Types of linkages betweenservice characteristics andcustomer consequences

Natasa Golik KlanacDepartment of Marketing/CERS, Hanken School of Economics, Helsinki,

Finland

Abstract

Purpose – The purpose of the paper is to investigate the nature of linkages between characteristics ofa service and customer consequences and elicit the types of such linkages.

Design/methodology/approach – The paper builds on current research on linkages and customerconsequences within the means-end approach and on a qualitative case study in the context of websiteuse in business-to-business relationships.

Findings – The paper introduces six types of linkages between characteristics of a service andcustomer consequences: common and unique, conflicting and non-conflicting, and homogenous andheterogeneous linkages.

Practical implications – The paper portrays four cases of implications of the linkages forsimplicity and homogeneity of the design of services and of their marketing strategies.

Originality/value – The ways in which characteristics of a service are linked with customerconsequences of an engagement with the service are of crucial importance in marketing. Despite theimportance, research on linkages is scarce. By considering currently neglected aspects such asdifferent units of analysis, different relationships between characteristics and customer consequences,and diversity in characteristics and consequences, the paper introduces new types of linkages. It alsodepicts the relevance of the knowledge of the linkages for portraying customer value fully.

Keywords Linkages, Characteristics, Customer consequences, The means-end approach,The benefit-sacrifice approach, Marketing strategy, Consumer behaviour

Paper type Research paper

1. IntroductionCustomer value of a service directs customer actions and determines customer futurebehaviour regarding the service (Zeithaml, 1988). An understanding of customer valueof any service i.e. the reasons behind customers’ engagement with the service is thuscrucial in marketing. A service is here defined in a broad sense as anything that acustomer engages with in an interaction with a company.

Customer value is a perception that encompasses multiple consequences (benefits andsacrifices) that customers link with service’s characteristics, taking into consideration theavailable alternatives in specific use situations (Reynolds and Gutman, 1988; Grunert andGrunert, 1995). In order to comprehend customer value, it is important to understand bothcharacteristics of a service and customer consequences of these (Botschen et al., 1999).According to means-end approach to customer value (Reynolds and Gutman, 1988; Pittset al., 1991; Grunert and Grunert, 1995; Woodruff and Gardial, 1996), characteristics andconsequences are concepts of different levels of abstractions – characteristics beingconcrete and consequences being more abstract concepts, where the consequences stem

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Received 5 August 2008Revised 7 December 2008

12 December 200828 August 2009

Accepted 14 December 2009

European Journal of MarketingVol. 46 No. 3/4, 2012

pp. 313-330q Emerald Group Publishing Limited

0309-0566DOI 10.1108/03090561211202495

from the characteristics. From a standpoint of the design of any service, it is essential toknow characteristics of the service that drive customer value, while in order to developappropriate service strategies, companies need to know reasons for which people engagewith the service. Studies devote attention to studying service characteristics that drivecustomer value and make the customer engage with the service (e.g. Keeney, 1999;Lapierre, 2000; Foster, 2005) and detect consequences that direct customer actions i.e. useof a service (e.g. Rescher, 1969; Zeithaml, 1988; Holbrook, 1996; Gronroos, 1997).

Furthermore, according to means-end approach, in order to comprehend customervalue, it is needed to understand not only characteristics of a service that drive customervalue and customer consequences of engaging with the service, but also the linkagesbetween these i.e. the ways in which characteristics of a service lead to consequences forcustomers (Reynolds and Gutman, 1988; Pieters, 1993). The linkages between servicecharacteristics and customer consequences are key components of customer value andthey contribute to the understanding of meanings that customers attach to the service(Olson and Reynolds, 1983). Linking characteristics of a service with customerconsequences is important in order to understand how they facilitate customerachievement of desired goals (Laukkanen, 2006). For example, in order to understand therelation between customers’ preference diversity and characteristics of online banking, itis essential to define linkages between the characteristics of the service (e.g. onlinebanking) and customer consequences of the use of the service (Laukkanen et al., 2004).Understanding the ways in which characteristics are linked with consequences, and notonly characteristics and consequences separately, is relevant as the differences betweencustomers may exist not only in the characteristics and consequences but also inlinkages between them (Pieters, 1993; Laukkanen et al., 2004). Knowledge of the linkagesthus enables companies to design better services and service strategies.

