USA professional services are estimated to bethe second-largest employment sector (after healthcare) In the UK they account for15 percent of its gross domestic product and employ 14 percent of its workforceEmployment in professional services is expected to grow to approximately 21m jobs by2024 (US Bureau of Labor Statistics 2015) One reason for this growth is that onlineplatforms offer a convenient alternative to the traditional physical marketplace forhealthcare and professional services Due to the dramatic shift from traditional services todigital services employees and customers will participate in the co-creation of serviceswithin a high digital density environment In Figure 4 this change implies moving from thehigh physical complexity high social presence and low digital density octant to the lowphysical high social presence and high digital density octant

Increasingly many customers are expecting 247 access to professional services Forexample Upwork is a platform connecting 5m client businesses with more than 12mfreelancers (Upwork 2017) In the legal profession virtual courtrooms are replacing the needfor physical ones as lawyers witnesses and judges can now hold hearings via video link(Susskind and Susskind 2015) We speculate that the next transition will be to the lowphysical low social presence and high digital density octant For example the law firm ofBaker and Hostetler recently developed an AI lawyer (ldquoRossrdquo) to handle its bankruptcypractice and replaced 50 human lawyers Ross can read understand analyze language andgenerate responses backed up with legal references It also monitors current litigation tonotify colleagues about recent court decisions (Addady 2016)

Challenges of navigating the path to high digital density environmentsBusiness managers and researchers anticipate that a major benefit of AI and ldquobig datardquowill be service innovations that create new value propositions (Hartmann et al 2016Huang and Rust 2018 Mayer-Schoumlnberger and Cukier 2013) In addition peopleorganizations and society will benefit from the move to high density digital environmentsthrough increased convenience universal access to information to inform decisions andnew solutions However people and organizations must shape the role that technologyplays in the design and delivery of the customer experience Interconnections betweendevices and platforms have the potential to create complex service systems that ndash if theyfail ndash could have far-reaching consequences that could be very destructive For exampleTay the rogue chatbot that Microsoft developed was a female chatbot with its ownTwitter account It is a machine learning project designed for human engagement thatcommunicates with 18-to 24-year-olds learns from them and gets smarter with timeWithin 24 h from its launch Tay tweeted about smoking drugs and claiming that ldquoHitlerwas right [hellip]rdquo and ldquofeminists should [hellip] burn in hellrdquoMicrosoft shut the service the nextday (Regelado 2016)

Organizations cannot access the information they need to co-create services with customersbecause multiple technical solutions exist that are designed to be optimal for well-defined localproblems ndash but these solutions are often disconnected and (consequently) sub-optimal from asystem or network standpoint Although hardware software platform and networkingstandards have been established across organizations each organization and itscustomers typically use their own tools and data standards Consequently data architecture

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is fragmented and there is no integrated enterprise information platformwithin an organizationndash let alone across organizations This misalignment creates challenges because it isunclear which technologies are needed and how they should be implemented and integratedinto the existing information and communication technology infrastructure in organizationsMoreover organizationsrsquo utilization of analytical methods is currently limited rangingfrom descriptive analytics (eg dashboards) applied to high volume high velocity data todiagnostic predictive and prescriptive analytics (eg cognitive systems and optimizationmodels) which require more costly complex methods and typically more structured data(Wedel and Kannan 2016)

Challenges of navigating the path to high social presenceOrganizations have experience with the migration to high social presence environments thatinvolve humans usually when digital density is low Research has shown that the use oftechnology by employees can improve their performance under some conditions (Ahearneet al 2008) thereby improving the customer experience However digital technology canaugment or eliminate the human element thereby changing the roles of customers andemployees Lariviegravere et al (2017) argued that employees and customers are taking on newroles as enablers innovators coordinators and differentiators ndash rather than traditionaldeliverers of the core service For example smart technology has begun to expand frontlineservice interactions in both B2B and B2C contexts and to deepen customerndashorganizationrelationships (Marinova et al 2016)

In addition very little is known about automated social presence ndash such as robotsavatars augmented and virtual reality ndash as opposed to humans Already people areencountering automated social presence when they are served by a robot in a restaurant orhospital consult intelligent virtual assistants interact with others in simulated or virtualenvironments receive medical care through telepresence and so forth (Plambeck 2018Walsh 2018) Indeed many people access technology through a virtual assistant such asSiri and Alexa which exhibit a personality and encourage anthropomorphism Thus socialpresence can now occur digitally rather than due to the physical presence of a human actorso that high social presence can be achieved through automation (Van Doorn et al 2017)Researchers have become especially interested in the ldquouncanny valleyrdquo a term that denotesthe uncomfortable sensation associated with a mismatch between an individualrsquosexpectations and a robotrsquos behavior (Mori et al 2012)

New approaches to reconciling customer experience dualitiesUntil this point we have identified opportunities and challenges for enhancing the customerexperience in the future and considered ways that organizations and customers might makethe most of them In this section we discuss how the intersection of digital physical andsocial realms poses systematic challenges for organizations customers and society Wefocus on tensions that unless addressed may inhibit the conditions necessary for valueco-creation between actors in a network We term these tensions ldquodualitiesrdquo defined as theopposition or contrast between concepts or strategies

We organize our discussion by considering the circumstances in each of the eight octantsbecause they represent different conditions that beget different dualities These aredescribed in Table I (which maps our three-dimensional octants into two-dimensional space)Some dualities may apply in more than one condition We do not aim to unambiguouslyclassify dualities but rather to elucidate how they arise from service design and deliveryopportunities challenges and trade-offs In addition we provide examples and offerguidance on ways to resolve these dualities through innovations in the design andmanagement of customer experiences for probable future conditions

Customerexperiencechallenges

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Base of the pyramid (BoP) or scarcity in digital physical and social realmsThe low digitalphysicalsocial octant represents a condition of scarcity in which resourceconstraints (or uneven distribution of resources) hinder value co-creation in many forms(Gebauer and Reynoso 2013 London et al 2010) There are vast numbers of people who liveevery day with scarce resources sometimes referred to as BoP In addition during naturaldisasters individuals may find themselves temporarily without access to many resources(Cheung et al 2017) We believe that the scarcity duality arises from fundamentallydifferent perspectives on value held by different actors in a service ecosystem For examplefor-profit business objectives (and sometimes non-profit objectives) may not match the goalsof individuals in markets with scarce or unevenly distributed resources due to culturalpolitical issues related to power structures (Arora and Romijn 2011)

New approaches One approach to these challenges is to acquire a partner or engage in anetwork alliance thereby tapping into knowledge resources and capabilities related to thelocal market (Rivera-Santos and Rufiacuten 2010) An example of a successful alliance thatco-creates value with customers who face scarce resources in many countries is the UnitedNations-led initiative to eradicate malaria by 2040 (UN News 2015) Another approach tosuccessfully operating in markets with scarce resources entails the development novelbusiness models especially with respect to pricing For example organizations may enable

Low social presence High social presenceLow digital density High digital density Low digital density High digital density

Lowphysicalcomplexity

Base of the pyramidchallenges

Organization bundlesvs customer bundles

Autonomy(competitive) vsinterdependence(cooperation)

Regulation by actorsvs regulation bycommunity

Customerperspective scarcityof resources valuesincompatibilityOrganizationalperspective fee vsfree potentialsolutions mightinclude partner ornetwork alliances

Customer perspectiveperceived control cancreate paradox ofchoice customer endsup worse offOrganizationalperspective requiresdescriptive anddiagnostic use ofcustomer data

Customer perspectivehighly socialexperience thatrequires high trust tointegrate socialresourcesOrganizationalperspective limited orno digital and physicaltouchpoints to createtrust and aligncustomerorganizationgoals

Requires a digitalplatform forinformation sharing amechanism for risksharing Socialpresence could bedelivered digitallyRequires descriptiveand diagnosticcapabilities but nopredictive analytics

Highphysicalcomplexity

Privacy vstransparency

Standardization vsflexibility

Avoidance vsattraction

Capabilities vsresources

Organizational andcustomer perspectiverequires informationsharing and lowperceived risk Trustbetween serviceproviders andcustomers is critical

Customer perspectivehigh coping abilitiesrequired Theorganizationrsquos decisionsupport systems mustbe excellent to providevalue in real timeOrganizationalperspective customerknowledge andorganizationallearning is required

Customer perspectivefeedback andperceived controlneededOrganizationalperspective how tocreate brandedcustomer experiencesthat fit with customerneeds in the presenceof other customers

Customer perspectivecustomer innovationand creativity throughparticipation Localsolutions may bepossible if services canbe modularizedOrganizationalperspectiveco-creation requiresorganizational learningand effective businessanalytics

Table IDualities in each ofthe eight octants

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customers to share a service and its costs design smaller packages or bundles create pre-paid service plans or develop micro-finance or loan programs (Anderson and Markides2007) Finally actors in markets with scarce resources may turn to the moral economy toco-create value with the limited resources available (Cheung et al 2017)

Bundling services high digital density low physicalsocial resourcesHigh digital density realms are capable of supporting favorable emotional social and sensoryresponses Thus gamification ndash that is adding game-like elements to a task to encouragecustomer participation can be an especially attractive strategy for organizations in B2Cmarkets Research has shown that gamification can lead to customer learning engagementand improved customer experiences (Harwood and Garry 2015 Landers 2014) Games arealso effective in employee training team-building and management However this strategy isonly effective when the goals of the organization and its customers are aligned Games haverules and structure whereas play often does not so organizational and customer goals mayconflict (Hofaker et al 2016 Walz and Deterding 2014) This conflict may cause customers torefuse to participate in games thereby defeating the purpose of the gamification

Hence a duality can arise in balancing a participantrsquos goals (ie entertainment) withorganizational goals such as customer learning or buying (Harwood and Garry 2015) Theunderlying reason for this duality is that gamification implicitly requires the creation ofldquooptimalrdquo bundles of features (ie learning components entertainment components) that arevaluable to both parties This same dilemma ndash optimal service bundling ndash also occurs in highdigital density B2B markets in a very different form B2B customers may be faced with amultitude of bundles that encompass an overwhelming number of options and combinationsso that a non-expert encounters a ldquoparadox of choicerdquo ndash whereby a customer feels betterduring the bundle creation process but (objectively) ends up worse off (Reutskaja andHogarth 2009) In both of these situations complex bundling increases the challenges ofco-creation ndash that is creating value for both parties while successfully monetizing the service

New approaches Organizations must know (or learn) the customerrsquos preferences todetermine the appropriate mix and sequences of entertainment and content (ie the bundle)that will be most effective in creating value (Landers 2014) Since organizations and theircustomers are likely to value bundles (and the underlying components) differentlyorganizations must also adopt a relational approach to mitigate conflicts that influencevalue co-creation (Tuli et al 2007) In sum organizations operating in both B2B and B2Cmarkets characterized by a high digital density environment must intensively developresources and capabilities for leveraging descriptive and diagnostic analytics of customerdata to co-create service bundles and pricing options that are valuable to both parties

Autonomy vs interdependence in high social low digitalphysical environmentsHigh social presence creates a shared experience which requires high levels of trust toaccomplish integration of social resources (Hennig-Thurau et al 2002) When physical anddigital resources are limited organizations are constrained in their capabilities to usetraditional methods of creating trust and integrating social resources For example many oftodayrsquos business models rely on digital platforms to build trust and integrate socialresources (eg Airbnb) and such platforms are absent in this octant Hence a duality mayemerge between autonomy (which frequently implies competition) vs interdependence(which can be more cooperative) Instances of both competition and cooperation can beobserved in markets as social actors work independently or collectively to meet their needs(Cheung and McColl-Kennedy 2015)

New approaches Organizations must find social mechanisms for aligning organizationalcustomer and employee goals Often this requires a significant culture change within

Customerexperiencechallenges

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organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

JOSM

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)

offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

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imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

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design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 3: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Customers seek to engage with service brands and interact with service organizations thatenable superior experiences (Lemon and Verhoef 2016) Organizations respond tocustomers and shape markets by designing and delivering unique experiences that providethem with a competitive advantage and lead to favorable business outcomes (eg customerretention and profitability) (Bolton et al 2014 Verhoef et al 2009) Technologicaldevelopments are changing the capabilities of service organizations and systems (Breidbachet al 2018) and transforming the customer experience (Lemon 2016 Van Doorn et al 2017)In the future a customer might simultaneously interact with a service robot sensors builtinto the servicescape a mobile application and a human being who might be an employee ora friend Moreover changes in society will accelerate developments in the digital physicaland social realms In 2050 people worldwide aged 65 or older will outnumber children aged5 and under they will become parents much later in life and most people will live in a largecity and not own a car (Cohen 2014) These population trends will also change the nature ofservices because each customer is an active participant who co-creates value by drawingupon a unique assortment of capabilities and resources available in these realms

These three trends ndash developments in the digital physical and social realms changes inactorsrsquo capabilities and resources and societal changes ndash will stimulate an increase in theneed for customized customer experiences Ultimately organizations are likely to becomemore efficient and effective in serving customers so that consumer and societal well-beingwill improve However to truly understand and co-create value within a customerexperience firms require a comprehensive view of the customer experience over time thatintegrates the digital physical and social realms Without this integration organizationsface many customer experience challenges in both business-to-consumer (B2C) andbusiness-to-business (B2B) markets Predictions abound about the death ofbrick-and-mortar stores how customers will spend more time in virtual reality and theways that robots and artificial intelligence (AI) will replace service employees (Huang andRust 2018) For instance robots are already showing promise in assembling IKEA furniturewithout human assistance (Burdick 2018) New developments in each of these realms arealready causing marketplace disruptions For example as we were writing this paperAmazon Berkshire Hathaway and JP Morgan announced that they will partner totransform healthcare in the US marketplace (Tracer and Son 2018)

The challenges and opportunities facing service organizations are significant andsubstantial because customer experiences arise at the intersection of the digital physical andsocial realms for each customer This paper reviews what we know and do not yet knowabout customer experience with a focus on connections among the digital physical and socialrealms We view the customer experience as encompassing customersrsquo cognitive emotionalsocial sensory and value responses to the organizationrsquos offerings over time includingpre- and post-consumption (Kranzbuumlhler et al 2017 Lemon and Verhoef 2016 Voorhees et al2017) We bring together recent research concerning value co-creation and interactive servicesdigital and social media (augmented and virtual reality) multi-channel marketing (eg storebeacons) service operations (eg leveraging AI in business processes) and technology (eg theInternet of Things (IoT)) In doing so our paper addresses managerial questions such as

bull How do digital physical and social elements interact to form the customer experience

bull How might organizations integrate digital physical and social realms to createconsistently superior customer experiences in the future

bull How do customer experiences at the intersection of digital physical and social realmsinfluence outcomes for individuals service providers and society

bull What are the opportunities challenges and emerging issues in the digital physicaland social realms for organizations managing the customer experience

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Our paper offers a conceptual framework for analyzing the formation of customerexperiences that incorporates the digital physical and social realms and explicitly considersnew technology-enabled services Customer experiences are conceptualized within a threedimensional space ndash low to high digital density low to high physical complexity and low tohigh social presence ndash yielding eight octants This framework leads to a discussion ofspecific opportunities and challenges connected with transitioning from low to high digitaldensity and from low to high social presence environments for both B2B and B2C servicesIt also reveals eight ldquodualitiesrdquo ndash opposing strategic options ndash that organizations face inco-creating customer experiences in each of the eight octants of the framework We reviewrelevant conceptual work about the antecedents and consequences of customer experiencesthat can guide managers in designing and managing customer experiences Moreover weidentify possible future conditions that can significantly impact customer experiencesidentifying heretofore unanswered questions about customer experiences at the intersectionof the digital physical and social realms thereby outlining a research agenda

The customer experienceThe customer experience originates from a series of interactions between a customer and aservice provider (Gentile et al 2007) Researchers agree that a customerrsquos perception ofhisher experience is holistic in nature and involves multiple internal and subjectiveresponses to interactions with an organization (Meyer and Schwager 2007 Schmitt et al2015) The customer experience can thus be conceptualized as holistic comprised of multipleinteractions across touchpoints involving the customerrsquos cognitive affective emotionalsocial and sensory elements (Lemon and Verhoef 2016 Verhoef et al 2009) Voorhees et al(2017) emphasized that the customer experience takes place throughout many interactionsrelevant to a core service offering including multiple ldquomoments of truthrdquo that influencecustomer outcomes Edvardsson et al (2010) not only highlighted the importance of socialinteraction between customers and between customers and employees but they also notedthe role of technology as well as the physical elements of the servicescape

The customer experience can also be viewed from an organizational perspective(Kranzbuumlhler et al 2017) where the focus is on designing and delivering an experience forthe customer (Bolton 2016) Grewal et al (2009) argued that customer experiencemanagement is a business strategy that creates a winndashwin solution for the service providerand its customers Homburg et al (2017) further emphasized the firm-wide managerialimplications of customer experience management through changes in cultural mindsetsstrategic directions and the development of firm capabilities A firm adopting customerexperience management attempts to provide the prerequisites in forms of the digitalphysical and social realms that occur at different ldquomoments of truthrdquo in time and space(Zomerdijk and Voss 2010)

While this prior work makes a valuable contribution to our understanding of the customerexperience in the main it has tended to focus on one or two realms For example literaturehas focused on physical elements such as present in a physical servicescape (eg Bitner 1992Mehrabian and Russell 1974) or social interactions (eg McColl-Kennedy Snyder Elg WitellHelkkula Hogan and Anderson 2017 Rosenbaum andMassiah 2007 Rosenbaum et al 2007)or digital elements (eg Huang and Rust 2018 Ordenes et al 2014 Zaki and Neely 2018)Our customer experience framework integrates these three realms ndash digital physical andsocial ndash and what it may mean for managing customer experiences in the future

Customer experience conceptual frameworkOne way to imagine the future of service from both a customer and organizationalperspective is to consider customer experience scenarios as depicted in Figure 1 This figuredepicts the customer experience in a three-dimensional space The dimensions are

Customerexperiencechallenges

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characterized by low to high digital density low to high physical complexity and low to highsocial presence This section sets the stage by characterizing each dimension and the nextsection expands upon this framework by providing examples and then identifying criticalissues that arise in each octant of the cube As these sections will demonstrate that thedigital physical and social worlds will converge much sooner than we think

Digital realmThe internet is a platform that supports many important marketplaces for goods andservices including information services Hence an organizationrsquos ability to leverage digitaltechnologies is an increasingly important source of competitive advantage becausebusinesses must respond to market dynamics effectively and in a timely manner(Kumar and Reinartz 2016 Leeflang et al 2014) Organizations are adopting innovativedigital technologies such as mobile location-based virtual reality digital twinsblockchains AI wearable technologies neuroscience and business process automation aswell as machine-to-machine interactions through the IoT Digital technologies can provide ahighly personalized and immersive environment that allows for interactivity and richinformation exchange between the organization and consumer (Parise et al 2016) Digitaltechnologies are changing customersrsquo expectations and behavior how organizations andnetworks are organized and the role of ldquohumansrdquo in the marketplace ndash where the linesbetween human and machine are becoming blurred (Lemon 2016)

Organizations are facing a ldquocrisis of immediacyrdquo as they attempt to meet customersrsquoneeds for content expertise and personalized solutions in real time (Parise et al 2016)Todayrsquos digital technologies enable virtual experts that is agents who interact withconsumers to answer questions provide recommendations and deliver advice in any placetime or format (Breidbach et al 2018) Virtual experts range from human experts connectedto the consumer through video conferencing to digital agents that interact with the userthrough mobile apps or augmented reality technology Business managers and researchers

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 1Depiction of thecustomer experiencein digital physicaland social realms witheight octants

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are rethinking theory and practice to accommodate the digital erarsquos increasing complexityhigh information availability high reach frequent interactions and faster speeds oftransactions (Wedel and Kannan 2016) Given these characteristics we view the digitalrealm as ranging from low to high information density

Physical realmThe physical realm includes the arrangement of furnishings and equipment that influencetheir functionality spatial arrangements that enhance convenience and a sense of comfortambient elements and cultural resources that is signs and symbols that invite customers toengage in the service encounter (Bitner 1992) Cues from the physical realm directly influencehow customers act and respond during service encounters (Ballantyne and Nilsson 2017) Forexample customers can use cultural resources as cues that set the rules and expectations ofhow to act and interact within the service environment A sense of place can be facilitated byusing cultural artifacts signs and symbols to create a sense of belonging to a collective brandcommunity or sub-culture enriching shared customer experiences

Many elements of the physical realm are subtle yet pervasive in their effects on thecustomer experience For example the physical realm of a servicescape influences thenature and quality of interactions between customers and employees of the organization(Bitner 1992) as well as customer-to-customer (C2C) interactions (Tombs andMcColl-Kennedy 2003) Successful organizations combine elements of the physical realmto offer an integrative narrative to their customers thereby inviting customers to beimmersed in their own phenomenological experience (Petermans et al 2013) In service andretail contexts the physical servicescape offers customers an immersive experience that candeliver enduring emotional moments and memories (Giraldi et al 2016)

As organizations move to digital platforms the constituents of the physical realm remaincentral to understanding the customer experience ndash indeed they may act as a referencepoint Ballantyne and Nilsson (2017) noted that functionality use of space and culturalmessaging remain important aspects of the online customer experience They added thatldquo[hellip] the technological development of the Internet and the emergence of new social mediaare shifting the market place for business further towards virtual market spacerdquo (p 227)merging the physical and digital via technology For example retailers are already usingaugmented reality such as smart mirrors for customers to try on clothes and businesses areusing virtual reality to manage workplaces Hence we characterize the physicalenvironment as ranging from low to high physical complexity where technology is anincreasingly important component

Social realmInteractions are at the heart of the social realm of the customer experience Early workconsidered the social realm as a stage where customers and employees performedexperiences (Pine and Gilmore 1998 Solomon et al 1985 Surprenant and Solomon 1987)However researchers now agree that the social realm is defined by the interactions amongactors (eg customers employees and partners) through different interfaces which areincreasingly non-human (De Keyser et al 2015 Lemon and Verhoef 2016 McColl-KennedyGustafsson Jaakkola Klaus Radnor Perks and Friman 2015) Organizations must takeaccount of customersrsquo social environments and their expectations about organization-basedresources such as settings products and atmospherics in order to design serviceexperiences for customers (Verhoef et al 2009)

Since customers actively co-create experiences organizations must facilitate customersrsquointeractions with other actors Customers can influence other customers through smartphonessocial networks and other means (McColl-Kennedy Cheung and Ferrier 2015 Tombs andMcColl-Kennedy 2013) C2C interactions such as reviews or shared evaluations of a service

Customerexperiencechallenges

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can influence customersrsquo ldquoapproach or avoid decisionsrdquo thereby influencing organizationaloutcomes (eg customer acquisition) and customer outcomes such as their attachment to aservice place or environment (Rosenbaum and Massiah 2011) The social realm helpscustomers fulfill utilitarian social and psychological customer needs Moreover in a virtualcontext interactive media devices connect customers both inside and outside the boundaries ofthe physical setting (Benoit et al 2017 Sands et al 2011) giving customers a collective sense ofldquosocial presencerdquo

A sense of social presence arises between humans as well as between human andnon-human entities such as service robots (Van Doorn et al 2017) It can be experienced inboth physical and virtual contexts ndash and it increasingly characterizes service and retailsettings Research has shown that social density may affect the customer experience(Tombs and McColl-Kennedy 2003) For example in high social density contextsinteractions are frequent among several actors such as in a crowded cafeacute or an active socialmedia chat room The effect can be negative (eg crowding) or positive (eg convivial) to thecustomer experience Conversely in low social density contexts infrequent interactionsbetween actors may be negative (eg lonely or isolating) or positive (eg calming or serene)For these reasons we believe that the density of social presence can be quantified from lowto high and that both traditional and technology-mediated service encounters can becharacterized in this way

Customer experience opportunities emerging issues and challengesThe world is undergoing a fourth revolution ndash a technological revolution ndash that isunprecedented in its scale speed and complexity (Department for Business Energy andIndustrial Strategy 2017) Customers can enjoy entertainment shop learn socialize andwork within digital environments that also have an overarching social dimension(Ballantyne and Nilsson 2017) Cognitive systems (AI) will transform the way we live andwork in diverse ways ranging from the diagnosis and treatment of cancer to the security ofonline transactions (Wirtz et al 2018) In the information age people and organizations areable to make better decisions on the design and management of the customer experience(Patriacutecio et al 2018) For example knowing the weather forecast what time a train willdepart or when a broadband outage might occur helps minimize friction (eg wasted timeand effort) allows individuals and organizations to work effectively and also enhances thecustomer experience (National Infrastructure Commission 2017) Since there are manypossibilities this section focuses on exemplar future services that are likely to emerge by theyear 2050 in three service sectors asset-heavy B2B services healthcare and B2C retail andprofessional services We will use each sector to provide a foundation for identifyingopportunities and emerging issues Then we summarize some of the challenges of creatingcustomer experiences at the intersection of the digital physical and social realms

Opportunities and emerging issues in asset-heavy B2B services from traditional supportservice to digital twin serviceOpportunities Opportunities for using digital technologies to improve productivity andefficiency in managing demand and capacity are prevalent in many B2B service sectorsSome examples are located in the digitalphysicalsocial space in Figure 2 This subsectionfocuses on opportunities for asset-heavy B2B services such as construction defense energyand transport services (National Infrastructure Commission 2017) Asset-heavyorganizations design build and deliver an integrated offering that includes the sale orlease of (large) assets integrated with support services such as maintenance and repair Inthese environments traditional repair services have a physical servicescape such as aworkshop or depot with a social dimension such as a team of service experts who work

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with customers to produce comprehensive repair solutions that are critical to the respectivecustomerrsquos day-to-day site experience and productivity (Zaki and Neely 2018)

There are many opportunities for asset management services because asset failuresignificantly disrupts the economy endangers peoplersquos health and safety and incursenvironmental consequences (National Infrastructure Commission 2017) For this reasonorganizations collect vast amounts of data from asset sensors for remote preventivemaintenance and other purposes (Zaki and Neely 2018) For rail services asset failures andrelated incidents costs the UK economy pound13ndashpound19bn a year ($18ndash$26bn) which includesfare losses the cost of passengersrsquo time on delayed or canceled trains and damage to theholistic customer experience (MacDonald 2017) Data are critical inputs to predictive orldquoasset health monitoringrdquo solutions Proactive condition-monitoring services apply existingoperational data real-time sensor data advanced engineering analytics and forward-lookingbusiness intelligence to produce recommendation analyses that identify potential equipmentfaults (Qiu et al 2013) They have many advantages in service networks including timelyscheduling convenient maintenance services monitoring machine health increased uptimeand fuel efficiency and reduced operating costs (Zaki and Neely 2018)

Emerging issues In the future monitoring technologies are likely to be digitallyconnected with assets to diagnose faults in the high physical and low social realm ndash egautonomously stopping equipment in the event of a threat of a strike by employees Anespecially exciting example is a rdquodigital twinrdquo ndash that is a dynamic virtual representation of aphysical object or system across its lifecycle using real-time data to enable understandinglearning and reasoning (National Infrastructure Commission 2017) For exampleRolls-Royce has signed a memorandum of understanding with universities and otherinstitutes with the aim of creating an open source digital platform to develop new ships Theplatform will allow the creation of a digital copy of a real ship including its systems thatsynthesizes the information available about the ship Any aspect of the digital twin ship canbe explored through a digital interface creating a virtual test bench to assess the safety and

Traditional Repair

RemoteMaintenance

B2B PredictiveSolutions

Asset Management(machine to machine)

Simulations ndash BigDiggers Pilots

Digital Asset Twin

SystemSolutionEngineering Services

AutomatedSoftwarePatchesPhysical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 2Future asset-heavy

B2B services inthe digitalphysical

social realms

Customerexperiencechallenges

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performance of a vessel and its systems both before its construction and through itslifecycle (Rolls-Royce 2017) The UK National Infrastructure Commission has suggestedbuilding a digital twin of the entire country which would bring together power water railcommunications meteorological demographic and transport data to give insights andanswer questions such as is it possible to avoid building a new hospital car park bymanaging appointment times and traffic flows How can energy consumption be reduced by10 percent per person over six months What is the impact of closing a specific road in theevent of a water leak (National Infrastructure Commission 2017)

Opportunities and emerging issues in healthcare services from traditional care to digital careOpportunities Health is an important context for service researchers and practitioners(Danaher and Gallan 2016) Traditionally healthcare has been centered on the schedulesand settings of the clinical team and infrastructure However experts forecast that relianceon the physical realm will diminish over the next 20 years due to changes in technologies(Topol and Hill 2012) Today surgeons ldquovirtuallyrdquo assist in operations outside the confinesof the hospital using network links and satellite calls and dermatologists diagnose skincancer in remote areas of Australia using smartphones (Wolf et al 2013) In the futureclinicians will be increasingly less reliant on patients visiting the clinic as health servicesenter the digital realm See Figure 3 which provides healthcare examples located in thedigitalphysicalsocial space

Emerging issues Customers will increasingly shape their own experiences in digitalhealthcare (McColl-Kennedy Snyder Elg Witell Helkkula Hogan and Anderson 2017)Personalized rather than population-based solutions will be available in the treatment andmanagement of disease Improvements in diagnostic accuracy and sensitivity have becomeapparent with advances in genome pattern sequencing and prognostic decision making(Topol and Hill 2012) Today the Mayo Clinic offers grants to organizations to developtechnological applications that can monitor an individualrsquos anatomical changes to detect the

TraditionalNursing

CounselingServices

Simulationsor VR

MedicalTourism

Rural ldquoBarefootrdquoDoctors

HealthcareMonitoring(wearables toys)

DiagnosticServices

RobotSurgery

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 3Future healthcareservices in the digitalphysicalsocial realms

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onset or progression of disease symptoms (Mayo Clinic 2018) In the future smart deviceswill enable patients to quickly make decisions about their healthcare and treatment optionsrather than waiting for results from laboratories or clinics By 2050 healthcareorganizations will leverage AI 3D printing sensory technology real-time data processingand big data repositories to design and deliver services (Antons and Breidbach 2018) Astechnologies become more sophisticated robotic assistants will be in hospital wards in ourhomes and playing a critical role in the operating suite (Lanfranco et al 2004) Today robotshave begun to assist in the operating suite and to fulfill social roles such as cuddlycompanions for the elderly and hotel ambassadors (eg Softbank Roboticsrsquo robot Pepper)In the future they will be carers for the infirmed and assistants to medical consultants

Opportunities and emerging issues in B2C retail and professional services from traditionalservice to digital serviceOpportunities Digital technologies are already prevalent in B2C industries including retailautomotive consumer goods logistics media and professional services (World EconomicForum 2017) Retailing is especially rife with digital service innovations with concomitantorganizational changes In the past in-store and online retailing were characterized by highphysical complexity and high social presence At present both are shifting from low to highdigital density realms (Ballantyne and Nilsson 2017) Figure 4 depicts some examples in thedigitalphysicalsocial spaces Consumers attracted by the convenience of easy digitalaccess to user reviews comparison pricing and endless aisles have come to rely on onlineand mobile shopping

Traditional retailers are bringing digital channels into stores and online retailers areopening brick-and-mortar shops in high-profile locations seeking to create experiences thatcannot be delivered through a device Both traditional and online retailers are working towardthe same goal a highly personalized consistent and integrated shopping experience across allpoints of contact between retailers and customers The integration of digital technologies with

ProfessionalServices

MultiplayerOnline Gaming

Wii gamesWith others

MobileFinancialServices

Custom Build Your Car(or Kitchen or )

Drone DeliveryServices 3D PrintingServices

Light TherapyServices

SalonServices

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 4Future B2C retail andprofessional services

in the digitalphysicalsocial realms

Customerexperiencechallenges

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physical (store) environments will enhance the customer experience and improve employeeperformance For example AmazonGo is a new kind of bricks-and-mortar store with highdigital density so that no physical checkout is required Amazon is also experimenting withcomputer vision sensor fusion and deep learning through a seamless phone application whichmay radically change the customer experience (Amazon 2018)

Emerging issues The World Economic Forum (2017) predicted a dramatic shift fromtraditional services to digital services In the USA professional services are estimated to bethe second-largest employment sector (after healthcare) In the UK they account for15 percent of its gross domestic product and employ 14 percent of its workforceEmployment in professional services is expected to grow to approximately 21m jobs by2024 (US Bureau of Labor Statistics 2015) One reason for this growth is that onlineplatforms offer a convenient alternative to the traditional physical marketplace forhealthcare and professional services Due to the dramatic shift from traditional services todigital services employees and customers will participate in the co-creation of serviceswithin a high digital density environment In Figure 4 this change implies moving from thehigh physical complexity high social presence and low digital density octant to the lowphysical high social presence and high digital density octant

Increasingly many customers are expecting 247 access to professional services Forexample Upwork is a platform connecting 5m client businesses with more than 12mfreelancers (Upwork 2017) In the legal profession virtual courtrooms are replacing the needfor physical ones as lawyers witnesses and judges can now hold hearings via video link(Susskind and Susskind 2015) We speculate that the next transition will be to the lowphysical low social presence and high digital density octant For example the law firm ofBaker and Hostetler recently developed an AI lawyer (ldquoRossrdquo) to handle its bankruptcypractice and replaced 50 human lawyers Ross can read understand analyze language andgenerate responses backed up with legal references It also monitors current litigation tonotify colleagues about recent court decisions (Addady 2016)

Challenges of navigating the path to high digital density environmentsBusiness managers and researchers anticipate that a major benefit of AI and ldquobig datardquowill be service innovations that create new value propositions (Hartmann et al 2016Huang and Rust 2018 Mayer-Schoumlnberger and Cukier 2013) In addition peopleorganizations and society will benefit from the move to high density digital environmentsthrough increased convenience universal access to information to inform decisions andnew solutions However people and organizations must shape the role that technologyplays in the design and delivery of the customer experience Interconnections betweendevices and platforms have the potential to create complex service systems that ndash if theyfail ndash could have far-reaching consequences that could be very destructive For exampleTay the rogue chatbot that Microsoft developed was a female chatbot with its ownTwitter account It is a machine learning project designed for human engagement thatcommunicates with 18-to 24-year-olds learns from them and gets smarter with timeWithin 24 h from its launch Tay tweeted about smoking drugs and claiming that ldquoHitlerwas right [hellip]rdquo and ldquofeminists should [hellip] burn in hellrdquoMicrosoft shut the service the nextday (Regelado 2016)

Organizations cannot access the information they need to co-create services with customersbecause multiple technical solutions exist that are designed to be optimal for well-defined localproblems ndash but these solutions are often disconnected and (consequently) sub-optimal from asystem or network standpoint Although hardware software platform and networkingstandards have been established across organizations each organization and itscustomers typically use their own tools and data standards Consequently data architecture

JOSM

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)

is fragmented and there is no integrated enterprise information platformwithin an organizationndash let alone across organizations This misalignment creates challenges because it isunclear which technologies are needed and how they should be implemented and integratedinto the existing information and communication technology infrastructure in organizationsMoreover organizationsrsquo utilization of analytical methods is currently limited rangingfrom descriptive analytics (eg dashboards) applied to high volume high velocity data todiagnostic predictive and prescriptive analytics (eg cognitive systems and optimizationmodels) which require more costly complex methods and typically more structured data(Wedel and Kannan 2016)

Challenges of navigating the path to high social presenceOrganizations have experience with the migration to high social presence environments thatinvolve humans usually when digital density is low Research has shown that the use oftechnology by employees can improve their performance under some conditions (Ahearneet al 2008) thereby improving the customer experience However digital technology canaugment or eliminate the human element thereby changing the roles of customers andemployees Lariviegravere et al (2017) argued that employees and customers are taking on newroles as enablers innovators coordinators and differentiators ndash rather than traditionaldeliverers of the core service For example smart technology has begun to expand frontlineservice interactions in both B2B and B2C contexts and to deepen customerndashorganizationrelationships (Marinova et al 2016)

In addition very little is known about automated social presence ndash such as robotsavatars augmented and virtual reality ndash as opposed to humans Already people areencountering automated social presence when they are served by a robot in a restaurant orhospital consult intelligent virtual assistants interact with others in simulated or virtualenvironments receive medical care through telepresence and so forth (Plambeck 2018Walsh 2018) Indeed many people access technology through a virtual assistant such asSiri and Alexa which exhibit a personality and encourage anthropomorphism Thus socialpresence can now occur digitally rather than due to the physical presence of a human actorso that high social presence can be achieved through automation (Van Doorn et al 2017)Researchers have become especially interested in the ldquouncanny valleyrdquo a term that denotesthe uncomfortable sensation associated with a mismatch between an individualrsquosexpectations and a robotrsquos behavior (Mori et al 2012)

New approaches to reconciling customer experience dualitiesUntil this point we have identified opportunities and challenges for enhancing the customerexperience in the future and considered ways that organizations and customers might makethe most of them In this section we discuss how the intersection of digital physical andsocial realms poses systematic challenges for organizations customers and society Wefocus on tensions that unless addressed may inhibit the conditions necessary for valueco-creation between actors in a network We term these tensions ldquodualitiesrdquo defined as theopposition or contrast between concepts or strategies

We organize our discussion by considering the circumstances in each of the eight octantsbecause they represent different conditions that beget different dualities These aredescribed in Table I (which maps our three-dimensional octants into two-dimensional space)Some dualities may apply in more than one condition We do not aim to unambiguouslyclassify dualities but rather to elucidate how they arise from service design and deliveryopportunities challenges and trade-offs In addition we provide examples and offerguidance on ways to resolve these dualities through innovations in the design andmanagement of customer experiences for probable future conditions

Customerexperiencechallenges

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Base of the pyramid (BoP) or scarcity in digital physical and social realmsThe low digitalphysicalsocial octant represents a condition of scarcity in which resourceconstraints (or uneven distribution of resources) hinder value co-creation in many forms(Gebauer and Reynoso 2013 London et al 2010) There are vast numbers of people who liveevery day with scarce resources sometimes referred to as BoP In addition during naturaldisasters individuals may find themselves temporarily without access to many resources(Cheung et al 2017) We believe that the scarcity duality arises from fundamentallydifferent perspectives on value held by different actors in a service ecosystem For examplefor-profit business objectives (and sometimes non-profit objectives) may not match the goalsof individuals in markets with scarce or unevenly distributed resources due to culturalpolitical issues related to power structures (Arora and Romijn 2011)

New approaches One approach to these challenges is to acquire a partner or engage in anetwork alliance thereby tapping into knowledge resources and capabilities related to thelocal market (Rivera-Santos and Rufiacuten 2010) An example of a successful alliance thatco-creates value with customers who face scarce resources in many countries is the UnitedNations-led initiative to eradicate malaria by 2040 (UN News 2015) Another approach tosuccessfully operating in markets with scarce resources entails the development novelbusiness models especially with respect to pricing For example organizations may enable

Low social presence High social presenceLow digital density High digital density Low digital density High digital density

Lowphysicalcomplexity

Base of the pyramidchallenges

Organization bundlesvs customer bundles

Autonomy(competitive) vsinterdependence(cooperation)

Regulation by actorsvs regulation bycommunity

Customerperspective scarcityof resources valuesincompatibilityOrganizationalperspective fee vsfree potentialsolutions mightinclude partner ornetwork alliances

Customer perspectiveperceived control cancreate paradox ofchoice customer endsup worse offOrganizationalperspective requiresdescriptive anddiagnostic use ofcustomer data

Customer perspectivehighly socialexperience thatrequires high trust tointegrate socialresourcesOrganizationalperspective limited orno digital and physicaltouchpoints to createtrust and aligncustomerorganizationgoals

Requires a digitalplatform forinformation sharing amechanism for risksharing Socialpresence could bedelivered digitallyRequires descriptiveand diagnosticcapabilities but nopredictive analytics

Highphysicalcomplexity

Privacy vstransparency

Standardization vsflexibility

Avoidance vsattraction

Capabilities vsresources

Organizational andcustomer perspectiverequires informationsharing and lowperceived risk Trustbetween serviceproviders andcustomers is critical

Customer perspectivehigh coping abilitiesrequired Theorganizationrsquos decisionsupport systems mustbe excellent to providevalue in real timeOrganizationalperspective customerknowledge andorganizationallearning is required

Customer perspectivefeedback andperceived controlneededOrganizationalperspective how tocreate brandedcustomer experiencesthat fit with customerneeds in the presenceof other customers

Customer perspectivecustomer innovationand creativity throughparticipation Localsolutions may bepossible if services canbe modularizedOrganizationalperspectiveco-creation requiresorganizational learningand effective businessanalytics

Table IDualities in each ofthe eight octants

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customers to share a service and its costs design smaller packages or bundles create pre-paid service plans or develop micro-finance or loan programs (Anderson and Markides2007) Finally actors in markets with scarce resources may turn to the moral economy toco-create value with the limited resources available (Cheung et al 2017)

Bundling services high digital density low physicalsocial resourcesHigh digital density realms are capable of supporting favorable emotional social and sensoryresponses Thus gamification ndash that is adding game-like elements to a task to encouragecustomer participation can be an especially attractive strategy for organizations in B2Cmarkets Research has shown that gamification can lead to customer learning engagementand improved customer experiences (Harwood and Garry 2015 Landers 2014) Games arealso effective in employee training team-building and management However this strategy isonly effective when the goals of the organization and its customers are aligned Games haverules and structure whereas play often does not so organizational and customer goals mayconflict (Hofaker et al 2016 Walz and Deterding 2014) This conflict may cause customers torefuse to participate in games thereby defeating the purpose of the gamification

Hence a duality can arise in balancing a participantrsquos goals (ie entertainment) withorganizational goals such as customer learning or buying (Harwood and Garry 2015) Theunderlying reason for this duality is that gamification implicitly requires the creation ofldquooptimalrdquo bundles of features (ie learning components entertainment components) that arevaluable to both parties This same dilemma ndash optimal service bundling ndash also occurs in highdigital density B2B markets in a very different form B2B customers may be faced with amultitude of bundles that encompass an overwhelming number of options and combinationsso that a non-expert encounters a ldquoparadox of choicerdquo ndash whereby a customer feels betterduring the bundle creation process but (objectively) ends up worse off (Reutskaja andHogarth 2009) In both of these situations complex bundling increases the challenges ofco-creation ndash that is creating value for both parties while successfully monetizing the service

New approaches Organizations must know (or learn) the customerrsquos preferences todetermine the appropriate mix and sequences of entertainment and content (ie the bundle)that will be most effective in creating value (Landers 2014) Since organizations and theircustomers are likely to value bundles (and the underlying components) differentlyorganizations must also adopt a relational approach to mitigate conflicts that influencevalue co-creation (Tuli et al 2007) In sum organizations operating in both B2B and B2Cmarkets characterized by a high digital density environment must intensively developresources and capabilities for leveraging descriptive and diagnostic analytics of customerdata to co-create service bundles and pricing options that are valuable to both parties

Autonomy vs interdependence in high social low digitalphysical environmentsHigh social presence creates a shared experience which requires high levels of trust toaccomplish integration of social resources (Hennig-Thurau et al 2002) When physical anddigital resources are limited organizations are constrained in their capabilities to usetraditional methods of creating trust and integrating social resources For example many oftodayrsquos business models rely on digital platforms to build trust and integrate socialresources (eg Airbnb) and such platforms are absent in this octant Hence a duality mayemerge between autonomy (which frequently implies competition) vs interdependence(which can be more cooperative) Instances of both competition and cooperation can beobserved in markets as social actors work independently or collectively to meet their needs(Cheung and McColl-Kennedy 2015)

New approaches Organizations must find social mechanisms for aligning organizationalcustomer and employee goals Often this requires a significant culture change within

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organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

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offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

Customerexperiencechallenges

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

Customerexperiencechallenges

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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)

For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

JOSM

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(PT

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

Dow

nloa

ded

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)

imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

Dow

nloa

ded

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2018

(PT

)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

References

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Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

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Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

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Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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nloa

ded

by D

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n A

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Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

Pine BJ and Gilmore JH (1998) ldquoWelcome to the experience economyrdquo Harvard Business ReviewVol 76 JulyAugust pp 97-105

Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

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Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 4: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Our paper offers a conceptual framework for analyzing the formation of customerexperiences that incorporates the digital physical and social realms and explicitly considersnew technology-enabled services Customer experiences are conceptualized within a threedimensional space ndash low to high digital density low to high physical complexity and low tohigh social presence ndash yielding eight octants This framework leads to a discussion ofspecific opportunities and challenges connected with transitioning from low to high digitaldensity and from low to high social presence environments for both B2B and B2C servicesIt also reveals eight ldquodualitiesrdquo ndash opposing strategic options ndash that organizations face inco-creating customer experiences in each of the eight octants of the framework We reviewrelevant conceptual work about the antecedents and consequences of customer experiencesthat can guide managers in designing and managing customer experiences Moreover weidentify possible future conditions that can significantly impact customer experiencesidentifying heretofore unanswered questions about customer experiences at the intersectionof the digital physical and social realms thereby outlining a research agenda

The customer experienceThe customer experience originates from a series of interactions between a customer and aservice provider (Gentile et al 2007) Researchers agree that a customerrsquos perception ofhisher experience is holistic in nature and involves multiple internal and subjectiveresponses to interactions with an organization (Meyer and Schwager 2007 Schmitt et al2015) The customer experience can thus be conceptualized as holistic comprised of multipleinteractions across touchpoints involving the customerrsquos cognitive affective emotionalsocial and sensory elements (Lemon and Verhoef 2016 Verhoef et al 2009) Voorhees et al(2017) emphasized that the customer experience takes place throughout many interactionsrelevant to a core service offering including multiple ldquomoments of truthrdquo that influencecustomer outcomes Edvardsson et al (2010) not only highlighted the importance of socialinteraction between customers and between customers and employees but they also notedthe role of technology as well as the physical elements of the servicescape

The customer experience can also be viewed from an organizational perspective(Kranzbuumlhler et al 2017) where the focus is on designing and delivering an experience forthe customer (Bolton 2016) Grewal et al (2009) argued that customer experiencemanagement is a business strategy that creates a winndashwin solution for the service providerand its customers Homburg et al (2017) further emphasized the firm-wide managerialimplications of customer experience management through changes in cultural mindsetsstrategic directions and the development of firm capabilities A firm adopting customerexperience management attempts to provide the prerequisites in forms of the digitalphysical and social realms that occur at different ldquomoments of truthrdquo in time and space(Zomerdijk and Voss 2010)

While this prior work makes a valuable contribution to our understanding of the customerexperience in the main it has tended to focus on one or two realms For example literaturehas focused on physical elements such as present in a physical servicescape (eg Bitner 1992Mehrabian and Russell 1974) or social interactions (eg McColl-Kennedy Snyder Elg WitellHelkkula Hogan and Anderson 2017 Rosenbaum andMassiah 2007 Rosenbaum et al 2007)or digital elements (eg Huang and Rust 2018 Ordenes et al 2014 Zaki and Neely 2018)Our customer experience framework integrates these three realms ndash digital physical andsocial ndash and what it may mean for managing customer experiences in the future

Customer experience conceptual frameworkOne way to imagine the future of service from both a customer and organizationalperspective is to consider customer experience scenarios as depicted in Figure 1 This figuredepicts the customer experience in a three-dimensional space The dimensions are

Customerexperiencechallenges

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characterized by low to high digital density low to high physical complexity and low to highsocial presence This section sets the stage by characterizing each dimension and the nextsection expands upon this framework by providing examples and then identifying criticalissues that arise in each octant of the cube As these sections will demonstrate that thedigital physical and social worlds will converge much sooner than we think

Digital realmThe internet is a platform that supports many important marketplaces for goods andservices including information services Hence an organizationrsquos ability to leverage digitaltechnologies is an increasingly important source of competitive advantage becausebusinesses must respond to market dynamics effectively and in a timely manner(Kumar and Reinartz 2016 Leeflang et al 2014) Organizations are adopting innovativedigital technologies such as mobile location-based virtual reality digital twinsblockchains AI wearable technologies neuroscience and business process automation aswell as machine-to-machine interactions through the IoT Digital technologies can provide ahighly personalized and immersive environment that allows for interactivity and richinformation exchange between the organization and consumer (Parise et al 2016) Digitaltechnologies are changing customersrsquo expectations and behavior how organizations andnetworks are organized and the role of ldquohumansrdquo in the marketplace ndash where the linesbetween human and machine are becoming blurred (Lemon 2016)

Organizations are facing a ldquocrisis of immediacyrdquo as they attempt to meet customersrsquoneeds for content expertise and personalized solutions in real time (Parise et al 2016)Todayrsquos digital technologies enable virtual experts that is agents who interact withconsumers to answer questions provide recommendations and deliver advice in any placetime or format (Breidbach et al 2018) Virtual experts range from human experts connectedto the consumer through video conferencing to digital agents that interact with the userthrough mobile apps or augmented reality technology Business managers and researchers

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 1Depiction of thecustomer experiencein digital physicaland social realms witheight octants

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are rethinking theory and practice to accommodate the digital erarsquos increasing complexityhigh information availability high reach frequent interactions and faster speeds oftransactions (Wedel and Kannan 2016) Given these characteristics we view the digitalrealm as ranging from low to high information density

Physical realmThe physical realm includes the arrangement of furnishings and equipment that influencetheir functionality spatial arrangements that enhance convenience and a sense of comfortambient elements and cultural resources that is signs and symbols that invite customers toengage in the service encounter (Bitner 1992) Cues from the physical realm directly influencehow customers act and respond during service encounters (Ballantyne and Nilsson 2017) Forexample customers can use cultural resources as cues that set the rules and expectations ofhow to act and interact within the service environment A sense of place can be facilitated byusing cultural artifacts signs and symbols to create a sense of belonging to a collective brandcommunity or sub-culture enriching shared customer experiences

Many elements of the physical realm are subtle yet pervasive in their effects on thecustomer experience For example the physical realm of a servicescape influences thenature and quality of interactions between customers and employees of the organization(Bitner 1992) as well as customer-to-customer (C2C) interactions (Tombs andMcColl-Kennedy 2003) Successful organizations combine elements of the physical realmto offer an integrative narrative to their customers thereby inviting customers to beimmersed in their own phenomenological experience (Petermans et al 2013) In service andretail contexts the physical servicescape offers customers an immersive experience that candeliver enduring emotional moments and memories (Giraldi et al 2016)

As organizations move to digital platforms the constituents of the physical realm remaincentral to understanding the customer experience ndash indeed they may act as a referencepoint Ballantyne and Nilsson (2017) noted that functionality use of space and culturalmessaging remain important aspects of the online customer experience They added thatldquo[hellip] the technological development of the Internet and the emergence of new social mediaare shifting the market place for business further towards virtual market spacerdquo (p 227)merging the physical and digital via technology For example retailers are already usingaugmented reality such as smart mirrors for customers to try on clothes and businesses areusing virtual reality to manage workplaces Hence we characterize the physicalenvironment as ranging from low to high physical complexity where technology is anincreasingly important component

