RESEARCH ON THE IMPACT OF EXPECTATION GAP ON SERVICING BEHAVIORS OF MANUFACTURING ENTERPRISES

Received: 31.08.2021; Revised: 26.09.2021, Accepted: 08.11.2021, Published Online: 03.12.2021

Mr Abdul Malik Hassan Abdul Aziz

Lecturer, Lincoln University College Malaysia

Zhao Xin

MBA Student, Lincoln University College Malaysia

Zhang Jun Xu

MBA Student, Lincoln University College Malaysia

Xiao Yu Feng

MBA Student, Lincoln University College Malaysia

Chen Yue

MBA Student, Lincoln University College Malaysia

Cao Fuchen

MBA Student, Lincoln University College Malaysia

ABSTRACT

Manufacturing servitization has become a critical tool for local and foreign manufacturing firms to convert and upgrade as a result of increasing product uniformity, fierce market price rivalry, and rising customer demand. Manufacturing servitization has two distinct but interrelated fundamental qualities in the form of a service business (output servitization) and service investment (input servitization). In addition to operational and strategic problems, Servitization also has monetary costs.

That decision makers have psychological reasons for servitization behaviour is the most important conclusion of this study. There are two major problems in prior studies on Servitization: Because Servitization behaviour is simply regarded as a service business provided by manufacturing companies, which focuses on output Servitization and ignores micro-level input Servitization, there is a limited understanding of Servitization driving factors that is limited to interview or observation. To conclude, this essay discusses important Servitization elements, focuses on service business and investment, and reconciles the prospect theory and threat-rigidity hypothesis, which appear to be at odds in decision-making. There was an empirical method used to look at the relationship between the performance expectations gap and Servitization behaviour, the most important driving factors for Servitization conduct.

Keywords: Expectation gap; Expected surplus; Service business; Service investment; manufacturing servitization