Even though knowledge of linkages is of importance, very few studies devoteattention to studying and identifying the linkages (Laukkanen et al., 2004). Existingstudies establish linkages between characteristics and consequences, and examinetheir number and strength (e.g. Gutman, 1997; Laukkanen et al., 2004; Sullivan Mortand Rose, 2004; Laukkanen, 2006). These studies determine which characteristics leadto which consequences. Apart from identifying the linkages, it is important to take intoconsideration different types of linkages i.e. different ways in which characteristics andconsequences can be linked as that carries implications for marketing activities(Pieters, 1993). However, apart from Pieters (1993), no other study examines types oflinkages. Although Pieters’ (1993) classification accounts for the existence ofcharacteristics and consequences and introduces five main types of linkages, it neitherconsiders the interrelation between different linkages nor marketing aspects such asexistence of different and multiple customers, diversity of characteristics andconsequences that are of relevance for every marketing strategy and for service design.

By accounting for these neglected aspects in classification of linkages, the purposeof this work is to elicit different types of linkages i.e. different ways in whichcharacteristics and consequences can be linked. To achieve that, the paper builds onthe means-end approach, incorporating in it the benefit-sacrifice logic and accountingfor common market conditions. The paper deepens the theoretical viewpoints of typesof linkages through an empirical case study, which plays a role in detecting new typesof linkages and is being used in portraying these linkages. As a context, the empiricalstudy employs a case of web site use in business-to-business relationships.

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The study makes a contribution to the research on customer value, in particular tothe means-end approach to customer value. By considering marketing aspects thatresult from ever-present market conditions that are neglected in current studies onlinkages, the study identifies new types of linkages, deepening Pieter’s (1993)classification. That is, diversity in the types of customers, in service characteristics andin consequences matter for detecting possible dependences, uniqueness, or conflicts incustomer perceptions of a service. It pinpoints additional aspects in the classification oflinkages, which carry implications for service design and for service strategy. Theseaspects in linkages are of relevance for decisions regarding heterogeneity andcomplexity of service design and of service strategy.

The following section reflects on current research on linkages. Section 3 presents thecase study through which the classification of linkages is developed. Afterwards, thetypes of linkages are introduced. Consequently, their implications for marketing arediscussed. The paper ends with conclusions and recommendations for future research.

2. Previous research on linkagesExtant research on linkages lays within the means-end approach to customer value. Themeans-end approach to customer value (Reynolds and Gutman, 1988; Pieters, 1993;Woodruff and Gardial, 1996) differentiates among different levels of abstractions ofcustomer value and emphasises the linkages between these components. The approachdistinguishes between characteristics (often called attributes) of a service, and customerconsequences, which are results of using the service. The abstraction of the levels andused concepts increases from characteristics of a service to customer consequences. Thelevels are interconnected in a way that the lower levels are the means by which thehigher levels are achieved (Woodruff and Gardial, 1996), i.e. consequences result fromdifferent characteristics. Following this approach, it is essential to discern betweencharacteristics per se and customers’ perceptions of these characteristics for the reasonthat customers differ in their perceptions (Howard, 1977). Perceptions are those thataffect customer behaviour, not service characteristics (Howard, 1977).

Apart from characteristics and consequences, linkages between these levels areimportant components of customer value (Reynolds and Gutman, 1988; Pieters, 1993;Pieters et al. 1995; Laukkanen, 2006). Current studies establish linkages betweencharacteristics and consequences explaining which characteristic leads to whichconsequence in various service contexts (e.g. Gutman, 1982, 1997; Reynolds andGutman, 1988; Reynolds and Rochon, 1991; Pitts et al., 1991; Beatty et al., 1991; Pieters,1993; Woodruff and Gardial, 1996; Sullivan Mort and Rose, 2004; Laukkanen et al., 2004;Laukkanen, 2006). For example, in the context of online banking, Laukkanen et al. (2004)find that “home access” as a characteristic of online banking leads to customerconsequence of saving time while the characteristic of “printing ability” provides certainty.

Besides establishing the existence of linkages between the levels, Pieters (1993)outlines the need to know different ways in which characteristics and consequences areconnected, putting forward five types of linkages between the levels (Figure 1):

(1) Instrumentality where a characteristic leads to attaining a particular goal(consequence).

(2) Equifinality, where a single benefit may be based on multiple characteristics.

(3) Multifinality occurs when the same characteristic leads to different benefits.

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(4) Parallel finality occurs when two separate characteristics lead to distinctconsequences at the same time.

(5) Sequential finality where one characteristic leads to another and both lead to thesame consequences.

The study examined the types of linkages in respect with consumer weight lossbehaviour. The types are defined on a high level of abstraction ensuring that thecontext does not play a role in the classification.

However, Pieters’ (1993) classification of types of linkages does not consider someaspects that are relevant in marketing and is therefore limited in respect of severalmatters:

. multiple units of analysis of the linkages (i.e. different customers);

. diversity in characteristics; and

. diversity in consequences.

