By placing New Service Development (NSD) activities in selected emerging markets and by using local managers for NSD, a firm can access critical information about innovations in those regions and make direct connections with potential new markets. However, to develop successful new services, customer inputs must be obtained. Yet cultural factors of customers pose challenges to the service firms in their customer interaction and NSD research. Therefore, the goal of this study is to comprehend the customer interaction process in NSD in an emerging market such as India and offer guidelines on how to manage cultural challenges during NSD research. We conducted a case study and generated several new service ideas. Through this case study we clearly show how service firms should interact with the customers using qualitative research techniques and obtain key input and information for new service idea generation and new service concept development stages
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