Social realmInteractions are at the heart of the social realm of the customer experience Early workconsidered the social realm as a stage where customers and employees performedexperiences (Pine and Gilmore 1998 Solomon et al 1985 Surprenant and Solomon 1987)However researchers now agree that the social realm is defined by the interactions amongactors (eg customers employees and partners) through different interfaces which areincreasingly non-human (De Keyser et al 2015 Lemon and Verhoef 2016 McColl-KennedyGustafsson Jaakkola Klaus Radnor Perks and Friman 2015) Organizations must takeaccount of customersrsquo social environments and their expectations about organization-basedresources such as settings products and atmospherics in order to design serviceexperiences for customers (Verhoef et al 2009)

Since customers actively co-create experiences organizations must facilitate customersrsquointeractions with other actors Customers can influence other customers through smartphonessocial networks and other means (McColl-Kennedy Cheung and Ferrier 2015 Tombs andMcColl-Kennedy 2013) C2C interactions such as reviews or shared evaluations of a service

Customerexperiencechallenges

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can influence customersrsquo ldquoapproach or avoid decisionsrdquo thereby influencing organizationaloutcomes (eg customer acquisition) and customer outcomes such as their attachment to aservice place or environment (Rosenbaum and Massiah 2011) The social realm helpscustomers fulfill utilitarian social and psychological customer needs Moreover in a virtualcontext interactive media devices connect customers both inside and outside the boundaries ofthe physical setting (Benoit et al 2017 Sands et al 2011) giving customers a collective sense ofldquosocial presencerdquo

A sense of social presence arises between humans as well as between human andnon-human entities such as service robots (Van Doorn et al 2017) It can be experienced inboth physical and virtual contexts ndash and it increasingly characterizes service and retailsettings Research has shown that social density may affect the customer experience(Tombs and McColl-Kennedy 2003) For example in high social density contextsinteractions are frequent among several actors such as in a crowded cafeacute or an active socialmedia chat room The effect can be negative (eg crowding) or positive (eg convivial) to thecustomer experience Conversely in low social density contexts infrequent interactionsbetween actors may be negative (eg lonely or isolating) or positive (eg calming or serene)For these reasons we believe that the density of social presence can be quantified from lowto high and that both traditional and technology-mediated service encounters can becharacterized in this way

Customer experience opportunities emerging issues and challengesThe world is undergoing a fourth revolution ndash a technological revolution ndash that isunprecedented in its scale speed and complexity (Department for Business Energy andIndustrial Strategy 2017) Customers can enjoy entertainment shop learn socialize andwork within digital environments that also have an overarching social dimension(Ballantyne and Nilsson 2017) Cognitive systems (AI) will transform the way we live andwork in diverse ways ranging from the diagnosis and treatment of cancer to the security ofonline transactions (Wirtz et al 2018) In the information age people and organizations areable to make better decisions on the design and management of the customer experience(Patriacutecio et al 2018) For example knowing the weather forecast what time a train willdepart or when a broadband outage might occur helps minimize friction (eg wasted timeand effort) allows individuals and organizations to work effectively and also enhances thecustomer experience (National Infrastructure Commission 2017) Since there are manypossibilities this section focuses on exemplar future services that are likely to emerge by theyear 2050 in three service sectors asset-heavy B2B services healthcare and B2C retail andprofessional services We will use each sector to provide a foundation for identifyingopportunities and emerging issues Then we summarize some of the challenges of creatingcustomer experiences at the intersection of the digital physical and social realms

Opportunities and emerging issues in asset-heavy B2B services from traditional supportservice to digital twin serviceOpportunities Opportunities for using digital technologies to improve productivity andefficiency in managing demand and capacity are prevalent in many B2B service sectorsSome examples are located in the digitalphysicalsocial space in Figure 2 This subsectionfocuses on opportunities for asset-heavy B2B services such as construction defense energyand transport services (National Infrastructure Commission 2017) Asset-heavyorganizations design build and deliver an integrated offering that includes the sale orlease of (large) assets integrated with support services such as maintenance and repair Inthese environments traditional repair services have a physical servicescape such as aworkshop or depot with a social dimension such as a team of service experts who work

JOSM

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with customers to produce comprehensive repair solutions that are critical to the respectivecustomerrsquos day-to-day site experience and productivity (Zaki and Neely 2018)

There are many opportunities for asset management services because asset failuresignificantly disrupts the economy endangers peoplersquos health and safety and incursenvironmental consequences (National Infrastructure Commission 2017) For this reasonorganizations collect vast amounts of data from asset sensors for remote preventivemaintenance and other purposes (Zaki and Neely 2018) For rail services asset failures andrelated incidents costs the UK economy pound13ndashpound19bn a year ($18ndash$26bn) which includesfare losses the cost of passengersrsquo time on delayed or canceled trains and damage to theholistic customer experience (MacDonald 2017) Data are critical inputs to predictive orldquoasset health monitoringrdquo solutions Proactive condition-monitoring services apply existingoperational data real-time sensor data advanced engineering analytics and forward-lookingbusiness intelligence to produce recommendation analyses that identify potential equipmentfaults (Qiu et al 2013) They have many advantages in service networks including timelyscheduling convenient maintenance services monitoring machine health increased uptimeand fuel efficiency and reduced operating costs (Zaki and Neely 2018)

Emerging issues In the future monitoring technologies are likely to be digitallyconnected with assets to diagnose faults in the high physical and low social realm ndash egautonomously stopping equipment in the event of a threat of a strike by employees Anespecially exciting example is a rdquodigital twinrdquo ndash that is a dynamic virtual representation of aphysical object or system across its lifecycle using real-time data to enable understandinglearning and reasoning (National Infrastructure Commission 2017) For exampleRolls-Royce has signed a memorandum of understanding with universities and otherinstitutes with the aim of creating an open source digital platform to develop new ships Theplatform will allow the creation of a digital copy of a real ship including its systems thatsynthesizes the information available about the ship Any aspect of the digital twin ship canbe explored through a digital interface creating a virtual test bench to assess the safety and

Traditional Repair

RemoteMaintenance

B2B PredictiveSolutions

Asset Management(machine to machine)

Simulations ndash BigDiggers Pilots

Digital Asset Twin

SystemSolutionEngineering Services

AutomatedSoftwarePatchesPhysical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 2Future asset-heavy

B2B services inthe digitalphysical

social realms

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performance of a vessel and its systems both before its construction and through itslifecycle (Rolls-Royce 2017) The UK National Infrastructure Commission has suggestedbuilding a digital twin of the entire country which would bring together power water railcommunications meteorological demographic and transport data to give insights andanswer questions such as is it possible to avoid building a new hospital car park bymanaging appointment times and traffic flows How can energy consumption be reduced by10 percent per person over six months What is the impact of closing a specific road in theevent of a water leak (National Infrastructure Commission 2017)

Opportunities and emerging issues in healthcare services from traditional care to digital careOpportunities Health is an important context for service researchers and practitioners(Danaher and Gallan 2016) Traditionally healthcare has been centered on the schedulesand settings of the clinical team and infrastructure However experts forecast that relianceon the physical realm will diminish over the next 20 years due to changes in technologies(Topol and Hill 2012) Today surgeons ldquovirtuallyrdquo assist in operations outside the confinesof the hospital using network links and satellite calls and dermatologists diagnose skincancer in remote areas of Australia using smartphones (Wolf et al 2013) In the futureclinicians will be increasingly less reliant on patients visiting the clinic as health servicesenter the digital realm See Figure 3 which provides healthcare examples located in thedigitalphysicalsocial space

Emerging issues Customers will increasingly shape their own experiences in digitalhealthcare (McColl-Kennedy Snyder Elg Witell Helkkula Hogan and Anderson 2017)Personalized rather than population-based solutions will be available in the treatment andmanagement of disease Improvements in diagnostic accuracy and sensitivity have becomeapparent with advances in genome pattern sequencing and prognostic decision making(Topol and Hill 2012) Today the Mayo Clinic offers grants to organizations to developtechnological applications that can monitor an individualrsquos anatomical changes to detect the

TraditionalNursing

CounselingServices

Simulationsor VR

MedicalTourism

Rural ldquoBarefootrdquoDoctors

HealthcareMonitoring(wearables toys)

DiagnosticServices

RobotSurgery

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 3Future healthcareservices in the digitalphysicalsocial realms

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onset or progression of disease symptoms (Mayo Clinic 2018) In the future smart deviceswill enable patients to quickly make decisions about their healthcare and treatment optionsrather than waiting for results from laboratories or clinics By 2050 healthcareorganizations will leverage AI 3D printing sensory technology real-time data processingand big data repositories to design and deliver services (Antons and Breidbach 2018) Astechnologies become more sophisticated robotic assistants will be in hospital wards in ourhomes and playing a critical role in the operating suite (Lanfranco et al 2004) Today robotshave begun to assist in the operating suite and to fulfill social roles such as cuddlycompanions for the elderly and hotel ambassadors (eg Softbank Roboticsrsquo robot Pepper)In the future they will be carers for the infirmed and assistants to medical consultants

Opportunities and emerging issues in B2C retail and professional services from traditionalservice to digital serviceOpportunities Digital technologies are already prevalent in B2C industries including retailautomotive consumer goods logistics media and professional services (World EconomicForum 2017) Retailing is especially rife with digital service innovations with concomitantorganizational changes In the past in-store and online retailing were characterized by highphysical complexity and high social presence At present both are shifting from low to highdigital density realms (Ballantyne and Nilsson 2017) Figure 4 depicts some examples in thedigitalphysicalsocial spaces Consumers attracted by the convenience of easy digitalaccess to user reviews comparison pricing and endless aisles have come to rely on onlineand mobile shopping

Traditional retailers are bringing digital channels into stores and online retailers areopening brick-and-mortar shops in high-profile locations seeking to create experiences thatcannot be delivered through a device Both traditional and online retailers are working towardthe same goal a highly personalized consistent and integrated shopping experience across allpoints of contact between retailers and customers The integration of digital technologies with

ProfessionalServices

MultiplayerOnline Gaming

Wii gamesWith others

MobileFinancialServices

Custom Build Your Car(or Kitchen or )

Drone DeliveryServices 3D PrintingServices

Light TherapyServices

SalonServices

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 4Future B2C retail andprofessional services

in the digitalphysicalsocial realms

Customerexperiencechallenges

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physical (store) environments will enhance the customer experience and improve employeeperformance For example AmazonGo is a new kind of bricks-and-mortar store with highdigital density so that no physical checkout is required Amazon is also experimenting withcomputer vision sensor fusion and deep learning through a seamless phone application whichmay radically change the customer experience (Amazon 2018)

Emerging issues The World Economic Forum (2017) predicted a dramatic shift fromtraditional services to digital services In the USA professional services are estimated to bethe second-largest employment sector (after healthcare) In the UK they account for15 percent of its gross domestic product and employ 14 percent of its workforceEmployment in professional services is expected to grow to approximately 21m jobs by2024 (US Bureau of Labor Statistics 2015) One reason for this growth is that onlineplatforms offer a convenient alternative to the traditional physical marketplace forhealthcare and professional services Due to the dramatic shift from traditional services todigital services employees and customers will participate in the co-creation of serviceswithin a high digital density environment In Figure 4 this change implies moving from thehigh physical complexity high social presence and low digital density octant to the lowphysical high social presence and high digital density octant

Increasingly many customers are expecting 247 access to professional services Forexample Upwork is a platform connecting 5m client businesses with more than 12mfreelancers (Upwork 2017) In the legal profession virtual courtrooms are replacing the needfor physical ones as lawyers witnesses and judges can now hold hearings via video link(Susskind and Susskind 2015) We speculate that the next transition will be to the lowphysical low social presence and high digital density octant For example the law firm ofBaker and Hostetler recently developed an AI lawyer (ldquoRossrdquo) to handle its bankruptcypractice and replaced 50 human lawyers Ross can read understand analyze language andgenerate responses backed up with legal references It also monitors current litigation tonotify colleagues about recent court decisions (Addady 2016)

Challenges of navigating the path to high digital density environmentsBusiness managers and researchers anticipate that a major benefit of AI and ldquobig datardquowill be service innovations that create new value propositions (Hartmann et al 2016Huang and Rust 2018 Mayer-Schoumlnberger and Cukier 2013) In addition peopleorganizations and society will benefit from the move to high density digital environmentsthrough increased convenience universal access to information to inform decisions andnew solutions However people and organizations must shape the role that technologyplays in the design and delivery of the customer experience Interconnections betweendevices and platforms have the potential to create complex service systems that ndash if theyfail ndash could have far-reaching consequences that could be very destructive For exampleTay the rogue chatbot that Microsoft developed was a female chatbot with its ownTwitter account It is a machine learning project designed for human engagement thatcommunicates with 18-to 24-year-olds learns from them and gets smarter with timeWithin 24 h from its launch Tay tweeted about smoking drugs and claiming that ldquoHitlerwas right [hellip]rdquo and ldquofeminists should [hellip] burn in hellrdquoMicrosoft shut the service the nextday (Regelado 2016)

Organizations cannot access the information they need to co-create services with customersbecause multiple technical solutions exist that are designed to be optimal for well-defined localproblems ndash but these solutions are often disconnected and (consequently) sub-optimal from asystem or network standpoint Although hardware software platform and networkingstandards have been established across organizations each organization and itscustomers typically use their own tools and data standards Consequently data architecture

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is fragmented and there is no integrated enterprise information platformwithin an organizationndash let alone across organizations This misalignment creates challenges because it isunclear which technologies are needed and how they should be implemented and integratedinto the existing information and communication technology infrastructure in organizationsMoreover organizationsrsquo utilization of analytical methods is currently limited rangingfrom descriptive analytics (eg dashboards) applied to high volume high velocity data todiagnostic predictive and prescriptive analytics (eg cognitive systems and optimizationmodels) which require more costly complex methods and typically more structured data(Wedel and Kannan 2016)

Challenges of navigating the path to high social presenceOrganizations have experience with the migration to high social presence environments thatinvolve humans usually when digital density is low Research has shown that the use oftechnology by employees can improve their performance under some conditions (Ahearneet al 2008) thereby improving the customer experience However digital technology canaugment or eliminate the human element thereby changing the roles of customers andemployees Lariviegravere et al (2017) argued that employees and customers are taking on newroles as enablers innovators coordinators and differentiators ndash rather than traditionaldeliverers of the core service For example smart technology has begun to expand frontlineservice interactions in both B2B and B2C contexts and to deepen customerndashorganizationrelationships (Marinova et al 2016)

In addition very little is known about automated social presence ndash such as robotsavatars augmented and virtual reality ndash as opposed to humans Already people areencountering automated social presence when they are served by a robot in a restaurant orhospital consult intelligent virtual assistants interact with others in simulated or virtualenvironments receive medical care through telepresence and so forth (Plambeck 2018Walsh 2018) Indeed many people access technology through a virtual assistant such asSiri and Alexa which exhibit a personality and encourage anthropomorphism Thus socialpresence can now occur digitally rather than due to the physical presence of a human actorso that high social presence can be achieved through automation (Van Doorn et al 2017)Researchers have become especially interested in the ldquouncanny valleyrdquo a term that denotesthe uncomfortable sensation associated with a mismatch between an individualrsquosexpectations and a robotrsquos behavior (Mori et al 2012)

New approaches to reconciling customer experience dualitiesUntil this point we have identified opportunities and challenges for enhancing the customerexperience in the future and considered ways that organizations and customers might makethe most of them In this section we discuss how the intersection of digital physical andsocial realms poses systematic challenges for organizations customers and society Wefocus on tensions that unless addressed may inhibit the conditions necessary for valueco-creation between actors in a network We term these tensions ldquodualitiesrdquo defined as theopposition or contrast between concepts or strategies

We organize our discussion by considering the circumstances in each of the eight octantsbecause they represent different conditions that beget different dualities These aredescribed in Table I (which maps our three-dimensional octants into two-dimensional space)Some dualities may apply in more than one condition We do not aim to unambiguouslyclassify dualities but rather to elucidate how they arise from service design and deliveryopportunities challenges and trade-offs In addition we provide examples and offerguidance on ways to resolve these dualities through innovations in the design andmanagement of customer experiences for probable future conditions

Customerexperiencechallenges

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Base of the pyramid (BoP) or scarcity in digital physical and social realmsThe low digitalphysicalsocial octant represents a condition of scarcity in which resourceconstraints (or uneven distribution of resources) hinder value co-creation in many forms(Gebauer and Reynoso 2013 London et al 2010) There are vast numbers of people who liveevery day with scarce resources sometimes referred to as BoP In addition during naturaldisasters individuals may find themselves temporarily without access to many resources(Cheung et al 2017) We believe that the scarcity duality arises from fundamentallydifferent perspectives on value held by different actors in a service ecosystem For examplefor-profit business objectives (and sometimes non-profit objectives) may not match the goalsof individuals in markets with scarce or unevenly distributed resources due to culturalpolitical issues related to power structures (Arora and Romijn 2011)

New approaches One approach to these challenges is to acquire a partner or engage in anetwork alliance thereby tapping into knowledge resources and capabilities related to thelocal market (Rivera-Santos and Rufiacuten 2010) An example of a successful alliance thatco-creates value with customers who face scarce resources in many countries is the UnitedNations-led initiative to eradicate malaria by 2040 (UN News 2015) Another approach tosuccessfully operating in markets with scarce resources entails the development novelbusiness models especially with respect to pricing For example organizations may enable

Low social presence High social presenceLow digital density High digital density Low digital density High digital density

Lowphysicalcomplexity

Base of the pyramidchallenges

Organization bundlesvs customer bundles

Autonomy(competitive) vsinterdependence(cooperation)

Regulation by actorsvs regulation bycommunity

Customerperspective scarcityof resources valuesincompatibilityOrganizationalperspective fee vsfree potentialsolutions mightinclude partner ornetwork alliances

Customer perspectiveperceived control cancreate paradox ofchoice customer endsup worse offOrganizationalperspective requiresdescriptive anddiagnostic use ofcustomer data

Customer perspectivehighly socialexperience thatrequires high trust tointegrate socialresourcesOrganizationalperspective limited orno digital and physicaltouchpoints to createtrust and aligncustomerorganizationgoals

Requires a digitalplatform forinformation sharing amechanism for risksharing Socialpresence could bedelivered digitallyRequires descriptiveand diagnosticcapabilities but nopredictive analytics

Highphysicalcomplexity

Privacy vstransparency

Standardization vsflexibility

Avoidance vsattraction

Capabilities vsresources

Organizational andcustomer perspectiverequires informationsharing and lowperceived risk Trustbetween serviceproviders andcustomers is critical

Customer perspectivehigh coping abilitiesrequired Theorganizationrsquos decisionsupport systems mustbe excellent to providevalue in real timeOrganizationalperspective customerknowledge andorganizationallearning is required

Customer perspectivefeedback andperceived controlneededOrganizationalperspective how tocreate brandedcustomer experiencesthat fit with customerneeds in the presenceof other customers

Customer perspectivecustomer innovationand creativity throughparticipation Localsolutions may bepossible if services canbe modularizedOrganizationalperspectiveco-creation requiresorganizational learningand effective businessanalytics

Table IDualities in each ofthe eight octants

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customers to share a service and its costs design smaller packages or bundles create pre-paid service plans or develop micro-finance or loan programs (Anderson and Markides2007) Finally actors in markets with scarce resources may turn to the moral economy toco-create value with the limited resources available (Cheung et al 2017)

Bundling services high digital density low physicalsocial resourcesHigh digital density realms are capable of supporting favorable emotional social and sensoryresponses Thus gamification ndash that is adding game-like elements to a task to encouragecustomer participation can be an especially attractive strategy for organizations in B2Cmarkets Research has shown that gamification can lead to customer learning engagementand improved customer experiences (Harwood and Garry 2015 Landers 2014) Games arealso effective in employee training team-building and management However this strategy isonly effective when the goals of the organization and its customers are aligned Games haverules and structure whereas play often does not so organizational and customer goals mayconflict (Hofaker et al 2016 Walz and Deterding 2014) This conflict may cause customers torefuse to participate in games thereby defeating the purpose of the gamification

Hence a duality can arise in balancing a participantrsquos goals (ie entertainment) withorganizational goals such as customer learning or buying (Harwood and Garry 2015) Theunderlying reason for this duality is that gamification implicitly requires the creation ofldquooptimalrdquo bundles of features (ie learning components entertainment components) that arevaluable to both parties This same dilemma ndash optimal service bundling ndash also occurs in highdigital density B2B markets in a very different form B2B customers may be faced with amultitude of bundles that encompass an overwhelming number of options and combinationsso that a non-expert encounters a ldquoparadox of choicerdquo ndash whereby a customer feels betterduring the bundle creation process but (objectively) ends up worse off (Reutskaja andHogarth 2009) In both of these situations complex bundling increases the challenges ofco-creation ndash that is creating value for both parties while successfully monetizing the service

New approaches Organizations must know (or learn) the customerrsquos preferences todetermine the appropriate mix and sequences of entertainment and content (ie the bundle)that will be most effective in creating value (Landers 2014) Since organizations and theircustomers are likely to value bundles (and the underlying components) differentlyorganizations must also adopt a relational approach to mitigate conflicts that influencevalue co-creation (Tuli et al 2007) In sum organizations operating in both B2B and B2Cmarkets characterized by a high digital density environment must intensively developresources and capabilities for leveraging descriptive and diagnostic analytics of customerdata to co-create service bundles and pricing options that are valuable to both parties

Autonomy vs interdependence in high social low digitalphysical environmentsHigh social presence creates a shared experience which requires high levels of trust toaccomplish integration of social resources (Hennig-Thurau et al 2002) When physical anddigital resources are limited organizations are constrained in their capabilities to usetraditional methods of creating trust and integrating social resources For example many oftodayrsquos business models rely on digital platforms to build trust and integrate socialresources (eg Airbnb) and such platforms are absent in this octant Hence a duality mayemerge between autonomy (which frequently implies competition) vs interdependence(which can be more cooperative) Instances of both competition and cooperation can beobserved in markets as social actors work independently or collectively to meet their needs(Cheung and McColl-Kennedy 2015)

New approaches Organizations must find social mechanisms for aligning organizationalcustomer and employee goals Often this requires a significant culture change within

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organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

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offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

Customerexperiencechallenges

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

JOSM

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

Customerexperiencechallenges

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)

Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

Customerexperiencechallenges

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

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imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

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design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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Frow P McColl-Kennedy JR and Payne AF (2016) ldquoCo-creation practices their role in shaping ahealth care ecosystemrdquo Industrial Marketing Management Vol 56 July pp 24-39

Gabbott M Tsarenko Y and Mok WH (2011) ldquoEmotional intelligence as a moderator of copingstrategies and service outcomes in circumstances of service failurerdquo Journal of Service ResearchVol 14 No 2 pp 234-248

Gallan AS Jarvis CB Brown SW and Bitner MJ (2013) ldquoCustomer positivity and participation inservices an empirical test in a health care contextrdquo Journal of the Academy of Marketing ScienceVol 41 No 3 pp 338-356

Gallo C (2017) ldquoStarbucksrsquo cool new brew storytelling with a digital twistrdquo Forbes December 11available at wwwforbescomsitescarminegallo20171211starbucks-cool-new-brew-storytelling-with-a-digital-twist71d0d2c97735 (accessed August 1 2018)

Gantz J and Reinsel D (2012) ldquoThe digital universe in 2020 big data bigger digital shadows andbiggest growth in the far eastrdquo IDC iView IDC Analyze the Future Framingham MA pp 1-16

Gebauer H and Reynoso J (2013) ldquoAn agenda for service research at the base of the pyramidrdquo Journalof Service Management Vol 24 No 5 pp 482-501

Gentile C Spiller N and Noci G (2007) ldquoHow to sustain the customer experience an overview ofexperience components that co-create value with the customerrdquo European Management JournalVol 25 No 5 pp 395-410

Giebelhausen M Robinson SG Sirianni NJ and Brady MK (2014) ldquoTouch versus tech whentechnology functions as a barrier or a benefit to service encountersrdquo Journal of MarketingVol 78 No 4 pp 113-124

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nloa

ded

by D

octo

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Goffman E (1967) ldquoOn face-workrdquo Interaction Ritual Essays on Face-to-Face Behavior pp 5-46

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Gostin LO Lazzarini Z Neslund VS and Osterholm MT (1996) ldquoThe public health informationinfrastructure a national review of the law on health information privacyrdquo The Journal of theAmerican Medical Association Vol 275 No 24 pp 1921-1927

Greacutegoire Y Tripp TM and Legoux R (2009) ldquoWhen customer love turns into lasting hate the effectsof relationship strength and time on customer revenge and avoidancerdquo Journal of MarketingVol 73 No 6 pp 18-32

Gremler DD and Gwinner KP (2000) ldquoCustomer-employee rapport in service relationshipsrdquo Journalof Service Research Vol 3 No 1 pp 82-104

Grewal D Levy M and Kumar V (2009) ldquoCustomer experience in retailing an organizingframeworkrdquo Journal of Retailing Vol 85 No 1 pp 1-14

Guo L Lotz SL Tang C and Gruen TW (2016) ldquoThe role of perceived control in customer valuecocreation and service recovery evaluationrdquo Journal of Service Research Vol 19 No 1 pp 39-56

Hartmann PM Zaki M Feldmann N and Neely A (2016) ldquoCapturing value from big data ndash ataxonomy of data-driven business models used by start-up firmsrdquo International Journal ofOperations amp Production Management Vol 36 No 10 pp 1382-1406

Harwood T and Garry T (2015) ldquoAn investigation into gamification as a customer engagementexperience environmentrdquo Journal of Services Marketing Vol 29 Nos 67 pp 533-546

Hazeacutee S Delcourt C and Van Vaerenbergh Y (2017) ldquoSharing goods Yuck No An investigation ofproduct contamination in access-based servicesrdquo Journal of Service Research Vol 20 No 4pp 441-456

Hennig-Thurau T Gwinner KP and Gremler DD (2002) ldquoUnderstanding relationship marketingoutcomes an integration of relational benefits and relationship qualityrdquo Journal of ServiceResearch Vol 4 No 3 pp 230-247

Hofaker CF de Ruyter K Lurie NH Manchanda P and Donaldson J (2016) ldquoGamification andmobile marketing effectivenessrdquo Journal of Interactive Marketing Vol 34 May pp 25-36

Hoffman DL and Novak TP (2018) ldquoConsumer and object experience in the Internet of Things anassemblage theory approachrdquo Journal of Consumer Research Vol 44 No 6 pp 1178-1204

Homburg C Jozić D and Kuehnl C (2017) ldquoCustomer experience management toward implementingan evolving marketing conceptrdquo Journal of the Academy of Marketing Science Vol 45 No 3pp 377-401

Huang M-H and Rust RT (2018) ldquoArtificial intelligence in servicerdquo Journal of Service ResearchVol 21 No 2 pp 155-172

Kang C and Roose K (2018) ldquoZuckerberg faces hostile congress as calls for regulation mountrdquo TheNew York Times April 11 p B4 available at wwwnytimescom20180411businesszuckerberg-facebook-congresshtml

Kopalle P (2014) ldquoWhy Amazonrsquos anticipatory shipping is pure geniusrdquo Forbes January 28 available atwwwforbescomsitesonmarketing20140128why-amazons-anticipatory-shipping-is-pure-genius4594345f4605 (accessed August 1 2018)

Kozinets R Patterson A and Ashman R (2016) ldquoNetworks of desire how technology increases ourpassion to consumerdquo Journal of Consumer Research Vol 43 No 5 pp 659-682

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Dow

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Kranzbuumlhler AM Kleijnen MHP Morgan RE and Teerling M (2017) ldquoThe multilevel nature ofcustomer experience research an integrative review and research agendardquo International Journalof Management Reviews Vol 20 No 2 pp 433-456

Kumar V and Reinartz W (2016) ldquoCreating enduring customer valuerdquo Journal of Marketing Vol 80No 6 pp 36-68

Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

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Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

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Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

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Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

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Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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2018

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 5: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

characterized by low to high digital density low to high physical complexity and low to highsocial presence This section sets the stage by characterizing each dimension and the nextsection expands upon this framework by providing examples and then identifying criticalissues that arise in each octant of the cube As these sections will demonstrate that thedigital physical and social worlds will converge much sooner than we think

Digital realmThe internet is a platform that supports many important marketplaces for goods andservices including information services Hence an organizationrsquos ability to leverage digitaltechnologies is an increasingly important source of competitive advantage becausebusinesses must respond to market dynamics effectively and in a timely manner(Kumar and Reinartz 2016 Leeflang et al 2014) Organizations are adopting innovativedigital technologies such as mobile location-based virtual reality digital twinsblockchains AI wearable technologies neuroscience and business process automation aswell as machine-to-machine interactions through the IoT Digital technologies can provide ahighly personalized and immersive environment that allows for interactivity and richinformation exchange between the organization and consumer (Parise et al 2016) Digitaltechnologies are changing customersrsquo expectations and behavior how organizations andnetworks are organized and the role of ldquohumansrdquo in the marketplace ndash where the linesbetween human and machine are becoming blurred (Lemon 2016)

Organizations are facing a ldquocrisis of immediacyrdquo as they attempt to meet customersrsquoneeds for content expertise and personalized solutions in real time (Parise et al 2016)Todayrsquos digital technologies enable virtual experts that is agents who interact withconsumers to answer questions provide recommendations and deliver advice in any placetime or format (Breidbach et al 2018) Virtual experts range from human experts connectedto the consumer through video conferencing to digital agents that interact with the userthrough mobile apps or augmented reality technology Business managers and researchers

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 1Depiction of thecustomer experiencein digital physicaland social realms witheight octants

JOSM

Dow

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are rethinking theory and practice to accommodate the digital erarsquos increasing complexityhigh information availability high reach frequent interactions and faster speeds oftransactions (Wedel and Kannan 2016) Given these characteristics we view the digitalrealm as ranging from low to high information density

Physical realmThe physical realm includes the arrangement of furnishings and equipment that influencetheir functionality spatial arrangements that enhance convenience and a sense of comfortambient elements and cultural resources that is signs and symbols that invite customers toengage in the service encounter (Bitner 1992) Cues from the physical realm directly influencehow customers act and respond during service encounters (Ballantyne and Nilsson 2017) Forexample customers can use cultural resources as cues that set the rules and expectations ofhow to act and interact within the service environment A sense of place can be facilitated byusing cultural artifacts signs and symbols to create a sense of belonging to a collective brandcommunity or sub-culture enriching shared customer experiences

Many elements of the physical realm are subtle yet pervasive in their effects on thecustomer experience For example the physical realm of a servicescape influences thenature and quality of interactions between customers and employees of the organization(Bitner 1992) as well as customer-to-customer (C2C) interactions (Tombs andMcColl-Kennedy 2003) Successful organizations combine elements of the physical realmto offer an integrative narrative to their customers thereby inviting customers to beimmersed in their own phenomenological experience (Petermans et al 2013) In service andretail contexts the physical servicescape offers customers an immersive experience that candeliver enduring emotional moments and memories (Giraldi et al 2016)

As organizations move to digital platforms the constituents of the physical realm remaincentral to understanding the customer experience ndash indeed they may act as a referencepoint Ballantyne and Nilsson (2017) noted that functionality use of space and culturalmessaging remain important aspects of the online customer experience They added thatldquo[hellip] the technological development of the Internet and the emergence of new social mediaare shifting the market place for business further towards virtual market spacerdquo (p 227)merging the physical and digital via technology For example retailers are already usingaugmented reality such as smart mirrors for customers to try on clothes and businesses areusing virtual reality to manage workplaces Hence we characterize the physicalenvironment as ranging from low to high physical complexity where technology is anincreasingly important component

Social realmInteractions are at the heart of the social realm of the customer experience Early workconsidered the social realm as a stage where customers and employees performedexperiences (Pine and Gilmore 1998 Solomon et al 1985 Surprenant and Solomon 1987)However researchers now agree that the social realm is defined by the interactions amongactors (eg customers employees and partners) through different interfaces which areincreasingly non-human (De Keyser et al 2015 Lemon and Verhoef 2016 McColl-KennedyGustafsson Jaakkola Klaus Radnor Perks and Friman 2015) Organizations must takeaccount of customersrsquo social environments and their expectations about organization-basedresources such as settings products and atmospherics in order to design serviceexperiences for customers (Verhoef et al 2009)

Since customers actively co-create experiences organizations must facilitate customersrsquointeractions with other actors Customers can influence other customers through smartphonessocial networks and other means (McColl-Kennedy Cheung and Ferrier 2015 Tombs andMcColl-Kennedy 2013) C2C interactions such as reviews or shared evaluations of a service

Customerexperiencechallenges

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can influence customersrsquo ldquoapproach or avoid decisionsrdquo thereby influencing organizationaloutcomes (eg customer acquisition) and customer outcomes such as their attachment to aservice place or environment (Rosenbaum and Massiah 2011) The social realm helpscustomers fulfill utilitarian social and psychological customer needs Moreover in a virtualcontext interactive media devices connect customers both inside and outside the boundaries ofthe physical setting (Benoit et al 2017 Sands et al 2011) giving customers a collective sense ofldquosocial presencerdquo

A sense of social presence arises between humans as well as between human andnon-human entities such as service robots (Van Doorn et al 2017) It can be experienced inboth physical and virtual contexts ndash and it increasingly characterizes service and retailsettings Research has shown that social density may affect the customer experience(Tombs and McColl-Kennedy 2003) For example in high social density contextsinteractions are frequent among several actors such as in a crowded cafeacute or an active socialmedia chat room The effect can be negative (eg crowding) or positive (eg convivial) to thecustomer experience Conversely in low social density contexts infrequent interactionsbetween actors may be negative (eg lonely or isolating) or positive (eg calming or serene)For these reasons we believe that the density of social presence can be quantified from lowto high and that both traditional and technology-mediated service encounters can becharacterized in this way

Customer experience opportunities emerging issues and challengesThe world is undergoing a fourth revolution ndash a technological revolution ndash that isunprecedented in its scale speed and complexity (Department for Business Energy andIndustrial Strategy 2017) Customers can enjoy entertainment shop learn socialize andwork within digital environments that also have an overarching social dimension(Ballantyne and Nilsson 2017) Cognitive systems (AI) will transform the way we live andwork in diverse ways ranging from the diagnosis and treatment of cancer to the security ofonline transactions (Wirtz et al 2018) In the information age people and organizations areable to make better decisions on the design and management of the customer experience(Patriacutecio et al 2018) For example knowing the weather forecast what time a train willdepart or when a broadband outage might occur helps minimize friction (eg wasted timeand effort) allows individuals and organizations to work effectively and also enhances thecustomer experience (National Infrastructure Commission 2017) Since there are manypossibilities this section focuses on exemplar future services that are likely to emerge by theyear 2050 in three service sectors asset-heavy B2B services healthcare and B2C retail andprofessional services We will use each sector to provide a foundation for identifyingopportunities and emerging issues Then we summarize some of the challenges of creatingcustomer experiences at the intersection of the digital physical and social realms

Opportunities and emerging issues in asset-heavy B2B services from traditional supportservice to digital twin serviceOpportunities Opportunities for using digital technologies to improve productivity andefficiency in managing demand and capacity are prevalent in many B2B service sectorsSome examples are located in the digitalphysicalsocial space in Figure 2 This subsectionfocuses on opportunities for asset-heavy B2B services such as construction defense energyand transport services (National Infrastructure Commission 2017) Asset-heavyorganizations design build and deliver an integrated offering that includes the sale orlease of (large) assets integrated with support services such as maintenance and repair Inthese environments traditional repair services have a physical servicescape such as aworkshop or depot with a social dimension such as a team of service experts who work

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with customers to produce comprehensive repair solutions that are critical to the respectivecustomerrsquos day-to-day site experience and productivity (Zaki and Neely 2018)

There are many opportunities for asset management services because asset failuresignificantly disrupts the economy endangers peoplersquos health and safety and incursenvironmental consequences (National Infrastructure Commission 2017) For this reasonorganizations collect vast amounts of data from asset sensors for remote preventivemaintenance and other purposes (Zaki and Neely 2018) For rail services asset failures andrelated incidents costs the UK economy pound13ndashpound19bn a year ($18ndash$26bn) which includesfare losses the cost of passengersrsquo time on delayed or canceled trains and damage to theholistic customer experience (MacDonald 2017) Data are critical inputs to predictive orldquoasset health monitoringrdquo solutions Proactive condition-monitoring services apply existingoperational data real-time sensor data advanced engineering analytics and forward-lookingbusiness intelligence to produce recommendation analyses that identify potential equipmentfaults (Qiu et al 2013) They have many advantages in service networks including timelyscheduling convenient maintenance services monitoring machine health increased uptimeand fuel efficiency and reduced operating costs (Zaki and Neely 2018)

Emerging issues In the future monitoring technologies are likely to be digitallyconnected with assets to diagnose faults in the high physical and low social realm ndash egautonomously stopping equipment in the event of a threat of a strike by employees Anespecially exciting example is a rdquodigital twinrdquo ndash that is a dynamic virtual representation of aphysical object or system across its lifecycle using real-time data to enable understandinglearning and reasoning (National Infrastructure Commission 2017) For exampleRolls-Royce has signed a memorandum of understanding with universities and otherinstitutes with the aim of creating an open source digital platform to develop new ships Theplatform will allow the creation of a digital copy of a real ship including its systems thatsynthesizes the information available about the ship Any aspect of the digital twin ship canbe explored through a digital interface creating a virtual test bench to assess the safety and

Traditional Repair

RemoteMaintenance

B2B PredictiveSolutions

Asset Management(machine to machine)

Simulations ndash BigDiggers Pilots

Digital Asset Twin

SystemSolutionEngineering Services

AutomatedSoftwarePatchesPhysical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 2Future asset-heavy

B2B services inthe digitalphysical

social realms

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performance of a vessel and its systems both before its construction and through itslifecycle (Rolls-Royce 2017) The UK National Infrastructure Commission has suggestedbuilding a digital twin of the entire country which would bring together power water railcommunications meteorological demographic and transport data to give insights andanswer questions such as is it possible to avoid building a new hospital car park bymanaging appointment times and traffic flows How can energy consumption be reduced by10 percent per person over six months What is the impact of closing a specific road in theevent of a water leak (National Infrastructure Commission 2017)

Opportunities and emerging issues in healthcare services from traditional care to digital careOpportunities Health is an important context for service researchers and practitioners(Danaher and Gallan 2016) Traditionally healthcare has been centered on the schedulesand settings of the clinical team and infrastructure However experts forecast that relianceon the physical realm will diminish over the next 20 years due to changes in technologies(Topol and Hill 2012) Today surgeons ldquovirtuallyrdquo assist in operations outside the confinesof the hospital using network links and satellite calls and dermatologists diagnose skincancer in remote areas of Australia using smartphones (Wolf et al 2013) In the futureclinicians will be increasingly less reliant on patients visiting the clinic as health servicesenter the digital realm See Figure 3 which provides healthcare examples located in thedigitalphysicalsocial space

Emerging issues Customers will increasingly shape their own experiences in digitalhealthcare (McColl-Kennedy Snyder Elg Witell Helkkula Hogan and Anderson 2017)Personalized rather than population-based solutions will be available in the treatment andmanagement of disease Improvements in diagnostic accuracy and sensitivity have becomeapparent with advances in genome pattern sequencing and prognostic decision making(Topol and Hill 2012) Today the Mayo Clinic offers grants to organizations to developtechnological applications that can monitor an individualrsquos anatomical changes to detect the

TraditionalNursing

CounselingServices

Simulationsor VR

MedicalTourism

Rural ldquoBarefootrdquoDoctors

HealthcareMonitoring(wearables toys)

DiagnosticServices

RobotSurgery

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 3Future healthcareservices in the digitalphysicalsocial realms

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onset or progression of disease symptoms (Mayo Clinic 2018) In the future smart deviceswill enable patients to quickly make decisions about their healthcare and treatment optionsrather than waiting for results from laboratories or clinics By 2050 healthcareorganizations will leverage AI 3D printing sensory technology real-time data processingand big data repositories to design and deliver services (Antons and Breidbach 2018) Astechnologies become more sophisticated robotic assistants will be in hospital wards in ourhomes and playing a critical role in the operating suite (Lanfranco et al 2004) Today robotshave begun to assist in the operating suite and to fulfill social roles such as cuddlycompanions for the elderly and hotel ambassadors (eg Softbank Roboticsrsquo robot Pepper)In the future they will be carers for the infirmed and assistants to medical consultants

Opportunities and emerging issues in B2C retail and professional services from traditionalservice to digital serviceOpportunities Digital technologies are already prevalent in B2C industries including retailautomotive consumer goods logistics media and professional services (World EconomicForum 2017) Retailing is especially rife with digital service innovations with concomitantorganizational changes In the past in-store and online retailing were characterized by highphysical complexity and high social presence At present both are shifting from low to highdigital density realms (Ballantyne and Nilsson 2017) Figure 4 depicts some examples in thedigitalphysicalsocial spaces Consumers attracted by the convenience of easy digitalaccess to user reviews comparison pricing and endless aisles have come to rely on onlineand mobile shopping

Traditional retailers are bringing digital channels into stores and online retailers areopening brick-and-mortar shops in high-profile locations seeking to create experiences thatcannot be delivered through a device Both traditional and online retailers are working towardthe same goal a highly personalized consistent and integrated shopping experience across allpoints of contact between retailers and customers The integration of digital technologies with

ProfessionalServices

MultiplayerOnline Gaming

Wii gamesWith others

MobileFinancialServices

Custom Build Your Car(or Kitchen or )

Drone DeliveryServices 3D PrintingServices

Light TherapyServices

SalonServices

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 4Future B2C retail andprofessional services

in the digitalphysicalsocial realms

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physical (store) environments will enhance the customer experience and improve employeeperformance For example AmazonGo is a new kind of bricks-and-mortar store with highdigital density so that no physical checkout is required Amazon is also experimenting withcomputer vision sensor fusion and deep learning through a seamless phone application whichmay radically change the customer experience (Amazon 2018)

Emerging issues The World Economic Forum (2017) predicted a dramatic shift fromtraditional services to digital services In the USA professional services are estimated to bethe second-largest employment sector (after healthcare) In the UK they account for15 percent of its gross domestic product and employ 14 percent of its workforceEmployment in professional services is expected to grow to approximately 21m jobs by2024 (US Bureau of Labor Statistics 2015) One reason for this growth is that onlineplatforms offer a convenient alternative to the traditional physical marketplace forhealthcare and professional services Due to the dramatic shift from traditional services todigital services employees and customers will participate in the co-creation of serviceswithin a high digital density environment In Figure 4 this change implies moving from thehigh physical complexity high social presence and low digital density octant to the lowphysical high social presence and high digital density octant

Increasingly many customers are expecting 247 access to professional services Forexample Upwork is a platform connecting 5m client businesses with more than 12mfreelancers (Upwork 2017) In the legal profession virtual courtrooms are replacing the needfor physical ones as lawyers witnesses and judges can now hold hearings via video link(Susskind and Susskind 2015) We speculate that the next transition will be to the lowphysical low social presence and high digital density octant For example the law firm ofBaker and Hostetler recently developed an AI lawyer (ldquoRossrdquo) to handle its bankruptcypractice and replaced 50 human lawyers Ross can read understand analyze language andgenerate responses backed up with legal references It also monitors current litigation tonotify colleagues about recent court decisions (Addady 2016)

Challenges of navigating the path to high digital density environmentsBusiness managers and researchers anticipate that a major benefit of AI and ldquobig datardquowill be service innovations that create new value propositions (Hartmann et al 2016Huang and Rust 2018 Mayer-Schoumlnberger and Cukier 2013) In addition peopleorganizations and society will benefit from the move to high density digital environmentsthrough increased convenience universal access to information to inform decisions andnew solutions However people and organizations must shape the role that technologyplays in the design and delivery of the customer experience Interconnections betweendevices and platforms have the potential to create complex service systems that ndash if theyfail ndash could have far-reaching consequences that could be very destructive For exampleTay the rogue chatbot that Microsoft developed was a female chatbot with its ownTwitter account It is a machine learning project designed for human engagement thatcommunicates with 18-to 24-year-olds learns from them and gets smarter with timeWithin 24 h from its launch Tay tweeted about smoking drugs and claiming that ldquoHitlerwas right [hellip]rdquo and ldquofeminists should [hellip] burn in hellrdquoMicrosoft shut the service the nextday (Regelado 2016)

Organizations cannot access the information they need to co-create services with customersbecause multiple technical solutions exist that are designed to be optimal for well-defined localproblems ndash but these solutions are often disconnected and (consequently) sub-optimal from asystem or network standpoint Although hardware software platform and networkingstandards have been established across organizations each organization and itscustomers typically use their own tools and data standards Consequently data architecture

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is fragmented and there is no integrated enterprise information platformwithin an organizationndash let alone across organizations This misalignment creates challenges because it isunclear which technologies are needed and how they should be implemented and integratedinto the existing information and communication technology infrastructure in organizationsMoreover organizationsrsquo utilization of analytical methods is currently limited rangingfrom descriptive analytics (eg dashboards) applied to high volume high velocity data todiagnostic predictive and prescriptive analytics (eg cognitive systems and optimizationmodels) which require more costly complex methods and typically more structured data(Wedel and Kannan 2016)

Challenges of navigating the path to high social presenceOrganizations have experience with the migration to high social presence environments thatinvolve humans usually when digital density is low Research has shown that the use oftechnology by employees can improve their performance under some conditions (Ahearneet al 2008) thereby improving the customer experience However digital technology canaugment or eliminate the human element thereby changing the roles of customers andemployees Lariviegravere et al (2017) argued that employees and customers are taking on newroles as enablers innovators coordinators and differentiators ndash rather than traditionaldeliverers of the core service For example smart technology has begun to expand frontlineservice interactions in both B2B and B2C contexts and to deepen customerndashorganizationrelationships (Marinova et al 2016)

In addition very little is known about automated social presence ndash such as robotsavatars augmented and virtual reality ndash as opposed to humans Already people areencountering automated social presence when they are served by a robot in a restaurant orhospital consult intelligent virtual assistants interact with others in simulated or virtualenvironments receive medical care through telepresence and so forth (Plambeck 2018Walsh 2018) Indeed many people access technology through a virtual assistant such asSiri and Alexa which exhibit a personality and encourage anthropomorphism Thus socialpresence can now occur digitally rather than due to the physical presence of a human actorso that high social presence can be achieved through automation (Van Doorn et al 2017)Researchers have become especially interested in the ldquouncanny valleyrdquo a term that denotesthe uncomfortable sensation associated with a mismatch between an individualrsquosexpectations and a robotrsquos behavior (Mori et al 2012)

New approaches to reconciling customer experience dualitiesUntil this point we have identified opportunities and challenges for enhancing the customerexperience in the future and considered ways that organizations and customers might makethe most of them In this section we discuss how the intersection of digital physical andsocial realms poses systematic challenges for organizations customers and society Wefocus on tensions that unless addressed may inhibit the conditions necessary for valueco-creation between actors in a network We term these tensions ldquodualitiesrdquo defined as theopposition or contrast between concepts or strategies

We organize our discussion by considering the circumstances in each of the eight octantsbecause they represent different conditions that beget different dualities These aredescribed in Table I (which maps our three-dimensional octants into two-dimensional space)Some dualities may apply in more than one condition We do not aim to unambiguouslyclassify dualities but rather to elucidate how they arise from service design and deliveryopportunities challenges and trade-offs In addition we provide examples and offerguidance on ways to resolve these dualities through innovations in the design andmanagement of customer experiences for probable future conditions

Customerexperiencechallenges

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Base of the pyramid (BoP) or scarcity in digital physical and social realmsThe low digitalphysicalsocial octant represents a condition of scarcity in which resourceconstraints (or uneven distribution of resources) hinder value co-creation in many forms(Gebauer and Reynoso 2013 London et al 2010) There are vast numbers of people who liveevery day with scarce resources sometimes referred to as BoP In addition during naturaldisasters individuals may find themselves temporarily without access to many resources(Cheung et al 2017) We believe that the scarcity duality arises from fundamentallydifferent perspectives on value held by different actors in a service ecosystem For examplefor-profit business objectives (and sometimes non-profit objectives) may not match the goalsof individuals in markets with scarce or unevenly distributed resources due to culturalpolitical issues related to power structures (Arora and Romijn 2011)

New approaches One approach to these challenges is to acquire a partner or engage in anetwork alliance thereby tapping into knowledge resources and capabilities related to thelocal market (Rivera-Santos and Rufiacuten 2010) An example of a successful alliance thatco-creates value with customers who face scarce resources in many countries is the UnitedNations-led initiative to eradicate malaria by 2040 (UN News 2015) Another approach tosuccessfully operating in markets with scarce resources entails the development novelbusiness models especially with respect to pricing For example organizations may enable

Low social presence High social presenceLow digital density High digital density Low digital density High digital density

Lowphysicalcomplexity

Base of the pyramidchallenges

Organization bundlesvs customer bundles

Autonomy(competitive) vsinterdependence(cooperation)

Regulation by actorsvs regulation bycommunity

Customerperspective scarcityof resources valuesincompatibilityOrganizationalperspective fee vsfree potentialsolutions mightinclude partner ornetwork alliances

Customer perspectiveperceived control cancreate paradox ofchoice customer endsup worse offOrganizationalperspective requiresdescriptive anddiagnostic use ofcustomer data

Customer perspectivehighly socialexperience thatrequires high trust tointegrate socialresourcesOrganizationalperspective limited orno digital and physicaltouchpoints to createtrust and aligncustomerorganizationgoals

Requires a digitalplatform forinformation sharing amechanism for risksharing Socialpresence could bedelivered digitallyRequires descriptiveand diagnosticcapabilities but nopredictive analytics

Highphysicalcomplexity

Privacy vstransparency

Standardization vsflexibility

Avoidance vsattraction

Capabilities vsresources

Organizational andcustomer perspectiverequires informationsharing and lowperceived risk Trustbetween serviceproviders andcustomers is critical

Customer perspectivehigh coping abilitiesrequired Theorganizationrsquos decisionsupport systems mustbe excellent to providevalue in real timeOrganizationalperspective customerknowledge andorganizationallearning is required

Customer perspectivefeedback andperceived controlneededOrganizationalperspective how tocreate brandedcustomer experiencesthat fit with customerneeds in the presenceof other customers

Customer perspectivecustomer innovationand creativity throughparticipation Localsolutions may bepossible if services canbe modularizedOrganizationalperspectiveco-creation requiresorganizational learningand effective businessanalytics

Table IDualities in each ofthe eight octants

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customers to share a service and its costs design smaller packages or bundles create pre-paid service plans or develop micro-finance or loan programs (Anderson and Markides2007) Finally actors in markets with scarce resources may turn to the moral economy toco-create value with the limited resources available (Cheung et al 2017)

