Customer interaction in service innovation: evidence from India

Purpose - Customer interaction in new service development is a key success factor for new services. However, the knowledge about the process and techniques of customer interaction in any Asian and emerging market is limited. Therefore, the purpose of this article is to investigate the process of customer interaction in new service development in an emerging market – India. Design/methodology/approach - The article is based on longitudinal case research involving 24 service firms, in which 48 managers and 24 customers were interviewed and the paper followed the development process of several new service projects in real time. Findings - The research answers several critical questions involved in customer interaction in new service development that include: What are the modes of customer interaction in NSD? What are the stages of customer interaction? Whom a firm shall interact with? What is the role of employees in customer interaction? And what are the pitfalls in customer interaction process? Research limitations/implications - The results and findings of this study will help managers improve the odds of developing successful new services in the emerging markets. Originality/value - The research is the first attempt to examine the customer interaction practice of service firms in an emerging market – India. Therefore, it contributes to the extant literature of new service development and innovation.