It also fails to account for interrelations between linkages and their implications for thedesign of services and for marketing strategies.

A common situation for majority of businesses is the existence of multiple differentcustomers or customer groups which carry different perceptions of services. Thesecustomers can be more or less similar in their perceptions. Thus, a classification oflinkages needs to take that into account in order to be practical.

In addition, Peters’ (1993) classification overlooks that service characteristics andcustomer consequences can be of different kind. Every service encompasses numerouskinds of characteristics. For instance, characteristics can be technical and functional;they can be content- or form- related; characteristics can be driven and not driven bycustomers, or constant and variable. Thus different kinds of service characteristicsshould be considered in any analysis of linkages.

Finally, consequences can be of different kind. Particularly, the benefit-sacrificeapproach to value (Ravald and Gronroos, 1996; Lapierre, 2000; Ulaga and Chacour,2001; Walter et al., 2001; Eggert and Ulaga, 2002; Bovik, 2004; Foster, 2005;Komulainen et al., 2007) acknowledges a need to assess both positive and negative

Figure 1.The main types oflinkages introduced byPieters

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aspects of customer perceptions and consequently distinguishes between positive andnegative consequences (benefits and sacrifices respectively). Consequences can involvebenefits such as saving time and effort, being relaxed, and saving money (Lapierre,2000), or sacrifices such as spending time, effort and money, or increased frustration(Laukkanen et al., 2004). From service strategy point-of-view, to know theconsequences that enhance and the consequences that diminish customer value isequally relevant and both should be captured (Ravald and Gronroos, 1996). Byunderstanding both the ways in which characteristics lead to benefits and in which tosacrifices, i.e. the linkages, customer value can be enhanced.

In sum, current knowledge of the types of linkages is limited only to Pieters (1993)and can be further deepened by considering some relevant marketing aspects. In orderto elicit and illustrate diverse types of linkages, a qualitative case study is employed.

3. The case studyThe choice of the case study and qualitative research method was based on severalreasons. The case study method is adequate for the theory developing type of research(Ghauri and Grønhaug, 2002) such as this one, which is exploratory in its nature and aimsat developing new types of linkages. A case study is also appropriate when the researcharea is only partly understood (Lincoln and Guba, 2000) as it is the case with the theorydealing with the types of linkages. In addition, a case study is most suitable when contextis of relevance (Ghauri and Grønhaug, 2002). Namely, the researcher has to get to knowthe context of the study in order to be able to link characteristics with their consequences,i.e. to elicit the means-end chains, and to interpret the findings correctly (Reynolds andGutman, 1988; Grunert and Grunert, 1995). Yin (2003) also advocates a single case studywhen dealing with a complex and multi-dimensional phenomenon as it enables to analysethe phenomenon in depth. Thus, the newness and scarce investigation of the research areaas well as the complexity of the linkages and their context-dependence determined thechoice of the case study design and qualitative research techniques.

The case study has a supportive role in developing the theory, meaning that thecontext of the study (the type of service) is of secondary while the developed theory (thetypes of linkages) is of primary importance and can be generalised to any other servicecontext. The focus is placed on general types of linkages that could exist betweencharacteristics and consequences of every service. The context of the examination ofthe linkages is the use of a web site (a service) in business-to-business relationships.

The case study took place in the elevator industry in Finland and involved a seller(an elevator manufacturing and service company) and nine of its customers from twodifferent customer groups (property management companies and architect offices) whouse the seller’s web site. The single embedded case (Yin, 2003) focused on linkagesbetween the characteristics of the seller’s web site and customer consequences of theuse of that web site. The analysis referred to two customer groups and particularcustomer companies within these groups. The data collection included interviews andin-office observations on the customer side, followed by interviews on the seller’s side.These data collection techniques were found suitable for eliciting the linkages(Laukkanen et al., 2004). Interviews and observations are particularly useful fordiscovering new issues Ghauri and Grønhaug, 2002).

The choice of the specific customer groups, customer companies and intervieweeswithin customer companies was based on purposive sampling, with the intention to

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capture various characteristics, consequences and possible linkages between these. Inorder to capture a range of linkages, it was necessary to involve diverse interviewees.The interviewees belonged to different customer groups and organisations. Theyrepresented different positions (managerial and technical staff), and age groups, withvarious working experience, frequencies and habits of web site use. In total, 24employees from five property management companies and four architect offices wereincluded (14 and 10 respectively).