Bundling services high digital density low physicalsocial resourcesHigh digital density realms are capable of supporting favorable emotional social and sensoryresponses Thus gamification ndash that is adding game-like elements to a task to encouragecustomer participation can be an especially attractive strategy for organizations in B2Cmarkets Research has shown that gamification can lead to customer learning engagementand improved customer experiences (Harwood and Garry 2015 Landers 2014) Games arealso effective in employee training team-building and management However this strategy isonly effective when the goals of the organization and its customers are aligned Games haverules and structure whereas play often does not so organizational and customer goals mayconflict (Hofaker et al 2016 Walz and Deterding 2014) This conflict may cause customers torefuse to participate in games thereby defeating the purpose of the gamification

Hence a duality can arise in balancing a participantrsquos goals (ie entertainment) withorganizational goals such as customer learning or buying (Harwood and Garry 2015) Theunderlying reason for this duality is that gamification implicitly requires the creation ofldquooptimalrdquo bundles of features (ie learning components entertainment components) that arevaluable to both parties This same dilemma ndash optimal service bundling ndash also occurs in highdigital density B2B markets in a very different form B2B customers may be faced with amultitude of bundles that encompass an overwhelming number of options and combinationsso that a non-expert encounters a ldquoparadox of choicerdquo ndash whereby a customer feels betterduring the bundle creation process but (objectively) ends up worse off (Reutskaja andHogarth 2009) In both of these situations complex bundling increases the challenges ofco-creation ndash that is creating value for both parties while successfully monetizing the service

New approaches Organizations must know (or learn) the customerrsquos preferences todetermine the appropriate mix and sequences of entertainment and content (ie the bundle)that will be most effective in creating value (Landers 2014) Since organizations and theircustomers are likely to value bundles (and the underlying components) differentlyorganizations must also adopt a relational approach to mitigate conflicts that influencevalue co-creation (Tuli et al 2007) In sum organizations operating in both B2B and B2Cmarkets characterized by a high digital density environment must intensively developresources and capabilities for leveraging descriptive and diagnostic analytics of customerdata to co-create service bundles and pricing options that are valuable to both parties

Autonomy vs interdependence in high social low digitalphysical environmentsHigh social presence creates a shared experience which requires high levels of trust toaccomplish integration of social resources (Hennig-Thurau et al 2002) When physical anddigital resources are limited organizations are constrained in their capabilities to usetraditional methods of creating trust and integrating social resources For example many oftodayrsquos business models rely on digital platforms to build trust and integrate socialresources (eg Airbnb) and such platforms are absent in this octant Hence a duality mayemerge between autonomy (which frequently implies competition) vs interdependence(which can be more cooperative) Instances of both competition and cooperation can beobserved in markets as social actors work independently or collectively to meet their needs(Cheung and McColl-Kennedy 2015)

New approaches Organizations must find social mechanisms for aligning organizationalcustomer and employee goals Often this requires a significant culture change within

Customerexperiencechallenges

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organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

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offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

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imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

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design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

References

Addady M (2016) ldquoMeet Ross the worldrsquos first robot lawyerrdquo Fortune May 12 available at httpfortunecom20160512robot-lawyer (accessed August 1 2018)

Ahearne M Jones E Rapp A and Mathieu JE (2008) ldquoHigh touch through high tech the impact ofsalesperson technology usage on sales performance via mediating mechanismsrdquo ManagementScience Vol 54 No 4 pp 671-685

Amazon (2018) ldquoAmazon Gordquo available at wwwamazoncombnode=16008589011 (accessedAugust 1 2018)

Anderson J and Markides C (2007) ldquoStrategic innovation at the base of the pyramidrdquo MIT SloanManagement Review Vol 49 No 1 p 83

Anderson L and Ostrom AL (2015) ldquoTransformative service research advancing our knowledgeabout service and well-beingrdquo Journal of Service Research Vol 18 No 3 pp 243-249

Antons D and Breidbach CF (2018) ldquoBig data big insights Advancing service innovation anddesign with machine learningrdquo Journal of Service Research Vol 21 No 1 pp 17-39

Arora S and Romijn H (2011) ldquoThe empty rhetoric of poverty reduction at the base of the pyramidrdquoOrganization Vol 19 No 4 pp 481-505

Aspers P (2009) ldquoKnowledge and valuation in marketsrdquo Theory and Society Vol 38 No 2 p 111

Ballantyne D and Nilsson E (2017) ldquoAll that is solid melts into air the servicescape in digital servicespacerdquo Journal of Services Marketing Vol 31 No 3 pp 226-235

Barton D and Court D (2012) ldquoMaking advanced analytics work for yourdquo Harvard Business ReviewVol 90 No 10 pp 78-83

Batra R and Keller KL (2016) ldquoIntegrating marketing communications new findings new lessonsand new ideasrdquo Journal of Marketing Vol 80 No 6 pp 122-145

BEIS (2013) ldquoMarket assessment of public sector informationrdquo Department for Business Innovationand Skills p 235 available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile198905bis-13-743-market-assessment-of-public-sector-informationpdf

Customerexperiencechallenges

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nloa

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by D

octo

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N B

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0 Se

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Bendapudi N and Berry LL (1997) ldquoCustomersrsquo motivations for maintaining relationships withservice providersrdquo Journal of Retailing Vol 73 No 1 pp 15-37

Bendapudi N and Leone R (2003) ldquoPsychological implications of customer participation inco-productionrdquo Journal of Marketing Vol 67 No 1 pp 14-28

Benoit S Baker TL Bolton RN Gruber T and Kandampully J (2017) ldquoA triadic framework forcollaborative consumption (CC) motives activities and resources amp capabilities of actorsrdquoJournal of Business Research Vol 79 October pp 219-227

Berry LL and Bendapudi N (2007) ldquoA fertile field for service researchrdquo Journal of Service ResearchVol 10 No 2 pp 111-122

Bharati P and Chaudhury A (2004) ldquoAn empirical investigation of decision-making satisfaction inweb-based decision support systemsrdquo Decision Support Systems Vol 37 No 2 pp 187-197

Bitner MJ (1992) ldquoServicescapes the impact of physical surroundings on customers and employeesrdquoJournal of Marketing Vol 56 No 2 pp 57-71

Black H and Gallan AS (2015) ldquoTransformative service networks cocreated value as well-beingrdquoThe Service Industries Journal Vol 35 No 15-16 pp 826-845

Blut M Wang C and Schoefer K (2016) ldquoFactors influencing the acceptance of self-servicetechnologies a meta-analysisrdquo Journal of Service Research Vol 19 No 4 pp 396-416

Bolton RN (2011) ldquoComment customer engagement opportunities and challenges for organizationsrdquoJournal of Service Research Vol 14 No 3 pp 272-274

Bolton RN (2016) Service Excellence Creating Customer Experiences that Build RelationshipsBusiness Expert Press New York NY

Bolton RN (2018) ldquoService timing designing and executing service in a dynamic environmentrdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Bolton RN and Saxena-Iyer S (2009) ldquoInteractive services a framework synthesis and researchdirectionrdquo Journal of Interactive Marketing Vol 23 No 1 pp 91-104

Bolton RN Gustafsson A McColl-Kennedy J Sirianni NJ and Tse DK (2014) ldquoSmall details thatmake big differences a radical approach to consumption experience as a firmrsquos differentiatingstrategyrdquo Journal of Service Management Vol 25 No 2 pp 253-274

Bowcott O (2017) ldquoUber to face stricter EU regulation after ECJ rules it is transport firmrdquo TheGuardian December 20 available at wwwtheguardiancomtechnology2017dec20uber-european-court-of-justice-ruling-barcelona-taxi-drivers-ecj-eu (accessed August 1 2018)

Bowen DE (2016) ldquoThe changing role of employee in service theory and practice an interdisciplinaryviewrdquo Human Resource Management Review Vol 26 No 1 pp 4-13

Bowen DE Siehl C and Schneider B (1989) ldquoA framework for analyzing customer serviceorientations in manufacturingrdquo Academy of Management Review Vol 14 No 1 pp 75-95

Breidbach CF Choi S Ellway BE Keating BW Kormusheva K Kowalkowski C Lim C andMaglio P (2018) ldquoOperating without operations how is technology changing the role of thefirmrdquo Journal of Service Management Vol 29 No 5 (in press)

Burdick A (2018) ldquoThe marriage-saving robot that can assemble IKEA furniture sort ofrdquo TheNew Yorker April 18 available at wwwnewyorkercomelementslab-notesthe-marriage-saving-robot-that-can-assemble-ikea-furniture-sort-of (accessed August 1 2018)

Capaldo A (2014) ldquoNetwork governance a cross-level study of social mechanisms knowledgebenefits and strategic outcomes in joint-design alliancesrdquo Industrial Marketing ManagementVol 43 No 4 pp 685-703

Cheung L and McColl-Kennedy JR (2015) ldquoResource integration in liminal periods transitioning totransformative servicerdquo Journal of Services Marketing Vol 29 Nos 67 pp 485-497

Cheung L McColl-Kennedy JR and Coote LV (2017) ldquoConsumer-citizens mobilizing social capitalfollowing a natural disaster effects on well-beingrdquo Journal of Services Marketing Vol 31Nos 45 pp 438-451

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Dow

nloa

ded

by D

octo

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uth

N B

olto

n A

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0 Se

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2018

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Cohen N (2014) ldquoThe silver economy healthier and wealthierrdquo Financial Times October 19 available atwwwftcomcontent08bff556-52c7-11e4-a236-00144feab7de (accessed March 19 2018)

Danaher TS and Gallan AS (2016) ldquoService research in health care positively impacting livesrdquoJournal of Service Research Vol 19 No 4 pp 433-437

Davis FD Bagozzi RP and Warshaw PR (1989) ldquoUser acceptance of computer technologya comparison of two theoretical modelsrdquo Management Science Vol 35 No 8 pp 982-1003

De Keyser A Lemon KN Klaus P and Keiningham TL (2015) ldquoA framework for understandingand managing the customer experiencerdquo Working Paper Series No 15-121 Marketing ScienceInstitute Cambridge MA available at wwwmsiorgreportsa-framework-for-understanding-and-managing-the-customer-experience

Delcourt C Gremler D Van Riel ACR and Van Birgelen M (2013) ldquoEffects of perceived employeeemotional competence on customer satisfaction and loyalty the mediating role of rapportrdquoJournal of Service Management Vol 24 No 1 pp 2-24

Deloitte (2017) ldquoAssessing the value of TfLrsquos open data and digital partnershipsrdquo Deloitte Londonp 28 available at httpcontenttflgovukdeloitte-report-tfl-open-datapdf

Department for Business Energy and Industrial Strategy (2017) Industrial Strategy Building a BritainFit for the Future ISBN 9781528601313 Department for Business Energy and IndustrialStrategy London p 256 available at wwwgovukgovernmentpublicationsindustrial-strategy-building-a-britain-fit-for-the-future

Ding Y and Keh HT (2016) ldquoA re-examination of service standardization versus customization fromthe consumerrsquos perspectiverdquo Journal of Services Marketing Vol 30 No 1 pp 16-28

Edvardsson B Enquist B and Johnston R (2010) ldquoDesign dimensions of experience rooms forservice test drives case studies in several service contextsrdquo Managing Service Quality AnInternational Journal Vol 20 No 4 pp 312-327

Fauconnier G and Turner M (1998) ldquoConceptual integration networksrdquo Cognitive Science Vol 22No 2 pp 133-187

Feil-Seifer D and Matari MJ (2005) ldquoDefining socially assistive roboticsrdquo Proceedings of the IEEEInternational Conference on Rehabilitation Robotics June pp 465-468

Frow P McColl-Kennedy JR and Payne AF (2016) ldquoCo-creation practices their role in shaping ahealth care ecosystemrdquo Industrial Marketing Management Vol 56 July pp 24-39

Gabbott M Tsarenko Y and Mok WH (2011) ldquoEmotional intelligence as a moderator of copingstrategies and service outcomes in circumstances of service failurerdquo Journal of Service ResearchVol 14 No 2 pp 234-248

Gallan AS Jarvis CB Brown SW and Bitner MJ (2013) ldquoCustomer positivity and participation inservices an empirical test in a health care contextrdquo Journal of the Academy of Marketing ScienceVol 41 No 3 pp 338-356

Gallo C (2017) ldquoStarbucksrsquo cool new brew storytelling with a digital twistrdquo Forbes December 11available at wwwforbescomsitescarminegallo20171211starbucks-cool-new-brew-storytelling-with-a-digital-twist71d0d2c97735 (accessed August 1 2018)

Gantz J and Reinsel D (2012) ldquoThe digital universe in 2020 big data bigger digital shadows andbiggest growth in the far eastrdquo IDC iView IDC Analyze the Future Framingham MA pp 1-16

Gebauer H and Reynoso J (2013) ldquoAn agenda for service research at the base of the pyramidrdquo Journalof Service Management Vol 24 No 5 pp 482-501

Gentile C Spiller N and Noci G (2007) ldquoHow to sustain the customer experience an overview ofexperience components that co-create value with the customerrdquo European Management JournalVol 25 No 5 pp 395-410

Giebelhausen M Robinson SG Sirianni NJ and Brady MK (2014) ldquoTouch versus tech whentechnology functions as a barrier or a benefit to service encountersrdquo Journal of MarketingVol 78 No 4 pp 113-124

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nloa

ded

by D

octo

r R

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N B

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ber

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Giraldi L Mengoni M and Bevilacqua M (2016) ldquoHow to enhance customer experience in retailinvestigations through a case studyrdquo Proceedings of the 23rd ISPE Inc International Conferenceon Transdisciplinary Engineering Vols 3-7 October pp 381-390

Gittell JH (2006) ldquoRelational coordination coordinating work through relationships of shared goals sharedknowledge and mutual respectrdquo in Kyriakidou O and Oumlzbilgin MF (Eds) Relational Perspectives inOrganizational Studies A Research Companion Edward Elgar Cheltenham pp 74-94

Goffman E (1967) ldquoOn face-workrdquo Interaction Ritual Essays on Face-to-Face Behavior pp 5-46

Goldman Sachs Equity Research (2017) ldquoChinarsquos rise in artificial intelligence ndash the new ChinardquoGoldman Sachs available at www2caictaccnzscpqqzkgzljyd201709P020170921309379565253pdf (accessed March 1 2018)

Gostin LO Lazzarini Z Neslund VS and Osterholm MT (1996) ldquoThe public health informationinfrastructure a national review of the law on health information privacyrdquo The Journal of theAmerican Medical Association Vol 275 No 24 pp 1921-1927

Greacutegoire Y Tripp TM and Legoux R (2009) ldquoWhen customer love turns into lasting hate the effectsof relationship strength and time on customer revenge and avoidancerdquo Journal of MarketingVol 73 No 6 pp 18-32

Gremler DD and Gwinner KP (2000) ldquoCustomer-employee rapport in service relationshipsrdquo Journalof Service Research Vol 3 No 1 pp 82-104

Grewal D Levy M and Kumar V (2009) ldquoCustomer experience in retailing an organizingframeworkrdquo Journal of Retailing Vol 85 No 1 pp 1-14

Guo L Lotz SL Tang C and Gruen TW (2016) ldquoThe role of perceived control in customer valuecocreation and service recovery evaluationrdquo Journal of Service Research Vol 19 No 1 pp 39-56

Hartmann PM Zaki M Feldmann N and Neely A (2016) ldquoCapturing value from big data ndash ataxonomy of data-driven business models used by start-up firmsrdquo International Journal ofOperations amp Production Management Vol 36 No 10 pp 1382-1406

Harwood T and Garry T (2015) ldquoAn investigation into gamification as a customer engagementexperience environmentrdquo Journal of Services Marketing Vol 29 Nos 67 pp 533-546

Hazeacutee S Delcourt C and Van Vaerenbergh Y (2017) ldquoSharing goods Yuck No An investigation ofproduct contamination in access-based servicesrdquo Journal of Service Research Vol 20 No 4pp 441-456

Hennig-Thurau T Gwinner KP and Gremler DD (2002) ldquoUnderstanding relationship marketingoutcomes an integration of relational benefits and relationship qualityrdquo Journal of ServiceResearch Vol 4 No 3 pp 230-247

Hofaker CF de Ruyter K Lurie NH Manchanda P and Donaldson J (2016) ldquoGamification andmobile marketing effectivenessrdquo Journal of Interactive Marketing Vol 34 May pp 25-36

Hoffman DL and Novak TP (2018) ldquoConsumer and object experience in the Internet of Things anassemblage theory approachrdquo Journal of Consumer Research Vol 44 No 6 pp 1178-1204

Homburg C Jozić D and Kuehnl C (2017) ldquoCustomer experience management toward implementingan evolving marketing conceptrdquo Journal of the Academy of Marketing Science Vol 45 No 3pp 377-401

Huang M-H and Rust RT (2018) ldquoArtificial intelligence in servicerdquo Journal of Service ResearchVol 21 No 2 pp 155-172

Kang C and Roose K (2018) ldquoZuckerberg faces hostile congress as calls for regulation mountrdquo TheNew York Times April 11 p B4 available at wwwnytimescom20180411businesszuckerberg-facebook-congresshtml

Kopalle P (2014) ldquoWhy Amazonrsquos anticipatory shipping is pure geniusrdquo Forbes January 28 available atwwwforbescomsitesonmarketing20140128why-amazons-anticipatory-shipping-is-pure-genius4594345f4605 (accessed August 1 2018)

Kozinets R Patterson A and Ashman R (2016) ldquoNetworks of desire how technology increases ourpassion to consumerdquo Journal of Consumer Research Vol 43 No 5 pp 659-682

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Dow

nloa

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octo

r R

uth

N B

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n A

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0 Se

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2018

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Kranzbuumlhler AM Kleijnen MHP Morgan RE and Teerling M (2017) ldquoThe multilevel nature ofcustomer experience research an integrative review and research agendardquo International Journalof Management Reviews Vol 20 No 2 pp 433-456

Kumar V and Reinartz W (2016) ldquoCreating enduring customer valuerdquo Journal of Marketing Vol 80No 6 pp 36-68

Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

Pine BJ and Gilmore JH (1998) ldquoWelcome to the experience economyrdquo Harvard Business ReviewVol 76 JulyAugust pp 97-105

Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Reutskaja E and Hogarth RM (2009) ldquoSatisfaction in choice as a function of the number ofalternatives when lsquogoods satiatersquo rdquo Psychology amp Marketing Vol 26 No 3 pp 197-203

Rivera-Santos M and Rufiacuten C (2010) ldquoGlobal village vs small town understanding networks at thebase of the pyramidrdquo International Business Review Vol 19 No 2 pp 126-139

Rogers CR (1975) ldquoEmpathy an unappreciated way of beingrdquo The Counseling Psychologist Vol 5No 2 pp 2-10

Rogers EM (1995) Diffusion of Innovations 4th ed Free Press New York NY

Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

Schumann JH Wuumlnderlich NV and Wangenheim F (2012) ldquoTechnology mediation in servicedelivery a new typology and an agenda for managers and academicsrdquo Technovation Vol 32No 2 pp 133-143

Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

Dow

nloa

ded

by D

octo

r R

uth

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olto

n A

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23 2

0 Se

ptem

ber

2018

(PT

)

Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 6: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

are rethinking theory and practice to accommodate the digital erarsquos increasing complexityhigh information availability high reach frequent interactions and faster speeds oftransactions (Wedel and Kannan 2016) Given these characteristics we view the digitalrealm as ranging from low to high information density

Physical realmThe physical realm includes the arrangement of furnishings and equipment that influencetheir functionality spatial arrangements that enhance convenience and a sense of comfortambient elements and cultural resources that is signs and symbols that invite customers toengage in the service encounter (Bitner 1992) Cues from the physical realm directly influencehow customers act and respond during service encounters (Ballantyne and Nilsson 2017) Forexample customers can use cultural resources as cues that set the rules and expectations ofhow to act and interact within the service environment A sense of place can be facilitated byusing cultural artifacts signs and symbols to create a sense of belonging to a collective brandcommunity or sub-culture enriching shared customer experiences

Many elements of the physical realm are subtle yet pervasive in their effects on thecustomer experience For example the physical realm of a servicescape influences thenature and quality of interactions between customers and employees of the organization(Bitner 1992) as well as customer-to-customer (C2C) interactions (Tombs andMcColl-Kennedy 2003) Successful organizations combine elements of the physical realmto offer an integrative narrative to their customers thereby inviting customers to beimmersed in their own phenomenological experience (Petermans et al 2013) In service andretail contexts the physical servicescape offers customers an immersive experience that candeliver enduring emotional moments and memories (Giraldi et al 2016)

As organizations move to digital platforms the constituents of the physical realm remaincentral to understanding the customer experience ndash indeed they may act as a referencepoint Ballantyne and Nilsson (2017) noted that functionality use of space and culturalmessaging remain important aspects of the online customer experience They added thatldquo[hellip] the technological development of the Internet and the emergence of new social mediaare shifting the market place for business further towards virtual market spacerdquo (p 227)merging the physical and digital via technology For example retailers are already usingaugmented reality such as smart mirrors for customers to try on clothes and businesses areusing virtual reality to manage workplaces Hence we characterize the physicalenvironment as ranging from low to high physical complexity where technology is anincreasingly important component

Social realmInteractions are at the heart of the social realm of the customer experience Early workconsidered the social realm as a stage where customers and employees performedexperiences (Pine and Gilmore 1998 Solomon et al 1985 Surprenant and Solomon 1987)However researchers now agree that the social realm is defined by the interactions amongactors (eg customers employees and partners) through different interfaces which areincreasingly non-human (De Keyser et al 2015 Lemon and Verhoef 2016 McColl-KennedyGustafsson Jaakkola Klaus Radnor Perks and Friman 2015) Organizations must takeaccount of customersrsquo social environments and their expectations about organization-basedresources such as settings products and atmospherics in order to design serviceexperiences for customers (Verhoef et al 2009)

Since customers actively co-create experiences organizations must facilitate customersrsquointeractions with other actors Customers can influence other customers through smartphonessocial networks and other means (McColl-Kennedy Cheung and Ferrier 2015 Tombs andMcColl-Kennedy 2013) C2C interactions such as reviews or shared evaluations of a service

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can influence customersrsquo ldquoapproach or avoid decisionsrdquo thereby influencing organizationaloutcomes (eg customer acquisition) and customer outcomes such as their attachment to aservice place or environment (Rosenbaum and Massiah 2011) The social realm helpscustomers fulfill utilitarian social and psychological customer needs Moreover in a virtualcontext interactive media devices connect customers both inside and outside the boundaries ofthe physical setting (Benoit et al 2017 Sands et al 2011) giving customers a collective sense ofldquosocial presencerdquo

A sense of social presence arises between humans as well as between human andnon-human entities such as service robots (Van Doorn et al 2017) It can be experienced inboth physical and virtual contexts ndash and it increasingly characterizes service and retailsettings Research has shown that social density may affect the customer experience(Tombs and McColl-Kennedy 2003) For example in high social density contextsinteractions are frequent among several actors such as in a crowded cafeacute or an active socialmedia chat room The effect can be negative (eg crowding) or positive (eg convivial) to thecustomer experience Conversely in low social density contexts infrequent interactionsbetween actors may be negative (eg lonely or isolating) or positive (eg calming or serene)For these reasons we believe that the density of social presence can be quantified from lowto high and that both traditional and technology-mediated service encounters can becharacterized in this way

Customer experience opportunities emerging issues and challengesThe world is undergoing a fourth revolution ndash a technological revolution ndash that isunprecedented in its scale speed and complexity (Department for Business Energy andIndustrial Strategy 2017) Customers can enjoy entertainment shop learn socialize andwork within digital environments that also have an overarching social dimension(Ballantyne and Nilsson 2017) Cognitive systems (AI) will transform the way we live andwork in diverse ways ranging from the diagnosis and treatment of cancer to the security ofonline transactions (Wirtz et al 2018) In the information age people and organizations areable to make better decisions on the design and management of the customer experience(Patriacutecio et al 2018) For example knowing the weather forecast what time a train willdepart or when a broadband outage might occur helps minimize friction (eg wasted timeand effort) allows individuals and organizations to work effectively and also enhances thecustomer experience (National Infrastructure Commission 2017) Since there are manypossibilities this section focuses on exemplar future services that are likely to emerge by theyear 2050 in three service sectors asset-heavy B2B services healthcare and B2C retail andprofessional services We will use each sector to provide a foundation for identifyingopportunities and emerging issues Then we summarize some of the challenges of creatingcustomer experiences at the intersection of the digital physical and social realms

Opportunities and emerging issues in asset-heavy B2B services from traditional supportservice to digital twin serviceOpportunities Opportunities for using digital technologies to improve productivity andefficiency in managing demand and capacity are prevalent in many B2B service sectorsSome examples are located in the digitalphysicalsocial space in Figure 2 This subsectionfocuses on opportunities for asset-heavy B2B services such as construction defense energyand transport services (National Infrastructure Commission 2017) Asset-heavyorganizations design build and deliver an integrated offering that includes the sale orlease of (large) assets integrated with support services such as maintenance and repair Inthese environments traditional repair services have a physical servicescape such as aworkshop or depot with a social dimension such as a team of service experts who work

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with customers to produce comprehensive repair solutions that are critical to the respectivecustomerrsquos day-to-day site experience and productivity (Zaki and Neely 2018)

There are many opportunities for asset management services because asset failuresignificantly disrupts the economy endangers peoplersquos health and safety and incursenvironmental consequences (National Infrastructure Commission 2017) For this reasonorganizations collect vast amounts of data from asset sensors for remote preventivemaintenance and other purposes (Zaki and Neely 2018) For rail services asset failures andrelated incidents costs the UK economy pound13ndashpound19bn a year ($18ndash$26bn) which includesfare losses the cost of passengersrsquo time on delayed or canceled trains and damage to theholistic customer experience (MacDonald 2017) Data are critical inputs to predictive orldquoasset health monitoringrdquo solutions Proactive condition-monitoring services apply existingoperational data real-time sensor data advanced engineering analytics and forward-lookingbusiness intelligence to produce recommendation analyses that identify potential equipmentfaults (Qiu et al 2013) They have many advantages in service networks including timelyscheduling convenient maintenance services monitoring machine health increased uptimeand fuel efficiency and reduced operating costs (Zaki and Neely 2018)

Emerging issues In the future monitoring technologies are likely to be digitallyconnected with assets to diagnose faults in the high physical and low social realm ndash egautonomously stopping equipment in the event of a threat of a strike by employees Anespecially exciting example is a rdquodigital twinrdquo ndash that is a dynamic virtual representation of aphysical object or system across its lifecycle using real-time data to enable understandinglearning and reasoning (National Infrastructure Commission 2017) For exampleRolls-Royce has signed a memorandum of understanding with universities and otherinstitutes with the aim of creating an open source digital platform to develop new ships Theplatform will allow the creation of a digital copy of a real ship including its systems thatsynthesizes the information available about the ship Any aspect of the digital twin ship canbe explored through a digital interface creating a virtual test bench to assess the safety and

Traditional Repair

RemoteMaintenance

B2B PredictiveSolutions

Asset Management(machine to machine)

Simulations ndash BigDiggers Pilots

Digital Asset Twin

SystemSolutionEngineering Services

AutomatedSoftwarePatchesPhysical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 2Future asset-heavy

B2B services inthe digitalphysical

social realms

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performance of a vessel and its systems both before its construction and through itslifecycle (Rolls-Royce 2017) The UK National Infrastructure Commission has suggestedbuilding a digital twin of the entire country which would bring together power water railcommunications meteorological demographic and transport data to give insights andanswer questions such as is it possible to avoid building a new hospital car park bymanaging appointment times and traffic flows How can energy consumption be reduced by10 percent per person over six months What is the impact of closing a specific road in theevent of a water leak (National Infrastructure Commission 2017)

Opportunities and emerging issues in healthcare services from traditional care to digital careOpportunities Health is an important context for service researchers and practitioners(Danaher and Gallan 2016) Traditionally healthcare has been centered on the schedulesand settings of the clinical team and infrastructure However experts forecast that relianceon the physical realm will diminish over the next 20 years due to changes in technologies(Topol and Hill 2012) Today surgeons ldquovirtuallyrdquo assist in operations outside the confinesof the hospital using network links and satellite calls and dermatologists diagnose skincancer in remote areas of Australia using smartphones (Wolf et al 2013) In the futureclinicians will be increasingly less reliant on patients visiting the clinic as health servicesenter the digital realm See Figure 3 which provides healthcare examples located in thedigitalphysicalsocial space

Emerging issues Customers will increasingly shape their own experiences in digitalhealthcare (McColl-Kennedy Snyder Elg Witell Helkkula Hogan and Anderson 2017)Personalized rather than population-based solutions will be available in the treatment andmanagement of disease Improvements in diagnostic accuracy and sensitivity have becomeapparent with advances in genome pattern sequencing and prognostic decision making(Topol and Hill 2012) Today the Mayo Clinic offers grants to organizations to developtechnological applications that can monitor an individualrsquos anatomical changes to detect the

TraditionalNursing

CounselingServices

Simulationsor VR

MedicalTourism

Rural ldquoBarefootrdquoDoctors

HealthcareMonitoring(wearables toys)

DiagnosticServices

RobotSurgery

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 3Future healthcareservices in the digitalphysicalsocial realms

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onset or progression of disease symptoms (Mayo Clinic 2018) In the future smart deviceswill enable patients to quickly make decisions about their healthcare and treatment optionsrather than waiting for results from laboratories or clinics By 2050 healthcareorganizations will leverage AI 3D printing sensory technology real-time data processingand big data repositories to design and deliver services (Antons and Breidbach 2018) Astechnologies become more sophisticated robotic assistants will be in hospital wards in ourhomes and playing a critical role in the operating suite (Lanfranco et al 2004) Today robotshave begun to assist in the operating suite and to fulfill social roles such as cuddlycompanions for the elderly and hotel ambassadors (eg Softbank Roboticsrsquo robot Pepper)In the future they will be carers for the infirmed and assistants to medical consultants

Opportunities and emerging issues in B2C retail and professional services from traditionalservice to digital serviceOpportunities Digital technologies are already prevalent in B2C industries including retailautomotive consumer goods logistics media and professional services (World EconomicForum 2017) Retailing is especially rife with digital service innovations with concomitantorganizational changes In the past in-store and online retailing were characterized by highphysical complexity and high social presence At present both are shifting from low to highdigital density realms (Ballantyne and Nilsson 2017) Figure 4 depicts some examples in thedigitalphysicalsocial spaces Consumers attracted by the convenience of easy digitalaccess to user reviews comparison pricing and endless aisles have come to rely on onlineand mobile shopping

Traditional retailers are bringing digital channels into stores and online retailers areopening brick-and-mortar shops in high-profile locations seeking to create experiences thatcannot be delivered through a device Both traditional and online retailers are working towardthe same goal a highly personalized consistent and integrated shopping experience across allpoints of contact between retailers and customers The integration of digital technologies with

ProfessionalServices

MultiplayerOnline Gaming

Wii gamesWith others

MobileFinancialServices

Custom Build Your Car(or Kitchen or )

Drone DeliveryServices 3D PrintingServices

Light TherapyServices

SalonServices

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 4Future B2C retail andprofessional services

in the digitalphysicalsocial realms

Customerexperiencechallenges

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physical (store) environments will enhance the customer experience and improve employeeperformance For example AmazonGo is a new kind of bricks-and-mortar store with highdigital density so that no physical checkout is required Amazon is also experimenting withcomputer vision sensor fusion and deep learning through a seamless phone application whichmay radically change the customer experience (Amazon 2018)

Emerging issues The World Economic Forum (2017) predicted a dramatic shift fromtraditional services to digital services In the USA professional services are estimated to bethe second-largest employment sector (after healthcare) In the UK they account for15 percent of its gross domestic product and employ 14 percent of its workforceEmployment in professional services is expected to grow to approximately 21m jobs by2024 (US Bureau of Labor Statistics 2015) One reason for this growth is that onlineplatforms offer a convenient alternative to the traditional physical marketplace forhealthcare and professional services Due to the dramatic shift from traditional services todigital services employees and customers will participate in the co-creation of serviceswithin a high digital density environment In Figure 4 this change implies moving from thehigh physical complexity high social presence and low digital density octant to the lowphysical high social presence and high digital density octant

Increasingly many customers are expecting 247 access to professional services Forexample Upwork is a platform connecting 5m client businesses with more than 12mfreelancers (Upwork 2017) In the legal profession virtual courtrooms are replacing the needfor physical ones as lawyers witnesses and judges can now hold hearings via video link(Susskind and Susskind 2015) We speculate that the next transition will be to the lowphysical low social presence and high digital density octant For example the law firm ofBaker and Hostetler recently developed an AI lawyer (ldquoRossrdquo) to handle its bankruptcypractice and replaced 50 human lawyers Ross can read understand analyze language andgenerate responses backed up with legal references It also monitors current litigation tonotify colleagues about recent court decisions (Addady 2016)

Challenges of navigating the path to high digital density environmentsBusiness managers and researchers anticipate that a major benefit of AI and ldquobig datardquowill be service innovations that create new value propositions (Hartmann et al 2016Huang and Rust 2018 Mayer-Schoumlnberger and Cukier 2013) In addition peopleorganizations and society will benefit from the move to high density digital environmentsthrough increased convenience universal access to information to inform decisions andnew solutions However people and organizations must shape the role that technologyplays in the design and delivery of the customer experience Interconnections betweendevices and platforms have the potential to create complex service systems that ndash if theyfail ndash could have far-reaching consequences that could be very destructive For exampleTay the rogue chatbot that Microsoft developed was a female chatbot with its ownTwitter account It is a machine learning project designed for human engagement thatcommunicates with 18-to 24-year-olds learns from them and gets smarter with timeWithin 24 h from its launch Tay tweeted about smoking drugs and claiming that ldquoHitlerwas right [hellip]rdquo and ldquofeminists should [hellip] burn in hellrdquoMicrosoft shut the service the nextday (Regelado 2016)

Organizations cannot access the information they need to co-create services with customersbecause multiple technical solutions exist that are designed to be optimal for well-defined localproblems ndash but these solutions are often disconnected and (consequently) sub-optimal from asystem or network standpoint Although hardware software platform and networkingstandards have been established across organizations each organization and itscustomers typically use their own tools and data standards Consequently data architecture

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is fragmented and there is no integrated enterprise information platformwithin an organizationndash let alone across organizations This misalignment creates challenges because it isunclear which technologies are needed and how they should be implemented and integratedinto the existing information and communication technology infrastructure in organizationsMoreover organizationsrsquo utilization of analytical methods is currently limited rangingfrom descriptive analytics (eg dashboards) applied to high volume high velocity data todiagnostic predictive and prescriptive analytics (eg cognitive systems and optimizationmodels) which require more costly complex methods and typically more structured data(Wedel and Kannan 2016)

Challenges of navigating the path to high social presenceOrganizations have experience with the migration to high social presence environments thatinvolve humans usually when digital density is low Research has shown that the use oftechnology by employees can improve their performance under some conditions (Ahearneet al 2008) thereby improving the customer experience However digital technology canaugment or eliminate the human element thereby changing the roles of customers andemployees Lariviegravere et al (2017) argued that employees and customers are taking on newroles as enablers innovators coordinators and differentiators ndash rather than traditionaldeliverers of the core service For example smart technology has begun to expand frontlineservice interactions in both B2B and B2C contexts and to deepen customerndashorganizationrelationships (Marinova et al 2016)

In addition very little is known about automated social presence ndash such as robotsavatars augmented and virtual reality ndash as opposed to humans Already people areencountering automated social presence when they are served by a robot in a restaurant orhospital consult intelligent virtual assistants interact with others in simulated or virtualenvironments receive medical care through telepresence and so forth (Plambeck 2018Walsh 2018) Indeed many people access technology through a virtual assistant such asSiri and Alexa which exhibit a personality and encourage anthropomorphism Thus socialpresence can now occur digitally rather than due to the physical presence of a human actorso that high social presence can be achieved through automation (Van Doorn et al 2017)Researchers have become especially interested in the ldquouncanny valleyrdquo a term that denotesthe uncomfortable sensation associated with a mismatch between an individualrsquosexpectations and a robotrsquos behavior (Mori et al 2012)

New approaches to reconciling customer experience dualitiesUntil this point we have identified opportunities and challenges for enhancing the customerexperience in the future and considered ways that organizations and customers might makethe most of them In this section we discuss how the intersection of digital physical andsocial realms poses systematic challenges for organizations customers and society Wefocus on tensions that unless addressed may inhibit the conditions necessary for valueco-creation between actors in a network We term these tensions ldquodualitiesrdquo defined as theopposition or contrast between concepts or strategies

We organize our discussion by considering the circumstances in each of the eight octantsbecause they represent different conditions that beget different dualities These aredescribed in Table I (which maps our three-dimensional octants into two-dimensional space)Some dualities may apply in more than one condition We do not aim to unambiguouslyclassify dualities but rather to elucidate how they arise from service design and deliveryopportunities challenges and trade-offs In addition we provide examples and offerguidance on ways to resolve these dualities through innovations in the design andmanagement of customer experiences for probable future conditions

Customerexperiencechallenges

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Base of the pyramid (BoP) or scarcity in digital physical and social realmsThe low digitalphysicalsocial octant represents a condition of scarcity in which resourceconstraints (or uneven distribution of resources) hinder value co-creation in many forms(Gebauer and Reynoso 2013 London et al 2010) There are vast numbers of people who liveevery day with scarce resources sometimes referred to as BoP In addition during naturaldisasters individuals may find themselves temporarily without access to many resources(Cheung et al 2017) We believe that the scarcity duality arises from fundamentallydifferent perspectives on value held by different actors in a service ecosystem For examplefor-profit business objectives (and sometimes non-profit objectives) may not match the goalsof individuals in markets with scarce or unevenly distributed resources due to culturalpolitical issues related to power structures (Arora and Romijn 2011)

New approaches One approach to these challenges is to acquire a partner or engage in anetwork alliance thereby tapping into knowledge resources and capabilities related to thelocal market (Rivera-Santos and Rufiacuten 2010) An example of a successful alliance thatco-creates value with customers who face scarce resources in many countries is the UnitedNations-led initiative to eradicate malaria by 2040 (UN News 2015) Another approach tosuccessfully operating in markets with scarce resources entails the development novelbusiness models especially with respect to pricing For example organizations may enable

Low social presence High social presenceLow digital density High digital density Low digital density High digital density

Lowphysicalcomplexity

Base of the pyramidchallenges

Organization bundlesvs customer bundles

Autonomy(competitive) vsinterdependence(cooperation)

Regulation by actorsvs regulation bycommunity

Customerperspective scarcityof resources valuesincompatibilityOrganizationalperspective fee vsfree potentialsolutions mightinclude partner ornetwork alliances

Customer perspectiveperceived control cancreate paradox ofchoice customer endsup worse offOrganizationalperspective requiresdescriptive anddiagnostic use ofcustomer data

Customer perspectivehighly socialexperience thatrequires high trust tointegrate socialresourcesOrganizationalperspective limited orno digital and physicaltouchpoints to createtrust and aligncustomerorganizationgoals

Requires a digitalplatform forinformation sharing amechanism for risksharing Socialpresence could bedelivered digitallyRequires descriptiveand diagnosticcapabilities but nopredictive analytics

Highphysicalcomplexity

Privacy vstransparency

Standardization vsflexibility

Avoidance vsattraction

Capabilities vsresources

Organizational andcustomer perspectiverequires informationsharing and lowperceived risk Trustbetween serviceproviders andcustomers is critical

Customer perspectivehigh coping abilitiesrequired Theorganizationrsquos decisionsupport systems mustbe excellent to providevalue in real timeOrganizationalperspective customerknowledge andorganizationallearning is required

Customer perspectivefeedback andperceived controlneededOrganizationalperspective how tocreate brandedcustomer experiencesthat fit with customerneeds in the presenceof other customers

Customer perspectivecustomer innovationand creativity throughparticipation Localsolutions may bepossible if services canbe modularizedOrganizationalperspectiveco-creation requiresorganizational learningand effective businessanalytics

Table IDualities in each ofthe eight octants

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customers to share a service and its costs design smaller packages or bundles create pre-paid service plans or develop micro-finance or loan programs (Anderson and Markides2007) Finally actors in markets with scarce resources may turn to the moral economy toco-create value with the limited resources available (Cheung et al 2017)

Bundling services high digital density low physicalsocial resourcesHigh digital density realms are capable of supporting favorable emotional social and sensoryresponses Thus gamification ndash that is adding game-like elements to a task to encouragecustomer participation can be an especially attractive strategy for organizations in B2Cmarkets Research has shown that gamification can lead to customer learning engagementand improved customer experiences (Harwood and Garry 2015 Landers 2014) Games arealso effective in employee training team-building and management However this strategy isonly effective when the goals of the organization and its customers are aligned Games haverules and structure whereas play often does not so organizational and customer goals mayconflict (Hofaker et al 2016 Walz and Deterding 2014) This conflict may cause customers torefuse to participate in games thereby defeating the purpose of the gamification

Hence a duality can arise in balancing a participantrsquos goals (ie entertainment) withorganizational goals such as customer learning or buying (Harwood and Garry 2015) Theunderlying reason for this duality is that gamification implicitly requires the creation ofldquooptimalrdquo bundles of features (ie learning components entertainment components) that arevaluable to both parties This same dilemma ndash optimal service bundling ndash also occurs in highdigital density B2B markets in a very different form B2B customers may be faced with amultitude of bundles that encompass an overwhelming number of options and combinationsso that a non-expert encounters a ldquoparadox of choicerdquo ndash whereby a customer feels betterduring the bundle creation process but (objectively) ends up worse off (Reutskaja andHogarth 2009) In both of these situations complex bundling increases the challenges ofco-creation ndash that is creating value for both parties while successfully monetizing the service

New approaches Organizations must know (or learn) the customerrsquos preferences todetermine the appropriate mix and sequences of entertainment and content (ie the bundle)that will be most effective in creating value (Landers 2014) Since organizations and theircustomers are likely to value bundles (and the underlying components) differentlyorganizations must also adopt a relational approach to mitigate conflicts that influencevalue co-creation (Tuli et al 2007) In sum organizations operating in both B2B and B2Cmarkets characterized by a high digital density environment must intensively developresources and capabilities for leveraging descriptive and diagnostic analytics of customerdata to co-create service bundles and pricing options that are valuable to both parties

Autonomy vs interdependence in high social low digitalphysical environmentsHigh social presence creates a shared experience which requires high levels of trust toaccomplish integration of social resources (Hennig-Thurau et al 2002) When physical anddigital resources are limited organizations are constrained in their capabilities to usetraditional methods of creating trust and integrating social resources For example many oftodayrsquos business models rely on digital platforms to build trust and integrate socialresources (eg Airbnb) and such platforms are absent in this octant Hence a duality mayemerge between autonomy (which frequently implies competition) vs interdependence(which can be more cooperative) Instances of both competition and cooperation can beobserved in markets as social actors work independently or collectively to meet their needs(Cheung and McColl-Kennedy 2015)

New approaches Organizations must find social mechanisms for aligning organizationalcustomer and employee goals Often this requires a significant culture change within

Customerexperiencechallenges

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organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

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offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

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imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

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ded

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2018

(PT

)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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Customerexperiencechallenges

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

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23 2

0 Se

ptem

ber

2018

(PT

)

Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 7: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

can influence customersrsquo ldquoapproach or avoid decisionsrdquo thereby influencing organizationaloutcomes (eg customer acquisition) and customer outcomes such as their attachment to aservice place or environment (Rosenbaum and Massiah 2011) The social realm helpscustomers fulfill utilitarian social and psychological customer needs Moreover in a virtualcontext interactive media devices connect customers both inside and outside the boundaries ofthe physical setting (Benoit et al 2017 Sands et al 2011) giving customers a collective sense ofldquosocial presencerdquo

A sense of social presence arises between humans as well as between human andnon-human entities such as service robots (Van Doorn et al 2017) It can be experienced inboth physical and virtual contexts ndash and it increasingly characterizes service and retailsettings Research has shown that social density may affect the customer experience(Tombs and McColl-Kennedy 2003) For example in high social density contextsinteractions are frequent among several actors such as in a crowded cafeacute or an active socialmedia chat room The effect can be negative (eg crowding) or positive (eg convivial) to thecustomer experience Conversely in low social density contexts infrequent interactionsbetween actors may be negative (eg lonely or isolating) or positive (eg calming or serene)For these reasons we believe that the density of social presence can be quantified from lowto high and that both traditional and technology-mediated service encounters can becharacterized in this way

Customer experience opportunities emerging issues and challengesThe world is undergoing a fourth revolution ndash a technological revolution ndash that isunprecedented in its scale speed and complexity (Department for Business Energy andIndustrial Strategy 2017) Customers can enjoy entertainment shop learn socialize andwork within digital environments that also have an overarching social dimension(Ballantyne and Nilsson 2017) Cognitive systems (AI) will transform the way we live andwork in diverse ways ranging from the diagnosis and treatment of cancer to the security ofonline transactions (Wirtz et al 2018) In the information age people and organizations areable to make better decisions on the design and management of the customer experience(Patriacutecio et al 2018) For example knowing the weather forecast what time a train willdepart or when a broadband outage might occur helps minimize friction (eg wasted timeand effort) allows individuals and organizations to work effectively and also enhances thecustomer experience (National Infrastructure Commission 2017) Since there are manypossibilities this section focuses on exemplar future services that are likely to emerge by theyear 2050 in three service sectors asset-heavy B2B services healthcare and B2C retail andprofessional services We will use each sector to provide a foundation for identifyingopportunities and emerging issues Then we summarize some of the challenges of creatingcustomer experiences at the intersection of the digital physical and social realms

Opportunities and emerging issues in asset-heavy B2B services from traditional supportservice to digital twin serviceOpportunities Opportunities for using digital technologies to improve productivity andefficiency in managing demand and capacity are prevalent in many B2B service sectorsSome examples are located in the digitalphysicalsocial space in Figure 2 This subsectionfocuses on opportunities for asset-heavy B2B services such as construction defense energyand transport services (National Infrastructure Commission 2017) Asset-heavyorganizations design build and deliver an integrated offering that includes the sale orlease of (large) assets integrated with support services such as maintenance and repair Inthese environments traditional repair services have a physical servicescape such as aworkshop or depot with a social dimension such as a team of service experts who work

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with customers to produce comprehensive repair solutions that are critical to the respectivecustomerrsquos day-to-day site experience and productivity (Zaki and Neely 2018)

There are many opportunities for asset management services because asset failuresignificantly disrupts the economy endangers peoplersquos health and safety and incursenvironmental consequences (National Infrastructure Commission 2017) For this reasonorganizations collect vast amounts of data from asset sensors for remote preventivemaintenance and other purposes (Zaki and Neely 2018) For rail services asset failures andrelated incidents costs the UK economy pound13ndashpound19bn a year ($18ndash$26bn) which includesfare losses the cost of passengersrsquo time on delayed or canceled trains and damage to theholistic customer experience (MacDonald 2017) Data are critical inputs to predictive orldquoasset health monitoringrdquo solutions Proactive condition-monitoring services apply existingoperational data real-time sensor data advanced engineering analytics and forward-lookingbusiness intelligence to produce recommendation analyses that identify potential equipmentfaults (Qiu et al 2013) They have many advantages in service networks including timelyscheduling convenient maintenance services monitoring machine health increased uptimeand fuel efficiency and reduced operating costs (Zaki and Neely 2018)

Emerging issues In the future monitoring technologies are likely to be digitallyconnected with assets to diagnose faults in the high physical and low social realm ndash egautonomously stopping equipment in the event of a threat of a strike by employees Anespecially exciting example is a rdquodigital twinrdquo ndash that is a dynamic virtual representation of aphysical object or system across its lifecycle using real-time data to enable understandinglearning and reasoning (National Infrastructure Commission 2017) For exampleRolls-Royce has signed a memorandum of understanding with universities and otherinstitutes with the aim of creating an open source digital platform to develop new ships Theplatform will allow the creation of a digital copy of a real ship including its systems thatsynthesizes the information available about the ship Any aspect of the digital twin ship canbe explored through a digital interface creating a virtual test bench to assess the safety and

Traditional Repair

RemoteMaintenance

B2B PredictiveSolutions

Asset Management(machine to machine)

Simulations ndash BigDiggers Pilots

Digital Asset Twin

SystemSolutionEngineering Services

AutomatedSoftwarePatchesPhysical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 2Future asset-heavy

B2B services inthe digitalphysical

social realms

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performance of a vessel and its systems both before its construction and through itslifecycle (Rolls-Royce 2017) The UK National Infrastructure Commission has suggestedbuilding a digital twin of the entire country which would bring together power water railcommunications meteorological demographic and transport data to give insights andanswer questions such as is it possible to avoid building a new hospital car park bymanaging appointment times and traffic flows How can energy consumption be reduced by10 percent per person over six months What is the impact of closing a specific road in theevent of a water leak (National Infrastructure Commission 2017)

Opportunities and emerging issues in healthcare services from traditional care to digital careOpportunities Health is an important context for service researchers and practitioners(Danaher and Gallan 2016) Traditionally healthcare has been centered on the schedulesand settings of the clinical team and infrastructure However experts forecast that relianceon the physical realm will diminish over the next 20 years due to changes in technologies(Topol and Hill 2012) Today surgeons ldquovirtuallyrdquo assist in operations outside the confinesof the hospital using network links and satellite calls and dermatologists diagnose skincancer in remote areas of Australia using smartphones (Wolf et al 2013) In the futureclinicians will be increasingly less reliant on patients visiting the clinic as health servicesenter the digital realm See Figure 3 which provides healthcare examples located in thedigitalphysicalsocial space

Emerging issues Customers will increasingly shape their own experiences in digitalhealthcare (McColl-Kennedy Snyder Elg Witell Helkkula Hogan and Anderson 2017)Personalized rather than population-based solutions will be available in the treatment andmanagement of disease Improvements in diagnostic accuracy and sensitivity have becomeapparent with advances in genome pattern sequencing and prognostic decision making(Topol and Hill 2012) Today the Mayo Clinic offers grants to organizations to developtechnological applications that can monitor an individualrsquos anatomical changes to detect the

TraditionalNursing

CounselingServices

Simulationsor VR

MedicalTourism

Rural ldquoBarefootrdquoDoctors

HealthcareMonitoring(wearables toys)

DiagnosticServices

RobotSurgery

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 3Future healthcareservices in the digitalphysicalsocial realms

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onset or progression of disease symptoms (Mayo Clinic 2018) In the future smart deviceswill enable patients to quickly make decisions about their healthcare and treatment optionsrather than waiting for results from laboratories or clinics By 2050 healthcareorganizations will leverage AI 3D printing sensory technology real-time data processingand big data repositories to design and deliver services (Antons and Breidbach 2018) Astechnologies become more sophisticated robotic assistants will be in hospital wards in ourhomes and playing a critical role in the operating suite (Lanfranco et al 2004) Today robotshave begun to assist in the operating suite and to fulfill social roles such as cuddlycompanions for the elderly and hotel ambassadors (eg Softbank Roboticsrsquo robot Pepper)In the future they will be carers for the infirmed and assistants to medical consultants

