Modeling service experience design processes with customer expectation management: A system dynamics perspective

The purpose of this paper is to propose a conceptual framework of customer expectation management and a reference model of service experience design which are regarded as the basic foundation to model the processes of service experience design for service operation strategies simulating and testing by employing a system dynamics approach.

System dynamics is the key approach which includes causal loop diagrams and stock and flow diagrams used to build the reference model of experience design. Simulations of the processes of service experience design have also been implemented by Vensim^®.

It is found that the proposed reference model involving customer expectation management can successfully capture the key elements of the service experience design within service operation strategies. The system dynamics approach can effectively enable a macro viewpoint of service experience design for service operation strategies and policies.

With the proposed reference model of service experience design and the system dynamics modeling approach, service providers cannot only comprehensively examine the processes of service experience design in detail but also accomplish the strategies testing and simulating. Hence, service providers can make correct decisions to achieve the business goals via the simulation results beforehand.

This paper contributes to analyze and combine the idea of customer expectation management with service experience design and give rise to a unique reference model of service experience design that is shown to be valuable to service operation strategies testing and simulating based on the system dynamics perspective.