At the point of conducting the study, the seller’s web site represented acommunication platform. Customers could find information about the seller, itsproducts and services, specifications, drawings and brochures. They could contact theseller through the web site, request suggestions or service, and give feedback.Additionally, they could create their personal, password-protected accounts, storeinformation and documents, use reporting tools for elevator performance reporting,account management reporting and invoice reporting. At the time of the study, website design was simple, containing a lot of text and some pictures.

The semi-structured interviews lasted for about two hours each and coveredinterviewees’ and company’s background, interviewees’ general usage of the internet,web sites of different companies, and in particular of the seller’s web site. They werefollowed by in-office observation of the way the customers use the web site. In addition,with a purpose of data triangulation, the study employed interviews with the seller’speople and an analysis of different market reports of the seller to confirm the elicitedlinkages.

Content analysis of interview transcriptions and observation notes was conductedfollowing Miles and Huberman (1994). It included systematic categorisation of the textreferring to web site characteristics, customer consequences and the way customerslink them. Based on that, maps of linkages were created for every interviewee as wellas for the interviewees together. The maps were examined for Pieters’ (1993) types oflinkages in addition to additional aspects, which that classification did not cover. Theinterplay between the theory and the case discloses additional aspects of linkageswhich current theory fails to take into account.

4. Types of linkagesThe aim of the paper was to extend the knowledge of types of linkages betweencharacteristics of a service and customer consequences of using the service. Through acontinuous interaction between the extant theory and the case study additional typesof linkages are elicited. Examples from the case study of the web site use in businessrelationships illustrate additional types of linkages.

Building on Pieters’ (1993) classification, the study brings forth three additionalaspects in the classification of linkages i.e. six additional types of linkages betweencharacteristics and consequences. These additional types become evident whenconsidering the following aspects:

(1) different units of analysis, e.g. existence of different customers, groups andrelationships;

(2) diversity in characteristics (starting points of linkages); and

(3) diversity in consequences (ending points of linkages).

The additional types of linkages are presented in Figure 2.

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A. Single-characteristic/single-consequence linkages – independent linkagesIn this type, as introduced by Pieters (1993), certain consequence can be achieved withone characteristic only. No other characteristic results in particular consequence, aswell as no other consequence can be achieved through particular characteristic. Thus,these linkages can be rather important given that they are the only means thoughwhich certain consequence could be realised.

Single-characteristic/single-consequence linkages are named here as independent,contrary to the other two types (B and C) that are dependent linkages. Unlike the othertwo types, the independent linkages do not depend on any other linkage, as they shareneither the starting point (a characteristic) nor the ending point (a consequence) withany other linkage. Any change in independent linkages does not carry implications forother linkages, i.e. for other characteristics and consequences. In the same way, anychange in other linkages does not impact the independent linkages. On the other hand,dependent linkages (B and C) influence other characteristics and consequences and,when managing these, a company needs to account for these influences.

The independent linkages can be analysed further considering multiple units ofanalysis. That is, every company has different customers, customer groups or businessrelationships. When analysing the linkages for multiple units of analysis, twosub-types can be noted: unique and common linkages (Figure 2):

Figure 2.Types of linkages betweenservice characteristics and

customer consequences

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(1) Unique independent linkages – when considering different customers, it ispossible that different characteristics lead to entirely different consequencesfor these customers. In this type of linkages, one characteristic leads to oneconsequence only, and the linkage is revealed by one customer (or other unitsof analysis) alone. That is, the linkage is unique for that customer and notonly that any manipulation of these linkages will not influence othercharacteristics and consequences, but also it will not influence othercustomers. A unique independent linkage did not appear in the case. Theonly elicited independent linkage in the case study was elicited by allcustomers (i.e. common linkage) in both customer groups. However,theoretically, in contexts with exceptionally different customers or websites, such a linkage could appear.

(2) Common independent linkages – in this type of linkages, one characteristicleads to one consequence but the linkage is revealed by multiple customers (orother units of analysis) and thus is not unique for one customer. Bymanipulating these linkages, other characteristics and consequences are notaffected but the manipulation affects value of other customers.

It was found in the case that a web site characteristic of anytime interaction enablescustomers to be flexible i.e. to work wherever and whenever they want or need(Figure 3). For example:

Because I can do whatever pops into my mind, because I usually need it now or then – it’s abig benefit . . . you can use it (the web site) when you actually need it and in any timezone,that’s a big issue, the Earth is getting a lot smaller.