Opportunities and emerging issues in B2C retail and professional services from traditionalservice to digital serviceOpportunities Digital technologies are already prevalent in B2C industries including retailautomotive consumer goods logistics media and professional services (World EconomicForum 2017) Retailing is especially rife with digital service innovations with concomitantorganizational changes In the past in-store and online retailing were characterized by highphysical complexity and high social presence At present both are shifting from low to highdigital density realms (Ballantyne and Nilsson 2017) Figure 4 depicts some examples in thedigitalphysicalsocial spaces Consumers attracted by the convenience of easy digitalaccess to user reviews comparison pricing and endless aisles have come to rely on onlineand mobile shopping

Traditional retailers are bringing digital channels into stores and online retailers areopening brick-and-mortar shops in high-profile locations seeking to create experiences thatcannot be delivered through a device Both traditional and online retailers are working towardthe same goal a highly personalized consistent and integrated shopping experience across allpoints of contact between retailers and customers The integration of digital technologies with

ProfessionalServices

MultiplayerOnline Gaming

Wii gamesWith others

MobileFinancialServices

Custom Build Your Car(or Kitchen or )

Drone DeliveryServices 3D PrintingServices

Light TherapyServices

SalonServices

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 4Future B2C retail andprofessional services

in the digitalphysicalsocial realms

Customerexperiencechallenges

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physical (store) environments will enhance the customer experience and improve employeeperformance For example AmazonGo is a new kind of bricks-and-mortar store with highdigital density so that no physical checkout is required Amazon is also experimenting withcomputer vision sensor fusion and deep learning through a seamless phone application whichmay radically change the customer experience (Amazon 2018)

Emerging issues The World Economic Forum (2017) predicted a dramatic shift fromtraditional services to digital services In the USA professional services are estimated to bethe second-largest employment sector (after healthcare) In the UK they account for15 percent of its gross domestic product and employ 14 percent of its workforceEmployment in professional services is expected to grow to approximately 21m jobs by2024 (US Bureau of Labor Statistics 2015) One reason for this growth is that onlineplatforms offer a convenient alternative to the traditional physical marketplace forhealthcare and professional services Due to the dramatic shift from traditional services todigital services employees and customers will participate in the co-creation of serviceswithin a high digital density environment In Figure 4 this change implies moving from thehigh physical complexity high social presence and low digital density octant to the lowphysical high social presence and high digital density octant

Increasingly many customers are expecting 247 access to professional services Forexample Upwork is a platform connecting 5m client businesses with more than 12mfreelancers (Upwork 2017) In the legal profession virtual courtrooms are replacing the needfor physical ones as lawyers witnesses and judges can now hold hearings via video link(Susskind and Susskind 2015) We speculate that the next transition will be to the lowphysical low social presence and high digital density octant For example the law firm ofBaker and Hostetler recently developed an AI lawyer (ldquoRossrdquo) to handle its bankruptcypractice and replaced 50 human lawyers Ross can read understand analyze language andgenerate responses backed up with legal references It also monitors current litigation tonotify colleagues about recent court decisions (Addady 2016)

Challenges of navigating the path to high digital density environmentsBusiness managers and researchers anticipate that a major benefit of AI and ldquobig datardquowill be service innovations that create new value propositions (Hartmann et al 2016Huang and Rust 2018 Mayer-Schoumlnberger and Cukier 2013) In addition peopleorganizations and society will benefit from the move to high density digital environmentsthrough increased convenience universal access to information to inform decisions andnew solutions However people and organizations must shape the role that technologyplays in the design and delivery of the customer experience Interconnections betweendevices and platforms have the potential to create complex service systems that ndash if theyfail ndash could have far-reaching consequences that could be very destructive For exampleTay the rogue chatbot that Microsoft developed was a female chatbot with its ownTwitter account It is a machine learning project designed for human engagement thatcommunicates with 18-to 24-year-olds learns from them and gets smarter with timeWithin 24 h from its launch Tay tweeted about smoking drugs and claiming that ldquoHitlerwas right [hellip]rdquo and ldquofeminists should [hellip] burn in hellrdquoMicrosoft shut the service the nextday (Regelado 2016)

Organizations cannot access the information they need to co-create services with customersbecause multiple technical solutions exist that are designed to be optimal for well-defined localproblems ndash but these solutions are often disconnected and (consequently) sub-optimal from asystem or network standpoint Although hardware software platform and networkingstandards have been established across organizations each organization and itscustomers typically use their own tools and data standards Consequently data architecture

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is fragmented and there is no integrated enterprise information platformwithin an organizationndash let alone across organizations This misalignment creates challenges because it isunclear which technologies are needed and how they should be implemented and integratedinto the existing information and communication technology infrastructure in organizationsMoreover organizationsrsquo utilization of analytical methods is currently limited rangingfrom descriptive analytics (eg dashboards) applied to high volume high velocity data todiagnostic predictive and prescriptive analytics (eg cognitive systems and optimizationmodels) which require more costly complex methods and typically more structured data(Wedel and Kannan 2016)

Challenges of navigating the path to high social presenceOrganizations have experience with the migration to high social presence environments thatinvolve humans usually when digital density is low Research has shown that the use oftechnology by employees can improve their performance under some conditions (Ahearneet al 2008) thereby improving the customer experience However digital technology canaugment or eliminate the human element thereby changing the roles of customers andemployees Lariviegravere et al (2017) argued that employees and customers are taking on newroles as enablers innovators coordinators and differentiators ndash rather than traditionaldeliverers of the core service For example smart technology has begun to expand frontlineservice interactions in both B2B and B2C contexts and to deepen customerndashorganizationrelationships (Marinova et al 2016)

In addition very little is known about automated social presence ndash such as robotsavatars augmented and virtual reality ndash as opposed to humans Already people areencountering automated social presence when they are served by a robot in a restaurant orhospital consult intelligent virtual assistants interact with others in simulated or virtualenvironments receive medical care through telepresence and so forth (Plambeck 2018Walsh 2018) Indeed many people access technology through a virtual assistant such asSiri and Alexa which exhibit a personality and encourage anthropomorphism Thus socialpresence can now occur digitally rather than due to the physical presence of a human actorso that high social presence can be achieved through automation (Van Doorn et al 2017)Researchers have become especially interested in the ldquouncanny valleyrdquo a term that denotesthe uncomfortable sensation associated with a mismatch between an individualrsquosexpectations and a robotrsquos behavior (Mori et al 2012)

New approaches to reconciling customer experience dualitiesUntil this point we have identified opportunities and challenges for enhancing the customerexperience in the future and considered ways that organizations and customers might makethe most of them In this section we discuss how the intersection of digital physical andsocial realms poses systematic challenges for organizations customers and society Wefocus on tensions that unless addressed may inhibit the conditions necessary for valueco-creation between actors in a network We term these tensions ldquodualitiesrdquo defined as theopposition or contrast between concepts or strategies

We organize our discussion by considering the circumstances in each of the eight octantsbecause they represent different conditions that beget different dualities These aredescribed in Table I (which maps our three-dimensional octants into two-dimensional space)Some dualities may apply in more than one condition We do not aim to unambiguouslyclassify dualities but rather to elucidate how they arise from service design and deliveryopportunities challenges and trade-offs In addition we provide examples and offerguidance on ways to resolve these dualities through innovations in the design andmanagement of customer experiences for probable future conditions

Customerexperiencechallenges

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Base of the pyramid (BoP) or scarcity in digital physical and social realmsThe low digitalphysicalsocial octant represents a condition of scarcity in which resourceconstraints (or uneven distribution of resources) hinder value co-creation in many forms(Gebauer and Reynoso 2013 London et al 2010) There are vast numbers of people who liveevery day with scarce resources sometimes referred to as BoP In addition during naturaldisasters individuals may find themselves temporarily without access to many resources(Cheung et al 2017) We believe that the scarcity duality arises from fundamentallydifferent perspectives on value held by different actors in a service ecosystem For examplefor-profit business objectives (and sometimes non-profit objectives) may not match the goalsof individuals in markets with scarce or unevenly distributed resources due to culturalpolitical issues related to power structures (Arora and Romijn 2011)

New approaches One approach to these challenges is to acquire a partner or engage in anetwork alliance thereby tapping into knowledge resources and capabilities related to thelocal market (Rivera-Santos and Rufiacuten 2010) An example of a successful alliance thatco-creates value with customers who face scarce resources in many countries is the UnitedNations-led initiative to eradicate malaria by 2040 (UN News 2015) Another approach tosuccessfully operating in markets with scarce resources entails the development novelbusiness models especially with respect to pricing For example organizations may enable

Low social presence High social presenceLow digital density High digital density Low digital density High digital density

Lowphysicalcomplexity

Base of the pyramidchallenges

Organization bundlesvs customer bundles

Autonomy(competitive) vsinterdependence(cooperation)

Regulation by actorsvs regulation bycommunity

Customerperspective scarcityof resources valuesincompatibilityOrganizationalperspective fee vsfree potentialsolutions mightinclude partner ornetwork alliances

Customer perspectiveperceived control cancreate paradox ofchoice customer endsup worse offOrganizationalperspective requiresdescriptive anddiagnostic use ofcustomer data

Customer perspectivehighly socialexperience thatrequires high trust tointegrate socialresourcesOrganizationalperspective limited orno digital and physicaltouchpoints to createtrust and aligncustomerorganizationgoals

Requires a digitalplatform forinformation sharing amechanism for risksharing Socialpresence could bedelivered digitallyRequires descriptiveand diagnosticcapabilities but nopredictive analytics

Highphysicalcomplexity

Privacy vstransparency

Standardization vsflexibility

Avoidance vsattraction

Capabilities vsresources

Organizational andcustomer perspectiverequires informationsharing and lowperceived risk Trustbetween serviceproviders andcustomers is critical

Customer perspectivehigh coping abilitiesrequired Theorganizationrsquos decisionsupport systems mustbe excellent to providevalue in real timeOrganizationalperspective customerknowledge andorganizationallearning is required

Customer perspectivefeedback andperceived controlneededOrganizationalperspective how tocreate brandedcustomer experiencesthat fit with customerneeds in the presenceof other customers

Customer perspectivecustomer innovationand creativity throughparticipation Localsolutions may bepossible if services canbe modularizedOrganizationalperspectiveco-creation requiresorganizational learningand effective businessanalytics

Table IDualities in each ofthe eight octants

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customers to share a service and its costs design smaller packages or bundles create pre-paid service plans or develop micro-finance or loan programs (Anderson and Markides2007) Finally actors in markets with scarce resources may turn to the moral economy toco-create value with the limited resources available (Cheung et al 2017)

Bundling services high digital density low physicalsocial resourcesHigh digital density realms are capable of supporting favorable emotional social and sensoryresponses Thus gamification ndash that is adding game-like elements to a task to encouragecustomer participation can be an especially attractive strategy for organizations in B2Cmarkets Research has shown that gamification can lead to customer learning engagementand improved customer experiences (Harwood and Garry 2015 Landers 2014) Games arealso effective in employee training team-building and management However this strategy isonly effective when the goals of the organization and its customers are aligned Games haverules and structure whereas play often does not so organizational and customer goals mayconflict (Hofaker et al 2016 Walz and Deterding 2014) This conflict may cause customers torefuse to participate in games thereby defeating the purpose of the gamification

Hence a duality can arise in balancing a participantrsquos goals (ie entertainment) withorganizational goals such as customer learning or buying (Harwood and Garry 2015) Theunderlying reason for this duality is that gamification implicitly requires the creation ofldquooptimalrdquo bundles of features (ie learning components entertainment components) that arevaluable to both parties This same dilemma ndash optimal service bundling ndash also occurs in highdigital density B2B markets in a very different form B2B customers may be faced with amultitude of bundles that encompass an overwhelming number of options and combinationsso that a non-expert encounters a ldquoparadox of choicerdquo ndash whereby a customer feels betterduring the bundle creation process but (objectively) ends up worse off (Reutskaja andHogarth 2009) In both of these situations complex bundling increases the challenges ofco-creation ndash that is creating value for both parties while successfully monetizing the service

New approaches Organizations must know (or learn) the customerrsquos preferences todetermine the appropriate mix and sequences of entertainment and content (ie the bundle)that will be most effective in creating value (Landers 2014) Since organizations and theircustomers are likely to value bundles (and the underlying components) differentlyorganizations must also adopt a relational approach to mitigate conflicts that influencevalue co-creation (Tuli et al 2007) In sum organizations operating in both B2B and B2Cmarkets characterized by a high digital density environment must intensively developresources and capabilities for leveraging descriptive and diagnostic analytics of customerdata to co-create service bundles and pricing options that are valuable to both parties

Autonomy vs interdependence in high social low digitalphysical environmentsHigh social presence creates a shared experience which requires high levels of trust toaccomplish integration of social resources (Hennig-Thurau et al 2002) When physical anddigital resources are limited organizations are constrained in their capabilities to usetraditional methods of creating trust and integrating social resources For example many oftodayrsquos business models rely on digital platforms to build trust and integrate socialresources (eg Airbnb) and such platforms are absent in this octant Hence a duality mayemerge between autonomy (which frequently implies competition) vs interdependence(which can be more cooperative) Instances of both competition and cooperation can beobserved in markets as social actors work independently or collectively to meet their needs(Cheung and McColl-Kennedy 2015)

New approaches Organizations must find social mechanisms for aligning organizationalcustomer and employee goals Often this requires a significant culture change within

Customerexperiencechallenges

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organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

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offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

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imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

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ded

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2018

(PT

)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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Customerexperiencechallenges

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

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23 2

0 Se

ptem

ber

2018

(PT

)

Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 8: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

with customers to produce comprehensive repair solutions that are critical to the respectivecustomerrsquos day-to-day site experience and productivity (Zaki and Neely 2018)

There are many opportunities for asset management services because asset failuresignificantly disrupts the economy endangers peoplersquos health and safety and incursenvironmental consequences (National Infrastructure Commission 2017) For this reasonorganizations collect vast amounts of data from asset sensors for remote preventivemaintenance and other purposes (Zaki and Neely 2018) For rail services asset failures andrelated incidents costs the UK economy pound13ndashpound19bn a year ($18ndash$26bn) which includesfare losses the cost of passengersrsquo time on delayed or canceled trains and damage to theholistic customer experience (MacDonald 2017) Data are critical inputs to predictive orldquoasset health monitoringrdquo solutions Proactive condition-monitoring services apply existingoperational data real-time sensor data advanced engineering analytics and forward-lookingbusiness intelligence to produce recommendation analyses that identify potential equipmentfaults (Qiu et al 2013) They have many advantages in service networks including timelyscheduling convenient maintenance services monitoring machine health increased uptimeand fuel efficiency and reduced operating costs (Zaki and Neely 2018)

Emerging issues In the future monitoring technologies are likely to be digitallyconnected with assets to diagnose faults in the high physical and low social realm ndash egautonomously stopping equipment in the event of a threat of a strike by employees Anespecially exciting example is a rdquodigital twinrdquo ndash that is a dynamic virtual representation of aphysical object or system across its lifecycle using real-time data to enable understandinglearning and reasoning (National Infrastructure Commission 2017) For exampleRolls-Royce has signed a memorandum of understanding with universities and otherinstitutes with the aim of creating an open source digital platform to develop new ships Theplatform will allow the creation of a digital copy of a real ship including its systems thatsynthesizes the information available about the ship Any aspect of the digital twin ship canbe explored through a digital interface creating a virtual test bench to assess the safety and

Traditional Repair

RemoteMaintenance

B2B PredictiveSolutions

Asset Management(machine to machine)

Simulations ndash BigDiggers Pilots

Digital Asset Twin

SystemSolutionEngineering Services

AutomatedSoftwarePatchesPhysical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 2Future asset-heavy

B2B services inthe digitalphysical

social realms

Customerexperiencechallenges

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performance of a vessel and its systems both before its construction and through itslifecycle (Rolls-Royce 2017) The UK National Infrastructure Commission has suggestedbuilding a digital twin of the entire country which would bring together power water railcommunications meteorological demographic and transport data to give insights andanswer questions such as is it possible to avoid building a new hospital car park bymanaging appointment times and traffic flows How can energy consumption be reduced by10 percent per person over six months What is the impact of closing a specific road in theevent of a water leak (National Infrastructure Commission 2017)

Opportunities and emerging issues in healthcare services from traditional care to digital careOpportunities Health is an important context for service researchers and practitioners(Danaher and Gallan 2016) Traditionally healthcare has been centered on the schedulesand settings of the clinical team and infrastructure However experts forecast that relianceon the physical realm will diminish over the next 20 years due to changes in technologies(Topol and Hill 2012) Today surgeons ldquovirtuallyrdquo assist in operations outside the confinesof the hospital using network links and satellite calls and dermatologists diagnose skincancer in remote areas of Australia using smartphones (Wolf et al 2013) In the futureclinicians will be increasingly less reliant on patients visiting the clinic as health servicesenter the digital realm See Figure 3 which provides healthcare examples located in thedigitalphysicalsocial space

Emerging issues Customers will increasingly shape their own experiences in digitalhealthcare (McColl-Kennedy Snyder Elg Witell Helkkula Hogan and Anderson 2017)Personalized rather than population-based solutions will be available in the treatment andmanagement of disease Improvements in diagnostic accuracy and sensitivity have becomeapparent with advances in genome pattern sequencing and prognostic decision making(Topol and Hill 2012) Today the Mayo Clinic offers grants to organizations to developtechnological applications that can monitor an individualrsquos anatomical changes to detect the

TraditionalNursing

CounselingServices

Simulationsor VR

MedicalTourism

Rural ldquoBarefootrdquoDoctors

HealthcareMonitoring(wearables toys)

DiagnosticServices

RobotSurgery

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 3Future healthcareservices in the digitalphysicalsocial realms

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onset or progression of disease symptoms (Mayo Clinic 2018) In the future smart deviceswill enable patients to quickly make decisions about their healthcare and treatment optionsrather than waiting for results from laboratories or clinics By 2050 healthcareorganizations will leverage AI 3D printing sensory technology real-time data processingand big data repositories to design and deliver services (Antons and Breidbach 2018) Astechnologies become more sophisticated robotic assistants will be in hospital wards in ourhomes and playing a critical role in the operating suite (Lanfranco et al 2004) Today robotshave begun to assist in the operating suite and to fulfill social roles such as cuddlycompanions for the elderly and hotel ambassadors (eg Softbank Roboticsrsquo robot Pepper)In the future they will be carers for the infirmed and assistants to medical consultants

Opportunities and emerging issues in B2C retail and professional services from traditionalservice to digital serviceOpportunities Digital technologies are already prevalent in B2C industries including retailautomotive consumer goods logistics media and professional services (World EconomicForum 2017) Retailing is especially rife with digital service innovations with concomitantorganizational changes In the past in-store and online retailing were characterized by highphysical complexity and high social presence At present both are shifting from low to highdigital density realms (Ballantyne and Nilsson 2017) Figure 4 depicts some examples in thedigitalphysicalsocial spaces Consumers attracted by the convenience of easy digitalaccess to user reviews comparison pricing and endless aisles have come to rely on onlineand mobile shopping

Traditional retailers are bringing digital channels into stores and online retailers areopening brick-and-mortar shops in high-profile locations seeking to create experiences thatcannot be delivered through a device Both traditional and online retailers are working towardthe same goal a highly personalized consistent and integrated shopping experience across allpoints of contact between retailers and customers The integration of digital technologies with

ProfessionalServices

MultiplayerOnline Gaming

Wii gamesWith others

MobileFinancialServices

Custom Build Your Car(or Kitchen or )

Drone DeliveryServices 3D PrintingServices

Light TherapyServices

SalonServices

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 4Future B2C retail andprofessional services

in the digitalphysicalsocial realms

Customerexperiencechallenges

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physical (store) environments will enhance the customer experience and improve employeeperformance For example AmazonGo is a new kind of bricks-and-mortar store with highdigital density so that no physical checkout is required Amazon is also experimenting withcomputer vision sensor fusion and deep learning through a seamless phone application whichmay radically change the customer experience (Amazon 2018)

Emerging issues The World Economic Forum (2017) predicted a dramatic shift fromtraditional services to digital services In the USA professional services are estimated to bethe second-largest employment sector (after healthcare) In the UK they account for15 percent of its gross domestic product and employ 14 percent of its workforceEmployment in professional services is expected to grow to approximately 21m jobs by2024 (US Bureau of Labor Statistics 2015) One reason for this growth is that onlineplatforms offer a convenient alternative to the traditional physical marketplace forhealthcare and professional services Due to the dramatic shift from traditional services todigital services employees and customers will participate in the co-creation of serviceswithin a high digital density environment In Figure 4 this change implies moving from thehigh physical complexity high social presence and low digital density octant to the lowphysical high social presence and high digital density octant

Increasingly many customers are expecting 247 access to professional services Forexample Upwork is a platform connecting 5m client businesses with more than 12mfreelancers (Upwork 2017) In the legal profession virtual courtrooms are replacing the needfor physical ones as lawyers witnesses and judges can now hold hearings via video link(Susskind and Susskind 2015) We speculate that the next transition will be to the lowphysical low social presence and high digital density octant For example the law firm ofBaker and Hostetler recently developed an AI lawyer (ldquoRossrdquo) to handle its bankruptcypractice and replaced 50 human lawyers Ross can read understand analyze language andgenerate responses backed up with legal references It also monitors current litigation tonotify colleagues about recent court decisions (Addady 2016)

Challenges of navigating the path to high digital density environmentsBusiness managers and researchers anticipate that a major benefit of AI and ldquobig datardquowill be service innovations that create new value propositions (Hartmann et al 2016Huang and Rust 2018 Mayer-Schoumlnberger and Cukier 2013) In addition peopleorganizations and society will benefit from the move to high density digital environmentsthrough increased convenience universal access to information to inform decisions andnew solutions However people and organizations must shape the role that technologyplays in the design and delivery of the customer experience Interconnections betweendevices and platforms have the potential to create complex service systems that ndash if theyfail ndash could have far-reaching consequences that could be very destructive For exampleTay the rogue chatbot that Microsoft developed was a female chatbot with its ownTwitter account It is a machine learning project designed for human engagement thatcommunicates with 18-to 24-year-olds learns from them and gets smarter with timeWithin 24 h from its launch Tay tweeted about smoking drugs and claiming that ldquoHitlerwas right [hellip]rdquo and ldquofeminists should [hellip] burn in hellrdquoMicrosoft shut the service the nextday (Regelado 2016)

Organizations cannot access the information they need to co-create services with customersbecause multiple technical solutions exist that are designed to be optimal for well-defined localproblems ndash but these solutions are often disconnected and (consequently) sub-optimal from asystem or network standpoint Although hardware software platform and networkingstandards have been established across organizations each organization and itscustomers typically use their own tools and data standards Consequently data architecture

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is fragmented and there is no integrated enterprise information platformwithin an organizationndash let alone across organizations This misalignment creates challenges because it isunclear which technologies are needed and how they should be implemented and integratedinto the existing information and communication technology infrastructure in organizationsMoreover organizationsrsquo utilization of analytical methods is currently limited rangingfrom descriptive analytics (eg dashboards) applied to high volume high velocity data todiagnostic predictive and prescriptive analytics (eg cognitive systems and optimizationmodels) which require more costly complex methods and typically more structured data(Wedel and Kannan 2016)

Challenges of navigating the path to high social presenceOrganizations have experience with the migration to high social presence environments thatinvolve humans usually when digital density is low Research has shown that the use oftechnology by employees can improve their performance under some conditions (Ahearneet al 2008) thereby improving the customer experience However digital technology canaugment or eliminate the human element thereby changing the roles of customers andemployees Lariviegravere et al (2017) argued that employees and customers are taking on newroles as enablers innovators coordinators and differentiators ndash rather than traditionaldeliverers of the core service For example smart technology has begun to expand frontlineservice interactions in both B2B and B2C contexts and to deepen customerndashorganizationrelationships (Marinova et al 2016)

In addition very little is known about automated social presence ndash such as robotsavatars augmented and virtual reality ndash as opposed to humans Already people areencountering automated social presence when they are served by a robot in a restaurant orhospital consult intelligent virtual assistants interact with others in simulated or virtualenvironments receive medical care through telepresence and so forth (Plambeck 2018Walsh 2018) Indeed many people access technology through a virtual assistant such asSiri and Alexa which exhibit a personality and encourage anthropomorphism Thus socialpresence can now occur digitally rather than due to the physical presence of a human actorso that high social presence can be achieved through automation (Van Doorn et al 2017)Researchers have become especially interested in the ldquouncanny valleyrdquo a term that denotesthe uncomfortable sensation associated with a mismatch between an individualrsquosexpectations and a robotrsquos behavior (Mori et al 2012)

New approaches to reconciling customer experience dualitiesUntil this point we have identified opportunities and challenges for enhancing the customerexperience in the future and considered ways that organizations and customers might makethe most of them In this section we discuss how the intersection of digital physical andsocial realms poses systematic challenges for organizations customers and society Wefocus on tensions that unless addressed may inhibit the conditions necessary for valueco-creation between actors in a network We term these tensions ldquodualitiesrdquo defined as theopposition or contrast between concepts or strategies

We organize our discussion by considering the circumstances in each of the eight octantsbecause they represent different conditions that beget different dualities These aredescribed in Table I (which maps our three-dimensional octants into two-dimensional space)Some dualities may apply in more than one condition We do not aim to unambiguouslyclassify dualities but rather to elucidate how they arise from service design and deliveryopportunities challenges and trade-offs In addition we provide examples and offerguidance on ways to resolve these dualities through innovations in the design andmanagement of customer experiences for probable future conditions

Customerexperiencechallenges

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Base of the pyramid (BoP) or scarcity in digital physical and social realmsThe low digitalphysicalsocial octant represents a condition of scarcity in which resourceconstraints (or uneven distribution of resources) hinder value co-creation in many forms(Gebauer and Reynoso 2013 London et al 2010) There are vast numbers of people who liveevery day with scarce resources sometimes referred to as BoP In addition during naturaldisasters individuals may find themselves temporarily without access to many resources(Cheung et al 2017) We believe that the scarcity duality arises from fundamentallydifferent perspectives on value held by different actors in a service ecosystem For examplefor-profit business objectives (and sometimes non-profit objectives) may not match the goalsof individuals in markets with scarce or unevenly distributed resources due to culturalpolitical issues related to power structures (Arora and Romijn 2011)

New approaches One approach to these challenges is to acquire a partner or engage in anetwork alliance thereby tapping into knowledge resources and capabilities related to thelocal market (Rivera-Santos and Rufiacuten 2010) An example of a successful alliance thatco-creates value with customers who face scarce resources in many countries is the UnitedNations-led initiative to eradicate malaria by 2040 (UN News 2015) Another approach tosuccessfully operating in markets with scarce resources entails the development novelbusiness models especially with respect to pricing For example organizations may enable

Low social presence High social presenceLow digital density High digital density Low digital density High digital density

Lowphysicalcomplexity

Base of the pyramidchallenges

Organization bundlesvs customer bundles

Autonomy(competitive) vsinterdependence(cooperation)

Regulation by actorsvs regulation bycommunity

Customerperspective scarcityof resources valuesincompatibilityOrganizationalperspective fee vsfree potentialsolutions mightinclude partner ornetwork alliances

Customer perspectiveperceived control cancreate paradox ofchoice customer endsup worse offOrganizationalperspective requiresdescriptive anddiagnostic use ofcustomer data

Customer perspectivehighly socialexperience thatrequires high trust tointegrate socialresourcesOrganizationalperspective limited orno digital and physicaltouchpoints to createtrust and aligncustomerorganizationgoals

Requires a digitalplatform forinformation sharing amechanism for risksharing Socialpresence could bedelivered digitallyRequires descriptiveand diagnosticcapabilities but nopredictive analytics

Highphysicalcomplexity

Privacy vstransparency

Standardization vsflexibility

Avoidance vsattraction

Capabilities vsresources

Organizational andcustomer perspectiverequires informationsharing and lowperceived risk Trustbetween serviceproviders andcustomers is critical

Customer perspectivehigh coping abilitiesrequired Theorganizationrsquos decisionsupport systems mustbe excellent to providevalue in real timeOrganizationalperspective customerknowledge andorganizationallearning is required

Customer perspectivefeedback andperceived controlneededOrganizationalperspective how tocreate brandedcustomer experiencesthat fit with customerneeds in the presenceof other customers

Customer perspectivecustomer innovationand creativity throughparticipation Localsolutions may bepossible if services canbe modularizedOrganizationalperspectiveco-creation requiresorganizational learningand effective businessanalytics

Table IDualities in each ofthe eight octants

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customers to share a service and its costs design smaller packages or bundles create pre-paid service plans or develop micro-finance or loan programs (Anderson and Markides2007) Finally actors in markets with scarce resources may turn to the moral economy toco-create value with the limited resources available (Cheung et al 2017)

Bundling services high digital density low physicalsocial resourcesHigh digital density realms are capable of supporting favorable emotional social and sensoryresponses Thus gamification ndash that is adding game-like elements to a task to encouragecustomer participation can be an especially attractive strategy for organizations in B2Cmarkets Research has shown that gamification can lead to customer learning engagementand improved customer experiences (Harwood and Garry 2015 Landers 2014) Games arealso effective in employee training team-building and management However this strategy isonly effective when the goals of the organization and its customers are aligned Games haverules and structure whereas play often does not so organizational and customer goals mayconflict (Hofaker et al 2016 Walz and Deterding 2014) This conflict may cause customers torefuse to participate in games thereby defeating the purpose of the gamification

Hence a duality can arise in balancing a participantrsquos goals (ie entertainment) withorganizational goals such as customer learning or buying (Harwood and Garry 2015) Theunderlying reason for this duality is that gamification implicitly requires the creation ofldquooptimalrdquo bundles of features (ie learning components entertainment components) that arevaluable to both parties This same dilemma ndash optimal service bundling ndash also occurs in highdigital density B2B markets in a very different form B2B customers may be faced with amultitude of bundles that encompass an overwhelming number of options and combinationsso that a non-expert encounters a ldquoparadox of choicerdquo ndash whereby a customer feels betterduring the bundle creation process but (objectively) ends up worse off (Reutskaja andHogarth 2009) In both of these situations complex bundling increases the challenges ofco-creation ndash that is creating value for both parties while successfully monetizing the service

New approaches Organizations must know (or learn) the customerrsquos preferences todetermine the appropriate mix and sequences of entertainment and content (ie the bundle)that will be most effective in creating value (Landers 2014) Since organizations and theircustomers are likely to value bundles (and the underlying components) differentlyorganizations must also adopt a relational approach to mitigate conflicts that influencevalue co-creation (Tuli et al 2007) In sum organizations operating in both B2B and B2Cmarkets characterized by a high digital density environment must intensively developresources and capabilities for leveraging descriptive and diagnostic analytics of customerdata to co-create service bundles and pricing options that are valuable to both parties

Autonomy vs interdependence in high social low digitalphysical environmentsHigh social presence creates a shared experience which requires high levels of trust toaccomplish integration of social resources (Hennig-Thurau et al 2002) When physical anddigital resources are limited organizations are constrained in their capabilities to usetraditional methods of creating trust and integrating social resources For example many oftodayrsquos business models rely on digital platforms to build trust and integrate socialresources (eg Airbnb) and such platforms are absent in this octant Hence a duality mayemerge between autonomy (which frequently implies competition) vs interdependence(which can be more cooperative) Instances of both competition and cooperation can beobserved in markets as social actors work independently or collectively to meet their needs(Cheung and McColl-Kennedy 2015)

New approaches Organizations must find social mechanisms for aligning organizationalcustomer and employee goals Often this requires a significant culture change within

Customerexperiencechallenges

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organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

JOSM

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offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

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imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

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design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 9: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

performance of a vessel and its systems both before its construction and through itslifecycle (Rolls-Royce 2017) The UK National Infrastructure Commission has suggestedbuilding a digital twin of the entire country which would bring together power water railcommunications meteorological demographic and transport data to give insights andanswer questions such as is it possible to avoid building a new hospital car park bymanaging appointment times and traffic flows How can energy consumption be reduced by10 percent per person over six months What is the impact of closing a specific road in theevent of a water leak (National Infrastructure Commission 2017)

Opportunities and emerging issues in healthcare services from traditional care to digital careOpportunities Health is an important context for service researchers and practitioners(Danaher and Gallan 2016) Traditionally healthcare has been centered on the schedulesand settings of the clinical team and infrastructure However experts forecast that relianceon the physical realm will diminish over the next 20 years due to changes in technologies(Topol and Hill 2012) Today surgeons ldquovirtuallyrdquo assist in operations outside the confinesof the hospital using network links and satellite calls and dermatologists diagnose skincancer in remote areas of Australia using smartphones (Wolf et al 2013) In the futureclinicians will be increasingly less reliant on patients visiting the clinic as health servicesenter the digital realm See Figure 3 which provides healthcare examples located in thedigitalphysicalsocial space

Emerging issues Customers will increasingly shape their own experiences in digitalhealthcare (McColl-Kennedy Snyder Elg Witell Helkkula Hogan and Anderson 2017)Personalized rather than population-based solutions will be available in the treatment andmanagement of disease Improvements in diagnostic accuracy and sensitivity have becomeapparent with advances in genome pattern sequencing and prognostic decision making(Topol and Hill 2012) Today the Mayo Clinic offers grants to organizations to developtechnological applications that can monitor an individualrsquos anatomical changes to detect the

TraditionalNursing

CounselingServices

Simulationsor VR

MedicalTourism

Rural ldquoBarefootrdquoDoctors

HealthcareMonitoring(wearables toys)

DiagnosticServices

RobotSurgery

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 3Future healthcareservices in the digitalphysicalsocial realms

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onset or progression of disease symptoms (Mayo Clinic 2018) In the future smart deviceswill enable patients to quickly make decisions about their healthcare and treatment optionsrather than waiting for results from laboratories or clinics By 2050 healthcareorganizations will leverage AI 3D printing sensory technology real-time data processingand big data repositories to design and deliver services (Antons and Breidbach 2018) Astechnologies become more sophisticated robotic assistants will be in hospital wards in ourhomes and playing a critical role in the operating suite (Lanfranco et al 2004) Today robotshave begun to assist in the operating suite and to fulfill social roles such as cuddlycompanions for the elderly and hotel ambassadors (eg Softbank Roboticsrsquo robot Pepper)In the future they will be carers for the infirmed and assistants to medical consultants

Opportunities and emerging issues in B2C retail and professional services from traditionalservice to digital serviceOpportunities Digital technologies are already prevalent in B2C industries including retailautomotive consumer goods logistics media and professional services (World EconomicForum 2017) Retailing is especially rife with digital service innovations with concomitantorganizational changes In the past in-store and online retailing were characterized by highphysical complexity and high social presence At present both are shifting from low to highdigital density realms (Ballantyne and Nilsson 2017) Figure 4 depicts some examples in thedigitalphysicalsocial spaces Consumers attracted by the convenience of easy digitalaccess to user reviews comparison pricing and endless aisles have come to rely on onlineand mobile shopping

Traditional retailers are bringing digital channels into stores and online retailers areopening brick-and-mortar shops in high-profile locations seeking to create experiences thatcannot be delivered through a device Both traditional and online retailers are working towardthe same goal a highly personalized consistent and integrated shopping experience across allpoints of contact between retailers and customers The integration of digital technologies with

ProfessionalServices

MultiplayerOnline Gaming

Wii gamesWith others

MobileFinancialServices

Custom Build Your Car(or Kitchen or )

Drone DeliveryServices 3D PrintingServices

Light TherapyServices

SalonServices

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 4Future B2C retail andprofessional services

in the digitalphysicalsocial realms

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physical (store) environments will enhance the customer experience and improve employeeperformance For example AmazonGo is a new kind of bricks-and-mortar store with highdigital density so that no physical checkout is required Amazon is also experimenting withcomputer vision sensor fusion and deep learning through a seamless phone application whichmay radically change the customer experience (Amazon 2018)

Emerging issues The World Economic Forum (2017) predicted a dramatic shift fromtraditional services to digital services In the USA professional services are estimated to bethe second-largest employment sector (after healthcare) In the UK they account for15 percent of its gross domestic product and employ 14 percent of its workforceEmployment in professional services is expected to grow to approximately 21m jobs by2024 (US Bureau of Labor Statistics 2015) One reason for this growth is that onlineplatforms offer a convenient alternative to the traditional physical marketplace forhealthcare and professional services Due to the dramatic shift from traditional services todigital services employees and customers will participate in the co-creation of serviceswithin a high digital density environment In Figure 4 this change implies moving from thehigh physical complexity high social presence and low digital density octant to the lowphysical high social presence and high digital density octant

Increasingly many customers are expecting 247 access to professional services Forexample Upwork is a platform connecting 5m client businesses with more than 12mfreelancers (Upwork 2017) In the legal profession virtual courtrooms are replacing the needfor physical ones as lawyers witnesses and judges can now hold hearings via video link(Susskind and Susskind 2015) We speculate that the next transition will be to the lowphysical low social presence and high digital density octant For example the law firm ofBaker and Hostetler recently developed an AI lawyer (ldquoRossrdquo) to handle its bankruptcypractice and replaced 50 human lawyers Ross can read understand analyze language andgenerate responses backed up with legal references It also monitors current litigation tonotify colleagues about recent court decisions (Addady 2016)

Challenges of navigating the path to high digital density environmentsBusiness managers and researchers anticipate that a major benefit of AI and ldquobig datardquowill be service innovations that create new value propositions (Hartmann et al 2016Huang and Rust 2018 Mayer-Schoumlnberger and Cukier 2013) In addition peopleorganizations and society will benefit from the move to high density digital environmentsthrough increased convenience universal access to information to inform decisions andnew solutions However people and organizations must shape the role that technologyplays in the design and delivery of the customer experience Interconnections betweendevices and platforms have the potential to create complex service systems that ndash if theyfail ndash could have far-reaching consequences that could be very destructive For exampleTay the rogue chatbot that Microsoft developed was a female chatbot with its ownTwitter account It is a machine learning project designed for human engagement thatcommunicates with 18-to 24-year-olds learns from them and gets smarter with timeWithin 24 h from its launch Tay tweeted about smoking drugs and claiming that ldquoHitlerwas right [hellip]rdquo and ldquofeminists should [hellip] burn in hellrdquoMicrosoft shut the service the nextday (Regelado 2016)

Organizations cannot access the information they need to co-create services with customersbecause multiple technical solutions exist that are designed to be optimal for well-defined localproblems ndash but these solutions are often disconnected and (consequently) sub-optimal from asystem or network standpoint Although hardware software platform and networkingstandards have been established across organizations each organization and itscustomers typically use their own tools and data standards Consequently data architecture

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is fragmented and there is no integrated enterprise information platformwithin an organizationndash let alone across organizations This misalignment creates challenges because it isunclear which technologies are needed and how they should be implemented and integratedinto the existing information and communication technology infrastructure in organizationsMoreover organizationsrsquo utilization of analytical methods is currently limited rangingfrom descriptive analytics (eg dashboards) applied to high volume high velocity data todiagnostic predictive and prescriptive analytics (eg cognitive systems and optimizationmodels) which require more costly complex methods and typically more structured data(Wedel and Kannan 2016)

Challenges of navigating the path to high social presenceOrganizations have experience with the migration to high social presence environments thatinvolve humans usually when digital density is low Research has shown that the use oftechnology by employees can improve their performance under some conditions (Ahearneet al 2008) thereby improving the customer experience However digital technology canaugment or eliminate the human element thereby changing the roles of customers andemployees Lariviegravere et al (2017) argued that employees and customers are taking on newroles as enablers innovators coordinators and differentiators ndash rather than traditionaldeliverers of the core service For example smart technology has begun to expand frontlineservice interactions in both B2B and B2C contexts and to deepen customerndashorganizationrelationships (Marinova et al 2016)

In addition very little is known about automated social presence ndash such as robotsavatars augmented and virtual reality ndash as opposed to humans Already people areencountering automated social presence when they are served by a robot in a restaurant orhospital consult intelligent virtual assistants interact with others in simulated or virtualenvironments receive medical care through telepresence and so forth (Plambeck 2018Walsh 2018) Indeed many people access technology through a virtual assistant such asSiri and Alexa which exhibit a personality and encourage anthropomorphism Thus socialpresence can now occur digitally rather than due to the physical presence of a human actorso that high social presence can be achieved through automation (Van Doorn et al 2017)Researchers have become especially interested in the ldquouncanny valleyrdquo a term that denotesthe uncomfortable sensation associated with a mismatch between an individualrsquosexpectations and a robotrsquos behavior (Mori et al 2012)

New approaches to reconciling customer experience dualitiesUntil this point we have identified opportunities and challenges for enhancing the customerexperience in the future and considered ways that organizations and customers might makethe most of them In this section we discuss how the intersection of digital physical andsocial realms poses systematic challenges for organizations customers and society Wefocus on tensions that unless addressed may inhibit the conditions necessary for valueco-creation between actors in a network We term these tensions ldquodualitiesrdquo defined as theopposition or contrast between concepts or strategies

We organize our discussion by considering the circumstances in each of the eight octantsbecause they represent different conditions that beget different dualities These aredescribed in Table I (which maps our three-dimensional octants into two-dimensional space)Some dualities may apply in more than one condition We do not aim to unambiguouslyclassify dualities but rather to elucidate how they arise from service design and deliveryopportunities challenges and trade-offs In addition we provide examples and offerguidance on ways to resolve these dualities through innovations in the design andmanagement of customer experiences for probable future conditions

Customerexperiencechallenges

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Base of the pyramid (BoP) or scarcity in digital physical and social realmsThe low digitalphysicalsocial octant represents a condition of scarcity in which resourceconstraints (or uneven distribution of resources) hinder value co-creation in many forms(Gebauer and Reynoso 2013 London et al 2010) There are vast numbers of people who liveevery day with scarce resources sometimes referred to as BoP In addition during naturaldisasters individuals may find themselves temporarily without access to many resources(Cheung et al 2017) We believe that the scarcity duality arises from fundamentallydifferent perspectives on value held by different actors in a service ecosystem For examplefor-profit business objectives (and sometimes non-profit objectives) may not match the goalsof individuals in markets with scarce or unevenly distributed resources due to culturalpolitical issues related to power structures (Arora and Romijn 2011)

New approaches One approach to these challenges is to acquire a partner or engage in anetwork alliance thereby tapping into knowledge resources and capabilities related to thelocal market (Rivera-Santos and Rufiacuten 2010) An example of a successful alliance thatco-creates value with customers who face scarce resources in many countries is the UnitedNations-led initiative to eradicate malaria by 2040 (UN News 2015) Another approach tosuccessfully operating in markets with scarce resources entails the development novelbusiness models especially with respect to pricing For example organizations may enable

Low social presence High social presenceLow digital density High digital density Low digital density High digital density

Lowphysicalcomplexity

Base of the pyramidchallenges

Organization bundlesvs customer bundles

Autonomy(competitive) vsinterdependence(cooperation)

Regulation by actorsvs regulation bycommunity

Customerperspective scarcityof resources valuesincompatibilityOrganizationalperspective fee vsfree potentialsolutions mightinclude partner ornetwork alliances

Customer perspectiveperceived control cancreate paradox ofchoice customer endsup worse offOrganizationalperspective requiresdescriptive anddiagnostic use ofcustomer data

Customer perspectivehighly socialexperience thatrequires high trust tointegrate socialresourcesOrganizationalperspective limited orno digital and physicaltouchpoints to createtrust and aligncustomerorganizationgoals

Requires a digitalplatform forinformation sharing amechanism for risksharing Socialpresence could bedelivered digitallyRequires descriptiveand diagnosticcapabilities but nopredictive analytics

Highphysicalcomplexity

Privacy vstransparency

Standardization vsflexibility

Avoidance vsattraction

Capabilities vsresources

Organizational andcustomer perspectiverequires informationsharing and lowperceived risk Trustbetween serviceproviders andcustomers is critical

Customer perspectivehigh coping abilitiesrequired Theorganizationrsquos decisionsupport systems mustbe excellent to providevalue in real timeOrganizationalperspective customerknowledge andorganizationallearning is required

Customer perspectivefeedback andperceived controlneededOrganizationalperspective how tocreate brandedcustomer experiencesthat fit with customerneeds in the presenceof other customers

Customer perspectivecustomer innovationand creativity throughparticipation Localsolutions may bepossible if services canbe modularizedOrganizationalperspectiveco-creation requiresorganizational learningand effective businessanalytics

Table IDualities in each ofthe eight octants

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customers to share a service and its costs design smaller packages or bundles create pre-paid service plans or develop micro-finance or loan programs (Anderson and Markides2007) Finally actors in markets with scarce resources may turn to the moral economy toco-create value with the limited resources available (Cheung et al 2017)

Bundling services high digital density low physicalsocial resourcesHigh digital density realms are capable of supporting favorable emotional social and sensoryresponses Thus gamification ndash that is adding game-like elements to a task to encouragecustomer participation can be an especially attractive strategy for organizations in B2Cmarkets Research has shown that gamification can lead to customer learning engagementand improved customer experiences (Harwood and Garry 2015 Landers 2014) Games arealso effective in employee training team-building and management However this strategy isonly effective when the goals of the organization and its customers are aligned Games haverules and structure whereas play often does not so organizational and customer goals mayconflict (Hofaker et al 2016 Walz and Deterding 2014) This conflict may cause customers torefuse to participate in games thereby defeating the purpose of the gamification

Hence a duality can arise in balancing a participantrsquos goals (ie entertainment) withorganizational goals such as customer learning or buying (Harwood and Garry 2015) Theunderlying reason for this duality is that gamification implicitly requires the creation ofldquooptimalrdquo bundles of features (ie learning components entertainment components) that arevaluable to both parties This same dilemma ndash optimal service bundling ndash also occurs in highdigital density B2B markets in a very different form B2B customers may be faced with amultitude of bundles that encompass an overwhelming number of options and combinationsso that a non-expert encounters a ldquoparadox of choicerdquo ndash whereby a customer feels betterduring the bundle creation process but (objectively) ends up worse off (Reutskaja andHogarth 2009) In both of these situations complex bundling increases the challenges ofco-creation ndash that is creating value for both parties while successfully monetizing the service

New approaches Organizations must know (or learn) the customerrsquos preferences todetermine the appropriate mix and sequences of entertainment and content (ie the bundle)that will be most effective in creating value (Landers 2014) Since organizations and theircustomers are likely to value bundles (and the underlying components) differentlyorganizations must also adopt a relational approach to mitigate conflicts that influencevalue co-creation (Tuli et al 2007) In sum organizations operating in both B2B and B2Cmarkets characterized by a high digital density environment must intensively developresources and capabilities for leveraging descriptive and diagnostic analytics of customerdata to co-create service bundles and pricing options that are valuable to both parties

Autonomy vs interdependence in high social low digitalphysical environmentsHigh social presence creates a shared experience which requires high levels of trust toaccomplish integration of social resources (Hennig-Thurau et al 2002) When physical anddigital resources are limited organizations are constrained in their capabilities to usetraditional methods of creating trust and integrating social resources For example many oftodayrsquos business models rely on digital platforms to build trust and integrate socialresources (eg Airbnb) and such platforms are absent in this octant Hence a duality mayemerge between autonomy (which frequently implies competition) vs interdependence(which can be more cooperative) Instances of both competition and cooperation can beobserved in markets as social actors work independently or collectively to meet their needs(Cheung and McColl-Kennedy 2015)

New approaches Organizations must find social mechanisms for aligning organizationalcustomer and employee goals Often this requires a significant culture change within

Customerexperiencechallenges

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organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

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offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

Customerexperiencechallenges

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

Customerexperiencechallenges

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

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imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

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design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

References

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Ahearne M Jones E Rapp A and Mathieu JE (2008) ldquoHigh touch through high tech the impact ofsalesperson technology usage on sales performance via mediating mechanismsrdquo ManagementScience Vol 54 No 4 pp 671-685

Amazon (2018) ldquoAmazon Gordquo available at wwwamazoncombnode=16008589011 (accessedAugust 1 2018)

Anderson J and Markides C (2007) ldquoStrategic innovation at the base of the pyramidrdquo MIT SloanManagement Review Vol 49 No 1 p 83

Anderson L and Ostrom AL (2015) ldquoTransformative service research advancing our knowledgeabout service and well-beingrdquo Journal of Service Research Vol 18 No 3 pp 243-249

Antons D and Breidbach CF (2018) ldquoBig data big insights Advancing service innovation anddesign with machine learningrdquo Journal of Service Research Vol 21 No 1 pp 17-39

Arora S and Romijn H (2011) ldquoThe empty rhetoric of poverty reduction at the base of the pyramidrdquoOrganization Vol 19 No 4 pp 481-505

Aspers P (2009) ldquoKnowledge and valuation in marketsrdquo Theory and Society Vol 38 No 2 p 111

Ballantyne D and Nilsson E (2017) ldquoAll that is solid melts into air the servicescape in digital servicespacerdquo Journal of Services Marketing Vol 31 No 3 pp 226-235

Barton D and Court D (2012) ldquoMaking advanced analytics work for yourdquo Harvard Business ReviewVol 90 No 10 pp 78-83

Batra R and Keller KL (2016) ldquoIntegrating marketing communications new findings new lessonsand new ideasrdquo Journal of Marketing Vol 80 No 6 pp 122-145

BEIS (2013) ldquoMarket assessment of public sector informationrdquo Department for Business Innovationand Skills p 235 available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile198905bis-13-743-market-assessment-of-public-sector-informationpdf

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Bendapudi N and Berry LL (1997) ldquoCustomersrsquo motivations for maintaining relationships withservice providersrdquo Journal of Retailing Vol 73 No 1 pp 15-37

Bendapudi N and Leone R (2003) ldquoPsychological implications of customer participation inco-productionrdquo Journal of Marketing Vol 67 No 1 pp 14-28

Benoit S Baker TL Bolton RN Gruber T and Kandampully J (2017) ldquoA triadic framework forcollaborative consumption (CC) motives activities and resources amp capabilities of actorsrdquoJournal of Business Research Vol 79 October pp 219-227

Berry LL and Bendapudi N (2007) ldquoA fertile field for service researchrdquo Journal of Service ResearchVol 10 No 2 pp 111-122

Bharati P and Chaudhury A (2004) ldquoAn empirical investigation of decision-making satisfaction inweb-based decision support systemsrdquo Decision Support Systems Vol 37 No 2 pp 187-197

Bitner MJ (1992) ldquoServicescapes the impact of physical surroundings on customers and employeesrdquoJournal of Marketing Vol 56 No 2 pp 57-71

