Adding value to service offerings: the case of UK retail financial services Available to Purchase

This study explores practitioner views regarding which elements of the service offering to emphasise when formulating strategies to add value and, hence, gain competitive advantage in services markets. In particular, the case of retail financial services is emloyed to investigate hypotheses regarding variations in importance of elements of the service offer in adding value due to increased complexity and intangibility of some offerings and the resultant implications for consumer evaluation. Evidence suggests that these issues may be particularly relevant in the context of services and that consequently many of the common prescriptions regarding strategy formulation may be rather more difficult for services organisations to implement. It is found that factors such as image and reputation of the organisation, as well as functional service quality, are perceived to be particularly important in adding value to more complex financial services offerings. More surprisingly, the features and quality of the core service provided are also perceived to be more important in adding value to complex services. In addition, factors such as price, location and recovery are perceived to be significantly more important in adding value to more simple, rather than complex, offerings. Finally, conclusions are presented.