Figure 3.Examples of the types oflinkages in the case

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This linkage was elicited by all customers. If the seller would want to increasecustomer flexibility by influencing the characteristic of anytime interaction, it wouldnot affect other characteristics or consequences but would affect perceived value ofother customers too. Practically, if the consequence of flexibility would be shown to beof great relevance for the customers, the seller would increase customer value ofmultiple customers just by manipulating one characteristic.

B. Single-characteristic/multiple-consequences linkages – dependent linkagesIn this type of linkages, introduced by Pieters (1993), a single characteristic of a serviceleads to multiple consequences. These linkages are named here as dependent linkagessince they influence other consequences and are under the influence of other linkages.In such linkages, a characteristic should be managed with particular care since it willinfluence more than one customer consequence.

Customer consequences can be of different kind. In particular, according to thebenefit-sacrifice approach (Zeithaml, 1988; Ravald and Gronroos, 1996; Gronroos, 1997;Lapierre, 2000), they can be positive and negative (benefits and sacrifices respectively).When taking that into account, the additional sub-types of this group of linkages canbe discerned: non-conflicting and conflicting linkages (Figure 2).

. Non-conflicting linkages involve linkages in which consequences are of samekind i.e. they are only benefits or only sacrifices. This type of linkages mayappear between and within multiple units of analysis (e.g. within customergroups or business relationships). A customer group or a customer mightconnect a characteristic with a benefit, while another group might connect thesame characteristic with another benefit. Consequently, by managing theparticular characteristic with the intention to enhance one of the benefits, anotherbenefit will be enhanced as well.

In the case study, one customer group connects the characteristic of multipleparticipants in interaction with the benefit of having a supported workflow whilethe other customer group associates the same characteristic with the benefit ofgaining an understanding (Figure 3). The first customer group outlines thatwhen many people participate in a project, they gain updates of the current stateof work through the web site and can continue the work from that point. In thatway the flow of their work is supported: “Others can also use it (the web site) [. . .]when the other one starts on a building [. . .] then it could be directly seen what’shappening so I can continue where they have stopped.” At the same time theother customer group found that an access for multiple participants helped themto understand their own work better. Multiple parties involved in differentaspects of work can share their views and thus help the interviewees tounderstand relevant issues: “Our tenants can use that (the web site) if they wantto [. . .] and they can get a better picture of the work, and give us their opinions[. . .] which helps our work.” If the seller would want to impact customerunderstanding by enabling multiple participation, it would at the same timeimprove customer workflow.

In another situation of non-conflicting linkages, the consequences can besacrifices. In such cases, by dealing with particular characteristic, a companycould reduce multiple sacrifices and thus enhance customer value in differentways through one characteristic alone.

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In the case, for a single customer, the web site characteristic of selfadministration increases customer effort and frustration. Userself-administration of the web site, such as entering passwords or differentdata and navigating around the web site, can require users’ efforts. The customercomplained on the requirement to remember a password to enter the web siteeasily forgetting it and needing to invest an effort to get a new one: “The maindifficulty in my opinion is that you have to learn your user name and passwordand it’s very difficult and every time you forget it [. . .] How do I get in? [. . .] Ihave to ask again, send them an e-mail [. . .] But it’s a very big difficulty becausewe have so many programs and almost every has a different password.”

Because of self-administration, i.e. when needing to navigate a lot around theweb site in order to find information, customers may become rather frustrated ascan be seen from an observation: “She is looking at the web site, and is clickingthrough different pages for a few minutes, she is looking for something. Shelooks a bit nervous and comments “I can’t find it” and keeps on clicking andbrowsing the pages for a while, she stops, and she leans back, throwing herhands aside, saying in an angry voice “I give up!” Thus, by reducingself-administration of the web site, the seller could reduce two kinds of customersacrifices and increase customer value in two ways.

. Conflicting linkages involve cases in which customers link one characteristicwith different kinds of consequences i.e. benefits and sacrifices. This situationmay occur for a single customer as well as within a group of customers.

For some customers, an impersonal form of communication through web siteresulted both in benefit and sacrifice. That is, as shown in Figure 3, thecustomers perceive that, because communication through web site is impersonal,they are objective in making decisions (a benefit) but also at the same timeperceive a sacrifice such as lack of pleasure (Figure 3). Customers believe thatimpersonal information helps them to be objective in making decisions,preventing them from being biased like they might be with a nice salesperson:“Compared to face-to-face contact with people who are selling the company’sproducts, it’s better – Internet, because today when you are merchandising – itshould not influence your decision if the salesman is polite, and you can havelunch and [. . .] it’s out of the world today.” On the other hand, another customerfrom the same customer group perceives that due to impersonal communicationshe misses being appreciated by the seller through special treatment that can bereceived through face-to-face communication in the form of gifts such as cakes orsimilar: “Well, you don’t get the same thing as with people [. . .] sometimes theycome [. . .] and they bring a cake.”