Black H and Gallan AS (2015) ldquoTransformative service networks cocreated value as well-beingrdquoThe Service Industries Journal Vol 35 No 15-16 pp 826-845

Blut M Wang C and Schoefer K (2016) ldquoFactors influencing the acceptance of self-servicetechnologies a meta-analysisrdquo Journal of Service Research Vol 19 No 4 pp 396-416

Bolton RN (2011) ldquoComment customer engagement opportunities and challenges for organizationsrdquoJournal of Service Research Vol 14 No 3 pp 272-274

Bolton RN (2016) Service Excellence Creating Customer Experiences that Build RelationshipsBusiness Expert Press New York NY

Bolton RN (2018) ldquoService timing designing and executing service in a dynamic environmentrdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Bolton RN and Saxena-Iyer S (2009) ldquoInteractive services a framework synthesis and researchdirectionrdquo Journal of Interactive Marketing Vol 23 No 1 pp 91-104

Bolton RN Gustafsson A McColl-Kennedy J Sirianni NJ and Tse DK (2014) ldquoSmall details thatmake big differences a radical approach to consumption experience as a firmrsquos differentiatingstrategyrdquo Journal of Service Management Vol 25 No 2 pp 253-274

Bowcott O (2017) ldquoUber to face stricter EU regulation after ECJ rules it is transport firmrdquo TheGuardian December 20 available at wwwtheguardiancomtechnology2017dec20uber-european-court-of-justice-ruling-barcelona-taxi-drivers-ecj-eu (accessed August 1 2018)

Bowen DE (2016) ldquoThe changing role of employee in service theory and practice an interdisciplinaryviewrdquo Human Resource Management Review Vol 26 No 1 pp 4-13

Bowen DE Siehl C and Schneider B (1989) ldquoA framework for analyzing customer serviceorientations in manufacturingrdquo Academy of Management Review Vol 14 No 1 pp 75-95

Breidbach CF Choi S Ellway BE Keating BW Kormusheva K Kowalkowski C Lim C andMaglio P (2018) ldquoOperating without operations how is technology changing the role of thefirmrdquo Journal of Service Management Vol 29 No 5 (in press)

Burdick A (2018) ldquoThe marriage-saving robot that can assemble IKEA furniture sort ofrdquo TheNew Yorker April 18 available at wwwnewyorkercomelementslab-notesthe-marriage-saving-robot-that-can-assemble-ikea-furniture-sort-of (accessed August 1 2018)

Capaldo A (2014) ldquoNetwork governance a cross-level study of social mechanisms knowledgebenefits and strategic outcomes in joint-design alliancesrdquo Industrial Marketing ManagementVol 43 No 4 pp 685-703

Cheung L and McColl-Kennedy JR (2015) ldquoResource integration in liminal periods transitioning totransformative servicerdquo Journal of Services Marketing Vol 29 Nos 67 pp 485-497

Cheung L McColl-Kennedy JR and Coote LV (2017) ldquoConsumer-citizens mobilizing social capitalfollowing a natural disaster effects on well-beingrdquo Journal of Services Marketing Vol 31Nos 45 pp 438-451

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Dow

nloa

ded

by D

octo

r R

uth

N B

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n A

t 08

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0 Se

ptem

ber

2018

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Cohen N (2014) ldquoThe silver economy healthier and wealthierrdquo Financial Times October 19 available atwwwftcomcontent08bff556-52c7-11e4-a236-00144feab7de (accessed March 19 2018)

Danaher TS and Gallan AS (2016) ldquoService research in health care positively impacting livesrdquoJournal of Service Research Vol 19 No 4 pp 433-437

Davis FD Bagozzi RP and Warshaw PR (1989) ldquoUser acceptance of computer technologya comparison of two theoretical modelsrdquo Management Science Vol 35 No 8 pp 982-1003

De Keyser A Lemon KN Klaus P and Keiningham TL (2015) ldquoA framework for understandingand managing the customer experiencerdquo Working Paper Series No 15-121 Marketing ScienceInstitute Cambridge MA available at wwwmsiorgreportsa-framework-for-understanding-and-managing-the-customer-experience

Delcourt C Gremler D Van Riel ACR and Van Birgelen M (2013) ldquoEffects of perceived employeeemotional competence on customer satisfaction and loyalty the mediating role of rapportrdquoJournal of Service Management Vol 24 No 1 pp 2-24

Deloitte (2017) ldquoAssessing the value of TfLrsquos open data and digital partnershipsrdquo Deloitte Londonp 28 available at httpcontenttflgovukdeloitte-report-tfl-open-datapdf

Department for Business Energy and Industrial Strategy (2017) Industrial Strategy Building a BritainFit for the Future ISBN 9781528601313 Department for Business Energy and IndustrialStrategy London p 256 available at wwwgovukgovernmentpublicationsindustrial-strategy-building-a-britain-fit-for-the-future

Ding Y and Keh HT (2016) ldquoA re-examination of service standardization versus customization fromthe consumerrsquos perspectiverdquo Journal of Services Marketing Vol 30 No 1 pp 16-28

Edvardsson B Enquist B and Johnston R (2010) ldquoDesign dimensions of experience rooms forservice test drives case studies in several service contextsrdquo Managing Service Quality AnInternational Journal Vol 20 No 4 pp 312-327

Fauconnier G and Turner M (1998) ldquoConceptual integration networksrdquo Cognitive Science Vol 22No 2 pp 133-187

Feil-Seifer D and Matari MJ (2005) ldquoDefining socially assistive roboticsrdquo Proceedings of the IEEEInternational Conference on Rehabilitation Robotics June pp 465-468

Frow P McColl-Kennedy JR and Payne AF (2016) ldquoCo-creation practices their role in shaping ahealth care ecosystemrdquo Industrial Marketing Management Vol 56 July pp 24-39

Gabbott M Tsarenko Y and Mok WH (2011) ldquoEmotional intelligence as a moderator of copingstrategies and service outcomes in circumstances of service failurerdquo Journal of Service ResearchVol 14 No 2 pp 234-248

Gallan AS Jarvis CB Brown SW and Bitner MJ (2013) ldquoCustomer positivity and participation inservices an empirical test in a health care contextrdquo Journal of the Academy of Marketing ScienceVol 41 No 3 pp 338-356

Gallo C (2017) ldquoStarbucksrsquo cool new brew storytelling with a digital twistrdquo Forbes December 11available at wwwforbescomsitescarminegallo20171211starbucks-cool-new-brew-storytelling-with-a-digital-twist71d0d2c97735 (accessed August 1 2018)

Gantz J and Reinsel D (2012) ldquoThe digital universe in 2020 big data bigger digital shadows andbiggest growth in the far eastrdquo IDC iView IDC Analyze the Future Framingham MA pp 1-16

Gebauer H and Reynoso J (2013) ldquoAn agenda for service research at the base of the pyramidrdquo Journalof Service Management Vol 24 No 5 pp 482-501

Gentile C Spiller N and Noci G (2007) ldquoHow to sustain the customer experience an overview ofexperience components that co-create value with the customerrdquo European Management JournalVol 25 No 5 pp 395-410

Giebelhausen M Robinson SG Sirianni NJ and Brady MK (2014) ldquoTouch versus tech whentechnology functions as a barrier or a benefit to service encountersrdquo Journal of MarketingVol 78 No 4 pp 113-124

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Dow

nloa

ded

by D

octo

r R

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N B

olto

n A

t 08

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0 Se

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ber

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Giraldi L Mengoni M and Bevilacqua M (2016) ldquoHow to enhance customer experience in retailinvestigations through a case studyrdquo Proceedings of the 23rd ISPE Inc International Conferenceon Transdisciplinary Engineering Vols 3-7 October pp 381-390

Gittell JH (2006) ldquoRelational coordination coordinating work through relationships of shared goals sharedknowledge and mutual respectrdquo in Kyriakidou O and Oumlzbilgin MF (Eds) Relational Perspectives inOrganizational Studies A Research Companion Edward Elgar Cheltenham pp 74-94

Goffman E (1967) ldquoOn face-workrdquo Interaction Ritual Essays on Face-to-Face Behavior pp 5-46

Goldman Sachs Equity Research (2017) ldquoChinarsquos rise in artificial intelligence ndash the new ChinardquoGoldman Sachs available at www2caictaccnzscpqqzkgzljyd201709P020170921309379565253pdf (accessed March 1 2018)

Gostin LO Lazzarini Z Neslund VS and Osterholm MT (1996) ldquoThe public health informationinfrastructure a national review of the law on health information privacyrdquo The Journal of theAmerican Medical Association Vol 275 No 24 pp 1921-1927

Greacutegoire Y Tripp TM and Legoux R (2009) ldquoWhen customer love turns into lasting hate the effectsof relationship strength and time on customer revenge and avoidancerdquo Journal of MarketingVol 73 No 6 pp 18-32

Gremler DD and Gwinner KP (2000) ldquoCustomer-employee rapport in service relationshipsrdquo Journalof Service Research Vol 3 No 1 pp 82-104

Grewal D Levy M and Kumar V (2009) ldquoCustomer experience in retailing an organizingframeworkrdquo Journal of Retailing Vol 85 No 1 pp 1-14

Guo L Lotz SL Tang C and Gruen TW (2016) ldquoThe role of perceived control in customer valuecocreation and service recovery evaluationrdquo Journal of Service Research Vol 19 No 1 pp 39-56

Hartmann PM Zaki M Feldmann N and Neely A (2016) ldquoCapturing value from big data ndash ataxonomy of data-driven business models used by start-up firmsrdquo International Journal ofOperations amp Production Management Vol 36 No 10 pp 1382-1406

Harwood T and Garry T (2015) ldquoAn investigation into gamification as a customer engagementexperience environmentrdquo Journal of Services Marketing Vol 29 Nos 67 pp 533-546

Hazeacutee S Delcourt C and Van Vaerenbergh Y (2017) ldquoSharing goods Yuck No An investigation ofproduct contamination in access-based servicesrdquo Journal of Service Research Vol 20 No 4pp 441-456

Hennig-Thurau T Gwinner KP and Gremler DD (2002) ldquoUnderstanding relationship marketingoutcomes an integration of relational benefits and relationship qualityrdquo Journal of ServiceResearch Vol 4 No 3 pp 230-247

Hofaker CF de Ruyter K Lurie NH Manchanda P and Donaldson J (2016) ldquoGamification andmobile marketing effectivenessrdquo Journal of Interactive Marketing Vol 34 May pp 25-36

Hoffman DL and Novak TP (2018) ldquoConsumer and object experience in the Internet of Things anassemblage theory approachrdquo Journal of Consumer Research Vol 44 No 6 pp 1178-1204

Homburg C Jozić D and Kuehnl C (2017) ldquoCustomer experience management toward implementingan evolving marketing conceptrdquo Journal of the Academy of Marketing Science Vol 45 No 3pp 377-401

Huang M-H and Rust RT (2018) ldquoArtificial intelligence in servicerdquo Journal of Service ResearchVol 21 No 2 pp 155-172

Kang C and Roose K (2018) ldquoZuckerberg faces hostile congress as calls for regulation mountrdquo TheNew York Times April 11 p B4 available at wwwnytimescom20180411businesszuckerberg-facebook-congresshtml

Kopalle P (2014) ldquoWhy Amazonrsquos anticipatory shipping is pure geniusrdquo Forbes January 28 available atwwwforbescomsitesonmarketing20140128why-amazons-anticipatory-shipping-is-pure-genius4594345f4605 (accessed August 1 2018)

Kozinets R Patterson A and Ashman R (2016) ldquoNetworks of desire how technology increases ourpassion to consumerdquo Journal of Consumer Research Vol 43 No 5 pp 659-682

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Dow

nloa

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by D

octo

r R

uth

N B

olto

n A

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0 Se

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2018

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Kranzbuumlhler AM Kleijnen MHP Morgan RE and Teerling M (2017) ldquoThe multilevel nature ofcustomer experience research an integrative review and research agendardquo International Journalof Management Reviews Vol 20 No 2 pp 433-456

Kumar V and Reinartz W (2016) ldquoCreating enduring customer valuerdquo Journal of Marketing Vol 80No 6 pp 36-68

Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

Pine BJ and Gilmore JH (1998) ldquoWelcome to the experience economyrdquo Harvard Business ReviewVol 76 JulyAugust pp 97-105

Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Reutskaja E and Hogarth RM (2009) ldquoSatisfaction in choice as a function of the number ofalternatives when lsquogoods satiatersquo rdquo Psychology amp Marketing Vol 26 No 3 pp 197-203

Rivera-Santos M and Rufiacuten C (2010) ldquoGlobal village vs small town understanding networks at thebase of the pyramidrdquo International Business Review Vol 19 No 2 pp 126-139

Rogers CR (1975) ldquoEmpathy an unappreciated way of beingrdquo The Counseling Psychologist Vol 5No 2 pp 2-10

Rogers EM (1995) Diffusion of Innovations 4th ed Free Press New York NY

Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

Schumann JH Wuumlnderlich NV and Wangenheim F (2012) ldquoTechnology mediation in servicedelivery a new typology and an agenda for managers and academicsrdquo Technovation Vol 32No 2 pp 133-143

Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

Dow

nloa

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by D

octo

r R

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olto

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23 2

0 Se

ptem

ber

2018

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)

Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 10: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

onset or progression of disease symptoms (Mayo Clinic 2018) In the future smart deviceswill enable patients to quickly make decisions about their healthcare and treatment optionsrather than waiting for results from laboratories or clinics By 2050 healthcareorganizations will leverage AI 3D printing sensory technology real-time data processingand big data repositories to design and deliver services (Antons and Breidbach 2018) Astechnologies become more sophisticated robotic assistants will be in hospital wards in ourhomes and playing a critical role in the operating suite (Lanfranco et al 2004) Today robotshave begun to assist in the operating suite and to fulfill social roles such as cuddlycompanions for the elderly and hotel ambassadors (eg Softbank Roboticsrsquo robot Pepper)In the future they will be carers for the infirmed and assistants to medical consultants

Opportunities and emerging issues in B2C retail and professional services from traditionalservice to digital serviceOpportunities Digital technologies are already prevalent in B2C industries including retailautomotive consumer goods logistics media and professional services (World EconomicForum 2017) Retailing is especially rife with digital service innovations with concomitantorganizational changes In the past in-store and online retailing were characterized by highphysical complexity and high social presence At present both are shifting from low to highdigital density realms (Ballantyne and Nilsson 2017) Figure 4 depicts some examples in thedigitalphysicalsocial spaces Consumers attracted by the convenience of easy digitalaccess to user reviews comparison pricing and endless aisles have come to rely on onlineand mobile shopping

Traditional retailers are bringing digital channels into stores and online retailers areopening brick-and-mortar shops in high-profile locations seeking to create experiences thatcannot be delivered through a device Both traditional and online retailers are working towardthe same goal a highly personalized consistent and integrated shopping experience across allpoints of contact between retailers and customers The integration of digital technologies with

ProfessionalServices

MultiplayerOnline Gaming

Wii gamesWith others

MobileFinancialServices

Custom Build Your Car(or Kitchen or )

Drone DeliveryServices 3D PrintingServices

Light TherapyServices

SalonServices

Physical realm

Social realm

High complexity

Low complexity

High social presence Low social presence

Digital realm

High density

Low density

Figure 4Future B2C retail andprofessional services

in the digitalphysicalsocial realms

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physical (store) environments will enhance the customer experience and improve employeeperformance For example AmazonGo is a new kind of bricks-and-mortar store with highdigital density so that no physical checkout is required Amazon is also experimenting withcomputer vision sensor fusion and deep learning through a seamless phone application whichmay radically change the customer experience (Amazon 2018)

Emerging issues The World Economic Forum (2017) predicted a dramatic shift fromtraditional services to digital services In the USA professional services are estimated to bethe second-largest employment sector (after healthcare) In the UK they account for15 percent of its gross domestic product and employ 14 percent of its workforceEmployment in professional services is expected to grow to approximately 21m jobs by2024 (US Bureau of Labor Statistics 2015) One reason for this growth is that onlineplatforms offer a convenient alternative to the traditional physical marketplace forhealthcare and professional services Due to the dramatic shift from traditional services todigital services employees and customers will participate in the co-creation of serviceswithin a high digital density environment In Figure 4 this change implies moving from thehigh physical complexity high social presence and low digital density octant to the lowphysical high social presence and high digital density octant

Increasingly many customers are expecting 247 access to professional services Forexample Upwork is a platform connecting 5m client businesses with more than 12mfreelancers (Upwork 2017) In the legal profession virtual courtrooms are replacing the needfor physical ones as lawyers witnesses and judges can now hold hearings via video link(Susskind and Susskind 2015) We speculate that the next transition will be to the lowphysical low social presence and high digital density octant For example the law firm ofBaker and Hostetler recently developed an AI lawyer (ldquoRossrdquo) to handle its bankruptcypractice and replaced 50 human lawyers Ross can read understand analyze language andgenerate responses backed up with legal references It also monitors current litigation tonotify colleagues about recent court decisions (Addady 2016)

Challenges of navigating the path to high digital density environmentsBusiness managers and researchers anticipate that a major benefit of AI and ldquobig datardquowill be service innovations that create new value propositions (Hartmann et al 2016Huang and Rust 2018 Mayer-Schoumlnberger and Cukier 2013) In addition peopleorganizations and society will benefit from the move to high density digital environmentsthrough increased convenience universal access to information to inform decisions andnew solutions However people and organizations must shape the role that technologyplays in the design and delivery of the customer experience Interconnections betweendevices and platforms have the potential to create complex service systems that ndash if theyfail ndash could have far-reaching consequences that could be very destructive For exampleTay the rogue chatbot that Microsoft developed was a female chatbot with its ownTwitter account It is a machine learning project designed for human engagement thatcommunicates with 18-to 24-year-olds learns from them and gets smarter with timeWithin 24 h from its launch Tay tweeted about smoking drugs and claiming that ldquoHitlerwas right [hellip]rdquo and ldquofeminists should [hellip] burn in hellrdquoMicrosoft shut the service the nextday (Regelado 2016)

Organizations cannot access the information they need to co-create services with customersbecause multiple technical solutions exist that are designed to be optimal for well-defined localproblems ndash but these solutions are often disconnected and (consequently) sub-optimal from asystem or network standpoint Although hardware software platform and networkingstandards have been established across organizations each organization and itscustomers typically use their own tools and data standards Consequently data architecture

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is fragmented and there is no integrated enterprise information platformwithin an organizationndash let alone across organizations This misalignment creates challenges because it isunclear which technologies are needed and how they should be implemented and integratedinto the existing information and communication technology infrastructure in organizationsMoreover organizationsrsquo utilization of analytical methods is currently limited rangingfrom descriptive analytics (eg dashboards) applied to high volume high velocity data todiagnostic predictive and prescriptive analytics (eg cognitive systems and optimizationmodels) which require more costly complex methods and typically more structured data(Wedel and Kannan 2016)

Challenges of navigating the path to high social presenceOrganizations have experience with the migration to high social presence environments thatinvolve humans usually when digital density is low Research has shown that the use oftechnology by employees can improve their performance under some conditions (Ahearneet al 2008) thereby improving the customer experience However digital technology canaugment or eliminate the human element thereby changing the roles of customers andemployees Lariviegravere et al (2017) argued that employees and customers are taking on newroles as enablers innovators coordinators and differentiators ndash rather than traditionaldeliverers of the core service For example smart technology has begun to expand frontlineservice interactions in both B2B and B2C contexts and to deepen customerndashorganizationrelationships (Marinova et al 2016)

In addition very little is known about automated social presence ndash such as robotsavatars augmented and virtual reality ndash as opposed to humans Already people areencountering automated social presence when they are served by a robot in a restaurant orhospital consult intelligent virtual assistants interact with others in simulated or virtualenvironments receive medical care through telepresence and so forth (Plambeck 2018Walsh 2018) Indeed many people access technology through a virtual assistant such asSiri and Alexa which exhibit a personality and encourage anthropomorphism Thus socialpresence can now occur digitally rather than due to the physical presence of a human actorso that high social presence can be achieved through automation (Van Doorn et al 2017)Researchers have become especially interested in the ldquouncanny valleyrdquo a term that denotesthe uncomfortable sensation associated with a mismatch between an individualrsquosexpectations and a robotrsquos behavior (Mori et al 2012)

New approaches to reconciling customer experience dualitiesUntil this point we have identified opportunities and challenges for enhancing the customerexperience in the future and considered ways that organizations and customers might makethe most of them In this section we discuss how the intersection of digital physical andsocial realms poses systematic challenges for organizations customers and society Wefocus on tensions that unless addressed may inhibit the conditions necessary for valueco-creation between actors in a network We term these tensions ldquodualitiesrdquo defined as theopposition or contrast between concepts or strategies

We organize our discussion by considering the circumstances in each of the eight octantsbecause they represent different conditions that beget different dualities These aredescribed in Table I (which maps our three-dimensional octants into two-dimensional space)Some dualities may apply in more than one condition We do not aim to unambiguouslyclassify dualities but rather to elucidate how they arise from service design and deliveryopportunities challenges and trade-offs In addition we provide examples and offerguidance on ways to resolve these dualities through innovations in the design andmanagement of customer experiences for probable future conditions

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Base of the pyramid (BoP) or scarcity in digital physical and social realmsThe low digitalphysicalsocial octant represents a condition of scarcity in which resourceconstraints (or uneven distribution of resources) hinder value co-creation in many forms(Gebauer and Reynoso 2013 London et al 2010) There are vast numbers of people who liveevery day with scarce resources sometimes referred to as BoP In addition during naturaldisasters individuals may find themselves temporarily without access to many resources(Cheung et al 2017) We believe that the scarcity duality arises from fundamentallydifferent perspectives on value held by different actors in a service ecosystem For examplefor-profit business objectives (and sometimes non-profit objectives) may not match the goalsof individuals in markets with scarce or unevenly distributed resources due to culturalpolitical issues related to power structures (Arora and Romijn 2011)

New approaches One approach to these challenges is to acquire a partner or engage in anetwork alliance thereby tapping into knowledge resources and capabilities related to thelocal market (Rivera-Santos and Rufiacuten 2010) An example of a successful alliance thatco-creates value with customers who face scarce resources in many countries is the UnitedNations-led initiative to eradicate malaria by 2040 (UN News 2015) Another approach tosuccessfully operating in markets with scarce resources entails the development novelbusiness models especially with respect to pricing For example organizations may enable

Low social presence High social presenceLow digital density High digital density Low digital density High digital density

Lowphysicalcomplexity

Base of the pyramidchallenges

Organization bundlesvs customer bundles

Autonomy(competitive) vsinterdependence(cooperation)

Regulation by actorsvs regulation bycommunity

Customerperspective scarcityof resources valuesincompatibilityOrganizationalperspective fee vsfree potentialsolutions mightinclude partner ornetwork alliances

Customer perspectiveperceived control cancreate paradox ofchoice customer endsup worse offOrganizationalperspective requiresdescriptive anddiagnostic use ofcustomer data

Customer perspectivehighly socialexperience thatrequires high trust tointegrate socialresourcesOrganizationalperspective limited orno digital and physicaltouchpoints to createtrust and aligncustomerorganizationgoals

Requires a digitalplatform forinformation sharing amechanism for risksharing Socialpresence could bedelivered digitallyRequires descriptiveand diagnosticcapabilities but nopredictive analytics

Highphysicalcomplexity

Privacy vstransparency

Standardization vsflexibility

Avoidance vsattraction

Capabilities vsresources

Organizational andcustomer perspectiverequires informationsharing and lowperceived risk Trustbetween serviceproviders andcustomers is critical

Customer perspectivehigh coping abilitiesrequired Theorganizationrsquos decisionsupport systems mustbe excellent to providevalue in real timeOrganizationalperspective customerknowledge andorganizationallearning is required

Customer perspectivefeedback andperceived controlneededOrganizationalperspective how tocreate brandedcustomer experiencesthat fit with customerneeds in the presenceof other customers

Customer perspectivecustomer innovationand creativity throughparticipation Localsolutions may bepossible if services canbe modularizedOrganizationalperspectiveco-creation requiresorganizational learningand effective businessanalytics

Table IDualities in each ofthe eight octants

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customers to share a service and its costs design smaller packages or bundles create pre-paid service plans or develop micro-finance or loan programs (Anderson and Markides2007) Finally actors in markets with scarce resources may turn to the moral economy toco-create value with the limited resources available (Cheung et al 2017)

Bundling services high digital density low physicalsocial resourcesHigh digital density realms are capable of supporting favorable emotional social and sensoryresponses Thus gamification ndash that is adding game-like elements to a task to encouragecustomer participation can be an especially attractive strategy for organizations in B2Cmarkets Research has shown that gamification can lead to customer learning engagementand improved customer experiences (Harwood and Garry 2015 Landers 2014) Games arealso effective in employee training team-building and management However this strategy isonly effective when the goals of the organization and its customers are aligned Games haverules and structure whereas play often does not so organizational and customer goals mayconflict (Hofaker et al 2016 Walz and Deterding 2014) This conflict may cause customers torefuse to participate in games thereby defeating the purpose of the gamification

Hence a duality can arise in balancing a participantrsquos goals (ie entertainment) withorganizational goals such as customer learning or buying (Harwood and Garry 2015) Theunderlying reason for this duality is that gamification implicitly requires the creation ofldquooptimalrdquo bundles of features (ie learning components entertainment components) that arevaluable to both parties This same dilemma ndash optimal service bundling ndash also occurs in highdigital density B2B markets in a very different form B2B customers may be faced with amultitude of bundles that encompass an overwhelming number of options and combinationsso that a non-expert encounters a ldquoparadox of choicerdquo ndash whereby a customer feels betterduring the bundle creation process but (objectively) ends up worse off (Reutskaja andHogarth 2009) In both of these situations complex bundling increases the challenges ofco-creation ndash that is creating value for both parties while successfully monetizing the service

New approaches Organizations must know (or learn) the customerrsquos preferences todetermine the appropriate mix and sequences of entertainment and content (ie the bundle)that will be most effective in creating value (Landers 2014) Since organizations and theircustomers are likely to value bundles (and the underlying components) differentlyorganizations must also adopt a relational approach to mitigate conflicts that influencevalue co-creation (Tuli et al 2007) In sum organizations operating in both B2B and B2Cmarkets characterized by a high digital density environment must intensively developresources and capabilities for leveraging descriptive and diagnostic analytics of customerdata to co-create service bundles and pricing options that are valuable to both parties

Autonomy vs interdependence in high social low digitalphysical environmentsHigh social presence creates a shared experience which requires high levels of trust toaccomplish integration of social resources (Hennig-Thurau et al 2002) When physical anddigital resources are limited organizations are constrained in their capabilities to usetraditional methods of creating trust and integrating social resources For example many oftodayrsquos business models rely on digital platforms to build trust and integrate socialresources (eg Airbnb) and such platforms are absent in this octant Hence a duality mayemerge between autonomy (which frequently implies competition) vs interdependence(which can be more cooperative) Instances of both competition and cooperation can beobserved in markets as social actors work independently or collectively to meet their needs(Cheung and McColl-Kennedy 2015)

New approaches Organizations must find social mechanisms for aligning organizationalcustomer and employee goals Often this requires a significant culture change within

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organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

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offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

Customerexperiencechallenges

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

Customerexperiencechallenges

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

Customerexperiencechallenges

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

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imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

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design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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Frow P McColl-Kennedy JR and Payne AF (2016) ldquoCo-creation practices their role in shaping ahealth care ecosystemrdquo Industrial Marketing Management Vol 56 July pp 24-39

Gabbott M Tsarenko Y and Mok WH (2011) ldquoEmotional intelligence as a moderator of copingstrategies and service outcomes in circumstances of service failurerdquo Journal of Service ResearchVol 14 No 2 pp 234-248

Gallan AS Jarvis CB Brown SW and Bitner MJ (2013) ldquoCustomer positivity and participation inservices an empirical test in a health care contextrdquo Journal of the Academy of Marketing ScienceVol 41 No 3 pp 338-356

Gallo C (2017) ldquoStarbucksrsquo cool new brew storytelling with a digital twistrdquo Forbes December 11available at wwwforbescomsitescarminegallo20171211starbucks-cool-new-brew-storytelling-with-a-digital-twist71d0d2c97735 (accessed August 1 2018)

Gantz J and Reinsel D (2012) ldquoThe digital universe in 2020 big data bigger digital shadows andbiggest growth in the far eastrdquo IDC iView IDC Analyze the Future Framingham MA pp 1-16

Gebauer H and Reynoso J (2013) ldquoAn agenda for service research at the base of the pyramidrdquo Journalof Service Management Vol 24 No 5 pp 482-501

Gentile C Spiller N and Noci G (2007) ldquoHow to sustain the customer experience an overview ofexperience components that co-create value with the customerrdquo European Management JournalVol 25 No 5 pp 395-410

Giebelhausen M Robinson SG Sirianni NJ and Brady MK (2014) ldquoTouch versus tech whentechnology functions as a barrier or a benefit to service encountersrdquo Journal of MarketingVol 78 No 4 pp 113-124

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nloa

ded

by D

octo

r R

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ber

2018

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Giraldi L Mengoni M and Bevilacqua M (2016) ldquoHow to enhance customer experience in retailinvestigations through a case studyrdquo Proceedings of the 23rd ISPE Inc International Conferenceon Transdisciplinary Engineering Vols 3-7 October pp 381-390

Gittell JH (2006) ldquoRelational coordination coordinating work through relationships of shared goals sharedknowledge and mutual respectrdquo in Kyriakidou O and Oumlzbilgin MF (Eds) Relational Perspectives inOrganizational Studies A Research Companion Edward Elgar Cheltenham pp 74-94

Goffman E (1967) ldquoOn face-workrdquo Interaction Ritual Essays on Face-to-Face Behavior pp 5-46

Goldman Sachs Equity Research (2017) ldquoChinarsquos rise in artificial intelligence ndash the new ChinardquoGoldman Sachs available at www2caictaccnzscpqqzkgzljyd201709P020170921309379565253pdf (accessed March 1 2018)

Gostin LO Lazzarini Z Neslund VS and Osterholm MT (1996) ldquoThe public health informationinfrastructure a national review of the law on health information privacyrdquo The Journal of theAmerican Medical Association Vol 275 No 24 pp 1921-1927

Greacutegoire Y Tripp TM and Legoux R (2009) ldquoWhen customer love turns into lasting hate the effectsof relationship strength and time on customer revenge and avoidancerdquo Journal of MarketingVol 73 No 6 pp 18-32

Gremler DD and Gwinner KP (2000) ldquoCustomer-employee rapport in service relationshipsrdquo Journalof Service Research Vol 3 No 1 pp 82-104

Grewal D Levy M and Kumar V (2009) ldquoCustomer experience in retailing an organizingframeworkrdquo Journal of Retailing Vol 85 No 1 pp 1-14

Guo L Lotz SL Tang C and Gruen TW (2016) ldquoThe role of perceived control in customer valuecocreation and service recovery evaluationrdquo Journal of Service Research Vol 19 No 1 pp 39-56

Hartmann PM Zaki M Feldmann N and Neely A (2016) ldquoCapturing value from big data ndash ataxonomy of data-driven business models used by start-up firmsrdquo International Journal ofOperations amp Production Management Vol 36 No 10 pp 1382-1406

Harwood T and Garry T (2015) ldquoAn investigation into gamification as a customer engagementexperience environmentrdquo Journal of Services Marketing Vol 29 Nos 67 pp 533-546

Hazeacutee S Delcourt C and Van Vaerenbergh Y (2017) ldquoSharing goods Yuck No An investigation ofproduct contamination in access-based servicesrdquo Journal of Service Research Vol 20 No 4pp 441-456

Hennig-Thurau T Gwinner KP and Gremler DD (2002) ldquoUnderstanding relationship marketingoutcomes an integration of relational benefits and relationship qualityrdquo Journal of ServiceResearch Vol 4 No 3 pp 230-247

Hofaker CF de Ruyter K Lurie NH Manchanda P and Donaldson J (2016) ldquoGamification andmobile marketing effectivenessrdquo Journal of Interactive Marketing Vol 34 May pp 25-36

Hoffman DL and Novak TP (2018) ldquoConsumer and object experience in the Internet of Things anassemblage theory approachrdquo Journal of Consumer Research Vol 44 No 6 pp 1178-1204

Homburg C Jozić D and Kuehnl C (2017) ldquoCustomer experience management toward implementingan evolving marketing conceptrdquo Journal of the Academy of Marketing Science Vol 45 No 3pp 377-401

Huang M-H and Rust RT (2018) ldquoArtificial intelligence in servicerdquo Journal of Service ResearchVol 21 No 2 pp 155-172

Kang C and Roose K (2018) ldquoZuckerberg faces hostile congress as calls for regulation mountrdquo TheNew York Times April 11 p B4 available at wwwnytimescom20180411businesszuckerberg-facebook-congresshtml

Kopalle P (2014) ldquoWhy Amazonrsquos anticipatory shipping is pure geniusrdquo Forbes January 28 available atwwwforbescomsitesonmarketing20140128why-amazons-anticipatory-shipping-is-pure-genius4594345f4605 (accessed August 1 2018)

Kozinets R Patterson A and Ashman R (2016) ldquoNetworks of desire how technology increases ourpassion to consumerdquo Journal of Consumer Research Vol 43 No 5 pp 659-682

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Dow

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Kranzbuumlhler AM Kleijnen MHP Morgan RE and Teerling M (2017) ldquoThe multilevel nature ofcustomer experience research an integrative review and research agendardquo International Journalof Management Reviews Vol 20 No 2 pp 433-456

Kumar V and Reinartz W (2016) ldquoCreating enduring customer valuerdquo Journal of Marketing Vol 80No 6 pp 36-68

Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

Pine BJ and Gilmore JH (1998) ldquoWelcome to the experience economyrdquo Harvard Business ReviewVol 76 JulyAugust pp 97-105

Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Reutskaja E and Hogarth RM (2009) ldquoSatisfaction in choice as a function of the number ofalternatives when lsquogoods satiatersquo rdquo Psychology amp Marketing Vol 26 No 3 pp 197-203

Rivera-Santos M and Rufiacuten C (2010) ldquoGlobal village vs small town understanding networks at thebase of the pyramidrdquo International Business Review Vol 19 No 2 pp 126-139

Rogers CR (1975) ldquoEmpathy an unappreciated way of beingrdquo The Counseling Psychologist Vol 5No 2 pp 2-10

Rogers EM (1995) Diffusion of Innovations 4th ed Free Press New York NY

Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

Schumann JH Wuumlnderlich NV and Wangenheim F (2012) ldquoTechnology mediation in servicedelivery a new typology and an agenda for managers and academicsrdquo Technovation Vol 32No 2 pp 133-143

Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 11: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

physical (store) environments will enhance the customer experience and improve employeeperformance For example AmazonGo is a new kind of bricks-and-mortar store with highdigital density so that no physical checkout is required Amazon is also experimenting withcomputer vision sensor fusion and deep learning through a seamless phone application whichmay radically change the customer experience (Amazon 2018)

Emerging issues The World Economic Forum (2017) predicted a dramatic shift fromtraditional services to digital services In the USA professional services are estimated to bethe second-largest employment sector (after healthcare) In the UK they account for15 percent of its gross domestic product and employ 14 percent of its workforceEmployment in professional services is expected to grow to approximately 21m jobs by2024 (US Bureau of Labor Statistics 2015) One reason for this growth is that onlineplatforms offer a convenient alternative to the traditional physical marketplace forhealthcare and professional services Due to the dramatic shift from traditional services todigital services employees and customers will participate in the co-creation of serviceswithin a high digital density environment In Figure 4 this change implies moving from thehigh physical complexity high social presence and low digital density octant to the lowphysical high social presence and high digital density octant

Increasingly many customers are expecting 247 access to professional services Forexample Upwork is a platform connecting 5m client businesses with more than 12mfreelancers (Upwork 2017) In the legal profession virtual courtrooms are replacing the needfor physical ones as lawyers witnesses and judges can now hold hearings via video link(Susskind and Susskind 2015) We speculate that the next transition will be to the lowphysical low social presence and high digital density octant For example the law firm ofBaker and Hostetler recently developed an AI lawyer (ldquoRossrdquo) to handle its bankruptcypractice and replaced 50 human lawyers Ross can read understand analyze language andgenerate responses backed up with legal references It also monitors current litigation tonotify colleagues about recent court decisions (Addady 2016)

Challenges of navigating the path to high digital density environmentsBusiness managers and researchers anticipate that a major benefit of AI and ldquobig datardquowill be service innovations that create new value propositions (Hartmann et al 2016Huang and Rust 2018 Mayer-Schoumlnberger and Cukier 2013) In addition peopleorganizations and society will benefit from the move to high density digital environmentsthrough increased convenience universal access to information to inform decisions andnew solutions However people and organizations must shape the role that technologyplays in the design and delivery of the customer experience Interconnections betweendevices and platforms have the potential to create complex service systems that ndash if theyfail ndash could have far-reaching consequences that could be very destructive For exampleTay the rogue chatbot that Microsoft developed was a female chatbot with its ownTwitter account It is a machine learning project designed for human engagement thatcommunicates with 18-to 24-year-olds learns from them and gets smarter with timeWithin 24 h from its launch Tay tweeted about smoking drugs and claiming that ldquoHitlerwas right [hellip]rdquo and ldquofeminists should [hellip] burn in hellrdquoMicrosoft shut the service the nextday (Regelado 2016)

Organizations cannot access the information they need to co-create services with customersbecause multiple technical solutions exist that are designed to be optimal for well-defined localproblems ndash but these solutions are often disconnected and (consequently) sub-optimal from asystem or network standpoint Although hardware software platform and networkingstandards have been established across organizations each organization and itscustomers typically use their own tools and data standards Consequently data architecture

JOSM

Dow

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is fragmented and there is no integrated enterprise information platformwithin an organizationndash let alone across organizations This misalignment creates challenges because it isunclear which technologies are needed and how they should be implemented and integratedinto the existing information and communication technology infrastructure in organizationsMoreover organizationsrsquo utilization of analytical methods is currently limited rangingfrom descriptive analytics (eg dashboards) applied to high volume high velocity data todiagnostic predictive and prescriptive analytics (eg cognitive systems and optimizationmodels) which require more costly complex methods and typically more structured data(Wedel and Kannan 2016)

Challenges of navigating the path to high social presenceOrganizations have experience with the migration to high social presence environments thatinvolve humans usually when digital density is low Research has shown that the use oftechnology by employees can improve their performance under some conditions (Ahearneet al 2008) thereby improving the customer experience However digital technology canaugment or eliminate the human element thereby changing the roles of customers andemployees Lariviegravere et al (2017) argued that employees and customers are taking on newroles as enablers innovators coordinators and differentiators ndash rather than traditionaldeliverers of the core service For example smart technology has begun to expand frontlineservice interactions in both B2B and B2C contexts and to deepen customerndashorganizationrelationships (Marinova et al 2016)

In addition very little is known about automated social presence ndash such as robotsavatars augmented and virtual reality ndash as opposed to humans Already people areencountering automated social presence when they are served by a robot in a restaurant orhospital consult intelligent virtual assistants interact with others in simulated or virtualenvironments receive medical care through telepresence and so forth (Plambeck 2018Walsh 2018) Indeed many people access technology through a virtual assistant such asSiri and Alexa which exhibit a personality and encourage anthropomorphism Thus socialpresence can now occur digitally rather than due to the physical presence of a human actorso that high social presence can be achieved through automation (Van Doorn et al 2017)Researchers have become especially interested in the ldquouncanny valleyrdquo a term that denotesthe uncomfortable sensation associated with a mismatch between an individualrsquosexpectations and a robotrsquos behavior (Mori et al 2012)

New approaches to reconciling customer experience dualitiesUntil this point we have identified opportunities and challenges for enhancing the customerexperience in the future and considered ways that organizations and customers might makethe most of them In this section we discuss how the intersection of digital physical andsocial realms poses systematic challenges for organizations customers and society Wefocus on tensions that unless addressed may inhibit the conditions necessary for valueco-creation between actors in a network We term these tensions ldquodualitiesrdquo defined as theopposition or contrast between concepts or strategies

We organize our discussion by considering the circumstances in each of the eight octantsbecause they represent different conditions that beget different dualities These aredescribed in Table I (which maps our three-dimensional octants into two-dimensional space)Some dualities may apply in more than one condition We do not aim to unambiguouslyclassify dualities but rather to elucidate how they arise from service design and deliveryopportunities challenges and trade-offs In addition we provide examples and offerguidance on ways to resolve these dualities through innovations in the design andmanagement of customer experiences for probable future conditions

Customerexperiencechallenges

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Base of the pyramid (BoP) or scarcity in digital physical and social realmsThe low digitalphysicalsocial octant represents a condition of scarcity in which resourceconstraints (or uneven distribution of resources) hinder value co-creation in many forms(Gebauer and Reynoso 2013 London et al 2010) There are vast numbers of people who liveevery day with scarce resources sometimes referred to as BoP In addition during naturaldisasters individuals may find themselves temporarily without access to many resources(Cheung et al 2017) We believe that the scarcity duality arises from fundamentallydifferent perspectives on value held by different actors in a service ecosystem For examplefor-profit business objectives (and sometimes non-profit objectives) may not match the goalsof individuals in markets with scarce or unevenly distributed resources due to culturalpolitical issues related to power structures (Arora and Romijn 2011)

New approaches One approach to these challenges is to acquire a partner or engage in anetwork alliance thereby tapping into knowledge resources and capabilities related to thelocal market (Rivera-Santos and Rufiacuten 2010) An example of a successful alliance thatco-creates value with customers who face scarce resources in many countries is the UnitedNations-led initiative to eradicate malaria by 2040 (UN News 2015) Another approach tosuccessfully operating in markets with scarce resources entails the development novelbusiness models especially with respect to pricing For example organizations may enable

Low social presence High social presenceLow digital density High digital density Low digital density High digital density

Lowphysicalcomplexity

Base of the pyramidchallenges

Organization bundlesvs customer bundles

Autonomy(competitive) vsinterdependence(cooperation)

Regulation by actorsvs regulation bycommunity

Customerperspective scarcityof resources valuesincompatibilityOrganizationalperspective fee vsfree potentialsolutions mightinclude partner ornetwork alliances

Customer perspectiveperceived control cancreate paradox ofchoice customer endsup worse offOrganizationalperspective requiresdescriptive anddiagnostic use ofcustomer data

Customer perspectivehighly socialexperience thatrequires high trust tointegrate socialresourcesOrganizationalperspective limited orno digital and physicaltouchpoints to createtrust and aligncustomerorganizationgoals

Requires a digitalplatform forinformation sharing amechanism for risksharing Socialpresence could bedelivered digitallyRequires descriptiveand diagnosticcapabilities but nopredictive analytics

Highphysicalcomplexity

Privacy vstransparency

Standardization vsflexibility

Avoidance vsattraction

Capabilities vsresources

Organizational andcustomer perspectiverequires informationsharing and lowperceived risk Trustbetween serviceproviders andcustomers is critical

Customer perspectivehigh coping abilitiesrequired Theorganizationrsquos decisionsupport systems mustbe excellent to providevalue in real timeOrganizationalperspective customerknowledge andorganizationallearning is required

Customer perspectivefeedback andperceived controlneededOrganizationalperspective how tocreate brandedcustomer experiencesthat fit with customerneeds in the presenceof other customers

Customer perspectivecustomer innovationand creativity throughparticipation Localsolutions may bepossible if services canbe modularizedOrganizationalperspectiveco-creation requiresorganizational learningand effective businessanalytics

Table IDualities in each ofthe eight octants

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customers to share a service and its costs design smaller packages or bundles create pre-paid service plans or develop micro-finance or loan programs (Anderson and Markides2007) Finally actors in markets with scarce resources may turn to the moral economy toco-create value with the limited resources available (Cheung et al 2017)

Bundling services high digital density low physicalsocial resourcesHigh digital density realms are capable of supporting favorable emotional social and sensoryresponses Thus gamification ndash that is adding game-like elements to a task to encouragecustomer participation can be an especially attractive strategy for organizations in B2Cmarkets Research has shown that gamification can lead to customer learning engagementand improved customer experiences (Harwood and Garry 2015 Landers 2014) Games arealso effective in employee training team-building and management However this strategy isonly effective when the goals of the organization and its customers are aligned Games haverules and structure whereas play often does not so organizational and customer goals mayconflict (Hofaker et al 2016 Walz and Deterding 2014) This conflict may cause customers torefuse to participate in games thereby defeating the purpose of the gamification

Hence a duality can arise in balancing a participantrsquos goals (ie entertainment) withorganizational goals such as customer learning or buying (Harwood and Garry 2015) Theunderlying reason for this duality is that gamification implicitly requires the creation ofldquooptimalrdquo bundles of features (ie learning components entertainment components) that arevaluable to both parties This same dilemma ndash optimal service bundling ndash also occurs in highdigital density B2B markets in a very different form B2B customers may be faced with amultitude of bundles that encompass an overwhelming number of options and combinationsso that a non-expert encounters a ldquoparadox of choicerdquo ndash whereby a customer feels betterduring the bundle creation process but (objectively) ends up worse off (Reutskaja andHogarth 2009) In both of these situations complex bundling increases the challenges ofco-creation ndash that is creating value for both parties while successfully monetizing the service

New approaches Organizations must know (or learn) the customerrsquos preferences todetermine the appropriate mix and sequences of entertainment and content (ie the bundle)that will be most effective in creating value (Landers 2014) Since organizations and theircustomers are likely to value bundles (and the underlying components) differentlyorganizations must also adopt a relational approach to mitigate conflicts that influencevalue co-creation (Tuli et al 2007) In sum organizations operating in both B2B and B2Cmarkets characterized by a high digital density environment must intensively developresources and capabilities for leveraging descriptive and diagnostic analytics of customerdata to co-create service bundles and pricing options that are valuable to both parties

Autonomy vs interdependence in high social low digitalphysical environmentsHigh social presence creates a shared experience which requires high levels of trust toaccomplish integration of social resources (Hennig-Thurau et al 2002) When physical anddigital resources are limited organizations are constrained in their capabilities to usetraditional methods of creating trust and integrating social resources For example many oftodayrsquos business models rely on digital platforms to build trust and integrate socialresources (eg Airbnb) and such platforms are absent in this octant Hence a duality mayemerge between autonomy (which frequently implies competition) vs interdependence(which can be more cooperative) Instances of both competition and cooperation can beobserved in markets as social actors work independently or collectively to meet their needs(Cheung and McColl-Kennedy 2015)

New approaches Organizations must find social mechanisms for aligning organizationalcustomer and employee goals Often this requires a significant culture change within

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organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

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offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

Customerexperiencechallenges

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

Customerexperiencechallenges

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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)

For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

JOSM

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(PT

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

Dow

nloa

ded

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)

imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

Dow

nloa

ded

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2018

(PT

)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

References

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Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

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Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

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Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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nloa

ded

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Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

Pine BJ and Gilmore JH (1998) ldquoWelcome to the experience economyrdquo Harvard Business ReviewVol 76 JulyAugust pp 97-105

Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

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Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 12: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

is fragmented and there is no integrated enterprise information platformwithin an organizationndash let alone across organizations This misalignment creates challenges because it isunclear which technologies are needed and how they should be implemented and integratedinto the existing information and communication technology infrastructure in organizationsMoreover organizationsrsquo utilization of analytical methods is currently limited rangingfrom descriptive analytics (eg dashboards) applied to high volume high velocity data todiagnostic predictive and prescriptive analytics (eg cognitive systems and optimizationmodels) which require more costly complex methods and typically more structured data(Wedel and Kannan 2016)

Challenges of navigating the path to high social presenceOrganizations have experience with the migration to high social presence environments thatinvolve humans usually when digital density is low Research has shown that the use oftechnology by employees can improve their performance under some conditions (Ahearneet al 2008) thereby improving the customer experience However digital technology canaugment or eliminate the human element thereby changing the roles of customers andemployees Lariviegravere et al (2017) argued that employees and customers are taking on newroles as enablers innovators coordinators and differentiators ndash rather than traditionaldeliverers of the core service For example smart technology has begun to expand frontlineservice interactions in both B2B and B2C contexts and to deepen customerndashorganizationrelationships (Marinova et al 2016)

In addition very little is known about automated social presence ndash such as robotsavatars augmented and virtual reality ndash as opposed to humans Already people areencountering automated social presence when they are served by a robot in a restaurant orhospital consult intelligent virtual assistants interact with others in simulated or virtualenvironments receive medical care through telepresence and so forth (Plambeck 2018Walsh 2018) Indeed many people access technology through a virtual assistant such asSiri and Alexa which exhibit a personality and encourage anthropomorphism Thus socialpresence can now occur digitally rather than due to the physical presence of a human actorso that high social presence can be achieved through automation (Van Doorn et al 2017)Researchers have become especially interested in the ldquouncanny valleyrdquo a term that denotesthe uncomfortable sensation associated with a mismatch between an individualrsquosexpectations and a robotrsquos behavior (Mori et al 2012)

New approaches to reconciling customer experience dualitiesUntil this point we have identified opportunities and challenges for enhancing the customerexperience in the future and considered ways that organizations and customers might makethe most of them In this section we discuss how the intersection of digital physical andsocial realms poses systematic challenges for organizations customers and society Wefocus on tensions that unless addressed may inhibit the conditions necessary for valueco-creation between actors in a network We term these tensions ldquodualitiesrdquo defined as theopposition or contrast between concepts or strategies

We organize our discussion by considering the circumstances in each of the eight octantsbecause they represent different conditions that beget different dualities These aredescribed in Table I (which maps our three-dimensional octants into two-dimensional space)Some dualities may apply in more than one condition We do not aim to unambiguouslyclassify dualities but rather to elucidate how they arise from service design and deliveryopportunities challenges and trade-offs In addition we provide examples and offerguidance on ways to resolve these dualities through innovations in the design andmanagement of customer experiences for probable future conditions

Customerexperiencechallenges

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Base of the pyramid (BoP) or scarcity in digital physical and social realmsThe low digitalphysicalsocial octant represents a condition of scarcity in which resourceconstraints (or uneven distribution of resources) hinder value co-creation in many forms(Gebauer and Reynoso 2013 London et al 2010) There are vast numbers of people who liveevery day with scarce resources sometimes referred to as BoP In addition during naturaldisasters individuals may find themselves temporarily without access to many resources(Cheung et al 2017) We believe that the scarcity duality arises from fundamentallydifferent perspectives on value held by different actors in a service ecosystem For examplefor-profit business objectives (and sometimes non-profit objectives) may not match the goalsof individuals in markets with scarce or unevenly distributed resources due to culturalpolitical issues related to power structures (Arora and Romijn 2011)

New approaches One approach to these challenges is to acquire a partner or engage in anetwork alliance thereby tapping into knowledge resources and capabilities related to thelocal market (Rivera-Santos and Rufiacuten 2010) An example of a successful alliance thatco-creates value with customers who face scarce resources in many countries is the UnitedNations-led initiative to eradicate malaria by 2040 (UN News 2015) Another approach tosuccessfully operating in markets with scarce resources entails the development novelbusiness models especially with respect to pricing For example organizations may enable

