Despite the plethora of research, an examination of the literature shows that essentially there are two models of how IM works: one based on the work of Berry’s concept of ‘employees as customers’ and the other based on Gro¨nroos’ idea of ‘customer mindedness’ and interactive marketing1. In the existing literature, most authors do not clearly distinguish
between Berry’s and Gro¨nroos’ models of IM. The major reason for this is the fact that both Berry and Gro¨nroos do not spell out the exact components of their models and how they are connected with each other. An examination of Berry’s and Gro¨nroos’ work (as well as their collaborators) on IM shows that both these authors are concerned with improving service quality. However, they differ in their methods for achieving it. A problem in examining the work of the two authors in this area is that they do not present systematic models of IM. Hence, what is presented below are the implicit models underlying the works of both Berry and Gro¨nroos.