If the seller in the case would want to increase customer value by making theweb site less impersonal, some customers might feel more pleasure but somemight perceive that they are less objective in making their decisions. Such asituation is rather difficult for a company. Namely, by manipulating thecharacteristic with the purpose of diminishing the sacrifice (and thus increasingcustomer value), one diminishes the benefit as well (and diminishes customervalue). In the same vein, by manipulating the characteristic to increase thebenefit, a company increases the sacrifice in chorus.

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C. Multiple-characteristics/single-consequence linkages - dependent linkagesThis is a case in which different web site characteristics lead to the same consequence.That is, a consequence has roots in various characteristics. Like the previous type,these linkages are named here as dependent linkages since they are under the influenceof other linkages.

While customer consequences can be of different kind, as considered in the previoustype of linkages, characteristics of a service can be of different kind too. Whenconsidering that, multiple-characteristics/single-consequence linkages can be furthercategorised in homogeneous and heterogeneous linkages (Figure 2).

. Homogeneous linkages stem from the same kind of characteristics, and lead to thesame consequence. Looking at the case, a web site encompasses differentcharacteristics that are of different kinds i.e. related to content, form or user- web siteinteraction. In the case, one customer group connects the benefit of saving time withtwo web site characteristics: direct access and interactivity, which refer to the samekind of characteristic-user-web site interaction (Figure 3). That is, characteristics ofthe web site which are of the same kind lead to one consequence. The direct accessfrom the computer, i.e. from customers’ working place, helps customers to get theinformation faster than through finding a folder or calling: “It is faster compared tofinding the folder or calling the switchboard and trying to find out who knows aboutthese things and they connect you to a person who doesn’t know anything, and thenlet’s try with the next one.” Another characteristic – web site interactivity such assearch possibilities of the search-engine – also saves customers’ time: “There issome kind of finder so you can find the information very fast.”

Equally so, customers connect some characteristics of the web site form witha sacrifice. They find that both impersonal form and unreal form of web sitecommunication lead to uncertainty. Impersonal information can be the reason forcustomers to feel uncertain as they may think that they have misunderstoodsomething on the web site due to written information: “Many times, we arecalling rather than trying to put it through the net, because there are more placesfor misunderstanding in writing than when speaking - we have recognised.”Similarly, unreal form (i.e. intangibility and distorted colours) fails to offer areliable basis for making decisions resulting in customers’ uncertainty: “Forexample [. . .] when we are choosing materials we have to see them for real. Itmatters if you see colours on the screen or on the paper; it’s not the same asseeing it for real. You can’t feel the surface.”

Practically, it means that in order to deal with a particular consequence (i.e. toincrease benefit and reduce sacrifice), a company would need to focus on onekind of characteristics of web site only (the user- web site interaction in the firstexample, and the form in the second example). A company does not need then todisperse its efforts on various kinds of characteristics, which would probablyrequire more resources and incur more costs.

. Heterogeneous linkages are such that stem from different kinds of characteristicswhile leading to the same consequence. In this type, in order to enhance benefit orto diminish sacrifice, a company needs to focus on different kinds ofcharacteristics of a service.

In the case, various content and multimedia form of the web site (which are twodifferent kinds of characteristics – content-related vs form-related characteristics)

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both lead to an increased understanding (Figure 3). The variety of information thatis accessible through web site gives customers the right information and thus theunderstanding needed in their work: “We can check what they have done, havethey repaired something or [. . .] if I need some information about what I have doneor what is going to happen and what I need to plan, it’s all there, I just need to domy job.” In the same vein, multimedia form helps customers to gain anunderstanding of the issues that are being communicated. Customers gainunderstanding through, e.g. visual representations: “If you only read, it’s not thesame thing like when you see it, it’s almost, for me it’s easier when I see something[. . .] it is easier to make decisions.”

A company thus has an option to increase a particular benefit in different ways– through its different kinds of characteristics. Equally so, in the case whendifferent kinds of characteristics result in customer sacrifice, to decrease sacrifice,it will not be enough to focus on one kind of characteristics of the web site, but thecompany needs to direct its efforts to other kinds of characteristics as well. Toenhance the consequence/benefit of gaining an understanding, the seller wouldneed to focus on two different kinds of characteristics of a web site: various contentand multimedia form of the web site and would need to utilise diverse resourcesand efforts.

5. ImplicationsThe identified types of linkages carry implications for research on customer value andshould be acknowledged in service design and strategy.

