Abstract
The new service development (NSD) process has become vital to survive in highly competitive service sectors. This research suggests a methodology for the New Service Development process, aiming at the correct systematic approach of Quality Function Deployment (QFD) and target-costing in cost management. QFD and target-costing are complementary processes, because while one allows the identification of where cost reduction could be achieved, the other shows the target to be achieved to guarantee the long-term profitability plan of a company. In order to do that, Factors considering server's aspect of action are defined in a group of five as Service Package, and the outputs understood by customers are grouped as Customer-Desired Performance (CDP). The final aim of this model is to reconcile these two aspects having in mind the importance of voice of customer and firm's benefit which are respectively interpreted as worth and value.
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