Cutting costs and looking good: Why customers buy security services

Markus Jähi, Mervi Murtonen, Marinka Lanne, Arto Rajala

    Research output: Chapter in Book/Report/Conference proceedingChapter or book articleProfessional

    Abstract

    Outsourced security services are an essential part of business and risk-management strategy in almost every contemporary company. Increased need for security services in private companies has created huge market potential and new business prospects for security companies. It is estimated that the security sector will continue to grow globally by around eight per cent per year [1], being one of the most rapidly growing industries in, for example, Europe [2]. In this paper, we use 'private security industry' to refer to privately funded business entities and organisations supplying security related products and services for a fee [3]. The security industry's customer base is very wide, and it cuts across all sectors of the market, to include government entities and commercial and industrial enterprises [4] as well as individual citizens and private households. Previous research has revealed that security companies' product offerings consist increasingly of various services, and they advertise themselves as real service companies [5]. What is contradictory, however, is that when we took a closer look at the security business from the central perspectives of service research, such as servitisation, service-orientation, or marketing communication, we discovered that the security companies do not actually follow service-oriented business logic [5]. Too often, transactional and goods-based business practices take precedence over the more relational and customer-oriented approach. We argue that the security business could benefit from a move toward more service-oriented business logic, and that a more profound understanding of customer perceived value and value drivers is needed in security services. The purpose of this paper is to discuss why customers purchase security services and, after this, what the prerequisites are for value creation. Two models are introduced in the paper: a model of the fundamental motives for the use of security services and a ValueSSe Value Map.
    Original languageEnglish
    Title of host publicationHighlights in service research
    Place of PublicationEspoo
    PublisherVTT Technical Research Centre of Finland
    Pages91-95
    ISBN (Electronic)978-951-38-7969-3
    ISBN (Print)978-951-38-7968-6
    Publication statusPublished - 2013
    MoE publication typeNot Eligible

    Publication series

    SeriesVTT Research Highlights
    Number6
    ISSN2242-1173

    Fingerprint

    Costs
    Industry
    Service-oriented
    Logic
    Management strategy
    Industrial enterprise
    Risk management
    Private companies
    Services marketing
    Government
    Customer perceived value
    Service economy
    Market potential
    Business management
    Business practices
    Fees
    Marketing communications
    New business
    Purchase
    Value creation

    Cite this

    Jähi, M., Murtonen, M., Lanne, M., & Rajala, A. (2013). Cutting costs and looking good: Why customers buy security services. In Highlights in service research (pp. 91-95). Espoo: VTT Technical Research Centre of Finland. VTT Research Highlights, No. 6
    Jähi, Markus ; Murtonen, Mervi ; Lanne, Marinka ; Rajala, Arto. / Cutting costs and looking good : Why customers buy security services. Highlights in service research. Espoo : VTT Technical Research Centre of Finland, 2013. pp. 91-95 (VTT Research Highlights; No. 6).
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    abstract = "Outsourced security services are an essential part of business and risk-management strategy in almost every contemporary company. Increased need for security services in private companies has created huge market potential and new business prospects for security companies. It is estimated that the security sector will continue to grow globally by around eight per cent per year [1], being one of the most rapidly growing industries in, for example, Europe [2]. In this paper, we use 'private security industry' to refer to privately funded business entities and organisations supplying security related products and services for a fee [3]. The security industry's customer base is very wide, and it cuts across all sectors of the market, to include government entities and commercial and industrial enterprises [4] as well as individual citizens and private households. Previous research has revealed that security companies' product offerings consist increasingly of various services, and they advertise themselves as real service companies [5]. What is contradictory, however, is that when we took a closer look at the security business from the central perspectives of service research, such as servitisation, service-orientation, or marketing communication, we discovered that the security companies do not actually follow service-oriented business logic [5]. Too often, transactional and goods-based business practices take precedence over the more relational and customer-oriented approach. We argue that the security business could benefit from a move toward more service-oriented business logic, and that a more profound understanding of customer perceived value and value drivers is needed in security services. The purpose of this paper is to discuss why customers purchase security services and, after this, what the prerequisites are for value creation. Two models are introduced in the paper: a model of the fundamental motives for the use of security services and a ValueSSe Value Map.",
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    Jähi, M, Murtonen, M, Lanne, M & Rajala, A 2013, Cutting costs and looking good: Why customers buy security services. in Highlights in service research. VTT Technical Research Centre of Finland, Espoo, VTT Research Highlights, no. 6, pp. 91-95.

