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.
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