Research implicationsBy identifying six additional types of linkages that deepen Pieters’ (1993) three maintypes of linkages, the study contributes to the research on linkages and customer value.The six types of linkages come to light when considering marketing aspects of thelinkages that are neglected in current studies: multiple customers, diversity incharacteristics and diversity in consequences. By considering the repetition of linkagesacross different units of analysis (different customers), the paper elicits unique andcommon linkages. In view of the diversity in consequences, linkages can be conflictingand non-conflicting while by taking into account diversity in service characteristics,they can be homogenous and heterogeneous. The paper presents the types of linkagesthrough the context of web site use in business-to-business relationships. However,these types of linkages are defined on the high level of abstraction and are thusindependent of a context and could be used in an analysis of any kind of services.

By considering the neglected aspects and by defining the types of linkages, thestudy enriches the research on customer value, in particular the means-end approach tocustomer value. Current research on linkages neglects these aspects and assumesmarket unity and homogeneity in services characteristics and customer consequences.

The findings point that in order to comprehend customer value, it is necessary tounderstand not only characteristics of a service that drive customer value andcustomer consequences of engaging with the service, but also the linkages betweenthese i.e. the ways in which characteristics of a service lead to consequences forcustomers. That is, it is needed to integrate the types of linkages in any customer valueanalysis in order to gain a complete picture of customer value. By neglecting types of

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linkages, the way in which service characteristics facilitate or hinder achievement ofcustomer desired goals remains ambiguous. Studies on customer value should thusmake clear not only which characteristics or consequences play role in a specificcontext but should also strive to connect the two levels in order to portray the rightsituation. If studies focus only on detecting characteristics and consequences thatcustomers perceive, they could fail to note that the characteristics are not perceived byall customers, in the same way.

Studies also need to pay attention that consequences can be of different kind,whether they are perceived as positive or negative consequences and whether theymight appear as conflicts in customer perceptions. It is also needed to account for thediversity in characteristics in order to define the implications of customer perceptionsfor company’s efforts, activities and resources.

Managerial implicationsThe types of linkages between characteristics of a service and customer consequencespresented in the paper carry practical implications for two main areas: service designand service strategy. The design of a service relies on service characteristics while thestrategy is based on consequences of the service for customers. For example, web sitedesign relies on web site characteristics while web site strategies concern purposes forwhich the web site can be used, i.e. consequences that web site can have for particularcustomers.

A company can modify characteristics, which then impact customer consequences.In many services some of the characteristics cannot be modified or the modification israther difficult. In the case of a web site, the characteristics of impersonal form orcolours that are distorted on every screen (compared to real colours) cannot be modifiedby a web designer as the service (the web site) is such by default. On the other hand, itscharacteristic of content customisation can be managed.

In cases when it is needed to account for diverse characteristics, the design of aservice will be more complex and will demand more resources, i.e. more parties will beinvolved in the design. web site design will be more complex and will demand moreresources in cases when customers value diverse kinds of characteristics. In order tomanage diverse characteristics of a web site (such as content customisation andclarity), web designer will need to involve various departments which know thecustomer in different ways, such as marketing and financial department.

While the design of a service involves its characteristics, marketing strategies for aservice concern consequences that the service brings to particular customers, i.e. thepurposes for which the service can be used. Based on the consequences that a servicebrings to customers, a company should create its strategy for the service.

Marketing strategy for a particular service will be more heterogeneous in caseswhen customer perception of the consequences differs. In the example of the web site, acustomer might find that a web site characteristic brings him/her only benefits whileanother customer might see it as a source of sacrifices. In such a situation, web sitestrategy i.e. the way the company should employ the web site should differ for thesecustomers.

Four main cases of implications for the design of a service and for its marketingstrategies are possible, depending on similarities and differences in the characteristicsand consequences that customers elicit, and on the ways in which customers link these

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characteristics with the consequences. Figure 4 summarises the main implications forthe design of a service and for its strategies:

(1) Customers referring to the same characteristics and consequences. In this case,for different customers, the same characteristic of a service leads to the sameconsequence. In the case, this situation occurred for the characteristic of“anytime interaction” which the customers connected with their own flexibilityas shown in Figure 5. This implies that the customers are rather similar in thecharacteristics that they value as well as in purposes of the service. If this werethe case for all the characteristics and consequences, it would be rather simpleto design the service, while marketing strategy would be homogenous.

(2) Customers referring to the same characteristics and different consequences. Inthis case, different customers focus on the same characteristics, i.e. theyappreciate similar design of a service, thus making the design simple. However,consequences of each characteristic differ, meaning that reasons why acustomer engages with the service differ. Customers in this case are moreheterogeneous in that respect, requiring of a company a heterogeneous servicestrategy.

