Abstract
The growing population of first-home buyers (IDR 5–15 million income segment) in Indonesian urban areas needs interior design services that prioritize affordability and predictability (fixed price and fixed timeline). Existing project-based services, however, are dominated by non-standardized, custom processes that lead to high cost overruns and uncertain durations, creating a significant Reliability and Assurance deficit. This study aims to develop an integrated strategic service model to resolve this gap. Employing a qualitative exploratory–confirmatory approach, customer journey mapping and value chain analysis were used to diagnose the structural service deficits and internal operational deficiencies. The findings reveal a gap between first-home buyers’ expectations for transparent pricing, predictable costs, reliable timelines, and consistent service quality and the capabilities of traditional interior design firms. Customers strongly prefer modular, fixed-price packages supported by warranty, after-sales service, and hybrid digital–physical channels. VCA and RBV identify non-standardized processes, variable lead times, limited modular resources, and inadequate SOPs as key constraints. The proposed model integrates Service Modularity and Business Model Innovation, supported by the Balanced Scorecard to measure financial, customer, internal process, and learning and growth outcomes, providing an actionable framework for improving predictability, cost control, and service consistency.