Low social presence High social presenceLow digital density High digital density Low digital density High digital density

Lowphysicalcomplexity

Base of the pyramidchallenges

Organization bundlesvs customer bundles

Autonomy(competitive) vsinterdependence(cooperation)

Regulation by actorsvs regulation bycommunity

Customerperspective scarcityof resources valuesincompatibilityOrganizationalperspective fee vsfree potentialsolutions mightinclude partner ornetwork alliances

Customer perspectiveperceived control cancreate paradox ofchoice customer endsup worse offOrganizationalperspective requiresdescriptive anddiagnostic use ofcustomer data

Customer perspectivehighly socialexperience thatrequires high trust tointegrate socialresourcesOrganizationalperspective limited orno digital and physicaltouchpoints to createtrust and aligncustomerorganizationgoals

Requires a digitalplatform forinformation sharing amechanism for risksharing Socialpresence could bedelivered digitallyRequires descriptiveand diagnosticcapabilities but nopredictive analytics

Highphysicalcomplexity

Privacy vstransparency

Standardization vsflexibility

Avoidance vsattraction

Capabilities vsresources

Organizational andcustomer perspectiverequires informationsharing and lowperceived risk Trustbetween serviceproviders andcustomers is critical

Customer perspectivehigh coping abilitiesrequired Theorganizationrsquos decisionsupport systems mustbe excellent to providevalue in real timeOrganizationalperspective customerknowledge andorganizationallearning is required

Customer perspectivefeedback andperceived controlneededOrganizationalperspective how tocreate brandedcustomer experiencesthat fit with customerneeds in the presenceof other customers

Customer perspectivecustomer innovationand creativity throughparticipation Localsolutions may bepossible if services canbe modularizedOrganizationalperspectiveco-creation requiresorganizational learningand effective businessanalytics

Table IDualities in each ofthe eight octants

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customers to share a service and its costs design smaller packages or bundles create pre-paid service plans or develop micro-finance or loan programs (Anderson and Markides2007) Finally actors in markets with scarce resources may turn to the moral economy toco-create value with the limited resources available (Cheung et al 2017)

Bundling services high digital density low physicalsocial resourcesHigh digital density realms are capable of supporting favorable emotional social and sensoryresponses Thus gamification ndash that is adding game-like elements to a task to encouragecustomer participation can be an especially attractive strategy for organizations in B2Cmarkets Research has shown that gamification can lead to customer learning engagementand improved customer experiences (Harwood and Garry 2015 Landers 2014) Games arealso effective in employee training team-building and management However this strategy isonly effective when the goals of the organization and its customers are aligned Games haverules and structure whereas play often does not so organizational and customer goals mayconflict (Hofaker et al 2016 Walz and Deterding 2014) This conflict may cause customers torefuse to participate in games thereby defeating the purpose of the gamification

Hence a duality can arise in balancing a participantrsquos goals (ie entertainment) withorganizational goals such as customer learning or buying (Harwood and Garry 2015) Theunderlying reason for this duality is that gamification implicitly requires the creation ofldquooptimalrdquo bundles of features (ie learning components entertainment components) that arevaluable to both parties This same dilemma ndash optimal service bundling ndash also occurs in highdigital density B2B markets in a very different form B2B customers may be faced with amultitude of bundles that encompass an overwhelming number of options and combinationsso that a non-expert encounters a ldquoparadox of choicerdquo ndash whereby a customer feels betterduring the bundle creation process but (objectively) ends up worse off (Reutskaja andHogarth 2009) In both of these situations complex bundling increases the challenges ofco-creation ndash that is creating value for both parties while successfully monetizing the service

New approaches Organizations must know (or learn) the customerrsquos preferences todetermine the appropriate mix and sequences of entertainment and content (ie the bundle)that will be most effective in creating value (Landers 2014) Since organizations and theircustomers are likely to value bundles (and the underlying components) differentlyorganizations must also adopt a relational approach to mitigate conflicts that influencevalue co-creation (Tuli et al 2007) In sum organizations operating in both B2B and B2Cmarkets characterized by a high digital density environment must intensively developresources and capabilities for leveraging descriptive and diagnostic analytics of customerdata to co-create service bundles and pricing options that are valuable to both parties

Autonomy vs interdependence in high social low digitalphysical environmentsHigh social presence creates a shared experience which requires high levels of trust toaccomplish integration of social resources (Hennig-Thurau et al 2002) When physical anddigital resources are limited organizations are constrained in their capabilities to usetraditional methods of creating trust and integrating social resources For example many oftodayrsquos business models rely on digital platforms to build trust and integrate socialresources (eg Airbnb) and such platforms are absent in this octant Hence a duality mayemerge between autonomy (which frequently implies competition) vs interdependence(which can be more cooperative) Instances of both competition and cooperation can beobserved in markets as social actors work independently or collectively to meet their needs(Cheung and McColl-Kennedy 2015)

New approaches Organizations must find social mechanisms for aligning organizationalcustomer and employee goals Often this requires a significant culture change within

Customerexperiencechallenges

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organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

JOSM

Dow

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)

offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

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imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

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design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 13: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Base of the pyramid (BoP) or scarcity in digital physical and social realmsThe low digitalphysicalsocial octant represents a condition of scarcity in which resourceconstraints (or uneven distribution of resources) hinder value co-creation in many forms(Gebauer and Reynoso 2013 London et al 2010) There are vast numbers of people who liveevery day with scarce resources sometimes referred to as BoP In addition during naturaldisasters individuals may find themselves temporarily without access to many resources(Cheung et al 2017) We believe that the scarcity duality arises from fundamentallydifferent perspectives on value held by different actors in a service ecosystem For examplefor-profit business objectives (and sometimes non-profit objectives) may not match the goalsof individuals in markets with scarce or unevenly distributed resources due to culturalpolitical issues related to power structures (Arora and Romijn 2011)

New approaches One approach to these challenges is to acquire a partner or engage in anetwork alliance thereby tapping into knowledge resources and capabilities related to thelocal market (Rivera-Santos and Rufiacuten 2010) An example of a successful alliance thatco-creates value with customers who face scarce resources in many countries is the UnitedNations-led initiative to eradicate malaria by 2040 (UN News 2015) Another approach tosuccessfully operating in markets with scarce resources entails the development novelbusiness models especially with respect to pricing For example organizations may enable

Low social presence High social presenceLow digital density High digital density Low digital density High digital density

Lowphysicalcomplexity

Base of the pyramidchallenges

Organization bundlesvs customer bundles

Autonomy(competitive) vsinterdependence(cooperation)

Regulation by actorsvs regulation bycommunity

Customerperspective scarcityof resources valuesincompatibilityOrganizationalperspective fee vsfree potentialsolutions mightinclude partner ornetwork alliances

Customer perspectiveperceived control cancreate paradox ofchoice customer endsup worse offOrganizationalperspective requiresdescriptive anddiagnostic use ofcustomer data

Customer perspectivehighly socialexperience thatrequires high trust tointegrate socialresourcesOrganizationalperspective limited orno digital and physicaltouchpoints to createtrust and aligncustomerorganizationgoals

Requires a digitalplatform forinformation sharing amechanism for risksharing Socialpresence could bedelivered digitallyRequires descriptiveand diagnosticcapabilities but nopredictive analytics

Highphysicalcomplexity

Privacy vstransparency

Standardization vsflexibility

Avoidance vsattraction

Capabilities vsresources

Organizational andcustomer perspectiverequires informationsharing and lowperceived risk Trustbetween serviceproviders andcustomers is critical

Customer perspectivehigh coping abilitiesrequired Theorganizationrsquos decisionsupport systems mustbe excellent to providevalue in real timeOrganizationalperspective customerknowledge andorganizationallearning is required

Customer perspectivefeedback andperceived controlneededOrganizationalperspective how tocreate brandedcustomer experiencesthat fit with customerneeds in the presenceof other customers

Customer perspectivecustomer innovationand creativity throughparticipation Localsolutions may bepossible if services canbe modularizedOrganizationalperspectiveco-creation requiresorganizational learningand effective businessanalytics

Table IDualities in each ofthe eight octants

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customers to share a service and its costs design smaller packages or bundles create pre-paid service plans or develop micro-finance or loan programs (Anderson and Markides2007) Finally actors in markets with scarce resources may turn to the moral economy toco-create value with the limited resources available (Cheung et al 2017)

Bundling services high digital density low physicalsocial resourcesHigh digital density realms are capable of supporting favorable emotional social and sensoryresponses Thus gamification ndash that is adding game-like elements to a task to encouragecustomer participation can be an especially attractive strategy for organizations in B2Cmarkets Research has shown that gamification can lead to customer learning engagementand improved customer experiences (Harwood and Garry 2015 Landers 2014) Games arealso effective in employee training team-building and management However this strategy isonly effective when the goals of the organization and its customers are aligned Games haverules and structure whereas play often does not so organizational and customer goals mayconflict (Hofaker et al 2016 Walz and Deterding 2014) This conflict may cause customers torefuse to participate in games thereby defeating the purpose of the gamification

Hence a duality can arise in balancing a participantrsquos goals (ie entertainment) withorganizational goals such as customer learning or buying (Harwood and Garry 2015) Theunderlying reason for this duality is that gamification implicitly requires the creation ofldquooptimalrdquo bundles of features (ie learning components entertainment components) that arevaluable to both parties This same dilemma ndash optimal service bundling ndash also occurs in highdigital density B2B markets in a very different form B2B customers may be faced with amultitude of bundles that encompass an overwhelming number of options and combinationsso that a non-expert encounters a ldquoparadox of choicerdquo ndash whereby a customer feels betterduring the bundle creation process but (objectively) ends up worse off (Reutskaja andHogarth 2009) In both of these situations complex bundling increases the challenges ofco-creation ndash that is creating value for both parties while successfully monetizing the service

New approaches Organizations must know (or learn) the customerrsquos preferences todetermine the appropriate mix and sequences of entertainment and content (ie the bundle)that will be most effective in creating value (Landers 2014) Since organizations and theircustomers are likely to value bundles (and the underlying components) differentlyorganizations must also adopt a relational approach to mitigate conflicts that influencevalue co-creation (Tuli et al 2007) In sum organizations operating in both B2B and B2Cmarkets characterized by a high digital density environment must intensively developresources and capabilities for leveraging descriptive and diagnostic analytics of customerdata to co-create service bundles and pricing options that are valuable to both parties

Autonomy vs interdependence in high social low digitalphysical environmentsHigh social presence creates a shared experience which requires high levels of trust toaccomplish integration of social resources (Hennig-Thurau et al 2002) When physical anddigital resources are limited organizations are constrained in their capabilities to usetraditional methods of creating trust and integrating social resources For example many oftodayrsquos business models rely on digital platforms to build trust and integrate socialresources (eg Airbnb) and such platforms are absent in this octant Hence a duality mayemerge between autonomy (which frequently implies competition) vs interdependence(which can be more cooperative) Instances of both competition and cooperation can beobserved in markets as social actors work independently or collectively to meet their needs(Cheung and McColl-Kennedy 2015)

New approaches Organizations must find social mechanisms for aligning organizationalcustomer and employee goals Often this requires a significant culture change within

Customerexperiencechallenges

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organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

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offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

Customerexperiencechallenges

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

Customerexperiencechallenges

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

Customerexperiencechallenges

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

Dow

nloa

ded

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2018

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)

imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

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ded

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2018

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)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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JOSM

Dow

nloa

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by D

octo

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uth

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olto

n A

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ber

2018

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Kranzbuumlhler AM Kleijnen MHP Morgan RE and Teerling M (2017) ldquoThe multilevel nature ofcustomer experience research an integrative review and research agendardquo International Journalof Management Reviews Vol 20 No 2 pp 433-456

Kumar V and Reinartz W (2016) ldquoCreating enduring customer valuerdquo Journal of Marketing Vol 80No 6 pp 36-68

Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

Pine BJ and Gilmore JH (1998) ldquoWelcome to the experience economyrdquo Harvard Business ReviewVol 76 JulyAugust pp 97-105

Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Rogers CR (1975) ldquoEmpathy an unappreciated way of beingrdquo The Counseling Psychologist Vol 5No 2 pp 2-10

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Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

Schumann JH Wuumlnderlich NV and Wangenheim F (2012) ldquoTechnology mediation in servicedelivery a new typology and an agenda for managers and academicsrdquo Technovation Vol 32No 2 pp 133-143

Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 14: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

customers to share a service and its costs design smaller packages or bundles create pre-paid service plans or develop micro-finance or loan programs (Anderson and Markides2007) Finally actors in markets with scarce resources may turn to the moral economy toco-create value with the limited resources available (Cheung et al 2017)

Bundling services high digital density low physicalsocial resourcesHigh digital density realms are capable of supporting favorable emotional social and sensoryresponses Thus gamification ndash that is adding game-like elements to a task to encouragecustomer participation can be an especially attractive strategy for organizations in B2Cmarkets Research has shown that gamification can lead to customer learning engagementand improved customer experiences (Harwood and Garry 2015 Landers 2014) Games arealso effective in employee training team-building and management However this strategy isonly effective when the goals of the organization and its customers are aligned Games haverules and structure whereas play often does not so organizational and customer goals mayconflict (Hofaker et al 2016 Walz and Deterding 2014) This conflict may cause customers torefuse to participate in games thereby defeating the purpose of the gamification

Hence a duality can arise in balancing a participantrsquos goals (ie entertainment) withorganizational goals such as customer learning or buying (Harwood and Garry 2015) Theunderlying reason for this duality is that gamification implicitly requires the creation ofldquooptimalrdquo bundles of features (ie learning components entertainment components) that arevaluable to both parties This same dilemma ndash optimal service bundling ndash also occurs in highdigital density B2B markets in a very different form B2B customers may be faced with amultitude of bundles that encompass an overwhelming number of options and combinationsso that a non-expert encounters a ldquoparadox of choicerdquo ndash whereby a customer feels betterduring the bundle creation process but (objectively) ends up worse off (Reutskaja andHogarth 2009) In both of these situations complex bundling increases the challenges ofco-creation ndash that is creating value for both parties while successfully monetizing the service

New approaches Organizations must know (or learn) the customerrsquos preferences todetermine the appropriate mix and sequences of entertainment and content (ie the bundle)that will be most effective in creating value (Landers 2014) Since organizations and theircustomers are likely to value bundles (and the underlying components) differentlyorganizations must also adopt a relational approach to mitigate conflicts that influencevalue co-creation (Tuli et al 2007) In sum organizations operating in both B2B and B2Cmarkets characterized by a high digital density environment must intensively developresources and capabilities for leveraging descriptive and diagnostic analytics of customerdata to co-create service bundles and pricing options that are valuable to both parties

Autonomy vs interdependence in high social low digitalphysical environmentsHigh social presence creates a shared experience which requires high levels of trust toaccomplish integration of social resources (Hennig-Thurau et al 2002) When physical anddigital resources are limited organizations are constrained in their capabilities to usetraditional methods of creating trust and integrating social resources For example many oftodayrsquos business models rely on digital platforms to build trust and integrate socialresources (eg Airbnb) and such platforms are absent in this octant Hence a duality mayemerge between autonomy (which frequently implies competition) vs interdependence(which can be more cooperative) Instances of both competition and cooperation can beobserved in markets as social actors work independently or collectively to meet their needs(Cheung and McColl-Kennedy 2015)

New approaches Organizations must find social mechanisms for aligning organizationalcustomer and employee goals Often this requires a significant culture change within

Customerexperiencechallenges

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organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

JOSM

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offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

Customerexperiencechallenges

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)

involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

Customerexperiencechallenges

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

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imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

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design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

References

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Ahearne M Jones E Rapp A and Mathieu JE (2008) ldquoHigh touch through high tech the impact ofsalesperson technology usage on sales performance via mediating mechanismsrdquo ManagementScience Vol 54 No 4 pp 671-685

Amazon (2018) ldquoAmazon Gordquo available at wwwamazoncombnode=16008589011 (accessedAugust 1 2018)

Anderson J and Markides C (2007) ldquoStrategic innovation at the base of the pyramidrdquo MIT SloanManagement Review Vol 49 No 1 p 83

Anderson L and Ostrom AL (2015) ldquoTransformative service research advancing our knowledgeabout service and well-beingrdquo Journal of Service Research Vol 18 No 3 pp 243-249

Antons D and Breidbach CF (2018) ldquoBig data big insights Advancing service innovation anddesign with machine learningrdquo Journal of Service Research Vol 21 No 1 pp 17-39

Arora S and Romijn H (2011) ldquoThe empty rhetoric of poverty reduction at the base of the pyramidrdquoOrganization Vol 19 No 4 pp 481-505

Aspers P (2009) ldquoKnowledge and valuation in marketsrdquo Theory and Society Vol 38 No 2 p 111

Ballantyne D and Nilsson E (2017) ldquoAll that is solid melts into air the servicescape in digital servicespacerdquo Journal of Services Marketing Vol 31 No 3 pp 226-235

Barton D and Court D (2012) ldquoMaking advanced analytics work for yourdquo Harvard Business ReviewVol 90 No 10 pp 78-83

Batra R and Keller KL (2016) ldquoIntegrating marketing communications new findings new lessonsand new ideasrdquo Journal of Marketing Vol 80 No 6 pp 122-145

BEIS (2013) ldquoMarket assessment of public sector informationrdquo Department for Business Innovationand Skills p 235 available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile198905bis-13-743-market-assessment-of-public-sector-informationpdf

Customerexperiencechallenges

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nloa

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octo

r R

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23 2

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ber

2018

(PT

)

Bendapudi N and Berry LL (1997) ldquoCustomersrsquo motivations for maintaining relationships withservice providersrdquo Journal of Retailing Vol 73 No 1 pp 15-37

Bendapudi N and Leone R (2003) ldquoPsychological implications of customer participation inco-productionrdquo Journal of Marketing Vol 67 No 1 pp 14-28

Benoit S Baker TL Bolton RN Gruber T and Kandampully J (2017) ldquoA triadic framework forcollaborative consumption (CC) motives activities and resources amp capabilities of actorsrdquoJournal of Business Research Vol 79 October pp 219-227

Berry LL and Bendapudi N (2007) ldquoA fertile field for service researchrdquo Journal of Service ResearchVol 10 No 2 pp 111-122

Bharati P and Chaudhury A (2004) ldquoAn empirical investigation of decision-making satisfaction inweb-based decision support systemsrdquo Decision Support Systems Vol 37 No 2 pp 187-197

Bitner MJ (1992) ldquoServicescapes the impact of physical surroundings on customers and employeesrdquoJournal of Marketing Vol 56 No 2 pp 57-71

Black H and Gallan AS (2015) ldquoTransformative service networks cocreated value as well-beingrdquoThe Service Industries Journal Vol 35 No 15-16 pp 826-845

Blut M Wang C and Schoefer K (2016) ldquoFactors influencing the acceptance of self-servicetechnologies a meta-analysisrdquo Journal of Service Research Vol 19 No 4 pp 396-416

Bolton RN (2011) ldquoComment customer engagement opportunities and challenges for organizationsrdquoJournal of Service Research Vol 14 No 3 pp 272-274

Bolton RN (2016) Service Excellence Creating Customer Experiences that Build RelationshipsBusiness Expert Press New York NY

Bolton RN (2018) ldquoService timing designing and executing service in a dynamic environmentrdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Bolton RN and Saxena-Iyer S (2009) ldquoInteractive services a framework synthesis and researchdirectionrdquo Journal of Interactive Marketing Vol 23 No 1 pp 91-104

Bolton RN Gustafsson A McColl-Kennedy J Sirianni NJ and Tse DK (2014) ldquoSmall details thatmake big differences a radical approach to consumption experience as a firmrsquos differentiatingstrategyrdquo Journal of Service Management Vol 25 No 2 pp 253-274

Bowcott O (2017) ldquoUber to face stricter EU regulation after ECJ rules it is transport firmrdquo TheGuardian December 20 available at wwwtheguardiancomtechnology2017dec20uber-european-court-of-justice-ruling-barcelona-taxi-drivers-ecj-eu (accessed August 1 2018)

Bowen DE (2016) ldquoThe changing role of employee in service theory and practice an interdisciplinaryviewrdquo Human Resource Management Review Vol 26 No 1 pp 4-13

Bowen DE Siehl C and Schneider B (1989) ldquoA framework for analyzing customer serviceorientations in manufacturingrdquo Academy of Management Review Vol 14 No 1 pp 75-95

Breidbach CF Choi S Ellway BE Keating BW Kormusheva K Kowalkowski C Lim C andMaglio P (2018) ldquoOperating without operations how is technology changing the role of thefirmrdquo Journal of Service Management Vol 29 No 5 (in press)

Burdick A (2018) ldquoThe marriage-saving robot that can assemble IKEA furniture sort ofrdquo TheNew Yorker April 18 available at wwwnewyorkercomelementslab-notesthe-marriage-saving-robot-that-can-assemble-ikea-furniture-sort-of (accessed August 1 2018)

Capaldo A (2014) ldquoNetwork governance a cross-level study of social mechanisms knowledgebenefits and strategic outcomes in joint-design alliancesrdquo Industrial Marketing ManagementVol 43 No 4 pp 685-703

Cheung L and McColl-Kennedy JR (2015) ldquoResource integration in liminal periods transitioning totransformative servicerdquo Journal of Services Marketing Vol 29 Nos 67 pp 485-497

Cheung L McColl-Kennedy JR and Coote LV (2017) ldquoConsumer-citizens mobilizing social capitalfollowing a natural disaster effects on well-beingrdquo Journal of Services Marketing Vol 31Nos 45 pp 438-451

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Dow

nloa

ded

by D

octo

r R

uth

N B

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n A

t 08

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0 Se

ptem

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2018

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Cohen N (2014) ldquoThe silver economy healthier and wealthierrdquo Financial Times October 19 available atwwwftcomcontent08bff556-52c7-11e4-a236-00144feab7de (accessed March 19 2018)

Danaher TS and Gallan AS (2016) ldquoService research in health care positively impacting livesrdquoJournal of Service Research Vol 19 No 4 pp 433-437

Davis FD Bagozzi RP and Warshaw PR (1989) ldquoUser acceptance of computer technologya comparison of two theoretical modelsrdquo Management Science Vol 35 No 8 pp 982-1003

De Keyser A Lemon KN Klaus P and Keiningham TL (2015) ldquoA framework for understandingand managing the customer experiencerdquo Working Paper Series No 15-121 Marketing ScienceInstitute Cambridge MA available at wwwmsiorgreportsa-framework-for-understanding-and-managing-the-customer-experience

Delcourt C Gremler D Van Riel ACR and Van Birgelen M (2013) ldquoEffects of perceived employeeemotional competence on customer satisfaction and loyalty the mediating role of rapportrdquoJournal of Service Management Vol 24 No 1 pp 2-24

Deloitte (2017) ldquoAssessing the value of TfLrsquos open data and digital partnershipsrdquo Deloitte Londonp 28 available at httpcontenttflgovukdeloitte-report-tfl-open-datapdf

Department for Business Energy and Industrial Strategy (2017) Industrial Strategy Building a BritainFit for the Future ISBN 9781528601313 Department for Business Energy and IndustrialStrategy London p 256 available at wwwgovukgovernmentpublicationsindustrial-strategy-building-a-britain-fit-for-the-future

Ding Y and Keh HT (2016) ldquoA re-examination of service standardization versus customization fromthe consumerrsquos perspectiverdquo Journal of Services Marketing Vol 30 No 1 pp 16-28

Edvardsson B Enquist B and Johnston R (2010) ldquoDesign dimensions of experience rooms forservice test drives case studies in several service contextsrdquo Managing Service Quality AnInternational Journal Vol 20 No 4 pp 312-327

Fauconnier G and Turner M (1998) ldquoConceptual integration networksrdquo Cognitive Science Vol 22No 2 pp 133-187

Feil-Seifer D and Matari MJ (2005) ldquoDefining socially assistive roboticsrdquo Proceedings of the IEEEInternational Conference on Rehabilitation Robotics June pp 465-468

Frow P McColl-Kennedy JR and Payne AF (2016) ldquoCo-creation practices their role in shaping ahealth care ecosystemrdquo Industrial Marketing Management Vol 56 July pp 24-39

Gabbott M Tsarenko Y and Mok WH (2011) ldquoEmotional intelligence as a moderator of copingstrategies and service outcomes in circumstances of service failurerdquo Journal of Service ResearchVol 14 No 2 pp 234-248

Gallan AS Jarvis CB Brown SW and Bitner MJ (2013) ldquoCustomer positivity and participation inservices an empirical test in a health care contextrdquo Journal of the Academy of Marketing ScienceVol 41 No 3 pp 338-356

Gallo C (2017) ldquoStarbucksrsquo cool new brew storytelling with a digital twistrdquo Forbes December 11available at wwwforbescomsitescarminegallo20171211starbucks-cool-new-brew-storytelling-with-a-digital-twist71d0d2c97735 (accessed August 1 2018)

Gantz J and Reinsel D (2012) ldquoThe digital universe in 2020 big data bigger digital shadows andbiggest growth in the far eastrdquo IDC iView IDC Analyze the Future Framingham MA pp 1-16

Gebauer H and Reynoso J (2013) ldquoAn agenda for service research at the base of the pyramidrdquo Journalof Service Management Vol 24 No 5 pp 482-501

Gentile C Spiller N and Noci G (2007) ldquoHow to sustain the customer experience an overview ofexperience components that co-create value with the customerrdquo European Management JournalVol 25 No 5 pp 395-410

Giebelhausen M Robinson SG Sirianni NJ and Brady MK (2014) ldquoTouch versus tech whentechnology functions as a barrier or a benefit to service encountersrdquo Journal of MarketingVol 78 No 4 pp 113-124

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Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

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ber

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Giraldi L Mengoni M and Bevilacqua M (2016) ldquoHow to enhance customer experience in retailinvestigations through a case studyrdquo Proceedings of the 23rd ISPE Inc International Conferenceon Transdisciplinary Engineering Vols 3-7 October pp 381-390

Gittell JH (2006) ldquoRelational coordination coordinating work through relationships of shared goals sharedknowledge and mutual respectrdquo in Kyriakidou O and Oumlzbilgin MF (Eds) Relational Perspectives inOrganizational Studies A Research Companion Edward Elgar Cheltenham pp 74-94

Goffman E (1967) ldquoOn face-workrdquo Interaction Ritual Essays on Face-to-Face Behavior pp 5-46

Goldman Sachs Equity Research (2017) ldquoChinarsquos rise in artificial intelligence ndash the new ChinardquoGoldman Sachs available at www2caictaccnzscpqqzkgzljyd201709P020170921309379565253pdf (accessed March 1 2018)

Gostin LO Lazzarini Z Neslund VS and Osterholm MT (1996) ldquoThe public health informationinfrastructure a national review of the law on health information privacyrdquo The Journal of theAmerican Medical Association Vol 275 No 24 pp 1921-1927

Greacutegoire Y Tripp TM and Legoux R (2009) ldquoWhen customer love turns into lasting hate the effectsof relationship strength and time on customer revenge and avoidancerdquo Journal of MarketingVol 73 No 6 pp 18-32

Gremler DD and Gwinner KP (2000) ldquoCustomer-employee rapport in service relationshipsrdquo Journalof Service Research Vol 3 No 1 pp 82-104

Grewal D Levy M and Kumar V (2009) ldquoCustomer experience in retailing an organizingframeworkrdquo Journal of Retailing Vol 85 No 1 pp 1-14

Guo L Lotz SL Tang C and Gruen TW (2016) ldquoThe role of perceived control in customer valuecocreation and service recovery evaluationrdquo Journal of Service Research Vol 19 No 1 pp 39-56

Hartmann PM Zaki M Feldmann N and Neely A (2016) ldquoCapturing value from big data ndash ataxonomy of data-driven business models used by start-up firmsrdquo International Journal ofOperations amp Production Management Vol 36 No 10 pp 1382-1406

Harwood T and Garry T (2015) ldquoAn investigation into gamification as a customer engagementexperience environmentrdquo Journal of Services Marketing Vol 29 Nos 67 pp 533-546

Hazeacutee S Delcourt C and Van Vaerenbergh Y (2017) ldquoSharing goods Yuck No An investigation ofproduct contamination in access-based servicesrdquo Journal of Service Research Vol 20 No 4pp 441-456

Hennig-Thurau T Gwinner KP and Gremler DD (2002) ldquoUnderstanding relationship marketingoutcomes an integration of relational benefits and relationship qualityrdquo Journal of ServiceResearch Vol 4 No 3 pp 230-247

Hofaker CF de Ruyter K Lurie NH Manchanda P and Donaldson J (2016) ldquoGamification andmobile marketing effectivenessrdquo Journal of Interactive Marketing Vol 34 May pp 25-36

Hoffman DL and Novak TP (2018) ldquoConsumer and object experience in the Internet of Things anassemblage theory approachrdquo Journal of Consumer Research Vol 44 No 6 pp 1178-1204

Homburg C Jozić D and Kuehnl C (2017) ldquoCustomer experience management toward implementingan evolving marketing conceptrdquo Journal of the Academy of Marketing Science Vol 45 No 3pp 377-401

Huang M-H and Rust RT (2018) ldquoArtificial intelligence in servicerdquo Journal of Service ResearchVol 21 No 2 pp 155-172

Kang C and Roose K (2018) ldquoZuckerberg faces hostile congress as calls for regulation mountrdquo TheNew York Times April 11 p B4 available at wwwnytimescom20180411businesszuckerberg-facebook-congresshtml

Kopalle P (2014) ldquoWhy Amazonrsquos anticipatory shipping is pure geniusrdquo Forbes January 28 available atwwwforbescomsitesonmarketing20140128why-amazons-anticipatory-shipping-is-pure-genius4594345f4605 (accessed August 1 2018)

Kozinets R Patterson A and Ashman R (2016) ldquoNetworks of desire how technology increases ourpassion to consumerdquo Journal of Consumer Research Vol 43 No 5 pp 659-682

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Dow

nloa

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by D

octo

r R

uth

N B

olto

n A

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0 Se

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Kranzbuumlhler AM Kleijnen MHP Morgan RE and Teerling M (2017) ldquoThe multilevel nature ofcustomer experience research an integrative review and research agendardquo International Journalof Management Reviews Vol 20 No 2 pp 433-456

Kumar V and Reinartz W (2016) ldquoCreating enduring customer valuerdquo Journal of Marketing Vol 80No 6 pp 36-68

Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

Pine BJ and Gilmore JH (1998) ldquoWelcome to the experience economyrdquo Harvard Business ReviewVol 76 JulyAugust pp 97-105

Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Reutskaja E and Hogarth RM (2009) ldquoSatisfaction in choice as a function of the number ofalternatives when lsquogoods satiatersquo rdquo Psychology amp Marketing Vol 26 No 3 pp 197-203

Rivera-Santos M and Rufiacuten C (2010) ldquoGlobal village vs small town understanding networks at thebase of the pyramidrdquo International Business Review Vol 19 No 2 pp 126-139

Rogers CR (1975) ldquoEmpathy an unappreciated way of beingrdquo The Counseling Psychologist Vol 5No 2 pp 2-10

Rogers EM (1995) Diffusion of Innovations 4th ed Free Press New York NY

Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

Schumann JH Wuumlnderlich NV and Wangenheim F (2012) ldquoTechnology mediation in servicedelivery a new typology and an agenda for managers and academicsrdquo Technovation Vol 32No 2 pp 133-143

Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

Dow

nloa

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by D

octo

r R

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olto

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23 2

0 Se

ptem

ber

2018

(PT

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 15: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

organizations necessitating an alignment of all departments including those that areinternal-facing on quality as defined by the customer (Olian and Rynes 1991) In additionrelational forms of coordination are expected to be most useful under high levels of taskinterdependence uncertainty and time constraints Although recent contingency theoriesemphasize the importance of shared knowledge or shared understandings the theory ofrelational coordination argues that shared knowledge is a necessary but not sufficientcondition If effective coordination is to occur participants must also be connected byldquorelationships of shared goals and mutual respectrdquo (Gittell 2006 p 75)

Regulatory challenges in high socialdigital environmentsIn this octant digital density and social presence are high but physical complexity isrelatively low New business models are already emerging to fit these conditionsFor example both Airbnb and Uber bring together (human) service providers andconsumers via an electronic platform A duality emerges regarding the source of regulationis it imposed by one of the actors in the ecosystem (such as the government) or by thecommunity As we have seen from the history of both Airbnb and Uber (Bowcott 2017)the most likely answer is that different actors or groups may regulate different aspects ofthe customer experience As we write the US Congress is holding hearings about whetherand how to regulate Facebook (Kang and Roose 2018)

New approaches Governance by the community requires C2C communication and oftenuses a digital platform for information sharing and a mechanism for risk sharing (Capaldo2014) To encourage information sharing organizations must develop a reputation formaking and keeping brand promises New communication models ndashwhich combine ldquobottomuprdquo and ldquotop downrdquo communications ndash can be helpful in this respect (Batra and Keller 2016Lamberton and Stephen 2016) In addition to manage customer experiences in highsocialdigital spaces organizations will need to utilize descriptive and diagnostic analyticsto facilitate co-creation activities (Wedel and Kannan 2016) In this way organizationsoperating in this octant can facilitate the flow of information the integrity of evaluationsand the ability of customers to co-design their experiences (Bolton 2011)

Transparency vs privacy in complex physical low socialdigital environmentsIn this octant interactions between organizations and customers take place in a physicallycomplex space where other actors and sources of information are low (low social presence andlow digital density) For example the healthcare industry is currently transitioning from afragmented low digital density environment to an integrated high digital densityenvironment Patients share personal health information with medical providers andsharing occurs (locally) within the healthcare network Hence patients struggle to maintaintheir privacy and obtain transparency from their healthcare providers (Berry and Bendapudi2007) In this octant trust between the service provider and customer is essential because bothactors are identifiable Consequently there is some loss of privacy and (at the same time) aneed for transparency from the partner These two needs are in opposition creating a dualitythat can impede the development of the customerndashfirm relationship Moreover there are a hostof unresolved issues associated with data base management data sharing and privacy andthese issues can arise even when digital density is relatively low

New approaches To address this duality information sharing and appropriate attitudestoward risk must emerge Personal sharing of data and organizational data collection areboth likely to be necessary Ideally organizations should store activity information andpersonal identifiable information (PII) in separate ways that cannot be misusedOrganizational transparency concerning data management practices are necessarybecause customersrsquo perceived control over the providerrsquos handling of personal data can

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offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

Customerexperiencechallenges

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

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)

imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

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2018

(PT

)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

Schumann JH Wuumlnderlich NV and Wangenheim F (2012) ldquoTechnology mediation in servicedelivery a new typology and an agenda for managers and academicsrdquo Technovation Vol 32No 2 pp 133-143

Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 16: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

offset their perceptions of vulnerability (Martin et al 2017 p 36) Often governments haveintervened to ensure organizational transparency and appropriate security concerning thehandling of medical records (Gostin et al 1996) We may see similar interventions occur inother industry sectors where people share sensitive information such as in banking andfinance accounting and law

Standardization vs flexibility in environments high in physicaldigital resourcesIn this octant the environment is both physically complex and digitally dense so thatcustomization may be necessary for organizations and customers to co-create superiorexperiences Customization typically depends on the willingness of customers (people orbusinesses) to share their information with service providers However customersrsquo concernsabout data privacy and security may inhibit them from engaging with service systemsMartin et al (2017) found that when organizations are transparent in their data managementpractices and offer customers some level of control over their individual data they candiminish the negative effects of customer data vulnerability Since social presence is low inthis octant trust building is likely to require digital technologies that ensure data privacyand security Thus when customer experiences occur in a state of high physical complexityand high digital density yet low social presence a duality arises from trade-offs betweenstandardization vs flexibility of services and offerings (Bowen et al 1989)

New approaches The trade-off between standardization and customization arisesbecause data sharing depends on customer perceptions of control and risk (Ding and Keh2016) Today regulations and best practices for data privacy and security are evolving veryrapidly as well as usersrsquo expectations about how their data are collected stored usedprotected and deleted Cyber threats viral infections and security breaches can have a majornegative effect on the customer experience eroding trust in organizations and potentiallydisrupting customersrsquo relationships with brands According to analysts only about50 percent of the information in the digital universe that should be protected actually isprotected (Gantz and Reinsel 2012) From an organizational perspective customerknowledge and organizational learning is required (Kumar and Reinartz 2016) From acustomer perspective decision support systems (Bharati and Chaudhury 2004) and highcoping abilities are required (Gabbott et al 2011) For these reasons much more work isneeded on how trade-offs between customization and standardization depend on theresources and capabilities of the organization and its customers

Avoidance vs attraction in environments high in physicalsocial resourcesIn this octant the environment is rich in physical and social resources but not in (digital)information Examples include hair and beauty salon services traditional nursing andrepair services Customer experiences in this condition may produce tensions betweencustomer avoidance and attraction (Bendapudi and Berry 1997 Greacutegoire et al 2009) Thisduality may be particularly true in branded customer experiences where employeendashbrandcongruency and employee authenticity play a significant role in attracting customers(Sirianni et al 2013) For example Starbucks has leveraged its employees to create brandedcustomer experiences that are effective in attracting and retaining customers (Gallo 2017)

New approaches Researchers are beginning to investigate how employeendashbrandcongruency (ldquofitrdquo) and employee authenticity influence the customer experienceResearchers have suggested that employee emotional competence employeendashcustomerrapport and matching employeendashcustomer empathy influence the customer experience andbusiness outcomes (Delcourt et al 2013 Gremler and Gwinner 2000 Wieseke et al 2012)However there are many unanswered questions when and how do customers wish to engagewith service offerings in situations where other customers (or other peopleemployees) are

Customerexperiencechallenges

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involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

Customerexperiencechallenges

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

Customerexperiencechallenges

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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)

For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

JOSM

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(PT

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

Dow

nloa

ded

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)

imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

Dow

nloa

ded

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2018

(PT

)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

References

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Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

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Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

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Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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nloa

ded

by D

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n A

t 08

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0 Se

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Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

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Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

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Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

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Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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by D

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Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

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Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 17: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

involved (Libai et al 2010) To what extent do customers require feedback and perceivedcontrol to participate in a successful service experience (Guo et al 2016) Recently Singh et al(2017) have emphasized that organizationndashcustomer interactions are embedded in richcontexts and thus increasingly diverse so that deepening customer engagement and creatingconsistently excellent service encounters across multiple touchpoints is necessary forthe co-creation of value They have called for research to investigate the opportunities andchallenges of effectively managing organizational frontlines and outlined a forward-lookingresearch agenda

Capabilities vs resources leveraging high physical social and digital resourcesThis octant is rich in resources with high physical complexity high digital density and highsocial presence For this reason actors in the service ecosystem must have the capabilities tomanage these resources to co-create value (Frow et al 2016) A duality is likely to emergeover how the service creation and delivery process is managed which leads to the questionIs individual optimization necessary to co-create a superior customer experience What canorganizations offer and what do customers prefer and when What role does each actor inthe service network play

New approaches Organizational learning is required to properly design and deliverexceptional customer experiences (Payne et al 2008 Slater and Narver 2000) Henceorganizations will require superior data and business analytics (Barton and Court 2012)One option is that the organization develops distinct service modules that the customer canassemble to co-design the experiences that heshe prefers thereby co-designing locallyoptimal solutions Other organizations have outsourced certain functions (eg field services)when they can be managed independently from the rest of the service system For examplemany organizations use automated social presence (eg chatbots) to solve simple servicerequests from customers and route complex service requests to highly trained servicerepresentatives who can use more powerful tools to collaborate with customers A furtherdilemma emerges about whether services can (and should) be co-created dynamically inreal-time or asynchronously ndash ahead of time (Bolton 2018) For example Amazon has fileda patent for a method and system for anticipatory package shipping ndash whereby it leveragespredictive analytics to ship packages to a nearby logistics hub before the customer hasrequested it (Kopalle 2014)

The service ecosystem integrating the digital physical and social realmsOrganizations and customers face many trade-offs in co-creating a superior customerexperience and dualities will inevitably arise A key issue is how to design and managecustomer experiences so that there is a congruency within and across the threerealms By congruency we refer to the fit between the organizationrsquos capabilities andresources and the customerrsquos capabilities and resources Congruency requires connectivityamong the realms consistency among the elements in the different realms and thematiccohesion ndash taken together superior service design This framework is depicted in Figure 5It highlights the need for an integrated theoretical perspective on how value co-creationtakes place within and across the digital physical and social realms This section discusseshow mid-range theory has evolved in the services literature to capture this increasinglycomplex service ecosystem (see Table II)

Theories originating from research on the physical realmTraditional theories about the customer experience began in the physical realm (eg Bitner1992) Table II shows that these theories emphasize peoplersquos cognitive emotional andsensory responses to stimuli Subsequently service researchers recognized the importance

JOSM

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of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

Customerexperiencechallenges

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

JOSM

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

Customerexperiencechallenges

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

Dow

nloa

ded

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2018

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)

imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

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ded

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2018

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)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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JOSM

Dow

nloa

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by D

octo

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uth

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olto

n A

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ber

2018

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Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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nloa

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by D

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n A

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Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

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Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

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Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

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Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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by D

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Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 18: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

of the social servicescape (eg Tombs and McColl-Kennedy 2003) It emphasized social andsocially symbolic stimuli that may enhance or constrain peoplersquos actions therebyinfluencing the customer experience Emergent theory has begun to consider the customerjourney over time as well as bringing together the digital physical and social realms In thisway it recognizes that customer experiences are path dependent and co-created in aldquoblended servicescaperdquo Since organizations such as American Express are alreadyexperimenting with augmented and virtual reality business practice is overtaking businesstheory at this point in time

Theories originating from research on the digital realmA parallel stream of research has focused (solely) on the customer experience in the digitalrealm (Table II) It has been dominated by several powerful theories such as the technologyacceptance model (Davis et al 1989) They have provided a deeper understanding of thecustomer experience by identifying many concepts that are important in the digital realmsuch as ease of use and self-efficacy However this stream of research has emphasizedtechnology acceptance and adoption (Venkatesh et al 2012) rather than technology usageBy focusing on the adoption decision research recognized an implicit comparison standardnamely the physical realm (ie without technology) However emergent theory has begun toconsider technology usage as a collective (social) phenomenon through networks ratherthan as an individual phenomenon (Kozinets et al 2016)

Theories originating from research on the social realmTheoretical work has consistently recognized the social realm beginning withconceptualizations of customer and employee roles within a service encounter(Surprenant and Solomon 1987) However as technology has come to mediate andaugment encounters between organizations and customers theoretical work increasinglyemphasized how organizations and customers actively collaborate and coordinate theiractivities to create superior customer experiences (Bowen 2016 Lariviegravere et al 2017)Technology may induce new employee and customer roles in the service encounter Inaddition the boundaries between customer and employee roles becomes less clear becausetechnological mediation abolishes the need for the co-location of customer and providers(Schumann et al 2012) Moreover as the nature of customer participation changes roleclarity and successful role performance are necessary to co-create high quality servicefavorable customer experiences and successful organizational outcomes (Bolton andSaxena-Iyer 2009)

Service EcosystemThree Realms

Congruency AcrossRealms

Holistic CustomerExperience

Cocreation

OrganizationResources andCapabilities

CustomerResources andCapabilities

bull Digital bull Thematic cohesion bull Cognitivebull Emotional bull Sensorybull Social (Relational)bull Value (lifestyle spiritual)

bull Consistency of elementsbull Connectivity across Realms

bull Physicalbull Social

Figure 5An integrative

perspective on thedigital physical and

social realms

Customerexperiencechallenges

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Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

Customerexperiencechallenges

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

Dow

nloa

ded

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2018

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)

imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

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ded

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2018

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)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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JOSM

Dow

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octo

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olto

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Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

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Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

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Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

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Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 19: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Traditional theoriesframeworks Extended theory Emergent theory

Physical realmThe term servicescape isintroduced and defined as themanmade physical surroundingsin which the service takes place(Bitner 1992) This view isconsistent with environmentalpsychology theories that arguethat environmental stimuli arelinked to behavioral responsesthrough the primary emotionalresponses of arousal pleasure anddominance (Mehrabian andRussell 1974) The servicescapehas been shown to producecognitive emotional and sensoryresponses in both customers andemployees

The term social servicescape isintroduced and defined asincluding human elements in theservice environment as well as thephysical (Tombs and McColl-Kennedy (2003) They emphasizehow occasion (eg business orpleasure) and social density(number of people present)influence customersrsquo cognitiveaffective and conative responsesThis view draws upon socialfacilitation theory and affectiveevents theory to integrate previoustheories Rosenbaum and Massiah(2011) recognize that theservicescape stimuli has bothmanifest (eg manufactured) andabstract (eg subjective) meaningsthat may enhance or constrainemployeesrsquo and customersrsquoapproachavoidance and socialinteraction behaviors

The term blended servicescapeexplicitly integrates the physicalsocial and virtual environmentThe time-logic of exchangebecomes open ended from pre-saleservice to post-sale service andbeyond and social and economicepisodes become blurred(Ballantyne and Nilsson 2017)Embedded and emergingcomplementarities andinterdependencies between digitaland non-digital emerge Theories ofcognition such as conceptualintegration inform how customersldquoblendrdquo elements and relationsfrom diverse scenarios (Fauconnierand Turner 1998) In the blendedservicescape customers experiencea sense of presence and may actdirectly on the environment andmake changes to it such asaugmented reality

Digital realmThe technology acceptance model(TAM Davis et al 1989) theunified theory of acceptance anduse of technology (UTAUTVenkatesh et al 2012) andinnovation diffusion theory (IDSRogers 1995) provide a conceptualfoundation for the adoption oftechnology in services and in self-service technologies Thesetheories identify determinants tothe adoption of technology (Blutet al 2016) including ease of useusefulness subjective normexternal control enjoyment imageresult demonstrability self-efficacy anxiety computerplayfulness habit experiencecompatibility trialability risktechnology readiness and need forinteraction These determinantshave been found to influencedirectly and indirectly attitudetoward usage and usage behavior

The TAM and UTAUT modelsfocus on how users come to acceptand use a technology includingbenefits to the individual In anextended TAM UTAUTframework technology and theway technology shapes therelationships with the physical andsocial dimensions are modeled asdeterminants of acceptance Forexample new antecedent mightinclude the reliability of theperformance of the serviceemployee and of the othercustomers using the technology orthe feeling of being responsible foronersquos and othersrsquo usage of theservice (Hazeacutee et al 2017)

ldquoNetworks of desire are complexopen systems of technologiesconsumers energized passionvirtual objects and physical objectsinteracting as an interconnecteddesiring-machine that producesconsumption interest within thewider social system and among theinterconnected actors (Kozinetset al 2016 p 667) Desire linksindividuals to the social realm toits institutions and technology intoa network Thus desire isexperienced at both an individualand a collective level Technologychannels a desire into aconsumption interest (eg postingpictures on Facebook) that mightconnect (ie through acceptance)and disconnect (ie throughrepression) the members of thenetwork Technology connectsconsumers and shapes theirprivate public and professionalpractices (Hoffman and Novak2018) it changes the wayconsumers express and represstheir consumption interests

(continued )

Table IITraditional extendedand emergent theoriesin the physical digitaland social realms

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Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

Customerexperiencechallenges

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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)

For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

JOSM

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(PT

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

Dow

nloa

ded

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)

imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

Dow

nloa

ded

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2018

(PT

)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

References

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Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

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Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

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Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

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Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

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Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

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Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

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Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

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Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

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Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

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Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 20: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Connecting and integrating the three realmsThis section assesses the current status of service research and practice in integrating thedigital physical and social realms of the customer experience We review where we are nowwhere we are going and suggest a way forward Our agenda for future research issummarized in Table III

Where are we nowTheoretical and empirical research on the holistic customer experience typically focuses oneither the digital or social realm and uses the physical realm as a reference condition Thistendency is evident from the second and third rows of Table II which describe theoreticalwork in the digital and social realms Service researchers have made substantial progress inunderstanding the customer experience in three octants high physical complexity lowdigitalsocial environments low physical complexity low social presence and high digitaldensity environments and low physical complexity low digital density and high socialpresence environments In these three octants the physical digital and social realms areprimarily investigated in isolation from the other realms

In the (primarily) high physical complexity environment research on the customerexperience now emphasizes a broader and deeper array of physical elements than in the past

Traditional theoriesframeworks Extended theory Emergent theory

Social realmTraditional conceptualizations ofthe service encounter ie thedyadic interaction between acustomer and a service providerrely on role theory to describe thepattern of social interactionbetween a customer and a serviceprovider (Surprenant and Solomon1987) Social interaction betweentwo people in an exchange isdetermined by the role each personadopts (Goffman 1967) where arole is behaviorally based A role islinked to tasks and functions andit is influenced by the valuesnorms and beliefs shared bypeople of a particular status(Moeller et al 2013) In a serviceencounter customer andemployees evaluate their behavioraccording to whether it accordswith traditional role expectationsThe higher the degree ofcongruence between the role andactual behavior of customer andemployee the higher the likelihoodto attain satisfaction

In extensions of role theorytechnology may induce newemployee and customer roles in theservice encounter The boundariesbetween customer and employeeroles become less clear becausetechnological mediation abolishesthe need for the co-location ofcustomer and providers (Schumannet al 2012) Technologicalmediation puts the emphasis onthree dimensions of role theoryFirst roles that were traditionallyenacted by the providers are moreand more enacted by customersthrough increased co-productionand co-creation of the serviceencounter (Payne et al 2008McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017) Second role clarityand role ability become two crucialdimensions for successfulco-production of the service (Meuteret al 2005) Third increasedparticipation requires a changingrole of employee and customer(Bowen 2016 Lariviegravere et al 2017)and an increased need forcoordination between thetwo parties

Today fragmentation of rolesleads to new questions How tothese networked platforms set therules of conduct of consumers thatbecome producers and vice-versaHow do customers managemultiple roles and identities andhow do customers prepareencounter and adjust role states intheir daily life (Lynch 2007McColl-Kennedy Danaher GallanOrshingher Lervik-Olsen andVerma 2017 McColl-KennedyHogan Witell and Snyder 2017McColl-Kennedy Snyder ElgWitell Helkkula Hogan andAnderson 2017 McColl-Kennedyet al 2012) In fluid arrangementswho takes the role of the decisionmaker Where is the legitimacy ofthis role located and who isresponsible for the service outcome(s) Who takes responsibility foraddressing problems that mayoccur (eg service recovery)

Table II

Customerexperiencechallenges

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Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

JOSM

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)

costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

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)

imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

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2018

(PT

)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

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Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

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Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

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Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 21: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Challenges across all threerealms Exemplar questions