Figure 4.Implications of the typesof linkages for servicedesign and strategy

Figure 5.Implications of the typesof linkages for the case

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This case becomes even more complex when the same characteristic resultswith conflicting consequences i.e. both with benefits and sacrifices. Such asituation is more demanding for marketing strategy, as the strategy needs to takeinto account that not all customers appreciate the characteristic and marketingmanagers have to find the way to balance the sacrifices in someway. They can dothat either by manipulating some other characteristic of the same service orthrough other services. In the case, the seller could balance the sacrifices of theweb site by improving the web site content or they can take care of improvingweb site personalisation through different interactive applications. An option isalso to employ other services that carry characteristics through which thesacrifice from the initial service could be compensated. The company couldcompensate customer sacrifice that stems from the impersonal nature of the website with another means of communication, e.g. by employing sales people togreater extent than currently in order to enhance possibly customer pleasure.

(3) Customers referring to different characteristics and same consequences.Characteristics of a service that users find important differ in this case,meaning that they appreciate different designs of a service (homogeneous andheterogeneous types of linkages in Figure 5). That requires a more complexservice design that needs to take into account diverse characteristics of aservice. Nevertheless, the users are rather alike in respect of the reasons of theirengagement with the service, allowing marketing strategy to be homogeneous.

In the case of homogeneous linkages, i.e. when characteristics are of the samekind, a company could focus its efforts on one field alone. In such a case, thedesign is less complex than in cases when linkages are heterogeneous, i.e. whencharacteristics are of different kind as in such cases a company must disperseits efforts even more.

(4) Customers referring to different characteristics and different consequences. Inthis case, users refer to different characteristics of a service and link them withdifferent consequences, i.e. they use the service for different purposes. Thismeans that designers of a service will have to focus on a wide spectrum ofdiverse characteristics to please all the customers. On top of that, purposes ofthe engagement with the service differ too, requiring heterogeneous marketingstrategies. Consequently, as users are rather diverse in both characteristics andconsequences that they find important, this is the most complex case both forthe design of a service and for its strategy. Such a situation did not appear in thecase but could occur in some other contexts with more dissimilar customers andweb sites.

6. ConclusionsAn understanding of different ways in which characteristics of a service are linkedwith customer consequences of engagement with the service is crucial for enhancingcustomer value, carrying implications for service design and strategy. The studybroadens current views on the types of linkages pinpointing additional aspects in theclassification of linkages that carry implications for service design and for servicestrategy. It argues for the relevance of diversity in the types of customers, in servicecharacteristics and in consequences for recognising possible dependences, uniqueness,or conflicts in customer perceptions of a service.

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The types of linkages carry implications for companies’ decisions about the designof services and for their marketing strategies. Based on the similarity and diversity ofcharacteristics and consequences that customers elicit and the way they link them,design of a service varies in its complexity. For the same reasons, marketing strategyfor a service will vary on a continuum from homogeneous to heterogeneous.

In the classification of linkages, the study acknowledged aspects brought out in themeans-end and the benefit-sacrifice approaches. It presumes that servicecharacteristics and consequences can be detected and that characteristics can bedistinguished from consequences. Ontologically, the paper assumes that customerperceptions and experiences can be captured and that these are to some extentconstant.

The case study through which the types of linkages were elicited and portrayed isqualitative in nature aiming at developing new concepts, and does not depict theimportance or the occurrence of the types of linkages. In addition, the practicalimplications brought forth in the paper need to be further examined and confirmed.

The case study portrays all but unique independent linkages and the case in whichcustomers would elicit entirely different characteristics and consequences. This is adirect result of the characteristics of the context in which the study was conducted.Some other contexts, such as different industries or business relationships, might beused to portray these linkages empirically. By examining types of linkages for differentservices and different units of analysis, future research could consider their expansionin the light of other types of linkages introduced by Pieters (1993). As linkages maychange with time and situations, their dynamic aspect presents an area of possiblefuture investigations. Studies can also look into managerial and organisationalrequirements and problems of the implementation of suggested types of linkages in thedesign of services and marketing strategies.

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About the authorNatasa Golik Klanac, DSc. (Econ.) is a Post-doc Researcher at CERS – Centre for RelationshipMarketing and Service Management, Department of Marketing, at Hanken School of Economicsin Helsinki, Finland. Her core areas of research are customer value, business-to-businessrelationships and web site communication. Natasa Golik Klanac can be contacted at:natasa.golik@hanken.fi

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