ABSTRACT
The purpose of this chapter is to examine the concept of product and service innovation in service marketing. The service industry is rich in terms of the new innovations (i.e. Information Technology applications, Central reservation systems, Food production and service applications, E-commerce, Wireless applications, Self-Service Check-in and check-out kiosks and Electronic Menus) and customers are actively engaged in the production of these new service products. Understanding this and how service firms can benefit from these innovations will enable these firms to strengthen their competitive advantage.
