This article advances our understanding of the influence of affect in consumers’ responses to brief, nonpersonal service encounters. This study contributes to the services marketing literature by examining for mundane service transactions the impact of customer-displayed emotion and affect on assessments of the service encounter and the overall experience. Observational and perceptual data from customers were matched with frontline employees in 200 transaction-specific encounters. The results of this study suggest that consumers’ evaluations of the service encounter correlate highly with their displayed emotions during the interaction and postencounter mood states. Finally, the findings indicate that frontline employees’perceptions of the encounter are not aligned with those of their customers. The managerial implications of these findings are briefly discussed.

The Role of Emotions in Service Encounters

Purpose – The purpose of this paper is to reflect on how representative the literature is in identifying industrial practice to designing product‐service systems (PSSs).Design/methodology/approach – The paper analyses literature to report on the existing approaches used to design PSSs. A single exploratory case study approach, based on semi‐structured interviews and archival data analysis, was used to understand an existing product‐service organisation's approach to designing PSSs. A total of 12 senior managers were interviewed from a cross section of the organisation, to gain multiple perspectives on the PSS design process and ten company reports were analysed.Findings – The research has identified that the PSS design process reported by literature is not representative, lacking inputs and outputs to some phases and feedback. In total, 18 inputs and 11 outputs have been identified from the case study that are not reported by the literature. These create five feedback loops within the PSS design process u...

Evaluating existing approaches to product‐service system design: A comparison with industrial practice

How should one organize new service development? This is an important topic for decision-makers in service firms. The numerous publications on this subject are highly fragmented. This paper classifies current literature on organizing new service development (NSD) into two evolutionary stages: managing key activities in the NSD process, and creating a climate for continuous innovation. For both stages, its consequences for the initiation and implementation of new services are discussed.

Organizing Successful New Service Development: A Literature Review

Bespreking van: A. Gustafsson,New service development and innovation in the new economy Lund:Studentlitteratur AB ,2000 9144015593

New Service Development and Innovation in the New Economy

Innovation is a widely examined area of management, since it is identified as an essential development and competitiveness factor, with rising importance in the age of knowledge-driven economy directly based on the production, distribution and use of knowledge and information (Stošić, Vasiljević & Milutinović, 2012). Companies have to be prepared to adapt and develop if they want to survive in today’s volatile business surroundings. They operate with an awareness that their competitors will inevitably come to market with a product that is going to change the basis of competition. Being prepared for changes and adaptation became fundamental for the market survival. In almost every industry air, pharmaceutical, auto, computer industry, market leaders demonstrate the aptitude to innovate. The analysis of the economic history shows that industrial technological innovations lead to significant economic benefits for innovative companies and innovation in general. Innovations claim to be the growth engine of modern economy and they ensure growth regardless of the economic situation (Tidd & Bessant, 2009).

http://www.management.fon.rs/management/e_management_69_english_07.pdf

Key Elements of Innovation Project Management in Services

New service concepts are at the heart of success, and the process can be optimized by implementing new service development (NSD) models. NSD models are rarely used in practice, however. Many companies use historically successful new product development (NPD) models to develop services, and ultimately ignore the challenges and opportunities specific to services. The objective of this research paper is to determine the key success variables of an NSD model. Several NSD models are reviewed to mine the key traits of a successful NSD model. After a comprehensive literature review, three hypotheses proposed in the paper are: a well-structured NSD model is necessary for the success of a new service; resources should be given equal attention to the processes involved in a NSD model, and customer involvement is a vital component of the NSD model. Finally, an extended NSD model is proposed, one which is based on Froehle and Roth's work. This extended model integrates the resource and process oriented practices of NSD with a new “customer” dimension. We show how this model can be applied, using the airline industry as an example.

Marisa Reinoso

Papers

New service development: Linking resources, processes, and the customer