Service idiosyncrasy

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Service idiosyncrasy is a concept related to asset specificity.

[edit] Definition

An idiosyncratic service is defined as one that is characterized by "high" levels of professional skills, specialized know-how, and customization. And asset specificity is represented by the degree of idiosyncrasy that characterizes a service (Erramilli and Rao 1993).

[edit] Dimensionality

Service idiosyncrasy has the following dimensions:

  • Professional skills: Professional expertise and skills are acquired only through several years of education and training. Accordingly, services requiring professional skills will be associated with significant physical and, especially, human investments.
  • Specialized know-how: Knowledge that is useful in only a narrow range of applications cannot be easily put to use elsewhere. Consequently, the greater the specialized know-how characterizing a service, the less likely is it that associated investments will be utilized outside the current context.
  • Customization: the degree to which the service is customized to one or a few users will also determine the nature and specificity of the investments. Generally speaking, the more customized the service, the greater the attendant transaction-specific assets.

[edit] Operationalization

Erramilli and Rao (1993): three items. Please indicate the degree to which each of the following attribute characterize your service, on a 5-point scale (1 = no extent; 5 = great extent):

  1. Professional skills: 1, 2, 3, 4, 5
  2. Specialized know-how: 1, 2, 3, 4, 5
  3. Standardization: 1, 2, 3, 4, 5 (reverse coded)