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The service positioning matrix shows how the desired nature of the customer’s service encounter activity sequence translates into a recommended service system design. The matrix helps managers think about marketing and operations linkages, roles of the customer and service‐provider in creating and delivering services, facility design and process choice, and the different types of management challenges at each position in the matrix. Concepts such as the service encounter activity sequence and the degree of repeatability in the activity sequence are defined and used in the matrix. Examples are given to illustrate the positioning of service entities within the matrix. An empirical evaluation provides statistical support for the logic of the service positioning matrix. The criteria used in the matrix are meaningful to survey participants. Future research directions and issues are discussed.

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