Service relationship is defined as a cooperative activity between a service provider and a service consumer aimed at co-creating value. This relationship involves three key components: service provision, service consumption, and service relationship management.
- Service provision includes the activities performed by the provider to deliver services, manage resources, grant access, fulfill agreed service actions, and continually improve the service. It may also involve supplying goods to the consumer.
- Service consumption refers to the activities by the consumer to use the service, including managing their resources, performing service actions, and acquiring goods if needed.
- Service relationship management consists of joint activities by both provider and consumer to ensure ongoing value co-creation, manage expectations, and maintain the relationship effectively.
Thus, the service relationship is essentially the interaction and collaboration between the service provider and consumer to achieve mutually beneficial outcomes without the consumer having to manage specific costs and risks directly