Service Modularity & Customer Perceived Value - YouTube

Modularity concept is a way to (re) organise the way service is offered

It concerns the decomposition of a service system in modules

Those modules can be mixed-and-matched in a variety of ways to form a service package

Service providers apply the principle of modularity to achieve reductions in time and cost of delivering customized services

Service modularity is thus a key concept for a service-oriented perspective of the enterprise

but research is still at an early stage

Customer Perceived Value is the evaluated value a customer get when buying a product or service

It is the fundamental basis in every marketing activity

In service sector, customer perceived value may be based primarily on the service experience

Modularity has been recognized as one of the efficient ways to enhance customer perceived value in terms of service experience and price

Modules are increasingly being used in educational organizations as a way of organising curriculum

Modularity in educational organizations takes into account individual differences

Researchers pointed out that individual learnt more at their own pace,

and that’s why it is valuable to research on service modularity in educational organizations

CIIC Spanish Division provides Spanish Services for people in china

There are different functions of their service, such as courses, excursions, and so on

They have applied modularity in their service Customer perceived value is an important

aspect for them so we can get their support for our research, and that’s why we chose them for our research

In this conceptual model, we divide the independent variables into three parts

Namely, clarity of functions, variety of modules and number of modules

We assume that the clarity of module functions may influence the understanding and choosing

of service package, and the clarity of function also influences chances

whether customer only choose what he or she needs

The variety of modules influences chances whether customer only choose what he or she needs.

The number of modules influences chances whether customer only choose what he or she needs

and also service customization

Finally customer perceived value is affected

Especially, we also assume those factors are positive related to each other

Through interview with CIIC’s staff the service delivery process before and after

the application of modularity is clear

Before modular transformation process, CIIC provided several pre-designed service packages

which included specific combination of spanish course, exam preparation and enroll, excursion

service, and university application

The content of each service package are fixed and customization degree are relatively low

Consequently, customers are able to choose and combine any service component with different

functionality as their personalized service package

Furthermore, in the new setting, customers are allowed to just choose three, two or even

one functionality to build up their service package which means they can eliminate anything

they don’t really want to pay

We also give out some questionnaires to the customers who have experienced services from

CIIC before modularity and after modularity

Through this way, the experience of customers can be collected

As u can see from the bar chartm the percentage of number of customers who think the service

content is easy to understand is four times higher after modularity.One of the customer

perceived value (easiness for understanding service package) is improved

But what‘s’ the reason behind this?

From the interview, we know the service content is clearer than before, so customer can understand it better

The graph shows after modularity, most of customers(70%) think there are less unnecessary

expenses in their service package

That means theses customers have chosen what he/she wants

Whats the reason?

CIIC offers not only different modules with different functions but also various choices

in one function, therefore, customers choose what they need and abandon what they don’t want

The clarity is another important factor helping customer to make decision

After that, the unnecessary expenses are reduced

We can also know, more and more customers feel they get customized service after modularity, but

some on the other side

CIIC makes the combination of different modules possible, then customers can choose the service freely

Firstly, although some previous authors have investigated the content of service modularity

this research offers empirical insight into service modularity,especially in education field

Secondly，this article connects service modularity with another important factor of marketing activities

--customer perceived value

The relations between three indicators of service modularity and three indicators of customer

perceived value has been revealed

Our first limitation would be the type of research

This research is actually formed as a snapshot research using two time slots

However, customer perceived value is a developing variable which needs to be investigated in

a developing pattern like doing a longitudinal research

Second limitation would be the sample size

Due to constraints of time and resources, only 15 questionnaires before modularity and

20 questionnaires after modularity are used as samples which lacks the credibility to

formally prove the findings