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Proceedings ArticleDOI

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

TL;DR: An extended NSD model is proposed, one which is based on Froehle and Roth's work and integrates the resource and process oriented practices of NSD with a new “customer” dimension.
Abstract: 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.
Citations
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01 Jan 2005
TL;DR: In this paper, the impact of customer-displayed emotion and affect on assessments of the service encounter and the overall experience was examined for mundane service transactions and the results indicated that frontline employees’ perceptions of the encounter are not aligned with those of their customers.
Abstract: 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.

687 citations

Journal ArticleDOI
TL;DR: In this article, a case study approach, based on semi-structured interviews and archival data analysis, was used to understand an existing product service organization's approach to designing PSSs.
Abstract: 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...

72 citations


Cites background from "New service development: Linking re..."

  • ...Where the organisation has limited experience in designing less traditional offerings, superior service is rarely delivered after being conceived and designed in an ad hoc, non-repeatable fashion (de Jong and Vermeulen, 2003; Reinoso et al., 2009)....

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  • ...Whilst limited research has been conducted that attempts to combine the two design paradigms (Wild, 2007), many authors report that product design approaches are not suitable for service design (Ian Stuart, 1998; Kelly and Storey, 2000; Reinoso et al., 2009)....

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Posted Content
TL;DR: In this article, the authors classify 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.
Abstract: 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.

33 citations

Journal ArticleDOI
TL;DR: Gustafsson et al. as discussed by the authors presented a new service development and innovation in the new economy in the context of student litteratur in the Swedish Studentlitteratur.
Abstract: Bespreking van: A. Gustafsson,New service development and innovation in the new economy Lund:Studentlitteratur AB ,2000 9144015593

5 citations

Journal ArticleDOI
TL;DR: 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 as mentioned in this paper.
Abstract: 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).

5 citations

References
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Book
06 Sep 2000
TL;DR: In this paper, the authors present the Six Rules of Service Management and the six principles of service management for managing relationships in a market-oriented organization: Structure, Resources and Service Processes.
Abstract: The Service and Relationship Imperative: Managing In Service Competition. Managing Customer Relationships: An Alternative Paradigm in Management and Marketing. The Nature of Services and Service Consumption, and its Marketing Consequences. Service and Relationship Quality. Quality Management in Services. Return on Service and Relationships. Managing the Augmented Service Offering. Principles of Service Management. Managing Service Productivity. Managing Marketing or Market--oriented Management. Managing Total Integrated Marketing Communication. Managing Brand Relationships and Image. Market--oriented Organization: Structure, Resources and Service Processes. Managing Internal Marketing: A Prerequisite for Successfully Managing Customer Relationships. Managing Service Culture: The Internal Service Imperative. Conclusions: Managing Relationships and the Six Rules of Service. Index.

2,460 citations


"New service development: Linking re..." refers background in this paper

  • ...Moreover, a service concept must be set clearly in respect to both the customers and the employees (service provider) [10], [13]....

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Journal Article
TL;DR: In this article, the authors describe how to build scenarios in a step-by-step process and how to use the resulting stories to plan a company's future using case studies of Interpublic, an international advertising agency, and Anglo-American Corporation in South Africa.

1,366 citations

Journal Article
TL;DR: In this paper, the authors describe how to build scenarios in a step-by-step process and how to use the resulting stories to plan a company's future using case studies of Interpublic, an international advertising agency, and Anglo-American Corporation in South Africa.
Abstract: Among the many tools a manager can use for strategic planning, scenario planning stands out for its ability to capture a whole range of possibilities in rich detail. By identifying basic trends and uncertainties, a manager can construct a series of scenarios what will help to compensate for the usual errors in decision making ? overconfidence and tunnel vision. Through case studies of Interpublic, an international advertising agency, and Anglo-American Corporation in South Africa, the author describes how to build scenarios in a step-by-step process and how to use the resulting stories to plan a company's future.

1,325 citations


"New service development: Linking re..." refers background in this paper

  • ...During this stage, managers should work to identify gaps in the possible service concepts[40]....

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Journal ArticleDOI
TL;DR: In this article, the authors present a model of the wait experience, which assesses the effects of delays in service evaluations on the satisfaction of the service experience, and assess the effect of delays on customer satisfaction.
Abstract: Delays in service are becoming increasingly common; yet their effects on service evaluations are relatively unknown. The author presents a model of the wait experience, which assesses the effects o...

946 citations


"New service development: Linking re..." refers background in this paper

  • ...In developing new services, a company must understand that the customer's satisfaction is influenced by forces due to either the service provider, or the individual customer [29]....

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Journal ArticleDOI
TL;DR: In this article, the authors present a new frame of reference for new service development based on empirical studies in Sweden and argue that the main task of service development is to create the right generic prerequisites for the service.
Abstract: This article deals with service development from a quality perspective. Our point of departure is to build in the right quality from the start. The article presents a new frame of reference for new service development based on empirical studies in Sweden. It argues that the main task of service development is to create the right generic prerequisites for the service. This means an efficient customer process, that is to say the process must be adapted to the logic of the customer's behaviour and a good customer outcome, i.e., the service is associated with quality. We distinguish three main types of development: the development of the service concept, the development of the service system (resource structure) and the development of the service process.

799 citations


"New service development: Linking re..." refers background in this paper

  • ...As Edvardsson and Olsson have said, ”It is very important to build the right quality from the start [31]”....

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  • ...The various sub components of the service system includes: the service company’s staff, the customers, the physical/technical environment and organization and control [31]....

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  • ...Innovative service concepts are largely affected by the calibre of employees, making employees a critical resource in the NSD model [31]....

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