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Adding Value To Service Brands Through Innovation: A Framework For Emerging Economies

Gozem Guceri-Ucar
Published 2014 · Business

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Innovation is rapidly becoming a central driver in the marketing strategy of many service companies, while its effects on the perceived value of a service brand have yet to be determined. The purpose of this chapter is to explore how introducing an innovation affects the perceived brand equity of services in an emerging economy. The authors propose a conceptual framework that will aid academics in developing detailed causal models in the future, while helping practitioners effectively capitalize on innovation in their branding strategies. Four major factors are identified to have an impact on how innovation affects the perceived value of a service brand in the eyes of customers in emerging economies: (1) innovation characteristics, (2) service industry characteristics, (3) cultural characteristics, and (4) customer characteristics. The qualitative research results support that if utilized correctly marketing activities capitalizing on innovation indeed can make service brands stronger.
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