Negative Services: Opportunities in Fragmented Industries


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This paper is about negative services. Breakdowns of equipment, problems with buildings, illness and some government services such as tax or INS and many other situations of unusual risk create negative feelings in service users. In the US economy, these services are quite significant. Health care is one of our largest service industries ($1.6 trillion) and growing. And according to the NHTSA, there were over 6.5 million police reported motor vehicle crashes in 2002 alone. Fragmentation seems be an inherent characteristic of these negative services. Some firms have capitalized on this fact and aggregating service providers (de-fragmenting) and creating service processes that allay several of the fears of the consumers—financial, physical and psychological. The paper outlines the strategies of these firms and how firms can in fact learn to aggregate in these industries.


Business | Business Administration, Management, and Operations

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