In the introductory chapter, the editors respond to the fundamental goal for any firm: to maintain and build customer trust. The overall themes of the book are innovation, trust and customer experience. The book’s title – Innovating for Trust – reflects trust as an antecedent to adoption and commercial success, as well as an outcome of adoption and commercial success. In short, managers and innovators need to build trust into all activities of innovation. The chapter starts by defining and discussing the notion of innovation. Attempts to innovate are ultimately about forecasting what the future entails, and what customers may want. Innovative capabilities consequently include creative change thinking; not as an isolated act of a genius but as acts of picking up signals of change and opportunities. Also discussed are dimensions and types of innovations, and the editors distinguish between radical and incremental innovations, on the one hand, and sustaining and disruptive innovations, on the other hand. The notion of the innovation journey as a guide for reading the book is offered, together with an overview of the main contributions of the different parts of the book.
Marika Lüders, Tor W. Andreassen, Simon Clatworthy and Tore Hillestad
Tor W. Andreassen, Line Lervik-Olsen and Seidali Kurtmollaiev
Nothing happens until customers adopt an innovation. In the chapter the authors develop a new theory for measuring firms’ innovativeness as perceived by their customers. The approach follows the logic of a structural equation model with antecedents and consequences. Antecedents include four areas where customers can perceive changes: core service; service delivery; customer relationship management; and servicescape. Since firms innovate and customers perceive, we suggest that key informants with the firms are interviewees pertaining to innovation efforts. The outcome of perceived changes in any of the four innovation areas results in a cognitive and an emotional satisfaction which co-varies with perceived innovativeness. Perceived innovativeness co-varies with perceived relative attractiveness in the market place and, finally, customer loyalty which is a proxy variable for actual behavior. From these analyses, service managers can a priori estimate the effects of various innovation efforts before any investments have been done.