“There are three kinds of companies; those that simply ask customers what they want and end up as perpetual followers; those that succeed for a time in pushing customers in directions they do not want to go; and those that lead customers where they want to go before customers know it themselves”
The perception of the customer in business has changed in the course of history, from a mere passive buyer and price taker to an active and vital participant in the market. Today consumers have access to a variety of information about companies and their products, therefore companies need to center their activities on this important market participant. Companies must take advantage of this development and include customers throughout their business model. Leading customers refers to discovering their current and future needs and engaging in joint activities. In the light of this, it is no longer enough to simply use marketing to create interest in the company and to built reputation; consumers have to be involved from the beginning of the process on, i.e. the innovation of new products and services. Therefore, companies face the challenge of creatinge an interface to their customer, thus enabling customers to shape products ac-cording to their needs.
While possibilities of consumer involvement in new product development have received a lot of attention6, the opposite has to be said concerning new service development. This is surprising since in services the customer himself is an important part of the service delivery and thus is of great importance.
Therefore, this paper aims at investigating the importance of customer involvement and the role customers can play in new service development as well as why and how a com-pany can benefit from this procedure.
Table of Contents
1 INTRODUCTION
1.1 Nature of the problem and objective
1.2 Methodology and structure
2 CUSTOMER ORIENTATION AND SERVICE DEVELOPMENT
2.1 Market oriented product development
2.2 The limits of marketing and customer satisfaction measures
2.3 Differences of product and service development
2.4 The innovation process in services
3 THE CUSTOMER’S ROLE IN THE SERVICE INNOVATION PROCESS
3.1 Benefits and challenges related to the customer
3.2 Creating customer experience
3.3 Observing the customer
3.4 Including the customer
4 CONCLUDING REMARKS AND OUTLOOK
Objectives and Key Themes
This seminar paper investigates the critical importance of customer involvement in the context of new service development. It examines how shifting the customer from a passive recipient to an active participant can drive innovation, overcome traditional marketing limitations, and ultimately create sustainable competitive advantages through co-creation and experiential insights.
- Evolution of the customer role from passive buyer to active co-creator.
- Comparative analysis of product versus service development processes.
- Methodological approaches to customer involvement, including observation and experimentation.
- Challenges of managing customer input uncertainty and diversity.
- Strategic implementation of the lead user concept in service innovation.
Excerpt from the Book
1.1 Nature of the problem and objective
“There are three kinds of companies; those that simply ask customers what they want and end up as perpetual followers; those that succeed for a time in pushing customers in directions they do not want to go; and those that lead customers where they want to go before customers know it themselves”
The perception of the customer in business has changed in the course of history, from a mere passive buyer and price taker to an active and vital participant in the market. Today consumers have access to a variety of information about companies and their products, therefore companies need to center their activities on this important market participant. Companies must take advantage of this development and include customers throughout their business model. Leading customers refers to discovering their current and future needs and engaging in joint activities. In the light of this, it is no longer enough to simply use marketing to create interest in the company and to built reputation; consumers have to be involved from the beginning of the process on, i.e. the innovation of new products and services. Therefore, companies face the challenge of creatinge an interface to their customer, thus enabling customers to shape products according to their needs.
While possibilities of consumer involvement in new product development have received a lot of attention, the opposite has to be said concerning new service development. This is surprising since in services the customer himself is an important part of the service delivery and thus is of great importance.
Summary of Chapters
1 INTRODUCTION: Outlines the shift in customer perception in modern business and defines the research objective regarding customer involvement in service innovation.
2 CUSTOMER ORIENTATION AND SERVICE DEVELOPMENT: Establishes a theoretical framework for market-oriented development, discusses the limitations of traditional marketing tools, and highlights the distinct differences between product and service innovation processes.
3 THE CUSTOMER’S ROLE IN THE SERVICE INNOVATION PROCESS: Analyzes the benefits and risks of active customer participation, explores techniques like customer observation and live experimentation, and examines methods for including customers in the innovation cycle.
4 CONCLUDING REMARKS AND OUTLOOK: Summarizes the necessity of rethinking service development processes and provides a final perspective on the future of customer-centric innovation strategies.
Keywords
Customer Involvement, New Service Development, Market Orientation, Service Innovation, Co-creation, Customer Experience, Lead User Concept, Innovation Process, Market Research, Service Delivery, Customer Needs, Latent Needs, Proactive Research, Service Quality, Customer Participation.
Frequently Asked Questions
What is the core focus of this paper?
The paper focuses on the necessity of integrating customers into the new service development process to create more innovative and competitive service offerings.
What are the central themes covered?
Key themes include market orientation, the distinction between product and service innovation, methods for observing and including customers, and the challenges of managing customer-induced uncertainty.
What is the primary research goal?
The goal is to determine how and why companies should benefit from involving customers, moving beyond traditional marketing to active co-creation.
Which scientific methods are discussed for innovation?
The paper evaluates proactive research techniques such as direct customer observation and live experiments, as well as the implementation of innovation tool-kits.
What does the main body address?
It covers the theoretical framework of market orientation, the unique characteristics of services that necessitate different development models, and practical approaches for active user involvement.
Which keywords best characterize this work?
The work is defined by terms such as service innovation, customer involvement, co-creation, market orientation, and the lead user concept.
How do services differ from physical products in the development context?
Services are intangible, perishable, and simultaneously produced and consumed, which requires a development approach that accounts for the active, often unpredictable role of the customer during service delivery.
What role does the "lead user" concept play in services?
Lead users serve as a forecast instrument, as their advanced needs today often represent the general market trends of the future, making them highly valuable for identifying innovative service concepts.
- Citation du texte
- Mathies Pohl (Auteur), 2006, Customer Involvement in New Service Development, Munich, GRIN Verlag, https://www.grin.com/document/66247
