Service Innovation and Customers’ Involvement in Service Industry in Kosovo
New developments in the economic arena and rapid technological changes have shifted the economic power from company to customer. As a result, companies changed their approach toward customers’ involvement in new product and/or service development.
Usually, innovations are driven by inventions. But not all inventions are successful innovations. Hence, to be successful, inventions should be explored to meet customer needs and demands, and commercialized to make the company profitable (DTI - Occasional Paper No 9, 2007). According to Lowe and Marriott (2006) the innovation is a process of creating and transforming products, services, and organizational processes that are crucial for companies who want to compete in a highly dynamic and competitive market.
In this regard, the paper aims to explore the interrelation between market and innovation in services industry, whilst analyzing both customers’ impact in new service development (NSD) and Kosovo’s service providers approach in including customers in service development processes.
The findings highlight an increased customer power over the NSD processes as a result of their demand and unwillingness to bear the cost of or experiment with new, untested services. Given these developments service providers have started to change their approach of creating and transforming services, namely by involving customers in the service design and development processes, in order to stimulate interest for using and willingness to pay for new service.
Barras, R. (1986). Towards a theory of innovation in service. Research Policy , 15, 161-173.
Bhalla, G. (2011). Collaboration and Co-Creation: New Platforms for Marketing and Innovation. New York: Springer Science + Business Media LLC.
Chesbrough, H. (2011). Open Services Innovation. San Francisco: Jossey-Bass.
DTI - Occational Paper No 9. (2007). Innovation in Service. DTI.
Fey, V., and Rivin, E. (2005). Innovation on Demand. New York: Cambridge University Press.
Gremyr, I., Witell, L., Lofberg, N., Edvardsson, B., and Fundin, A. (2014). Understanding new service development and service innovation through innovation modes. Journal of Business and Industrial Marketing , 29, 123-131.
Hendersen, R., and Clark, K. (1990). Architectural Innovation: The Reconfiguration of the Existing Product Technologies and the Failur of Established Firms. JSTOR , 35 (Technology, Organizations, and Innovation), 9-30.
Howells, J., and Tether, B. (2004). Innovation in Services: Issues at Stake and Trends. Brussels-Luxemburg: Commission of the European Communities .
Jimenez-Zarko, A., Martinez-Ruiz, M., and Izquiero-Yusta, A. (2009). Impact of market orientation dimension on client cooperation in the development of new service innovations. European Journal of Marketing , 45 (Impact of Market orientation ), 43-67.
Jolly, A. (2005). From Idea to Profit: How to market innovative products and service. London: Kogan Page Limitted.
Kashani, K., Horovitz, J., Jeannet, J.-P., Meehan, S., Ryans, A., Turpin, D., et al. (2005). Beyond Traditional Marketing. West Sussex: John Wiley and Sons, Ltd.
Kotler, P., and Keller, K. (2012). Marketing Management. Upper Saddler River: Pearson Education Inc.
Kotler, P., Kartajaya, H., and Setiawan, I. (2010). Marketing 3.0. John Wiley and Smith.
Lowe, R., and Marriott, S. (2006). Enterprise: Entrepreneurship and Innovation (First Edition ed.). Burllington: Elsevier Ltd.
Organization for Economic co-operation and Development (OECD). (n.d.). The future of Internet Economy - A statistical profile. Retrieved Maj 2013, from www.oecd.org/internet/innovation
O'Sullivan, D., and Dooley, L. (2008). Defining Innovation. In Applying Innovation. SAGE Publications Inc.
Three Sigma Inc. (2002). Marketing and Innovation.[Online] Available at: http://www.threesigma.com/marketing.htm [ Accessed on September 2013]
Texas University, 2007. Institutional Assessment Resources. [Online] Available at: https://www.utexas.edu/academic/ctl/assessment/iar/teaching/gather/method/survey-Response.php [Accessed 25 September 2013]
Metrics powered by PLOS ALM
- There are currently no refbacks.
Copyright (c) 2016 MSc. Vjosa Mullatahiri
This work is licensed under a Creative Commons Attribution 4.0 International License.