ABSTRACT
The process of developing and launching new services is vital to the competitiveness of service organisations. However, service innovation and new service development are poorly researched and understood areas within services marketing and management. Most of the prior theoretical research and empirical studies has been characterised by the adoption of frameworks and models from manufacturing. Yet, these models do not consider important aspects of the service logic such as its intangibility, customer heterogeneity, customer co-production, and impossibility to keep in stock. The process nature of services and the role of customers as actors and part-time employees in value-creating processes are the core of what we in this chapter call the service logic.
