1 Ng, Irene C. L., Lei Guo, James Scott and Nick Yip (2008), “Towards a Benefit-based Framework for Understanding B2B Services and its impact on Contract and Capability”, Proceedings of the 10th International Research Seminar in Services Management, 27-30 May 2008, La Londe, France Towards a Benefit-based Framework for Understanding Business to Business Services and its impact on Contract and Capability Irene NG 1 Lei GUO 2 James SCOTT 3 Nick K.T. YIP 4 Abstract This paper discusses the inseparability characteristic in business to business (B2B) services. In the first proposition, we argue that four types of uncertainties arise due to the inseparability of purchase and consumption. This brings about valuation risk at point of consumption that, in turn, has a crucial impact at the point of contracting and pricing. In the second proposition, we elaborate on the dynamics of co-creation of value by the customer and the firm and propose a benefit-based framework for a revised understanding of service capability and an end-to-end visualization of service that may be applicable to solutions-oriented B2B service contracts. Key Words: B2B, services, inseparability, co-creation of value, pricing, contracting. 1 Dr. Irene C L Ng is an Associate Professor of Marketing at the School of Business and Economics, University of Exeter (U.K.). Contact Information: School of Business and Economics, University of Exeter, UK. Tel: +44 (0) 1392 263250, Fax: +44 (0) 1392 263242, Email: Irene.Ng@exeter.ac.uk 2 Lei Guo is a doctoral student with the School of Business and Economics, University of Exeter (U.K.). Contact Information: School of Business and Economics, University of Exeter, UK. Tel: +44 (0) 1392 2633217, Fax: +44 (0) 1392 263242, Email: lg232@exeter.ac.uk 3 James Scott is an MPhil student with the School of Business and Economics, University of Exeter (U.K.). Contact Information: School of Business and Economics, University of Exeter, UK. Tel: +44 (0) 1392 263217, Fax: +44 (0) 1392 263242, Email: J.J.Scott@exeter.ac.uk 4 Nick K T Yip is a doctoral student with the School of Business and Economics, University of Exeter (U.K.). Contact Information: School of Business and Economics, University of Exeter, UK. Tel: +44 (0) 1392 263217, Fax: +44 (0) 1392 263242, Email: Nick.Yip@exeter.ac.uk