The study of service innovation for digiservice on loyalty

Advocates of management of service innovation see this area as a new and promising research field. As services are increasingly becoming driving forces of economies, the introduction of new services to satisfy customer needs is becoming a critical issue for managers. This research attempts to address the consumer issue of service innovation. The research entails a comprehensive study of the impacts of service innovation on consumer loyalty in the digiservice context. The study examines service innovation loyalty from the consumer perspective; namely, technology leadership, service leadership, switching cost, brand equity, and customization. Personal interview data from 475 consumers provides the data for empirical hypothesis testing of the relationships between variables. The conceptual model investigates the relevant relationships among the constructs by using confirmatory factor analysis (CFA) and structural equation modeling (SEM). Findings from the research sample support the argument that technology leadership, service leadership, brand equity, and customization are the key determinants of loyalty. The paper also includes a discussion on the theoretical and managerial implications of the research findings.