    Cutting costs and looking good : Why customers buy security services. / Jähi, Markus; Murtonen, Mervi; Lanne, Marinka; Rajala, Arto.

    Highlights in service research. Espoo : VTT Technical Research Centre of Finland, 2013. p. 91-95 (VTT Research Highlights; No. 6).

    Research output: Chapter in Book/Report/Conference proceedingChapter or book articleProfessional

    TY - CHAP

    T1 - Cutting costs and looking good

    T2 - Why customers buy security services

    AU - Jähi, Markus

    AU - Murtonen, Mervi

    AU - Lanne, Marinka

    AU - Rajala, Arto

    PY - 2013

    Y1 - 2013

    N2 - Outsourced security services are an essential part of business and risk-management strategy in almost every contemporary company. Increased need for security services in private companies has created huge market potential and new business prospects for security companies. It is estimated that the security sector will continue to grow globally by around eight per cent per year [1], being one of the most rapidly growing industries in, for example, Europe [2]. In this paper, we use 'private security industry' to refer to privately funded business entities and organisations supplying security related products and services for a fee [3]. The security industry's customer base is very wide, and it cuts across all sectors of the market, to include government entities and commercial and industrial enterprises [4] as well as individual citizens and private households. Previous research has revealed that security companies' product offerings consist increasingly of various services, and they advertise themselves as real service companies [5]. What is contradictory, however, is that when we took a closer look at the security business from the central perspectives of service research, such as servitisation, service-orientation, or marketing communication, we discovered that the security companies do not actually follow service-oriented business logic [5]. Too often, transactional and goods-based business practices take precedence over the more relational and customer-oriented approach. We argue that the security business could benefit from a move toward more service-oriented business logic, and that a more profound understanding of customer perceived value and value drivers is needed in security services. The purpose of this paper is to discuss why customers purchase security services and, after this, what the prerequisites are for value creation. Two models are introduced in the paper: a model of the fundamental motives for the use of security services and a ValueSSe Value Map.

    AB - Outsourced security services are an essential part of business and risk-management strategy in almost every contemporary company. Increased need for security services in private companies has created huge market potential and new business prospects for security companies. It is estimated that the security sector will continue to grow globally by around eight per cent per year [1], being one of the most rapidly growing industries in, for example, Europe [2]. In this paper, we use 'private security industry' to refer to privately funded business entities and organisations supplying security related products and services for a fee [3]. The security industry's customer base is very wide, and it cuts across all sectors of the market, to include government entities and commercial and industrial enterprises [4] as well as individual citizens and private households. Previous research has revealed that security companies' product offerings consist increasingly of various services, and they advertise themselves as real service companies [5]. What is contradictory, however, is that when we took a closer look at the security business from the central perspectives of service research, such as servitisation, service-orientation, or marketing communication, we discovered that the security companies do not actually follow service-oriented business logic [5]. Too often, transactional and goods-based business practices take precedence over the more relational and customer-oriented approach. We argue that the security business could benefit from a move toward more service-oriented business logic, and that a more profound understanding of customer perceived value and value drivers is needed in security services. The purpose of this paper is to discuss why customers purchase security services and, after this, what the prerequisites are for value creation. Two models are introduced in the paper: a model of the fundamental motives for the use of security services and a ValueSSe Value Map.

    M3 - Chapter or book article

    SN - 978-951-38-7968-6

    T3 - VTT Research Highlights

    SP - 91

    EP - 95

    BT - Highlights in service research

    PB - VTT Technical Research Centre of Finland

    CY - Espoo

    ER -

    Jähi M, Murtonen M, Lanne M, Rajala A. Cutting costs and looking good: Why customers buy security services. In Highlights in service research. Espoo: VTT Technical Research Centre of Finland. 2013. p. 91-95. (VTT Research Highlights; No. 6).