Connectivity across thethree realms

What roles can actors play in the service system in data management processeswithin and across realmsWhat organizational units and functions participate in or support datamanagement processes within and across realmsWhere in the service system should an individual actorrsquos data resideWhat are ways of sharing information so that actors in a service systemunderstand their partnersrsquo goals resources and capabilities

Legitimate access tosensitive or personalidentifiable (PII)information

What is legitimate access to PII data for a specific actor in a service systemHow can organizations ensure that consumersrsquo privacy and safety is protectedthroughout the systems as well as within the organizationHow can governance mechanisms (eg community regulatory) protect individualand societal well-beingHow do individuals weigh their perceptions of the organizationrsquos reputation trustin the organization perceived control over how their information is used andperceptions of the risk of information misuse and harmUnder what circumstances will individuals allow use of their information

Substitution of digital andsocial resources forphysical resources

How should managers analyze trade-offs in allocating resources across realmsSpecifically when can resources from one realm (eg digital realm) substitute forresources in another realm (eg social) ndash and when are resources complementsrather than substitutesHow are digital physical and social elements incorporated into customersrsquoemotions judgment and decision-making processesHow should organizations resolve trade-offs between efficiency and effectivenessin the deploying digital resources vs physical or social resourcesUnder what conditions do high digitalsocial services contribute toward ordestroy well-being

Blurring of participantroles

What resources and capabilities are required for different roles in the servicesystem How can organizations guide customer and employee perceptions oftheir roles and develop their capabilities to enact themWhat are the trade-offs in balancing proactive and reactive approaches tocreating integrated service experiences and how do you balance human andnon-human interactionsWhat role do interactions with mobile devices play in the holistic customerexperience How does a mobile device mediate social presence within a servicenetworkHow can organizations manage the shared customer experience in which thecustomer interacts with multiple entities including multiple functional areas ofthe firmHow do customersrsquo assess perceived control and risk in situations where the rolesof actors in a service network are not well-defined How can assessments of riskbe mitigated

Congruency across realms How can firms support and enhance customized and personalized serviceexperiences through digital physical and social elementsWhat are some effective ways for organizations to manage the customerexperience across the three realms over time to enhance brand engagement andbrand equity For example when are specific service metrics service bundles andservice sequences helpful in creating and delivering service experiencesWhen do service encounters enhance (or detract) for the holistic customerexperience What contextual factors influence how customersrsquo form theirevaluations in these situationsHow can (and should) actors reconfigure offerings within a service network toimprove congruency and fit thereby enhancing the customer experienceHow do value-creating practices and norms create congruency across realms

(continued )

Table IIIA service researchagenda for integratingthe digital physicaland social realms toenhance customerexperiences

JOSM

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For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

JOSM

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

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imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

Dow

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design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

References

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Ahearne M Jones E Rapp A and Mathieu JE (2008) ldquoHigh touch through high tech the impact ofsalesperson technology usage on sales performance via mediating mechanismsrdquo ManagementScience Vol 54 No 4 pp 671-685

Amazon (2018) ldquoAmazon Gordquo available at wwwamazoncombnode=16008589011 (accessedAugust 1 2018)

Anderson J and Markides C (2007) ldquoStrategic innovation at the base of the pyramidrdquo MIT SloanManagement Review Vol 49 No 1 p 83

Anderson L and Ostrom AL (2015) ldquoTransformative service research advancing our knowledgeabout service and well-beingrdquo Journal of Service Research Vol 18 No 3 pp 243-249

Antons D and Breidbach CF (2018) ldquoBig data big insights Advancing service innovation anddesign with machine learningrdquo Journal of Service Research Vol 21 No 1 pp 17-39

Arora S and Romijn H (2011) ldquoThe empty rhetoric of poverty reduction at the base of the pyramidrdquoOrganization Vol 19 No 4 pp 481-505

Aspers P (2009) ldquoKnowledge and valuation in marketsrdquo Theory and Society Vol 38 No 2 p 111

Ballantyne D and Nilsson E (2017) ldquoAll that is solid melts into air the servicescape in digital servicespacerdquo Journal of Services Marketing Vol 31 No 3 pp 226-235

Barton D and Court D (2012) ldquoMaking advanced analytics work for yourdquo Harvard Business ReviewVol 90 No 10 pp 78-83

Batra R and Keller KL (2016) ldquoIntegrating marketing communications new findings new lessonsand new ideasrdquo Journal of Marketing Vol 80 No 6 pp 122-145

BEIS (2013) ldquoMarket assessment of public sector informationrdquo Department for Business Innovationand Skills p 235 available at httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile198905bis-13-743-market-assessment-of-public-sector-informationpdf

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nloa

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octo

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olto

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ber

2018

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Bendapudi N and Berry LL (1997) ldquoCustomersrsquo motivations for maintaining relationships withservice providersrdquo Journal of Retailing Vol 73 No 1 pp 15-37

Bendapudi N and Leone R (2003) ldquoPsychological implications of customer participation inco-productionrdquo Journal of Marketing Vol 67 No 1 pp 14-28

Benoit S Baker TL Bolton RN Gruber T and Kandampully J (2017) ldquoA triadic framework forcollaborative consumption (CC) motives activities and resources amp capabilities of actorsrdquoJournal of Business Research Vol 79 October pp 219-227

Berry LL and Bendapudi N (2007) ldquoA fertile field for service researchrdquo Journal of Service ResearchVol 10 No 2 pp 111-122

Bharati P and Chaudhury A (2004) ldquoAn empirical investigation of decision-making satisfaction inweb-based decision support systemsrdquo Decision Support Systems Vol 37 No 2 pp 187-197

Bitner MJ (1992) ldquoServicescapes the impact of physical surroundings on customers and employeesrdquoJournal of Marketing Vol 56 No 2 pp 57-71

Black H and Gallan AS (2015) ldquoTransformative service networks cocreated value as well-beingrdquoThe Service Industries Journal Vol 35 No 15-16 pp 826-845

Blut M Wang C and Schoefer K (2016) ldquoFactors influencing the acceptance of self-servicetechnologies a meta-analysisrdquo Journal of Service Research Vol 19 No 4 pp 396-416

Bolton RN (2011) ldquoComment customer engagement opportunities and challenges for organizationsrdquoJournal of Service Research Vol 14 No 3 pp 272-274

Bolton RN (2016) Service Excellence Creating Customer Experiences that Build RelationshipsBusiness Expert Press New York NY

Bolton RN (2018) ldquoService timing designing and executing service in a dynamic environmentrdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Bolton RN and Saxena-Iyer S (2009) ldquoInteractive services a framework synthesis and researchdirectionrdquo Journal of Interactive Marketing Vol 23 No 1 pp 91-104

Bolton RN Gustafsson A McColl-Kennedy J Sirianni NJ and Tse DK (2014) ldquoSmall details thatmake big differences a radical approach to consumption experience as a firmrsquos differentiatingstrategyrdquo Journal of Service Management Vol 25 No 2 pp 253-274

Bowcott O (2017) ldquoUber to face stricter EU regulation after ECJ rules it is transport firmrdquo TheGuardian December 20 available at wwwtheguardiancomtechnology2017dec20uber-european-court-of-justice-ruling-barcelona-taxi-drivers-ecj-eu (accessed August 1 2018)

Bowen DE (2016) ldquoThe changing role of employee in service theory and practice an interdisciplinaryviewrdquo Human Resource Management Review Vol 26 No 1 pp 4-13

Bowen DE Siehl C and Schneider B (1989) ldquoA framework for analyzing customer serviceorientations in manufacturingrdquo Academy of Management Review Vol 14 No 1 pp 75-95

Breidbach CF Choi S Ellway BE Keating BW Kormusheva K Kowalkowski C Lim C andMaglio P (2018) ldquoOperating without operations how is technology changing the role of thefirmrdquo Journal of Service Management Vol 29 No 5 (in press)

Burdick A (2018) ldquoThe marriage-saving robot that can assemble IKEA furniture sort ofrdquo TheNew Yorker April 18 available at wwwnewyorkercomelementslab-notesthe-marriage-saving-robot-that-can-assemble-ikea-furniture-sort-of (accessed August 1 2018)

Capaldo A (2014) ldquoNetwork governance a cross-level study of social mechanisms knowledgebenefits and strategic outcomes in joint-design alliancesrdquo Industrial Marketing ManagementVol 43 No 4 pp 685-703

Cheung L and McColl-Kennedy JR (2015) ldquoResource integration in liminal periods transitioning totransformative servicerdquo Journal of Services Marketing Vol 29 Nos 67 pp 485-497

Cheung L McColl-Kennedy JR and Coote LV (2017) ldquoConsumer-citizens mobilizing social capitalfollowing a natural disaster effects on well-beingrdquo Journal of Services Marketing Vol 31Nos 45 pp 438-451

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Dow

nloa

ded

by D

octo

r R

uth

N B

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n A

t 08

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0 Se

ptem

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2018

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Cohen N (2014) ldquoThe silver economy healthier and wealthierrdquo Financial Times October 19 available atwwwftcomcontent08bff556-52c7-11e4-a236-00144feab7de (accessed March 19 2018)

Danaher TS and Gallan AS (2016) ldquoService research in health care positively impacting livesrdquoJournal of Service Research Vol 19 No 4 pp 433-437

Davis FD Bagozzi RP and Warshaw PR (1989) ldquoUser acceptance of computer technologya comparison of two theoretical modelsrdquo Management Science Vol 35 No 8 pp 982-1003

De Keyser A Lemon KN Klaus P and Keiningham TL (2015) ldquoA framework for understandingand managing the customer experiencerdquo Working Paper Series No 15-121 Marketing ScienceInstitute Cambridge MA available at wwwmsiorgreportsa-framework-for-understanding-and-managing-the-customer-experience

Delcourt C Gremler D Van Riel ACR and Van Birgelen M (2013) ldquoEffects of perceived employeeemotional competence on customer satisfaction and loyalty the mediating role of rapportrdquoJournal of Service Management Vol 24 No 1 pp 2-24

Deloitte (2017) ldquoAssessing the value of TfLrsquos open data and digital partnershipsrdquo Deloitte Londonp 28 available at httpcontenttflgovukdeloitte-report-tfl-open-datapdf

Department for Business Energy and Industrial Strategy (2017) Industrial Strategy Building a BritainFit for the Future ISBN 9781528601313 Department for Business Energy and IndustrialStrategy London p 256 available at wwwgovukgovernmentpublicationsindustrial-strategy-building-a-britain-fit-for-the-future

Ding Y and Keh HT (2016) ldquoA re-examination of service standardization versus customization fromthe consumerrsquos perspectiverdquo Journal of Services Marketing Vol 30 No 1 pp 16-28

Edvardsson B Enquist B and Johnston R (2010) ldquoDesign dimensions of experience rooms forservice test drives case studies in several service contextsrdquo Managing Service Quality AnInternational Journal Vol 20 No 4 pp 312-327

Fauconnier G and Turner M (1998) ldquoConceptual integration networksrdquo Cognitive Science Vol 22No 2 pp 133-187

Feil-Seifer D and Matari MJ (2005) ldquoDefining socially assistive roboticsrdquo Proceedings of the IEEEInternational Conference on Rehabilitation Robotics June pp 465-468

Frow P McColl-Kennedy JR and Payne AF (2016) ldquoCo-creation practices their role in shaping ahealth care ecosystemrdquo Industrial Marketing Management Vol 56 July pp 24-39

Gabbott M Tsarenko Y and Mok WH (2011) ldquoEmotional intelligence as a moderator of copingstrategies and service outcomes in circumstances of service failurerdquo Journal of Service ResearchVol 14 No 2 pp 234-248

Gallan AS Jarvis CB Brown SW and Bitner MJ (2013) ldquoCustomer positivity and participation inservices an empirical test in a health care contextrdquo Journal of the Academy of Marketing ScienceVol 41 No 3 pp 338-356

Gallo C (2017) ldquoStarbucksrsquo cool new brew storytelling with a digital twistrdquo Forbes December 11available at wwwforbescomsitescarminegallo20171211starbucks-cool-new-brew-storytelling-with-a-digital-twist71d0d2c97735 (accessed August 1 2018)

Gantz J and Reinsel D (2012) ldquoThe digital universe in 2020 big data bigger digital shadows andbiggest growth in the far eastrdquo IDC iView IDC Analyze the Future Framingham MA pp 1-16

Gebauer H and Reynoso J (2013) ldquoAn agenda for service research at the base of the pyramidrdquo Journalof Service Management Vol 24 No 5 pp 482-501

Gentile C Spiller N and Noci G (2007) ldquoHow to sustain the customer experience an overview ofexperience components that co-create value with the customerrdquo European Management JournalVol 25 No 5 pp 395-410

Giebelhausen M Robinson SG Sirianni NJ and Brady MK (2014) ldquoTouch versus tech whentechnology functions as a barrier or a benefit to service encountersrdquo Journal of MarketingVol 78 No 4 pp 113-124

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Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

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ber

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Giraldi L Mengoni M and Bevilacqua M (2016) ldquoHow to enhance customer experience in retailinvestigations through a case studyrdquo Proceedings of the 23rd ISPE Inc International Conferenceon Transdisciplinary Engineering Vols 3-7 October pp 381-390

Gittell JH (2006) ldquoRelational coordination coordinating work through relationships of shared goals sharedknowledge and mutual respectrdquo in Kyriakidou O and Oumlzbilgin MF (Eds) Relational Perspectives inOrganizational Studies A Research Companion Edward Elgar Cheltenham pp 74-94

Goffman E (1967) ldquoOn face-workrdquo Interaction Ritual Essays on Face-to-Face Behavior pp 5-46

Goldman Sachs Equity Research (2017) ldquoChinarsquos rise in artificial intelligence ndash the new ChinardquoGoldman Sachs available at www2caictaccnzscpqqzkgzljyd201709P020170921309379565253pdf (accessed March 1 2018)

Gostin LO Lazzarini Z Neslund VS and Osterholm MT (1996) ldquoThe public health informationinfrastructure a national review of the law on health information privacyrdquo The Journal of theAmerican Medical Association Vol 275 No 24 pp 1921-1927

Greacutegoire Y Tripp TM and Legoux R (2009) ldquoWhen customer love turns into lasting hate the effectsof relationship strength and time on customer revenge and avoidancerdquo Journal of MarketingVol 73 No 6 pp 18-32

Gremler DD and Gwinner KP (2000) ldquoCustomer-employee rapport in service relationshipsrdquo Journalof Service Research Vol 3 No 1 pp 82-104

Grewal D Levy M and Kumar V (2009) ldquoCustomer experience in retailing an organizingframeworkrdquo Journal of Retailing Vol 85 No 1 pp 1-14

Guo L Lotz SL Tang C and Gruen TW (2016) ldquoThe role of perceived control in customer valuecocreation and service recovery evaluationrdquo Journal of Service Research Vol 19 No 1 pp 39-56

Hartmann PM Zaki M Feldmann N and Neely A (2016) ldquoCapturing value from big data ndash ataxonomy of data-driven business models used by start-up firmsrdquo International Journal ofOperations amp Production Management Vol 36 No 10 pp 1382-1406

Harwood T and Garry T (2015) ldquoAn investigation into gamification as a customer engagementexperience environmentrdquo Journal of Services Marketing Vol 29 Nos 67 pp 533-546

Hazeacutee S Delcourt C and Van Vaerenbergh Y (2017) ldquoSharing goods Yuck No An investigation ofproduct contamination in access-based servicesrdquo Journal of Service Research Vol 20 No 4pp 441-456

Hennig-Thurau T Gwinner KP and Gremler DD (2002) ldquoUnderstanding relationship marketingoutcomes an integration of relational benefits and relationship qualityrdquo Journal of ServiceResearch Vol 4 No 3 pp 230-247

Hofaker CF de Ruyter K Lurie NH Manchanda P and Donaldson J (2016) ldquoGamification andmobile marketing effectivenessrdquo Journal of Interactive Marketing Vol 34 May pp 25-36

Hoffman DL and Novak TP (2018) ldquoConsumer and object experience in the Internet of Things anassemblage theory approachrdquo Journal of Consumer Research Vol 44 No 6 pp 1178-1204

Homburg C Jozić D and Kuehnl C (2017) ldquoCustomer experience management toward implementingan evolving marketing conceptrdquo Journal of the Academy of Marketing Science Vol 45 No 3pp 377-401

Huang M-H and Rust RT (2018) ldquoArtificial intelligence in servicerdquo Journal of Service ResearchVol 21 No 2 pp 155-172

Kang C and Roose K (2018) ldquoZuckerberg faces hostile congress as calls for regulation mountrdquo TheNew York Times April 11 p B4 available at wwwnytimescom20180411businesszuckerberg-facebook-congresshtml

Kopalle P (2014) ldquoWhy Amazonrsquos anticipatory shipping is pure geniusrdquo Forbes January 28 available atwwwforbescomsitesonmarketing20140128why-amazons-anticipatory-shipping-is-pure-genius4594345f4605 (accessed August 1 2018)

Kozinets R Patterson A and Ashman R (2016) ldquoNetworks of desire how technology increases ourpassion to consumerdquo Journal of Consumer Research Vol 43 No 5 pp 659-682

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Dow

nloa

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by D

octo

r R

uth

N B

olto

n A

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0 Se

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Kranzbuumlhler AM Kleijnen MHP Morgan RE and Teerling M (2017) ldquoThe multilevel nature ofcustomer experience research an integrative review and research agendardquo International Journalof Management Reviews Vol 20 No 2 pp 433-456

Kumar V and Reinartz W (2016) ldquoCreating enduring customer valuerdquo Journal of Marketing Vol 80No 6 pp 36-68

Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

Pine BJ and Gilmore JH (1998) ldquoWelcome to the experience economyrdquo Harvard Business ReviewVol 76 JulyAugust pp 97-105

Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Reutskaja E and Hogarth RM (2009) ldquoSatisfaction in choice as a function of the number ofalternatives when lsquogoods satiatersquo rdquo Psychology amp Marketing Vol 26 No 3 pp 197-203

Rivera-Santos M and Rufiacuten C (2010) ldquoGlobal village vs small town understanding networks at thebase of the pyramidrdquo International Business Review Vol 19 No 2 pp 126-139

Rogers CR (1975) ldquoEmpathy an unappreciated way of beingrdquo The Counseling Psychologist Vol 5No 2 pp 2-10

Rogers EM (1995) Diffusion of Innovations 4th ed Free Press New York NY

Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

Schumann JH Wuumlnderlich NV and Wangenheim F (2012) ldquoTechnology mediation in servicedelivery a new typology and an agenda for managers and academicsrdquo Technovation Vol 32No 2 pp 133-143

Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

Dow

nloa

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by D

octo

r R

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olto

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23 2

0 Se

ptem

ber

2018

(PT

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 22: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

For example retailing studies have focused on sensory elements contextual factors andtouchpoint characteristics (Verhoef et al 2009) In the low physicaldigital high socialenvironment service researchers are studying interactions between customers and frontlineservice employees that incorporate some use of digital technology such as tablets or kiosksFor example when an employee attempts to establish rapport with the customer technologycan forestall a customerrsquos response to the employeersquos rapport building ndash thereby decreasingthe customerrsquos holistic evaluation of the service encounter (Giebelhausen et al 2014) Incontrast when an employee does not attempt to establish rapport technology can serve as analternative way for a customer to navigate the service encounter ndash thereby increasing thecustomerrsquos holistic evaluation of the service encounter In low physical complexity low digitaldensity and high social presence environments research is deepening our understanding ofhow customersrsquo evaluate experiences in which they actively engage participate or co-produce(Bendapudi and Leone 2003)

These three octants provide a solid foundation for service research and practice as itconfronts the dualities that arise under more complex conditions For example Marinovaet al (2016) recently proposed a conceptual framework in which smart technologies cansubstitute for or complement frontline employeesrsquo efforts to deliver customized servicebecause they can facilitate learning that connects customerndashemployee connections As highdigital density becomes ubiquitous in many marketplaces researchers in these threeoctants will have more opportunities to deepen and test their theories from these two octantsndash thereby moving to adjacent octants

Where are we goingOur earlier discussion on navigating the path to high digital density described how serviceresearchers have made progress in understanding environments characterized by highphysical complexity low social presence and high digital density For example AliBabaoffers a computational system called Apsara to provide intelligent vehicle detectionservices The ldquoET City Brain for Hangzhourdquo helps police to respond to traffic collisionsmuch faster three minutes compared to 15 minutes (Goldman Sachs Equity Research 2017)The ldquoET Environment Brainrdquo can intelligently monitor pollution of water air and soil inJiangsu province it is expected to be helpful in disaster forecasting extreme weatherwarning and environmental protection (Goldman Sachs Equity Research 2017) Transportfor London has demonstrated that using and sharing data with the public can save peopletime and money roughly pound15 and pound58 m per year respectively (BEIS 2013) The release ofopen data by TfL has supported the growth of Londonrsquos technology economy to the value ofpound14m pa in GVA and over 700 jobs and has led to a pound20m increase in bus usage

Challenges across all threerealms Exemplar questions

Dynamic capabilities andresources

How should organizations deliver feedback and increase perceptions of control sothat customers are willing to participate in service experiences How caneducation and training (for customers or employees) be leveraged in thesesituationsUnder what circumstances is global optimization (vs local optimization) ofresources necessary to co-create superior customer experiencesWhat can organizations offer to encourage high quality customer participationWhat are customersrsquo preferences in these situationsUnder what conditions is it possible to co-create services dynamically (in realtime) vs asynchronously For example how can customized service be triggeredby contextual cues Table III

Customerexperiencechallenges

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Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

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ded

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imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

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)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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JOSM

Dow

nloa

ded

by D

octo

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uth

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olto

n A

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0 Se

ptem

ber

2018

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Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

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Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

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McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

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McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

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Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

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Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 23: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Open travel data facilitate travel apps real-time alerts (that save time reduce uncertaintyand lower information costs) growth in the economy and increased use of public transport(Deloitte 2017) These are very recent developments in a few ldquosmart citiesrdquo Rigorousresearch in this octant is only beginning Ng and Wakenshaw (2017) argued that shiftingboundaries due to information flows are likely to transform markets and exchanges andpropose a research agenda for this area

Our earlier discussion on navigating the path to high social presence described howservice researchers have made progress in understanding environments characterized byhigh physical complexity low digital density and high social presence In this octant socialpresence implies a human or a robot (both of which have physical presence) but not anavatar or digital personal assistant (which requires high digital density) Naturally therehas been much more progress in understanding human social presence as opposed torobots However researchers are attempting to create robots capable of exhibitingnatural-appearing social qualities ndash a field called ldquosocially intelligent roboticsrdquo

In this interdisciplinary research stream there has been a focus on developing sociallyassistive robots that help human users through social rather than physical interaction(Feil-Seifer and Matari 2005) Recall that empathy is an important dimension in customerexperience For example empathy can improve patient satisfaction and motive them torecover and enhance experience to therapy programs (eg Rogers 1975) Machines cannotdemonstrate empathy but it is possible to create robots that display signs of empathy suchas recognizing the userrsquos emotional state communicating with people displaying emotionand conveying the ability of taking the customerrsquos perspective From this perspective ahealthcare robot should appear as if it understands othersrsquo emotions mimics those emotionsand behaves as though othersrsquo emotions affect it (Tapus et al 2007) Service research hasonly just begun to tackle issues in this octant Notably Van Doorn et al (2017) provided aconceptual framework for studying the relationship between automated social presence andcustomer outcomes They argued that social cognition and psychological ownershipmediate this relationship and that a customerrsquos relationship orientation tendency toanthropomorphize and technology readiness are likely moderators

A way forwardAs Figure 1 illustrates there are three octants in which there is little or no service researchhigh physicaldigitalsocial low physical complexity high digitalsocial and low physicaldigitalsocial environments Interconnections among the digital physical and social realmshave the potential to create complex service systems that benefit consumers organizationsand society Despite research in each of the octants it is evident that there is little theoreticaland empirical work that explicitly connects the digital physical and social realms

However service researchers and practitioners have begun to recognize that our failureto understand the connections among the three realms has potentially serious consequences(Lemon and Verhoef 2016)

We must begin by recognizing that the three realms are already connected and theseconnections will only increase between the present and the year 2050 What is needed is abetter understanding of how the three realms should be connected and integrated toco-create superior customer experiences This need is evident from numerous press reportsof failures in complex service systems ndash with far-reaching and destructive consequencesRecent examples are easily called to mind In December 2017 Atlantarsquos airport was halteddue to the ripple effects of a small electrical fire (physical) that shut down its back up powersystem (digital) and prevented emergency teams (social) from responding to it Over the pastdecade trading on stock exchanges (physical and social) has been suspended for a variety ofreasons exacerbated by the high speed automated nature of digital transactions In theUSA critics complain that the complexity of healthcare systems is leading to out-of-control

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costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

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imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

Dow

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design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 24: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

costs and poor outcomes In all these examples the resultant customer experience has beenexceptionally poor However they highlight the potential for research that better connectsand integrates the three realms to co-create excellent customer experiences

Interconnections among the digital physical and social realms also have the potential tocreate highly favorable or unfavorable experiences for customers interacting with specificorganizations For example a major hospital recently updated its information technologysystem in which all patient information is stored in the cloud The system went down andconsequently all physicians and caregivers lost access to patient information They resortedto pen and paper (last used 15 years ago) to document patient information resulting incanceled surgeries fewer scheduled appointments and possible mistreatment of patientsThis incident illustrates how connections among the three realms are already improving thecustomer experience Yet we notice the benefits only when they are absent The next sectionidentifies some fruitful areas for future research Table III enumerates specific researchquestions for each topic area

Connectivity across the three realms Organizations must develop appropriate capabilitiesand resources such as technical infrastructure and data sources to support serviceinnovation and achieve favorable outcomes for individuals organizations and society morebroadly One essential capability is ensuring that relevant data are accessible to appropriateentities within the service system At present data collection in many service sectors iseither invasive andor unstructured ndash and it is seldom well-managed and shareable amongservice network partners Seamless integration of systems and devices into user activitiesrequires a commitment to superior data management (in the digital realm) that connects toactors (in the social realm) Todayrsquos organizations struggle to understand where their dataresides the identity of the organizational units and functions that participate in or supportdata-collection processes who accesses data how and for what purposes and how theseprocesses unfold over time

Legitimate access to sensitive or PII Cultural challenges limit the effectiveness of digitalservices within and across organizations such as a lack of best practices policies thatprohibit data sharing and questions relating to intellectual property For example as wewrite this paper there are calls to protect consumersrsquo privacy by passing legislation togovern internet companies such as Facebook and Google In B2C contexts a customerrsquosperception of the legitimacy of an organizationrsquos accessuse of hisher information is likely todepend on hisher perception of the organizationrsquos reputation trust in the organizationperceived control over how hisher information is used and perception of the risk ofinformation misuse and harm

In B2B contexts many of the sensors and devices that make up the industrial IoT arebeing implemented without strict data encryption and security protocols It is importantthat these devices collect and store activity information and PII in separate ways that cannotbe misused Blockchain technology promises to address this issue However organizationssometimes blur the lines between PII and non-PII Thus as digital services becomeincreasingly reliant on intelligent interconnected devices organizations seek ways toprotect their services from intrusions and interference that could compromise personalprivacy or threaten customer safety Data security requires more than keeping hackersoutside your system it also means backing up data protecting data from corruption andmanaging to whom data are distributed

Substitution of digital and social resources for physical resources It may seem surprisingthat we have included the low physicaldigitalsocial octant characterized by scarcity of allresources as an area where more research is needed However we believe that there areopportunities to substitute digital and social resources for physical resources For exampletelepresence has been helpful in co-creating medical services with rural patients We can

Customerexperiencechallenges

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nloa

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imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

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nloa

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2018

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)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

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McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

Customerexperiencechallenges

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nloa

ded

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2018

(PT

)

Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

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Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

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Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

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Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

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About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

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2018

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

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(PT

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 25: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

imagine that robots and virtual assistants can enhance their work Future work ontransformative service research topics which investigate how service contributes to well-being might explore these conditions (Anderson and Ostrom 2015)

Service systems are grounded in relationships among customers suppliers employeesand other human or non-human actors in the service ecosystem (Black and Gallan 2015)Technology acceptance may be hindered by customers (and other actors) who aredisconnected frustrated alienated or isolated rather than immersed in a positive customerexperience When interactions and relationships between organizations and their customersare central to the value proposition organizations will face difficult trade-offs between theefficiency and effectiveness of digital technologies How should these trade-offs be resolved

Blurring of participant roles The distinction between provider and customer roles canbecome blurred at the intersection of the high digital physical and social realms Networkedmarket platforms (such as AirBnB Uber or Vandebron) are comparable to ldquoswitch rolemarketsrdquo (Aspers 2009) to indicate that actors can switch back and forth between enacting therole of the customer or service provider(s) Service researchers have also tackled novel forms ofcollaborative consumption that arise from environments that are rich in digital physical andsocial resources (Benoit et al 2017) Thus emergent theories recognize that customers andproviders using such services may have multiple identities and roles and act as facilitatorsusers and providers simultaneously ndashwhich transforms the nature of the customer experience

Looking to the future thought leaders have argued that automated social presencechallenges our current conceptualization of the customer experience Indeed Hoffman andNovak (2018) argue that the traditional human-centric conceptualization of the customerexperience must be re-thought Drawing on assemblage theory they identify four consumerexperience ldquoassemblagesrdquo two enabling experiences (individual self-extension andcommunal self-expansion) and two constraining experiences (individual self-restrictionand communal self-reduction) However their conceptual work is very recent and it will takeconsiderable work by many researchers to address the issues that they raise

Congruency across realms A third issue for future research is to understand how elementsfrom the digital social and physical realms can better fit together to enhance the customerexperience (see Figure 5) From the customer perspective the customer experience is formedby choosing elements from each realm The consumer (not the service provider) chooses whatstore to go to what digital platform to use and what friends if any to bring These elementscan be congruent such as when a digital platform supports social interactions with friends orit can be incongruent such as when the digital platform does not support social interactionsbecause friends might suggest a competing product From the firm perspective thismeans that some of the elements of the digital social and physical realms are under controlwhereas other elements are outside the control of the firm A better understanding ofcongruities and control from the customer and firm perspectives is important for co-creatingsuperior customer experiences Prior research has tended to emphasize consistency of serviceelements (aesthetics atmospherics and service design) We believe future research shouldfocus on ways to improve connectivity and integration across realms ndash so that organizationscan flexibly respond to customers as they actively participate to achieve their goals

Dynamic capabilities and resources Organizations must develop new resources andcapabilities so that they are able to interact with customers according to their needs capabilitiesand resources In high digitalsocial environments dynamic processes that co-create service inreal time will be necessary for the organizations actions to be contextually relevant Bolton(2018) has argued that firms must develop services that can be triggered by contextual cuesrather than focusing on (static) customer characteristics service modules so that servicesequences can be customized to match customer goals services designed to supportcustomersrsquo multiple social identities and services that collaborate with customers during

JOSM

Dow

nloa

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)

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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Frow P McColl-Kennedy JR and Payne AF (2016) ldquoCo-creation practices their role in shaping ahealth care ecosystemrdquo Industrial Marketing Management Vol 56 July pp 24-39

Gabbott M Tsarenko Y and Mok WH (2011) ldquoEmotional intelligence as a moderator of copingstrategies and service outcomes in circumstances of service failurerdquo Journal of Service ResearchVol 14 No 2 pp 234-248

Gallan AS Jarvis CB Brown SW and Bitner MJ (2013) ldquoCustomer positivity and participation inservices an empirical test in a health care contextrdquo Journal of the Academy of Marketing ScienceVol 41 No 3 pp 338-356

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Gentile C Spiller N and Noci G (2007) ldquoHow to sustain the customer experience an overview ofexperience components that co-create value with the customerrdquo European Management JournalVol 25 No 5 pp 395-410

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Harwood T and Garry T (2015) ldquoAn investigation into gamification as a customer engagementexperience environmentrdquo Journal of Services Marketing Vol 29 Nos 67 pp 533-546

Hazeacutee S Delcourt C and Van Vaerenbergh Y (2017) ldquoSharing goods Yuck No An investigation ofproduct contamination in access-based servicesrdquo Journal of Service Research Vol 20 No 4pp 441-456

Hennig-Thurau T Gwinner KP and Gremler DD (2002) ldquoUnderstanding relationship marketingoutcomes an integration of relational benefits and relationship qualityrdquo Journal of ServiceResearch Vol 4 No 3 pp 230-247

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Homburg C Jozić D and Kuehnl C (2017) ldquoCustomer experience management toward implementingan evolving marketing conceptrdquo Journal of the Academy of Marketing Science Vol 45 No 3pp 377-401

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Kang C and Roose K (2018) ldquoZuckerberg faces hostile congress as calls for regulation mountrdquo TheNew York Times April 11 p B4 available at wwwnytimescom20180411businesszuckerberg-facebook-congresshtml

Kopalle P (2014) ldquoWhy Amazonrsquos anticipatory shipping is pure geniusrdquo Forbes January 28 available atwwwforbescomsitesonmarketing20140128why-amazons-anticipatory-shipping-is-pure-genius4594345f4605 (accessed August 1 2018)

Kozinets R Patterson A and Ashman R (2016) ldquoNetworks of desire how technology increases ourpassion to consumerdquo Journal of Consumer Research Vol 43 No 5 pp 659-682

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Dow

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by D

octo

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uth

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olto

n A

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23 2

0 Se

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2018

(PT

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Kranzbuumlhler AM Kleijnen MHP Morgan RE and Teerling M (2017) ldquoThe multilevel nature ofcustomer experience research an integrative review and research agendardquo International Journalof Management Reviews Vol 20 No 2 pp 433-456

Kumar V and Reinartz W (2016) ldquoCreating enduring customer valuerdquo Journal of Marketing Vol 80No 6 pp 36-68

Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

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Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

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Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

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Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

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Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

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Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

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Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

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Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

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Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

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nloa

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 26: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

design as well as execution Naturally customers will vary regarding their preferences forparticipation and co-creation (Gallan et al 2013 McColl-Kennedy et al 2012) Hence servicefirms must be prepared to work with customersrsquo diverse goals resources and capabilities

ConclusionsService research and practice is entering an exciting era in which the digital physical andsocial realms will become intertwined and blend into a holistic customer experience In anera where AI robots and digital twins are a natural part of the service experience thecustomer experience will undoubtedly change ndash for better or worse ndash depending on the goalsand preferences of the individual customer Researchers and managers can play animportant role in improving customer experiences organizational outcomes and societalwell-being by increasing our knowledge and capabilities for co-creating service within andacross the digital physical and social realms

The opportunities and challenges of designing and executing customized serviceexperiences in the future may seem overwhelming due to the need for connectivity andcongruence among the digital physical and social realms for each individual customer Thepresent research has developed a conceptual framework for analyzing customer experiencesat the intersection of the digital physical and social realms In this way it offers a wayforward that explicitly considers how technology-enabled services will change theformation of customer experiences as well as providing managerial insights We haveprovided a research agenda (in Table III and Figure 5) to encourage future research aboutcustomer experiences at the intersection of the digital physical and social realms

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Batra R and Keller KL (2016) ldquoIntegrating marketing communications new findings new lessonsand new ideasrdquo Journal of Marketing Vol 80 No 6 pp 122-145

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2018

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Bendapudi N and Leone R (2003) ldquoPsychological implications of customer participation inco-productionrdquo Journal of Marketing Vol 67 No 1 pp 14-28

Benoit S Baker TL Bolton RN Gruber T and Kandampully J (2017) ldquoA triadic framework forcollaborative consumption (CC) motives activities and resources amp capabilities of actorsrdquoJournal of Business Research Vol 79 October pp 219-227

Berry LL and Bendapudi N (2007) ldquoA fertile field for service researchrdquo Journal of Service ResearchVol 10 No 2 pp 111-122

Bharati P and Chaudhury A (2004) ldquoAn empirical investigation of decision-making satisfaction inweb-based decision support systemsrdquo Decision Support Systems Vol 37 No 2 pp 187-197

Bitner MJ (1992) ldquoServicescapes the impact of physical surroundings on customers and employeesrdquoJournal of Marketing Vol 56 No 2 pp 57-71

Black H and Gallan AS (2015) ldquoTransformative service networks cocreated value as well-beingrdquoThe Service Industries Journal Vol 35 No 15-16 pp 826-845

Blut M Wang C and Schoefer K (2016) ldquoFactors influencing the acceptance of self-servicetechnologies a meta-analysisrdquo Journal of Service Research Vol 19 No 4 pp 396-416

Bolton RN (2011) ldquoComment customer engagement opportunities and challenges for organizationsrdquoJournal of Service Research Vol 14 No 3 pp 272-274

Bolton RN (2016) Service Excellence Creating Customer Experiences that Build RelationshipsBusiness Expert Press New York NY

Bolton RN (2018) ldquoService timing designing and executing service in a dynamic environmentrdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Bolton RN and Saxena-Iyer S (2009) ldquoInteractive services a framework synthesis and researchdirectionrdquo Journal of Interactive Marketing Vol 23 No 1 pp 91-104

Bolton RN Gustafsson A McColl-Kennedy J Sirianni NJ and Tse DK (2014) ldquoSmall details thatmake big differences a radical approach to consumption experience as a firmrsquos differentiatingstrategyrdquo Journal of Service Management Vol 25 No 2 pp 253-274

Bowcott O (2017) ldquoUber to face stricter EU regulation after ECJ rules it is transport firmrdquo TheGuardian December 20 available at wwwtheguardiancomtechnology2017dec20uber-european-court-of-justice-ruling-barcelona-taxi-drivers-ecj-eu (accessed August 1 2018)

Bowen DE (2016) ldquoThe changing role of employee in service theory and practice an interdisciplinaryviewrdquo Human Resource Management Review Vol 26 No 1 pp 4-13

Bowen DE Siehl C and Schneider B (1989) ldquoA framework for analyzing customer serviceorientations in manufacturingrdquo Academy of Management Review Vol 14 No 1 pp 75-95

Breidbach CF Choi S Ellway BE Keating BW Kormusheva K Kowalkowski C Lim C andMaglio P (2018) ldquoOperating without operations how is technology changing the role of thefirmrdquo Journal of Service Management Vol 29 No 5 (in press)

Burdick A (2018) ldquoThe marriage-saving robot that can assemble IKEA furniture sort ofrdquo TheNew Yorker April 18 available at wwwnewyorkercomelementslab-notesthe-marriage-saving-robot-that-can-assemble-ikea-furniture-sort-of (accessed August 1 2018)

Capaldo A (2014) ldquoNetwork governance a cross-level study of social mechanisms knowledgebenefits and strategic outcomes in joint-design alliancesrdquo Industrial Marketing ManagementVol 43 No 4 pp 685-703

Cheung L and McColl-Kennedy JR (2015) ldquoResource integration in liminal periods transitioning totransformative servicerdquo Journal of Services Marketing Vol 29 Nos 67 pp 485-497

Cheung L McColl-Kennedy JR and Coote LV (2017) ldquoConsumer-citizens mobilizing social capitalfollowing a natural disaster effects on well-beingrdquo Journal of Services Marketing Vol 31Nos 45 pp 438-451

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Dow

nloa

ded

by D

octo

r R

uth

N B

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n A

t 08

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0 Se

ptem

ber

2018

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Cohen N (2014) ldquoThe silver economy healthier and wealthierrdquo Financial Times October 19 available atwwwftcomcontent08bff556-52c7-11e4-a236-00144feab7de (accessed March 19 2018)

Danaher TS and Gallan AS (2016) ldquoService research in health care positively impacting livesrdquoJournal of Service Research Vol 19 No 4 pp 433-437

Davis FD Bagozzi RP and Warshaw PR (1989) ldquoUser acceptance of computer technologya comparison of two theoretical modelsrdquo Management Science Vol 35 No 8 pp 982-1003

De Keyser A Lemon KN Klaus P and Keiningham TL (2015) ldquoA framework for understandingand managing the customer experiencerdquo Working Paper Series No 15-121 Marketing ScienceInstitute Cambridge MA available at wwwmsiorgreportsa-framework-for-understanding-and-managing-the-customer-experience

Delcourt C Gremler D Van Riel ACR and Van Birgelen M (2013) ldquoEffects of perceived employeeemotional competence on customer satisfaction and loyalty the mediating role of rapportrdquoJournal of Service Management Vol 24 No 1 pp 2-24

Deloitte (2017) ldquoAssessing the value of TfLrsquos open data and digital partnershipsrdquo Deloitte Londonp 28 available at httpcontenttflgovukdeloitte-report-tfl-open-datapdf

Department for Business Energy and Industrial Strategy (2017) Industrial Strategy Building a BritainFit for the Future ISBN 9781528601313 Department for Business Energy and IndustrialStrategy London p 256 available at wwwgovukgovernmentpublicationsindustrial-strategy-building-a-britain-fit-for-the-future

Ding Y and Keh HT (2016) ldquoA re-examination of service standardization versus customization fromthe consumerrsquos perspectiverdquo Journal of Services Marketing Vol 30 No 1 pp 16-28

Edvardsson B Enquist B and Johnston R (2010) ldquoDesign dimensions of experience rooms forservice test drives case studies in several service contextsrdquo Managing Service Quality AnInternational Journal Vol 20 No 4 pp 312-327

Fauconnier G and Turner M (1998) ldquoConceptual integration networksrdquo Cognitive Science Vol 22No 2 pp 133-187

Feil-Seifer D and Matari MJ (2005) ldquoDefining socially assistive roboticsrdquo Proceedings of the IEEEInternational Conference on Rehabilitation Robotics June pp 465-468

Frow P McColl-Kennedy JR and Payne AF (2016) ldquoCo-creation practices their role in shaping ahealth care ecosystemrdquo Industrial Marketing Management Vol 56 July pp 24-39

Gabbott M Tsarenko Y and Mok WH (2011) ldquoEmotional intelligence as a moderator of copingstrategies and service outcomes in circumstances of service failurerdquo Journal of Service ResearchVol 14 No 2 pp 234-248

Gallan AS Jarvis CB Brown SW and Bitner MJ (2013) ldquoCustomer positivity and participation inservices an empirical test in a health care contextrdquo Journal of the Academy of Marketing ScienceVol 41 No 3 pp 338-356

Gallo C (2017) ldquoStarbucksrsquo cool new brew storytelling with a digital twistrdquo Forbes December 11available at wwwforbescomsitescarminegallo20171211starbucks-cool-new-brew-storytelling-with-a-digital-twist71d0d2c97735 (accessed August 1 2018)

Gantz J and Reinsel D (2012) ldquoThe digital universe in 2020 big data bigger digital shadows andbiggest growth in the far eastrdquo IDC iView IDC Analyze the Future Framingham MA pp 1-16

Gebauer H and Reynoso J (2013) ldquoAn agenda for service research at the base of the pyramidrdquo Journalof Service Management Vol 24 No 5 pp 482-501

Gentile C Spiller N and Noci G (2007) ldquoHow to sustain the customer experience an overview ofexperience components that co-create value with the customerrdquo European Management JournalVol 25 No 5 pp 395-410

Giebelhausen M Robinson SG Sirianni NJ and Brady MK (2014) ldquoTouch versus tech whentechnology functions as a barrier or a benefit to service encountersrdquo Journal of MarketingVol 78 No 4 pp 113-124

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Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

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ber

2018

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Giraldi L Mengoni M and Bevilacqua M (2016) ldquoHow to enhance customer experience in retailinvestigations through a case studyrdquo Proceedings of the 23rd ISPE Inc International Conferenceon Transdisciplinary Engineering Vols 3-7 October pp 381-390

Gittell JH (2006) ldquoRelational coordination coordinating work through relationships of shared goals sharedknowledge and mutual respectrdquo in Kyriakidou O and Oumlzbilgin MF (Eds) Relational Perspectives inOrganizational Studies A Research Companion Edward Elgar Cheltenham pp 74-94

Goffman E (1967) ldquoOn face-workrdquo Interaction Ritual Essays on Face-to-Face Behavior pp 5-46

Goldman Sachs Equity Research (2017) ldquoChinarsquos rise in artificial intelligence ndash the new ChinardquoGoldman Sachs available at www2caictaccnzscpqqzkgzljyd201709P020170921309379565253pdf (accessed March 1 2018)

Gostin LO Lazzarini Z Neslund VS and Osterholm MT (1996) ldquoThe public health informationinfrastructure a national review of the law on health information privacyrdquo The Journal of theAmerican Medical Association Vol 275 No 24 pp 1921-1927

Greacutegoire Y Tripp TM and Legoux R (2009) ldquoWhen customer love turns into lasting hate the effectsof relationship strength and time on customer revenge and avoidancerdquo Journal of MarketingVol 73 No 6 pp 18-32

Gremler DD and Gwinner KP (2000) ldquoCustomer-employee rapport in service relationshipsrdquo Journalof Service Research Vol 3 No 1 pp 82-104

Grewal D Levy M and Kumar V (2009) ldquoCustomer experience in retailing an organizingframeworkrdquo Journal of Retailing Vol 85 No 1 pp 1-14

Guo L Lotz SL Tang C and Gruen TW (2016) ldquoThe role of perceived control in customer valuecocreation and service recovery evaluationrdquo Journal of Service Research Vol 19 No 1 pp 39-56

Hartmann PM Zaki M Feldmann N and Neely A (2016) ldquoCapturing value from big data ndash ataxonomy of data-driven business models used by start-up firmsrdquo International Journal ofOperations amp Production Management Vol 36 No 10 pp 1382-1406

Harwood T and Garry T (2015) ldquoAn investigation into gamification as a customer engagementexperience environmentrdquo Journal of Services Marketing Vol 29 Nos 67 pp 533-546

Hazeacutee S Delcourt C and Van Vaerenbergh Y (2017) ldquoSharing goods Yuck No An investigation ofproduct contamination in access-based servicesrdquo Journal of Service Research Vol 20 No 4pp 441-456

Hennig-Thurau T Gwinner KP and Gremler DD (2002) ldquoUnderstanding relationship marketingoutcomes an integration of relational benefits and relationship qualityrdquo Journal of ServiceResearch Vol 4 No 3 pp 230-247

Hofaker CF de Ruyter K Lurie NH Manchanda P and Donaldson J (2016) ldquoGamification andmobile marketing effectivenessrdquo Journal of Interactive Marketing Vol 34 May pp 25-36

Hoffman DL and Novak TP (2018) ldquoConsumer and object experience in the Internet of Things anassemblage theory approachrdquo Journal of Consumer Research Vol 44 No 6 pp 1178-1204

Homburg C Jozić D and Kuehnl C (2017) ldquoCustomer experience management toward implementingan evolving marketing conceptrdquo Journal of the Academy of Marketing Science Vol 45 No 3pp 377-401

Huang M-H and Rust RT (2018) ldquoArtificial intelligence in servicerdquo Journal of Service ResearchVol 21 No 2 pp 155-172

Kang C and Roose K (2018) ldquoZuckerberg faces hostile congress as calls for regulation mountrdquo TheNew York Times April 11 p B4 available at wwwnytimescom20180411businesszuckerberg-facebook-congresshtml

Kopalle P (2014) ldquoWhy Amazonrsquos anticipatory shipping is pure geniusrdquo Forbes January 28 available atwwwforbescomsitesonmarketing20140128why-amazons-anticipatory-shipping-is-pure-genius4594345f4605 (accessed August 1 2018)

Kozinets R Patterson A and Ashman R (2016) ldquoNetworks of desire how technology increases ourpassion to consumerdquo Journal of Consumer Research Vol 43 No 5 pp 659-682

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Dow

nloa

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by D

octo

r R

uth

N B

olto

n A

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0 Se

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2018

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Kranzbuumlhler AM Kleijnen MHP Morgan RE and Teerling M (2017) ldquoThe multilevel nature ofcustomer experience research an integrative review and research agendardquo International Journalof Management Reviews Vol 20 No 2 pp 433-456

Kumar V and Reinartz W (2016) ldquoCreating enduring customer valuerdquo Journal of Marketing Vol 80No 6 pp 36-68

Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

Pine BJ and Gilmore JH (1998) ldquoWelcome to the experience economyrdquo Harvard Business ReviewVol 76 JulyAugust pp 97-105

Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Reutskaja E and Hogarth RM (2009) ldquoSatisfaction in choice as a function of the number ofalternatives when lsquogoods satiatersquo rdquo Psychology amp Marketing Vol 26 No 3 pp 197-203

Rivera-Santos M and Rufiacuten C (2010) ldquoGlobal village vs small town understanding networks at thebase of the pyramidrdquo International Business Review Vol 19 No 2 pp 126-139

Rogers CR (1975) ldquoEmpathy an unappreciated way of beingrdquo The Counseling Psychologist Vol 5No 2 pp 2-10

Rogers EM (1995) Diffusion of Innovations 4th ed Free Press New York NY

Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

Schumann JH Wuumlnderlich NV and Wangenheim F (2012) ldquoTechnology mediation in servicedelivery a new typology and an agenda for managers and academicsrdquo Technovation Vol 32No 2 pp 133-143

Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

Dow

nloa

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by D

octo

r R

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olto

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23 2

0 Se

ptem

ber

2018

(PT

)

Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 27: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Bendapudi N and Berry LL (1997) ldquoCustomersrsquo motivations for maintaining relationships withservice providersrdquo Journal of Retailing Vol 73 No 1 pp 15-37

Bendapudi N and Leone R (2003) ldquoPsychological implications of customer participation inco-productionrdquo Journal of Marketing Vol 67 No 1 pp 14-28

Benoit S Baker TL Bolton RN Gruber T and Kandampully J (2017) ldquoA triadic framework forcollaborative consumption (CC) motives activities and resources amp capabilities of actorsrdquoJournal of Business Research Vol 79 October pp 219-227

Berry LL and Bendapudi N (2007) ldquoA fertile field for service researchrdquo Journal of Service ResearchVol 10 No 2 pp 111-122

Bharati P and Chaudhury A (2004) ldquoAn empirical investigation of decision-making satisfaction inweb-based decision support systemsrdquo Decision Support Systems Vol 37 No 2 pp 187-197

Bitner MJ (1992) ldquoServicescapes the impact of physical surroundings on customers and employeesrdquoJournal of Marketing Vol 56 No 2 pp 57-71

Black H and Gallan AS (2015) ldquoTransformative service networks cocreated value as well-beingrdquoThe Service Industries Journal Vol 35 No 15-16 pp 826-845

Blut M Wang C and Schoefer K (2016) ldquoFactors influencing the acceptance of self-servicetechnologies a meta-analysisrdquo Journal of Service Research Vol 19 No 4 pp 396-416

Bolton RN (2011) ldquoComment customer engagement opportunities and challenges for organizationsrdquoJournal of Service Research Vol 14 No 3 pp 272-274

Bolton RN (2016) Service Excellence Creating Customer Experiences that Build RelationshipsBusiness Expert Press New York NY

Bolton RN (2018) ldquoService timing designing and executing service in a dynamic environmentrdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Bolton RN and Saxena-Iyer S (2009) ldquoInteractive services a framework synthesis and researchdirectionrdquo Journal of Interactive Marketing Vol 23 No 1 pp 91-104

