Service Innovation


A service innovation is a new or enhanced intangible offering that involves the firm’s performance of a task/activity intended to benefit customers. [1]

Consistent with this, the term can also refer to the underlying process of devising new or improved service concepts that satisfy the customer’s unmet needs. [2]

There are two general type of service innovations based on how they are delivered: [1]

E-service innovations are delivered primarily through the Internet, such as online ordering or order tracking. E-service innovations increase firm value for companies in most industries.

P-service innovations are delivered primarily through human (people) interaction, as with service desks. They have a positive effect on customer satisfaction – and therefore firm value – in human-dominated industries like hospitality and healthcare.



  1. Journal of Marketing Research, Service Innovativeness and Firm Value; Thomas Dotzel, Venkatesh Shankar, Leonard L. Berry; 2013.
  2. Bettencourt, L. A., Service innovation: how to go from customer needs to breakthrough services, McGraw-Hill, New York, 2010.

Comments are closed.