Service elimination decision making: preliminary empirical evidence from the UK financial services sector

Abstract

Reports on part of the findings of a broader exploratory investigation into the service elimination decision making behaviour in the UK financial services sector. The issues tackled in this paper are: the degree of planning for the service elimination decision‐making process; the formality of service elimination procedures; the place of service elimination within the broader range of service range management activities; and the relative importance of the process of service elimination compared to the process of new service development (NSD). The empirical evidence from 20 in‐depth interviews with marketing directors and managers suggests that UK financial institutions: do not always follow a planned service elimination decision‐making process; have largely informal service elimination procedures; tend to see service elimination activities as ad hoc rather than as a part of service range management activities; and favour the process of NSD considerably more than the process of service elimination. Concludes by discussing the theoretical and practical implications of the findings and by suggesting future research directions.