Service innovation, customer satisfaction and behavioural intentions: a conceptual framework

Abstract

Purpose This paper aims to propose a conceptual framework to investigate the influences of innovative services on customer satisfaction and behavioural intentions. As service innovation has been focusing on the influences of product and technology innovation, this paper provides another insight into service innovation. Design/methodology/approach The proposed conceptual framework is based on findings from reviewing key theories and concepts, together with relevant literature in the service operation management, service innovation and hospitality management. Findings The proposed conceptual framework can be used to test empirically and explicate customer satisfaction and behavioural intentions towards service innovation of the hospitability operations. There are seven determinants can influence customer satisfaction: innovative mechanic clues, innovative humanic clues and innovative functional clues to influence customer transaction-specific satisfaction; complexity, meaningfulness, novelty and affordability to influence customer overall satisfaction. Customer expectation is formed by social factors, information, knowledge and their need to influence their actual perception, and the comparison between customers’ expectation and actual perception cause their satisfaction. The relationships amongst transaction-specific satisfaction, overall satisfaction and behavioural intentions can explain customer satisfaction comprehensively as a process of before, during and after their perception. Practical implications This paper highlights the importance of innovative service delivery and customers’ evaluation to contribute to creating service innovation. A synthetic definition of service innovation emphasised can help practitioners to define key determinants to effectively influence customer satisfaction and their behavioural intentions. Thus, marketing strategy aligned with operation management, can be practised appropriately. Originality/value This study provides key determinants to influencing customer satisfaction of service innovation through innovative service delivery in the hospitality operation, based on key theories and relevant literature.