Effects of involving Lead Users and Close Customers in enhancing the process of New Service Development: a Study on Banking Sector

Abstract

The proposed study was investigate the effects of lead users and relational closeness of the customers in the process of NSD and to see if the new service market performance gets affected due to these two variables with a mediating role of four variables i.e. service advantage, service innovativeness, innovation speed and service newness. A total of 200 responses were used for the analysis of the study. Analysis was done using Simple and Multiple Regression and Baron and Kenny tests. Results indicated that Lead userness and relational closeness had a meaningful connection with new service market performance. Also lead userness positively affected the service advantage, service innovativeness and innovation speed. It was also found that lead userness had a negative effect on service newness. Relational closeness had a positive association with service advantage, service innovativeness, and innovation speed and service newness. Service innovativeness and innovation speed were related to new service market performance. It was also found that service advantage and service newness had no association with new service market performance. Service innovativeness and innovation speed mediated the relationship between lead userness and new service market performance. It was also observed that service innovativeness and innovation speed also mediates the relationship of new service market performance and relation closeness.