Bolton RN Gustafsson A McColl-Kennedy J Sirianni NJ and Tse DK (2014) ldquoSmall details thatmake big differences a radical approach to consumption experience as a firmrsquos differentiatingstrategyrdquo Journal of Service Management Vol 25 No 2 pp 253-274

Bowcott O (2017) ldquoUber to face stricter EU regulation after ECJ rules it is transport firmrdquo TheGuardian December 20 available at wwwtheguardiancomtechnology2017dec20uber-european-court-of-justice-ruling-barcelona-taxi-drivers-ecj-eu (accessed August 1 2018)

Bowen DE (2016) ldquoThe changing role of employee in service theory and practice an interdisciplinaryviewrdquo Human Resource Management Review Vol 26 No 1 pp 4-13

Bowen DE Siehl C and Schneider B (1989) ldquoA framework for analyzing customer serviceorientations in manufacturingrdquo Academy of Management Review Vol 14 No 1 pp 75-95

Breidbach CF Choi S Ellway BE Keating BW Kormusheva K Kowalkowski C Lim C andMaglio P (2018) ldquoOperating without operations how is technology changing the role of thefirmrdquo Journal of Service Management Vol 29 No 5 (in press)

Burdick A (2018) ldquoThe marriage-saving robot that can assemble IKEA furniture sort ofrdquo TheNew Yorker April 18 available at wwwnewyorkercomelementslab-notesthe-marriage-saving-robot-that-can-assemble-ikea-furniture-sort-of (accessed August 1 2018)

Capaldo A (2014) ldquoNetwork governance a cross-level study of social mechanisms knowledgebenefits and strategic outcomes in joint-design alliancesrdquo Industrial Marketing ManagementVol 43 No 4 pp 685-703

Cheung L and McColl-Kennedy JR (2015) ldquoResource integration in liminal periods transitioning totransformative servicerdquo Journal of Services Marketing Vol 29 Nos 67 pp 485-497

Cheung L McColl-Kennedy JR and Coote LV (2017) ldquoConsumer-citizens mobilizing social capitalfollowing a natural disaster effects on well-beingrdquo Journal of Services Marketing Vol 31Nos 45 pp 438-451

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Dow

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ded

by D

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N B

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n A

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0 Se

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2018

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Cohen N (2014) ldquoThe silver economy healthier and wealthierrdquo Financial Times October 19 available atwwwftcomcontent08bff556-52c7-11e4-a236-00144feab7de (accessed March 19 2018)

Danaher TS and Gallan AS (2016) ldquoService research in health care positively impacting livesrdquoJournal of Service Research Vol 19 No 4 pp 433-437

Davis FD Bagozzi RP and Warshaw PR (1989) ldquoUser acceptance of computer technologya comparison of two theoretical modelsrdquo Management Science Vol 35 No 8 pp 982-1003

De Keyser A Lemon KN Klaus P and Keiningham TL (2015) ldquoA framework for understandingand managing the customer experiencerdquo Working Paper Series No 15-121 Marketing ScienceInstitute Cambridge MA available at wwwmsiorgreportsa-framework-for-understanding-and-managing-the-customer-experience

Delcourt C Gremler D Van Riel ACR and Van Birgelen M (2013) ldquoEffects of perceived employeeemotional competence on customer satisfaction and loyalty the mediating role of rapportrdquoJournal of Service Management Vol 24 No 1 pp 2-24

Deloitte (2017) ldquoAssessing the value of TfLrsquos open data and digital partnershipsrdquo Deloitte Londonp 28 available at httpcontenttflgovukdeloitte-report-tfl-open-datapdf

Department for Business Energy and Industrial Strategy (2017) Industrial Strategy Building a BritainFit for the Future ISBN 9781528601313 Department for Business Energy and IndustrialStrategy London p 256 available at wwwgovukgovernmentpublicationsindustrial-strategy-building-a-britain-fit-for-the-future

Ding Y and Keh HT (2016) ldquoA re-examination of service standardization versus customization fromthe consumerrsquos perspectiverdquo Journal of Services Marketing Vol 30 No 1 pp 16-28

Edvardsson B Enquist B and Johnston R (2010) ldquoDesign dimensions of experience rooms forservice test drives case studies in several service contextsrdquo Managing Service Quality AnInternational Journal Vol 20 No 4 pp 312-327

Fauconnier G and Turner M (1998) ldquoConceptual integration networksrdquo Cognitive Science Vol 22No 2 pp 133-187

Feil-Seifer D and Matari MJ (2005) ldquoDefining socially assistive roboticsrdquo Proceedings of the IEEEInternational Conference on Rehabilitation Robotics June pp 465-468

Frow P McColl-Kennedy JR and Payne AF (2016) ldquoCo-creation practices their role in shaping ahealth care ecosystemrdquo Industrial Marketing Management Vol 56 July pp 24-39

Gabbott M Tsarenko Y and Mok WH (2011) ldquoEmotional intelligence as a moderator of copingstrategies and service outcomes in circumstances of service failurerdquo Journal of Service ResearchVol 14 No 2 pp 234-248

Gallan AS Jarvis CB Brown SW and Bitner MJ (2013) ldquoCustomer positivity and participation inservices an empirical test in a health care contextrdquo Journal of the Academy of Marketing ScienceVol 41 No 3 pp 338-356

Gallo C (2017) ldquoStarbucksrsquo cool new brew storytelling with a digital twistrdquo Forbes December 11available at wwwforbescomsitescarminegallo20171211starbucks-cool-new-brew-storytelling-with-a-digital-twist71d0d2c97735 (accessed August 1 2018)

Gantz J and Reinsel D (2012) ldquoThe digital universe in 2020 big data bigger digital shadows andbiggest growth in the far eastrdquo IDC iView IDC Analyze the Future Framingham MA pp 1-16

Gebauer H and Reynoso J (2013) ldquoAn agenda for service research at the base of the pyramidrdquo Journalof Service Management Vol 24 No 5 pp 482-501

Gentile C Spiller N and Noci G (2007) ldquoHow to sustain the customer experience an overview ofexperience components that co-create value with the customerrdquo European Management JournalVol 25 No 5 pp 395-410

Giebelhausen M Robinson SG Sirianni NJ and Brady MK (2014) ldquoTouch versus tech whentechnology functions as a barrier or a benefit to service encountersrdquo Journal of MarketingVol 78 No 4 pp 113-124

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nloa

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by D

octo

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Giraldi L Mengoni M and Bevilacqua M (2016) ldquoHow to enhance customer experience in retailinvestigations through a case studyrdquo Proceedings of the 23rd ISPE Inc International Conferenceon Transdisciplinary Engineering Vols 3-7 October pp 381-390

Gittell JH (2006) ldquoRelational coordination coordinating work through relationships of shared goals sharedknowledge and mutual respectrdquo in Kyriakidou O and Oumlzbilgin MF (Eds) Relational Perspectives inOrganizational Studies A Research Companion Edward Elgar Cheltenham pp 74-94

Goffman E (1967) ldquoOn face-workrdquo Interaction Ritual Essays on Face-to-Face Behavior pp 5-46

Goldman Sachs Equity Research (2017) ldquoChinarsquos rise in artificial intelligence ndash the new ChinardquoGoldman Sachs available at www2caictaccnzscpqqzkgzljyd201709P020170921309379565253pdf (accessed March 1 2018)

Gostin LO Lazzarini Z Neslund VS and Osterholm MT (1996) ldquoThe public health informationinfrastructure a national review of the law on health information privacyrdquo The Journal of theAmerican Medical Association Vol 275 No 24 pp 1921-1927

Greacutegoire Y Tripp TM and Legoux R (2009) ldquoWhen customer love turns into lasting hate the effectsof relationship strength and time on customer revenge and avoidancerdquo Journal of MarketingVol 73 No 6 pp 18-32

Gremler DD and Gwinner KP (2000) ldquoCustomer-employee rapport in service relationshipsrdquo Journalof Service Research Vol 3 No 1 pp 82-104

Grewal D Levy M and Kumar V (2009) ldquoCustomer experience in retailing an organizingframeworkrdquo Journal of Retailing Vol 85 No 1 pp 1-14

Guo L Lotz SL Tang C and Gruen TW (2016) ldquoThe role of perceived control in customer valuecocreation and service recovery evaluationrdquo Journal of Service Research Vol 19 No 1 pp 39-56

Hartmann PM Zaki M Feldmann N and Neely A (2016) ldquoCapturing value from big data ndash ataxonomy of data-driven business models used by start-up firmsrdquo International Journal ofOperations amp Production Management Vol 36 No 10 pp 1382-1406

Harwood T and Garry T (2015) ldquoAn investigation into gamification as a customer engagementexperience environmentrdquo Journal of Services Marketing Vol 29 Nos 67 pp 533-546

Hazeacutee S Delcourt C and Van Vaerenbergh Y (2017) ldquoSharing goods Yuck No An investigation ofproduct contamination in access-based servicesrdquo Journal of Service Research Vol 20 No 4pp 441-456

Hennig-Thurau T Gwinner KP and Gremler DD (2002) ldquoUnderstanding relationship marketingoutcomes an integration of relational benefits and relationship qualityrdquo Journal of ServiceResearch Vol 4 No 3 pp 230-247

Hofaker CF de Ruyter K Lurie NH Manchanda P and Donaldson J (2016) ldquoGamification andmobile marketing effectivenessrdquo Journal of Interactive Marketing Vol 34 May pp 25-36

Hoffman DL and Novak TP (2018) ldquoConsumer and object experience in the Internet of Things anassemblage theory approachrdquo Journal of Consumer Research Vol 44 No 6 pp 1178-1204

Homburg C Jozić D and Kuehnl C (2017) ldquoCustomer experience management toward implementingan evolving marketing conceptrdquo Journal of the Academy of Marketing Science Vol 45 No 3pp 377-401

Huang M-H and Rust RT (2018) ldquoArtificial intelligence in servicerdquo Journal of Service ResearchVol 21 No 2 pp 155-172

Kang C and Roose K (2018) ldquoZuckerberg faces hostile congress as calls for regulation mountrdquo TheNew York Times April 11 p B4 available at wwwnytimescom20180411businesszuckerberg-facebook-congresshtml

Kopalle P (2014) ldquoWhy Amazonrsquos anticipatory shipping is pure geniusrdquo Forbes January 28 available atwwwforbescomsitesonmarketing20140128why-amazons-anticipatory-shipping-is-pure-genius4594345f4605 (accessed August 1 2018)

Kozinets R Patterson A and Ashman R (2016) ldquoNetworks of desire how technology increases ourpassion to consumerdquo Journal of Consumer Research Vol 43 No 5 pp 659-682

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Kranzbuumlhler AM Kleijnen MHP Morgan RE and Teerling M (2017) ldquoThe multilevel nature ofcustomer experience research an integrative review and research agendardquo International Journalof Management Reviews Vol 20 No 2 pp 433-456

Kumar V and Reinartz W (2016) ldquoCreating enduring customer valuerdquo Journal of Marketing Vol 80No 6 pp 36-68

Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

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Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Rogers CR (1975) ldquoEmpathy an unappreciated way of beingrdquo The Counseling Psychologist Vol 5No 2 pp 2-10

Rogers EM (1995) Diffusion of Innovations 4th ed Free Press New York NY

Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

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Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

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Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

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Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

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Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

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Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

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Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

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nloa

ded

by D

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0 Se

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2018

(PT

)

Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

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nloa

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(PT

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This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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nloa

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(PT

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Page 28: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Cohen N (2014) ldquoThe silver economy healthier and wealthierrdquo Financial Times October 19 available atwwwftcomcontent08bff556-52c7-11e4-a236-00144feab7de (accessed March 19 2018)

Danaher TS and Gallan AS (2016) ldquoService research in health care positively impacting livesrdquoJournal of Service Research Vol 19 No 4 pp 433-437

Davis FD Bagozzi RP and Warshaw PR (1989) ldquoUser acceptance of computer technologya comparison of two theoretical modelsrdquo Management Science Vol 35 No 8 pp 982-1003

De Keyser A Lemon KN Klaus P and Keiningham TL (2015) ldquoA framework for understandingand managing the customer experiencerdquo Working Paper Series No 15-121 Marketing ScienceInstitute Cambridge MA available at wwwmsiorgreportsa-framework-for-understanding-and-managing-the-customer-experience

Delcourt C Gremler D Van Riel ACR and Van Birgelen M (2013) ldquoEffects of perceived employeeemotional competence on customer satisfaction and loyalty the mediating role of rapportrdquoJournal of Service Management Vol 24 No 1 pp 2-24

Deloitte (2017) ldquoAssessing the value of TfLrsquos open data and digital partnershipsrdquo Deloitte Londonp 28 available at httpcontenttflgovukdeloitte-report-tfl-open-datapdf

Department for Business Energy and Industrial Strategy (2017) Industrial Strategy Building a BritainFit for the Future ISBN 9781528601313 Department for Business Energy and IndustrialStrategy London p 256 available at wwwgovukgovernmentpublicationsindustrial-strategy-building-a-britain-fit-for-the-future

Ding Y and Keh HT (2016) ldquoA re-examination of service standardization versus customization fromthe consumerrsquos perspectiverdquo Journal of Services Marketing Vol 30 No 1 pp 16-28

Edvardsson B Enquist B and Johnston R (2010) ldquoDesign dimensions of experience rooms forservice test drives case studies in several service contextsrdquo Managing Service Quality AnInternational Journal Vol 20 No 4 pp 312-327

Fauconnier G and Turner M (1998) ldquoConceptual integration networksrdquo Cognitive Science Vol 22No 2 pp 133-187

Feil-Seifer D and Matari MJ (2005) ldquoDefining socially assistive roboticsrdquo Proceedings of the IEEEInternational Conference on Rehabilitation Robotics June pp 465-468

Frow P McColl-Kennedy JR and Payne AF (2016) ldquoCo-creation practices their role in shaping ahealth care ecosystemrdquo Industrial Marketing Management Vol 56 July pp 24-39

Gabbott M Tsarenko Y and Mok WH (2011) ldquoEmotional intelligence as a moderator of copingstrategies and service outcomes in circumstances of service failurerdquo Journal of Service ResearchVol 14 No 2 pp 234-248

Gallan AS Jarvis CB Brown SW and Bitner MJ (2013) ldquoCustomer positivity and participation inservices an empirical test in a health care contextrdquo Journal of the Academy of Marketing ScienceVol 41 No 3 pp 338-356

Gallo C (2017) ldquoStarbucksrsquo cool new brew storytelling with a digital twistrdquo Forbes December 11available at wwwforbescomsitescarminegallo20171211starbucks-cool-new-brew-storytelling-with-a-digital-twist71d0d2c97735 (accessed August 1 2018)

Gantz J and Reinsel D (2012) ldquoThe digital universe in 2020 big data bigger digital shadows andbiggest growth in the far eastrdquo IDC iView IDC Analyze the Future Framingham MA pp 1-16

Gebauer H and Reynoso J (2013) ldquoAn agenda for service research at the base of the pyramidrdquo Journalof Service Management Vol 24 No 5 pp 482-501

Gentile C Spiller N and Noci G (2007) ldquoHow to sustain the customer experience an overview ofexperience components that co-create value with the customerrdquo European Management JournalVol 25 No 5 pp 395-410

Giebelhausen M Robinson SG Sirianni NJ and Brady MK (2014) ldquoTouch versus tech whentechnology functions as a barrier or a benefit to service encountersrdquo Journal of MarketingVol 78 No 4 pp 113-124

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Dow

nloa

ded

by D

octo

r R

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ber

2018

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Giraldi L Mengoni M and Bevilacqua M (2016) ldquoHow to enhance customer experience in retailinvestigations through a case studyrdquo Proceedings of the 23rd ISPE Inc International Conferenceon Transdisciplinary Engineering Vols 3-7 October pp 381-390

Gittell JH (2006) ldquoRelational coordination coordinating work through relationships of shared goals sharedknowledge and mutual respectrdquo in Kyriakidou O and Oumlzbilgin MF (Eds) Relational Perspectives inOrganizational Studies A Research Companion Edward Elgar Cheltenham pp 74-94

Goffman E (1967) ldquoOn face-workrdquo Interaction Ritual Essays on Face-to-Face Behavior pp 5-46

Goldman Sachs Equity Research (2017) ldquoChinarsquos rise in artificial intelligence ndash the new ChinardquoGoldman Sachs available at www2caictaccnzscpqqzkgzljyd201709P020170921309379565253pdf (accessed March 1 2018)

Gostin LO Lazzarini Z Neslund VS and Osterholm MT (1996) ldquoThe public health informationinfrastructure a national review of the law on health information privacyrdquo The Journal of theAmerican Medical Association Vol 275 No 24 pp 1921-1927

Greacutegoire Y Tripp TM and Legoux R (2009) ldquoWhen customer love turns into lasting hate the effectsof relationship strength and time on customer revenge and avoidancerdquo Journal of MarketingVol 73 No 6 pp 18-32

Gremler DD and Gwinner KP (2000) ldquoCustomer-employee rapport in service relationshipsrdquo Journalof Service Research Vol 3 No 1 pp 82-104

Grewal D Levy M and Kumar V (2009) ldquoCustomer experience in retailing an organizingframeworkrdquo Journal of Retailing Vol 85 No 1 pp 1-14

Guo L Lotz SL Tang C and Gruen TW (2016) ldquoThe role of perceived control in customer valuecocreation and service recovery evaluationrdquo Journal of Service Research Vol 19 No 1 pp 39-56

Hartmann PM Zaki M Feldmann N and Neely A (2016) ldquoCapturing value from big data ndash ataxonomy of data-driven business models used by start-up firmsrdquo International Journal ofOperations amp Production Management Vol 36 No 10 pp 1382-1406

Harwood T and Garry T (2015) ldquoAn investigation into gamification as a customer engagementexperience environmentrdquo Journal of Services Marketing Vol 29 Nos 67 pp 533-546

Hazeacutee S Delcourt C and Van Vaerenbergh Y (2017) ldquoSharing goods Yuck No An investigation ofproduct contamination in access-based servicesrdquo Journal of Service Research Vol 20 No 4pp 441-456

Hennig-Thurau T Gwinner KP and Gremler DD (2002) ldquoUnderstanding relationship marketingoutcomes an integration of relational benefits and relationship qualityrdquo Journal of ServiceResearch Vol 4 No 3 pp 230-247

Hofaker CF de Ruyter K Lurie NH Manchanda P and Donaldson J (2016) ldquoGamification andmobile marketing effectivenessrdquo Journal of Interactive Marketing Vol 34 May pp 25-36

Hoffman DL and Novak TP (2018) ldquoConsumer and object experience in the Internet of Things anassemblage theory approachrdquo Journal of Consumer Research Vol 44 No 6 pp 1178-1204

Homburg C Jozić D and Kuehnl C (2017) ldquoCustomer experience management toward implementingan evolving marketing conceptrdquo Journal of the Academy of Marketing Science Vol 45 No 3pp 377-401

Huang M-H and Rust RT (2018) ldquoArtificial intelligence in servicerdquo Journal of Service ResearchVol 21 No 2 pp 155-172

Kang C and Roose K (2018) ldquoZuckerberg faces hostile congress as calls for regulation mountrdquo TheNew York Times April 11 p B4 available at wwwnytimescom20180411businesszuckerberg-facebook-congresshtml

Kopalle P (2014) ldquoWhy Amazonrsquos anticipatory shipping is pure geniusrdquo Forbes January 28 available atwwwforbescomsitesonmarketing20140128why-amazons-anticipatory-shipping-is-pure-genius4594345f4605 (accessed August 1 2018)

Kozinets R Patterson A and Ashman R (2016) ldquoNetworks of desire how technology increases ourpassion to consumerdquo Journal of Consumer Research Vol 43 No 5 pp 659-682

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Dow

nloa

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by D

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uth

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olto

n A

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0 Se

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Kranzbuumlhler AM Kleijnen MHP Morgan RE and Teerling M (2017) ldquoThe multilevel nature ofcustomer experience research an integrative review and research agendardquo International Journalof Management Reviews Vol 20 No 2 pp 433-456

Kumar V and Reinartz W (2016) ldquoCreating enduring customer valuerdquo Journal of Marketing Vol 80No 6 pp 36-68

Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

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n A

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Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

Pine BJ and Gilmore JH (1998) ldquoWelcome to the experience economyrdquo Harvard Business ReviewVol 76 JulyAugust pp 97-105

Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Reutskaja E and Hogarth RM (2009) ldquoSatisfaction in choice as a function of the number ofalternatives when lsquogoods satiatersquo rdquo Psychology amp Marketing Vol 26 No 3 pp 197-203

Rivera-Santos M and Rufiacuten C (2010) ldquoGlobal village vs small town understanding networks at thebase of the pyramidrdquo International Business Review Vol 19 No 2 pp 126-139

Rogers CR (1975) ldquoEmpathy an unappreciated way of beingrdquo The Counseling Psychologist Vol 5No 2 pp 2-10

Rogers EM (1995) Diffusion of Innovations 4th ed Free Press New York NY

Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

Schumann JH Wuumlnderlich NV and Wangenheim F (2012) ldquoTechnology mediation in servicedelivery a new typology and an agenda for managers and academicsrdquo Technovation Vol 32No 2 pp 133-143

Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

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Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

Dow

nloa

ded

by D

octo

r R

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olto

n A

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0 Se

ptem

ber

2018

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)

Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

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nloa

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0 Se

ptem

ber

2018

(PT

)

This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 29: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Giraldi L Mengoni M and Bevilacqua M (2016) ldquoHow to enhance customer experience in retailinvestigations through a case studyrdquo Proceedings of the 23rd ISPE Inc International Conferenceon Transdisciplinary Engineering Vols 3-7 October pp 381-390

Gittell JH (2006) ldquoRelational coordination coordinating work through relationships of shared goals sharedknowledge and mutual respectrdquo in Kyriakidou O and Oumlzbilgin MF (Eds) Relational Perspectives inOrganizational Studies A Research Companion Edward Elgar Cheltenham pp 74-94

Goffman E (1967) ldquoOn face-workrdquo Interaction Ritual Essays on Face-to-Face Behavior pp 5-46

Goldman Sachs Equity Research (2017) ldquoChinarsquos rise in artificial intelligence ndash the new ChinardquoGoldman Sachs available at www2caictaccnzscpqqzkgzljyd201709P020170921309379565253pdf (accessed March 1 2018)

Gostin LO Lazzarini Z Neslund VS and Osterholm MT (1996) ldquoThe public health informationinfrastructure a national review of the law on health information privacyrdquo The Journal of theAmerican Medical Association Vol 275 No 24 pp 1921-1927

Greacutegoire Y Tripp TM and Legoux R (2009) ldquoWhen customer love turns into lasting hate the effectsof relationship strength and time on customer revenge and avoidancerdquo Journal of MarketingVol 73 No 6 pp 18-32

Gremler DD and Gwinner KP (2000) ldquoCustomer-employee rapport in service relationshipsrdquo Journalof Service Research Vol 3 No 1 pp 82-104

Grewal D Levy M and Kumar V (2009) ldquoCustomer experience in retailing an organizingframeworkrdquo Journal of Retailing Vol 85 No 1 pp 1-14

Guo L Lotz SL Tang C and Gruen TW (2016) ldquoThe role of perceived control in customer valuecocreation and service recovery evaluationrdquo Journal of Service Research Vol 19 No 1 pp 39-56

Hartmann PM Zaki M Feldmann N and Neely A (2016) ldquoCapturing value from big data ndash ataxonomy of data-driven business models used by start-up firmsrdquo International Journal ofOperations amp Production Management Vol 36 No 10 pp 1382-1406

Harwood T and Garry T (2015) ldquoAn investigation into gamification as a customer engagementexperience environmentrdquo Journal of Services Marketing Vol 29 Nos 67 pp 533-546

Hazeacutee S Delcourt C and Van Vaerenbergh Y (2017) ldquoSharing goods Yuck No An investigation ofproduct contamination in access-based servicesrdquo Journal of Service Research Vol 20 No 4pp 441-456

Hennig-Thurau T Gwinner KP and Gremler DD (2002) ldquoUnderstanding relationship marketingoutcomes an integration of relational benefits and relationship qualityrdquo Journal of ServiceResearch Vol 4 No 3 pp 230-247

Hofaker CF de Ruyter K Lurie NH Manchanda P and Donaldson J (2016) ldquoGamification andmobile marketing effectivenessrdquo Journal of Interactive Marketing Vol 34 May pp 25-36

Hoffman DL and Novak TP (2018) ldquoConsumer and object experience in the Internet of Things anassemblage theory approachrdquo Journal of Consumer Research Vol 44 No 6 pp 1178-1204

Homburg C Jozić D and Kuehnl C (2017) ldquoCustomer experience management toward implementingan evolving marketing conceptrdquo Journal of the Academy of Marketing Science Vol 45 No 3pp 377-401

Huang M-H and Rust RT (2018) ldquoArtificial intelligence in servicerdquo Journal of Service ResearchVol 21 No 2 pp 155-172

Kang C and Roose K (2018) ldquoZuckerberg faces hostile congress as calls for regulation mountrdquo TheNew York Times April 11 p B4 available at wwwnytimescom20180411businesszuckerberg-facebook-congresshtml

Kopalle P (2014) ldquoWhy Amazonrsquos anticipatory shipping is pure geniusrdquo Forbes January 28 available atwwwforbescomsitesonmarketing20140128why-amazons-anticipatory-shipping-is-pure-genius4594345f4605 (accessed August 1 2018)

Kozinets R Patterson A and Ashman R (2016) ldquoNetworks of desire how technology increases ourpassion to consumerdquo Journal of Consumer Research Vol 43 No 5 pp 659-682

JOSM

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Kranzbuumlhler AM Kleijnen MHP Morgan RE and Teerling M (2017) ldquoThe multilevel nature ofcustomer experience research an integrative review and research agendardquo International Journalof Management Reviews Vol 20 No 2 pp 433-456

Kumar V and Reinartz W (2016) ldquoCreating enduring customer valuerdquo Journal of Marketing Vol 80No 6 pp 36-68

Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

Customerexperiencechallenges

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nloa

ded

by D

octo

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uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

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)

Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

Pine BJ and Gilmore JH (1998) ldquoWelcome to the experience economyrdquo Harvard Business ReviewVol 76 JulyAugust pp 97-105

Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

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Dow

nloa

ded

by D

octo

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uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Reutskaja E and Hogarth RM (2009) ldquoSatisfaction in choice as a function of the number ofalternatives when lsquogoods satiatersquo rdquo Psychology amp Marketing Vol 26 No 3 pp 197-203

Rivera-Santos M and Rufiacuten C (2010) ldquoGlobal village vs small town understanding networks at thebase of the pyramidrdquo International Business Review Vol 19 No 2 pp 126-139

Rogers CR (1975) ldquoEmpathy an unappreciated way of beingrdquo The Counseling Psychologist Vol 5No 2 pp 2-10

Rogers EM (1995) Diffusion of Innovations 4th ed Free Press New York NY

Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

Schumann JH Wuumlnderlich NV and Wangenheim F (2012) ldquoTechnology mediation in servicedelivery a new typology and an agenda for managers and academicsrdquo Technovation Vol 32No 2 pp 133-143

Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

Customerexperiencechallenges

Dow

nloa

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by D

octo

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uth

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0 Se

ptem

ber

2018

(PT

)

Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

Dow

nloa

ded

by D

octo

r R

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n A

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23 2

0 Se

ptem

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2018

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Page 30: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Kranzbuumlhler AM Kleijnen MHP Morgan RE and Teerling M (2017) ldquoThe multilevel nature ofcustomer experience research an integrative review and research agendardquo International Journalof Management Reviews Vol 20 No 2 pp 433-456

Kumar V and Reinartz W (2016) ldquoCreating enduring customer valuerdquo Journal of Marketing Vol 80No 6 pp 36-68

Lamberton C and Stephen AT (2016) ldquoA thematic exploration of digital social media and mobilemarketing research evolution from 2000 to 2015 and an agenda for future inquiryrdquo Journal ofMarketing Vol 80 No 6 pp 146-172

Landers RN (2014) ldquoDeveloping a theory of gamified learning linking serious games andgamification of learningrdquo Simulation amp Gaming Vol 45 No 6 pp 752-768

Lanfranco AR Castellanos AE Desai JP and Meyers WC (2004) ldquoRobotic surgery a currentperspectiverdquo Annals of Surgery Vol 239 No 1 pp 14-21

Lariviegravere B Bowen DE Andreassen TW Kunz W Sirianni NJ Voss C Wuumlnderlich NV andDe Keyser A (2017) ldquo lsquoService Encounter 20rsquo an investigation into the roles of technologyemployees and customersrdquo Journal of Business Research Vol 79 October pp 238-246

Leeflang PSH Verhoef PC Dahlstroumlm P and Freundt T (2014) ldquoChallenges and solutions formarketing in a digital erardquo European Management Journal Vol 32 No 1 pp 1-12

Lemon KN (2016) ldquoThe art of creating attractive consumer experiences at the right time skills marketerswill need to survive and thriverdquo GfK Marketing Intelligence Review Vol 8 No 2 pp 44-49

Lemon KN and Verhoef PC (2016) ldquoUnderstanding customer experience throughout the customerjourneyrdquo Journal of Marketing Vol 80 No 6 pp 69-96

Libai B Bolton RN Bugel MS de Ruyter K Gotz O Risselada H and Stephen AT (2010)ldquoCustomer-to-customer interactions broadening the scope of word of mouth researchrdquo Journalof Service Research Vol 13 No 3 pp 267-282

London T Anupindi R and Sheth S (2010) ldquoCreating mutual value lessons learned from venturesserving base of the pyramid producersrdquo Journal of Business Research Vol 63 No 6 pp 582-594

Lynch KD (2007) ldquoModeling role enactment linking role theory and social cognitionrdquo Journal for theTheory of Social Behaviour Vol 37 No 4 pp 379-399

McColl-Kennedy JR Cheung L and Ferrier E (2015) ldquoCo-creating service experience practicesrdquoJournal of Service Management Vol 26 No 2 pp 249-275

McColl-Kennedy JR Hogan SJ Witell L and Snyder H (2017) ldquoCocreative customer practiceseffects of health care customer value cocreation practices on well-beingrdquo Journal of BusinessResearch Vol 70 No 1 pp 55-66

McColl-Kennedy JR Vargo SL Dagger TS Sweeney JC and van Kasteren Y (2012) ldquoHealth carecustomer value cocreation practice stylesrdquo Journal of Service Research Vol 15 No 4 pp 370-389

McColl-Kennedy JR Danaher TS Gallan AS Orshingher C Lervik-Olsen L and Verma R (2017)ldquoHow do you feel today Managing patient emotions during health care experiences to enhancewell-beingrdquo Journal of Business Research Vol 79 October pp 247-259

McColl-Kennedy JR Gustafsson A Jaakkola E Klaus P Radnor ZJ Perks H and Friman M(2015) ldquoFresh perspectives on customer experiencerdquo Journal of Services Marketing Vol 29Nos 67 pp 430-435

McColl-Kennedy JR Snyder H Elg M Witell L Helkkula A Hogan SJ and Anderson L (2017)ldquoThe changing role of the health care customer review synthesis and research agendardquo Journalof Service Management Vol 28 No 1 pp 2-33

MacDonald M (2017) ldquoValue analysis better asset managementrdquo report National InfrastructureCommission London December 7 p 81 available at wwwnicorgukwp-contentuploadsValue-Analysis-Better-Asset-Managementpdf

Marinova D de Ruyter K Huang M-H Meuter ML and Challagalla G (2016) ldquoGetting smartlearning from technology-empowered frontline interactionsrdquo Journal of Service Research Vol 20No 1 pp 29-42

Customerexperiencechallenges

Dow

nloa

ded

by D

octo

r R

uth

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olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

Pine BJ and Gilmore JH (1998) ldquoWelcome to the experience economyrdquo Harvard Business ReviewVol 76 JulyAugust pp 97-105

Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

JOSM

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Reutskaja E and Hogarth RM (2009) ldquoSatisfaction in choice as a function of the number ofalternatives when lsquogoods satiatersquo rdquo Psychology amp Marketing Vol 26 No 3 pp 197-203

Rivera-Santos M and Rufiacuten C (2010) ldquoGlobal village vs small town understanding networks at thebase of the pyramidrdquo International Business Review Vol 19 No 2 pp 126-139

Rogers CR (1975) ldquoEmpathy an unappreciated way of beingrdquo The Counseling Psychologist Vol 5No 2 pp 2-10

Rogers EM (1995) Diffusion of Innovations 4th ed Free Press New York NY

Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

Schumann JH Wuumlnderlich NV and Wangenheim F (2012) ldquoTechnology mediation in servicedelivery a new typology and an agenda for managers and academicsrdquo Technovation Vol 32No 2 pp 133-143

Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

Customerexperiencechallenges

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

Dow

nloa

ded

by D

octo

r R

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2018

(PT

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Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

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2018

(PT

)

This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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Page 31: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Martin KD Borah A and Palmatier RW (2017) ldquoData privacy effects on customer and firmperformancerdquo Journal of Marketing Vol 81 No 1 pp 36-58

Mayer-Schoumlnberger V and Cukier K (2013) Big Data A Revolution that Will Transform HowWe LiveWork and Think Houghton Mifflin Harcourt Publishing Company New York NY

Mayo Clinic (2018) ldquoCommunity contributionsrdquo Mayo Clinic Community Contributions ProgramRochester MN March pp 1-4 available at wwwmayoedupmtsmc5000-mc5099mc5097-52pdf_ga=11068308599459113461446575788

Mehrabian A and Russell JA (1974) ldquoThe basic emotional impact of environmentsrdquo Perceptual andMotor Skills Vol 38 No 1 pp 283-301

Meuter ML Bitner MJ Ostrom AL and Brown SW (2005) ldquoChoosing among alternative servicedelivery modes an investigation of customer trial of self-service technologiesrdquo Journal ofMarketing Vol 26 No 9 pp 61-83

Meyer C and Schwager A (2007) ldquoUnderstanding customer experiencerdquo Harvard Business ReviewVol 85 No 2 pp 117-126

Moeller S Ciuchita R Mahr D Odekerken-Schroumlder G and Fassnacht M (2013) ldquoUncoveringcollaborative value creation patterns and establishing corresponding customer rolesrdquo Journal ofService Research Vol 16 No 4 pp 471-487

Mori M MacDorman KF and Kageki N (2012) ldquoThe uncanny valley (from the field)rdquo IEEE Roboticsamp Automation Magazine Vol 19 No 2 pp 98-100

National Infrastructure Commission (2017) ldquoData for the public goodrdquo National Infrastructure Commissionreport London December 14 p 76 available at wwwnicorgukpublicationsdata-public-good

Ng IC and Wakenshaw SY (2017) ldquoThe internet-of-things review and research directionsrdquoInternational Journal of Research in Marketing Vol 34 No 1 pp 3-21

Olian JD and Rynes SL (1991) ldquoMaking total quality work aligning organizational processesperformance measures and stakeholdersrdquo Human Resource Management Vol 30 No 3pp 303-333

Ordenes FV Burton J Theodoulidis B Gruber T and Zaki M (2014) ldquoAnalyzing customerexperience feedback using text mining a linguistics-based approachrdquo Journal of ServiceResearch Vol 17 No 3 pp 278-295

Parise S Guinan PJ and Kafka R (2016) ldquoSolving the crisis of immediacy how digital technologycan transform the customer experiencerdquo Business Horizons Vol 59 No 4 pp 411-420

Patriacutecio L Figueiredo de Pinho N Teixeira JG and Fisk RP (2018) ldquoService design for valuenetworks enabling value cocreation interactions in healthcarerdquo Service Science Vol 10 No 1pp 76-97

Payne AF Storbacka K and Frow P (2008) ldquoManaging the co-creation of valuerdquo Journal of theAcademy of Marketing Science Vol 36 No 1 pp 83-96

Petermans A Janssens W and Van Cleempoel K (2013) ldquoA holistic framework for conceptualizingcustomer experiences in retail environmentsrdquo International Journal of Design Vol 7 No 2 pp 1-18

Pine BJ and Gilmore JH (1998) ldquoWelcome to the experience economyrdquo Harvard Business ReviewVol 76 JulyAugust pp 97-105

Plambeck J (2018) ldquoHow artificial intelligence is edging its way into our livesrdquo New York TimesFebruary 12 available at wwwnytimescom20180212technologyartificial-intelligence-new-work-summithtml (accessed August 1 2018)

Qiu Q Fleeman JA Ball DR Rackliffe G Hou J and Cheim L (2013) ldquoManaging criticaltransmission infrastructure with advanced analytics and smart sensorsrdquo IEEE Power amp EnergySociety General Meeting pp 1-6 available at httpieeexploreieeeorglpdocsepic03wrapperhtmarnumber=6672972

Regelado A (2016) ldquoThe biggest technology failures of 2016rdquo MIT Technology Review December 27available at wwwtechnologyreviewcoms603194the-biggest-technology-failures-of-2016(accessed August 1 2018)

JOSM

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Reutskaja E and Hogarth RM (2009) ldquoSatisfaction in choice as a function of the number ofalternatives when lsquogoods satiatersquo rdquo Psychology amp Marketing Vol 26 No 3 pp 197-203

Rivera-Santos M and Rufiacuten C (2010) ldquoGlobal village vs small town understanding networks at thebase of the pyramidrdquo International Business Review Vol 19 No 2 pp 126-139

Rogers CR (1975) ldquoEmpathy an unappreciated way of beingrdquo The Counseling Psychologist Vol 5No 2 pp 2-10

Rogers EM (1995) Diffusion of Innovations 4th ed Free Press New York NY

Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

Schumann JH Wuumlnderlich NV and Wangenheim F (2012) ldquoTechnology mediation in servicedelivery a new typology and an agenda for managers and academicsrdquo Technovation Vol 32No 2 pp 133-143

Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

Customerexperiencechallenges

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Page 32: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Reutskaja E and Hogarth RM (2009) ldquoSatisfaction in choice as a function of the number ofalternatives when lsquogoods satiatersquo rdquo Psychology amp Marketing Vol 26 No 3 pp 197-203

Rivera-Santos M and Rufiacuten C (2010) ldquoGlobal village vs small town understanding networks at thebase of the pyramidrdquo International Business Review Vol 19 No 2 pp 126-139

Rogers CR (1975) ldquoEmpathy an unappreciated way of beingrdquo The Counseling Psychologist Vol 5No 2 pp 2-10

Rogers EM (1995) Diffusion of Innovations 4th ed Free Press New York NY

Rolls-Royce (2017) ldquoOur storiesrdquo Rolls-Royce available at wwwrolls-roycecommediaour-storiesdiscover2017simulation-platformaspx (accessed March 1 2018)

Rosenbaum MS and Massiah C (2011) ldquoAn expanded servicescape perspectiverdquo Journal of ServiceManagement Vol 22 No 4 pp 471-491

Rosenbaum MS and Massiah CA (2007) ldquoWhen customers receive support from other customersexploring the influence of intercustomer social support on customer voluntary performancerdquoJournal of Service Research Vol 9 No 3 pp 257-270

Rosenbaum MS Ward J Walker BA and Ostrom AL (2007) ldquoA cup of coffee with a dash of lovean investigation of commercial social support and third-place attachmentrdquo Journal of ServiceResearch Vol 10 No 1 pp 43-59

Sands S Harper E and Ferraro C (2011) ldquoCustomer-to-noncustomer interactions extending thelsquosocialrsquo dimension of the store environmentrdquo Journal of Retailing and Consumer Services Vol 18No 3 pp 438-447

Schmitt B Brakus JJ and Zarantonello L (2015) ldquoFrom experiential psychology to consumerexperiencerdquo Journal of Consumer Psychology Vol 25 No 1 pp 166-171

Schumann JH Wuumlnderlich NV and Wangenheim F (2012) ldquoTechnology mediation in servicedelivery a new typology and an agenda for managers and academicsrdquo Technovation Vol 32No 2 pp 133-143

Singh J Brady M Arnold T and Brown T (2017) ldquoThe emergent field of organizational frontlinesrdquoJournal of Service Research Vol 20 No 1 pp 3-11

Sirianni NJ Bitner MJ Brown SW and Mandel N (2013) ldquoBranded service encountersstrategically aligning employee behavior with the brand positioningrdquo Journal of MarketingVol 77 No 6 pp 108-123

Slater SF and Narver JC (2000) ldquoIntelligence generation and superior customer valuerdquo Journal of theAcademy of Marketing Science Vol 28 No 1 pp 120-127

Solomon MR Surprenant C Czepiel JA and Gutman EG (1985) ldquoA role theory on dyadicinteractions the service encounterrdquo The Journal of Marketing Vol 49 No 1 pp 99-111

Surprenant CF and Solomon MR (1987) ldquoPredictability and personalization in the serviceencounterrdquo Journal of Marketing Vol 51 No 2 pp 86-96

Susskind R and Susskind D (2015) The Future of the Professions How Technology will Transformthe Work of Human Experts Audible Studios on Brilliance Audio Oxford

Tapus A Mataric MJ and Scassellati B (2007) ldquoSocially assistive robotics (grand challenges ofrobotics)rdquo IEEE Robotics amp Automation Magazine Vol 14 No 1 pp 35-42

Tombs A and McColl-Kennedy JR (2003) ldquoSocial-servicescape conceptual modelrdquoMarketing TheoryVol 3 No 4 pp 447-475

Tombs A and McColl-Kennedy JR (2013) ldquoThird party customers infecting other customers forbetter or for worserdquo Psychology amp Marketing Vol 30 No 3 pp 277-292

Topol E and Hill D (2012) Creative Destruction of Medicine How the Digital Revolution will CreateBetter Health Care Tantor Audio New York NY

Tracer Z and Son H (2018) ldquoAmazon Berkshire JPMorgan link up to form new healthcare companyrdquoBloomberg News January 30 available at wwwbloombergcomnewsarticles2018-01-30amazon-berkshire-jpmorgan-to-set-up-a-health-company-for-staff (accessed August 1 2018)

Customerexperiencechallenges

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Page 33: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Tuli KR Kohli AK and Bharadwaj SG (2007) ldquoRethinking customer solutions from productbundles to relational processesrdquo Journal of Marketing Vol 71 No 3 pp 1-17

UN News (2015) ldquoReport by UN and Gates Foundation presents vision for eradicating malaria by2040rdquo United Nations New York NY

Upwork (2017) ldquoBring ideas to life with freelance talentrdquo available at wwwupworkcomhiringhire-best-freelancers-upworkvt_cmp=1060031657ampvt_adg=54615131960ampvt_src=googleampvt_kw=upworkampvt_device=camputm_source=googleamputm_campaign=1060031657amputm_medium=paidsearchampgclid=Cj0KCQiA_JTUBRD4ARIsAL7_VeVZthCtA_CD9u8AiFDyExfYb1XA9usFpGcR-oQceZBvsYACO06Nb9EaArunEALw_wcB (accessed August 1 2018)

US Bureau of Labor Statistics (2015) ldquoLabor force projections to 2024 the labor force is growing butslowlyrdquo US Bureau of Labor Statistics Washington DC December 8 available at wwwblsgovopubmlr2015articlelabor-force-projections-to-2024htm

Van Doorn J Mende M Noble SM Hulland J Ostrom AL Grewal D and Petersen JA (2017)ldquoDomo Arigato Mr Roboto emergence of automated social presence in organizational frontlinesand customersrsquo service experiencesrdquo Journal of Service Research Vol 20 No 1 pp 43-58

Venkatesh V Thong JYL and Xu X (2012) ldquoConsumer acceptance and use of informationtechnology extending the unified theory of acceptance and use of technologyrdquo ManagementInformation Systems Quarterly Vol 36 No 1 pp 157-178

Verhoef PC Lemon KN Parasuraman A Roggeveen A Tsiros M and Schlesinger LA (2009)ldquoCustomer experience creation determinants dynamics and management strategiesrdquo Journal ofRetailing Vol 85 No 1 pp 31-41

Voorhees CM Fombelle PW Gregoire Y Bone S Gustafsson A Sousa R and Walkowiak T(2017) ldquoService encounters experiences and the customer journey defining the field and a call toexpand our lensrdquo Journal of Business Research Vol 79 October pp 269-280

Walsh N (2018) ldquoThe next time you order room service it may come by robotrdquo The New York TimesJanuary 29 p TR2 available at wwwnytimescom20180129travelthe-next-time-you-order-room-service-it-may-come-by-robothtml

Walz SP and Deterding S (Eds) (2014) The Gameful World Approaches Issues Applications MITPress Cambridge MA

Wedel M and Kannan PK (2016) ldquoMarketing analytics for data-rich environmentsrdquo Journal ofMarketing Vol 80 No 6 pp 97-121

Wieseke J Geigenmuumlller A and Kraus F (2012) ldquoOn the role of empathy in customer-employeeinteractionsrdquo Journal of Service Research Vol 15 No 3 pp 316-331

Wirtz J Patterson P Kunz W Gruber T Lu VN Paluch S and Martins A (2018) ldquoService robots inthe front line will it be a brave new worldrdquo Journal of Service Management Vol 29 No 5 (in press)

Wolf J Moreau J Akilov O Patton T English JC III Ho J and Korb Ferris L (2013) ldquoDiagnosticinaccuracy of smart phone applications for melanoma detectionrdquo JAMA Dermatology Vol 149No 4 pp 422-426

World Economic Forum (2017) ldquoDigital transformation initiative professional services industryrdquoWorld Economic Forum p 32 available at wwwaccenturecom_acnmediaAccentureConversion-AssetsWEFPDFAccenture-Professional-Services-Industrypdf

Zaki M and Neely A (2018) ldquoCustomer experience analytics dynamic customer-centric moderdquo inMaglio PP Kieliszewski CA Spohrer JC Lyons K Sawatani Y and Patriacutecio L (Eds)Handbook of Service Science Vol 2 Springer International Publishing AG (forthcoming)

Zomerdijk LG and Voss CA (2010) ldquoService design for experience-centric servicesrdquo Journal ofService Research Vol 13 No 1 pp 67-82

About the authorsRuth N Bolton (PhD) is Professor of Marketing at the WP Carey School of Business Arizona StateUniversity She is the recipient of the 2016 American Marketing AssociationIrwinMcGraw-HillDistinguished Marketing Educator Award and the 2007 Christopher Lovelock Career Contributions to

JOSM

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

Page 34: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

Services Award She previously served as 2009-2011 Executive Director of the Marketing ScienceInstitute and 2002ndash2005 Editor of the Journal of Marketing Dr Bolton has published articles in theJournal of Consumer Research Journal of Marketing Journal of Marketing Research Journal of ServiceResearchManagement ScienceMarketing Science and other leading journals She currently serves onthe Board of Directors of the Sheth Foundation as Vice-President She received her BCom with honorsfrom the Queenrsquos University (Canada) and her MSc and PhD from the Carnegie-Mellon University

Janet R McColl-Kennedy (PhD) is Professor of Marketing in the UQ Business School TheUniversity of Queensland Brisbane Australia She is recognized internationally as a leadingresearcher in Service Science Her research interests include service recovery customer complainingbehavior customer emotions customer rage customer experience and customer value co-creationDr McColl-Kennedy has a particular interest in healthcare marketing She has published articles inJournal of Retailing Journal of the Academy of Marketing Science Leadership Quarterly Journal ofService Research California Management Review Psychology and Marketing Journal of BusinessResearch Marketing Theory Journal of Service Management and Industrial Marketing ManagementShe has been awarded a large number of highly competitive research grants and has been VisitingProfessor at several prestigious business schools around the world Dr Janet R McColl-Kennedy is thecorresponding author and can be contacted at jmccoll-kennedybusinessuqeduau

Lilliemay Cheung (PhD) is Senior Research Associate in the UQ Business School at The Universityof Queensland Australia Lily has extensive experience in the healthcare sector as a marketingcommunications professional involved in complex health service delivery and public healthcampaigns Her research areas of interest include customer-to-customer interactions in servicecontexts network interactions and healthcare service improvement Her research is published ininternational peer-reviewed journals including Journal of Services Marketing Journal of ServicesManagement Marketing Theory and The Australian Medical Journal

Andrew Gallan (PhD Arizona State University Center for Services Leadership) is AssociateProfessor of Marketing at the Kellstadt Graduate College of Business DePaul University Chicago ILHis research interests are in the areas of innovation design and patient experience in healthcare whichexplore the transformative potential of services His research is published in Journal of the Academy ofMarketing Science Service Industries Journal and Journal of Business Research

Chiara Orsingher (PhD) is Associate Professor of Marketing at the University of Bologna ItalyHer research interests include service recovery and complaint handling meta-analysis referral rewardprograms and customer relationship with digital helpers Her work has appeared in the Journal ofAcademy of Marketing Science Academy of Management Perspectives Journal of Service ResearchJournal of Services Management Journal of Business Research and other leading journals

Lars Witell (PhD) is Professor at the CTF Service Research Center at Karlstad University SwedenHe also holds a position as Professor in Business Administration at Linkoumlping University SwedenHe conducts research on service innovation customer co-creation and service infusion inmanufacturing firms He has published about 50 papers in scholarly journals such as Journal ofService Research Journal of Service Management and Industrial Marketing Management as well as inthe popular press such as The Wall Street Journal

Mohamed Zaki (PhD) is Senior Research Associate at the Department of Engineering Institute forManufacturing and Deputy Director of the Cambridge Service Alliance The University of CambridgeMohamedrsquos research focuses on developing novel machine learning methods to manage and measurecustomer experience and predict customer loyalty Other research interests include digitaltransformation and data-driven business models He has a number of publications in highly rankedjournals including Journal of Service Research International Journal of Operations and ProductionManagement and Journal of Services Marketing He is a recipient of Marketing Science Institute grant(2016 and 2017) on customer experience Mohamed is also Principle Investigator and a co-investigatoron seven UK research council (EPSRCESRC) and industrial research projects

For instructions on how to order reprints of this article please visit our websitewwwemeraldgrouppublishingcomlicensingreprintshtmOr contact us for further details permissionsemeraldinsightcom

Customerexperiencechallenges

Dow

nloa

ded

by D

octo

r R

uth

N B

olto

n A

t 08

23 2

0 Se

ptem

ber

2018

(PT

)

This article has been cited by

1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

Dow

nloa

ded

by D

octo

r R

uth

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Page 35: Journal of Service Management - Ruth N. BoltonJournal of Service Management Customer experience challenges: bringing together digital, physical and social realms Ruth N. Bolton, Janet

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1 EdvardssonBo Bo Edvardsson FrowPennie Pennie Frow JaakkolaElina Elina JaakkolaKeininghamTimothy Lee Timothy Lee Keiningham Koskela-HuotariKaisa Kaisa Koskela-Huotari MeleCristina Cristina Mele TombsAlastair Alastair Tombs Examining how contextchange foster service innovation Journal of Service Management ahead of print [Abstract] [FullText] [PDF]

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