Abstract
The main purpose of this study is to investigate the impact of service innovation (interactive and supportive) on customer satisfaction and mediating role of customer value creation. Cross sectional study is conducted in non-contrived setting and primary data is collected from the mobile users. Hypotheses are tested with a sample of 275 respondents and mediation whereas model fit is done using Smart PLS3. Results indicate that customer value creation significantly mediates the relationship between service innovation and customer satisfaction. The research is conducted on small scale and data has been collected from small geographical location (Riyadh/ Jeddah). The research would be more robust if it is conducted in other geographical area and variable (i.e. value co-creation) would be studied as mediator and customer participation as moderator. This research high lights the customer satisfaction process through value creation.
Highlights
Consumers’ needs wants and demands are continuously capricious which is defying for the business
That’s hypothesis H2 not accepted. When it is with linked supportive service innovation results are significant; which means that interactive service innovation does not predict customer satisfaction when it is not connected with supportive service innovation
The study is conducted to find out the relationship between service innovation dimensions and customer satisfaction; and mediating role of customer value creation
Summary
Consumers’ needs wants and demands are continuously capricious which is defying for the business. New form of technologies helps the business to offer the customer with more innovative type of services. New technologies help to create a good relationship with customers along with new ways of businesses. It makes them able to discriminate themselves from their competitors; and create a unique selling point using new technology on the basis of which businesses are able to accelerate their competitiveness (Yeh & Fu, 2013). Innovation is recent phenomenon which helps in the development of business and technological changes in manufacturing business. Innovation phenomenon got power and position in economic development about two decades ago. This concept is extensively used in service sector; as service innovation
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