Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
From free to fee: changing the revenue model for individual services
Linköping university.
Linköping university.ORCID iD: 0000-0002-6589-8662
Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Karlstad Business School (from 2013). Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Service Research Center (from 2013).
Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Karlstad Business School (from 2013). Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Service Research Center (from 2013).ORCID iD: 0000-0001-8278-1442
2017 (English)In: Proceeding of the Spring Servitization Conference: internationalisation through servitization / [ed] Shaun West, Heiko Gebauer, Tim Baines, Birmingham, UK: Aston university , 2017, p. 172-181Conference paper, Published paper (Refereed)
Abstract [en]

Purpose: Industrial services have traditionally been provided for free to support product sales. Nowadays, many manufacturers have built a profitable service business while others are struggling to improve their service profitability. Overall, most research focus on service infusion in the value proposition or servitization of the organization. Far less attention has been given to how firms start to charge for free services. The purpose of this research is to increase understanding of how manufacturers change the revenue model for individual services from free to fee. Design/Methodology/Approach: The research was performed as a two-stage research project involving a multiple case study followed by an action research project. First, a multiple case study was performed in eight firms. Data was collected through interviews and workshops with the participating firms. Second, an action research study was performed with a manufacturer working with changing the revenue model for individual services from free to fee. Findings: The current study identified a process with three stages for shifting from service for free to service for fee. The first step is turning the service from a cost center to a profit center. The second step is to create service scenarios for a service business. The third step is to implement specific strategies to break free from free service. The present research identified three specific service scenarios and four strategies to break free from free service. Originality/Value: The change of business model has been an essential step in most models for service infusion and for the transition from service for free to service for fee. The present study expands on the process on a detailed level followed by manufacturers to turn individual services from free to service for fee.

Place, publisher, year, edition, pages
Birmingham, UK: Aston university , 2017. p. 172-181
National Category
Business Administration
Research subject
Business Administration
Identifiers
URN: urn:nbn:se:kau:diva-75435ISBN: 978-1-85449-418-4 (print)OAI: oai:DiVA.org:kau-75435DiVA, id: diva2:1364926
Conference
Spring Servitization Conference (SSC 2017), Lucerne 15-17 May 2017
Available from: 2019-10-23 Created: 2019-10-23 Last updated: 2019-10-23Bibliographically approved

Open Access in DiVA

No full text in DiVA

Authority records BETA

Glaa, BesmaWitell, LarsGustafsson, Anders

Search in DiVA

By author/editor
Glaa, BesmaWitell, LarsLöfgren, MartinGustafsson, Anders
By organisation
Karlstad Business School (from 2013)Service Research Center (from 2013)
Business Administration

Search outside of DiVA

GoogleGoogle Scholar

isbn
urn-nbn

Altmetric score

isbn
urn-nbn
Total: 4 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf