Service for Free to Service for Fee: Implications derived from Service Infusion
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
The concept service infusion implies that services are being included in a product-centric business to some extent. This movement towards integrating services will change how the business is performed in such a company; in other words, service infusion will lead to changes in the business model. This thesis aims to describe how service infusion affects the business in general and more specific effects in the business model.
Volvo Trucks are somewhere in the process of service infusion and have several services offered to the market, such as Dynafleet, fuel advice, and driver training. In 2008, the service driver training was launched on the Romanian market and Volvo Trucks struggled with selling the service for a fee. This led to Volvo Trucks making the decision to start giving away the service for free. The objective of the service driver training was from the begging to sell it for a fee and the transition from service for free to service for fee is the main focus in this thesis.
Through an analysis of the theoretical framework chosen for this thesis and a case study performed on Volvo Trucks, four success factors for the transition from free to fee could be identified: deep understanding of customers, show the value of the service, introduce sales commissions, and develop a pricing strategy. All these success factors are chosen to ease the transition from a service for free into a service for fee.
Place, publisher, year, edition, pages
2013. , 40 p.
Service infusion, service innovation, business model innovation
IdentifiersURN: urn:nbn:se:kau:diva-28743Local ID: FE:9OAI: oai:DiVA.org:kau-28743DiVA: diva2:643253
Subject / course
Industrial Engineering and Management, Master of Science
Master Programme in Business Administration