Abstract
Service innovation in process and/or product is influenced by many factors they either enhance or reduce customer satisfaction and relationship improvement. The aim of this study is to determine the service innovation factors and their effects on customer satisfaction and relationship improvement in Indian banking sector. Since there is limited literature in identifying the service innovation factors in the Indian banking sector, a detailed review related with service innovation factors has been conducted. The findings of this research is that certain factors act as a barriers to innovation and if they are concentrated and adopted by the bank they facilitate innovation thereby satisfying customers and improve the relationship. This study helps the managers of the bank, policy makers and academicians about the importance of determining the service innovation barriers/facilitators and their effect in satisfying the customers and improving a long term relationship with them.
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