Skip to main content
SpringerLink
Log in

How does product program innovativeness affect customer satisfaction? A comparison of goods and services

  • Original Empirical Research
  • Published:
Journal of the Academy of Marketing Science Aims and scope Submit manuscript

Abstract

This article attempts to provide deeper insights into the link between the innovativeness of a company’s offered goods/services and customer satisfaction. This study proposes an inverted U-shaped relationship between the innovativeness of the offered goods and customer satisfaction. For the innovativeness of services, information economics and services marketing literature indicate an inverted S-shaped relationship. Two separate studies conducted for goods and services confirm the proposed nonmonotonic effects of the investigated relationships. Both studies use dyadic data from marketing managers to assess innovativeness and from customers to indicate customer satisfaction.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2

Similar content being viewed by others

References

  • Abramovici, M., & Bancel-Charensol, L. (2004). How to take customers into consideration in service innovation projects. Service Industrial Journal, 24(1), 56–78.

    Google Scholar 

  • Achrol, R., & Stern, L. W. (1988). Environmental determinants of decision-making uncertainty in marketing channels. Journal of Marketing Research, 25, 36–50.

    Google Scholar 

  • Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Newbury Park: Sage.

    Google Scholar 

  • Alam, I. (2006). Service innovation strategy and process: a cross-national comparative analysis. International Marketing Review, 23(3), 234–254.

    Google Scholar 

  • Ali, A., Krapfel, R., Jr., & LaBahn, D. (1995). Product innovativeness and entry strategy: Impact on cycle time and break-even time. Journal of Product Innovation Management, 12, 54–69.

    Google Scholar 

  • Anderson, E., Fornell, C., & Lehmann, D. R. (1994). Customer satisfaction, market share, and profitability: findings from Sweden. Journal of Marketing, 58, 53–66.

    Google Scholar 

  • Anderson, E., Fornell, C., & Mazvancheryl, S. K. (2004). Customer satisfaction and shareholder value. Journal of Marketing, 68(4), 172–185.

    Google Scholar 

  • Athanassopoulos, A., Gounaris, S., & Stathakopoulos, V. (2001). Behavioral consequences to customer satisfaction: An empirical study. European Journal of Marketing, 35(5/6), 687–707.

    Google Scholar 

  • Atuahene-Gima, K. (1996). Differential potency of factors affecting innovation performance in manufacturing and services firms in Australia. Journal of Product Innovation Management, 13(1), 35–52.

    Google Scholar 

  • Atuahene-Gima, K., Slater, S. F., & Olson, E. M. (2005). The contingent value of responsive and proactive market orientations for new product program performance. Journal of Product Innovation Management, 22(6), 464–482.

    Google Scholar 

  • Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74–95.

    Google Scholar 

  • Basuroy, S., Desai, K. K., & Talukdar, D. (2006). An empirical investigation of signaling in the motion picture industry. Journal of Marketing Research, 43(2), 287–295.

    Google Scholar 

  • Baumgartner, H., & Homburg, Ch. (1996). Applications of structural equation modeling in marketing and consumer research: a review. International Journal of Research in Marketing, 13(2), 139–161.

    Google Scholar 

  • Berry, L. L., Seiders, K., & Grewal, D. (2002). Understanding service convenience. Journal of Marketing, 66(3), 1–17.

    Google Scholar 

  • Bitner, M. J., Booms, B. H., & Tetreault, M. S. (1990). The service encounter: diagnosing favourable and unfavourable incidents. Journal of Marketing, 54, 71–84.

    Google Scholar 

  • Bitner, M. J., Gwinner, K. P., & Gremler, D. D. (1998). Relational benefits in services industries: the customer’s perspective. Journal of the Academy of Marketing Science, 26(2), 101–114.

    Google Scholar 

  • Bitner, M. J., Brown, S. W., & Meuter, M. L. (2000). Technology infusion in service encounters. Journal of the Academy of Marketing Science, 28(1), 138–149.

    Google Scholar 

  • Bitner, M. J., Ostrom, A. L., & Morgan, F. N. (2008). Service blueprinting: a practical technique for service innovation. California Management Review, 50(3), 66–94.

    Google Scholar 

  • Bonnin, G., Segard, O., & Vialle, P. (2005). Relationship marketing and innovation: the case of the launch of wireless local loop telecommunication services in France. Journal of Services Research, 5(Special Issue), 149–171.

    Google Scholar 

  • Boyd, B. K., Gove, S., & Hitt, M. A. (2005). Construct measurement in strategic management research: illusion or reality? Strategic Management Journal, 26(3), 239–257.

    Google Scholar 

  • Burke, M. J., Finkelstein, L. M., & Dusig, M. S. (1999). On average deviation indices for estimating interrater agreement. Organizational Research Methods, 2(1), 49–69.

    Google Scholar 

  • Calantone, R. J., Chan, K., & Cui, A. S. (2006). Decomposing product innovativeness and its effects on new product success. Journal of Product Innovation Management, 23(5), 408–421.

    Google Scholar 

  • Cannon, J. P., & Homburg, C. (2001). Buyer-seller relationships and customer firm costs. Journal of Marketing, 65(1), 29–43.

    Google Scholar 

  • Cannon, J. P., & Perreault, W. D., Jr. (1999). Buyer-seller relationships in business markets. Journal of Marketing Research, 36(4), 439–460.

    Google Scholar 

  • Carson, J. B., Tesluk, P. E., & Marrone, J. A. (2007). Shared leadership in teams: an investigation of antecedent conditions and performance. Academy of Management Journal, 50(5), 1217–1234.

    Google Scholar 

  • Castaño, R., Sujan, M., Kacker, M., & Sujan, H. (2008). Managing consumer uncertainty in the adoption of new products: temporal distance and mental simulation. Journal of Marketing Research, 45(3), 320–336.

    Google Scholar 

  • Chandrashekaran, M., & Sinha, R. K. (1995). Isolating the determinants of innovativeness: a split-population Tobit (SPOT) duration model of timing and volume of first and repeat purchase. Journal of Marketing Research, 32(4), 444–456.

    Google Scholar 

  • Christensen, C. M., Cook, S., & Hall, T. (2005). Marketing malpractice: the cause of the cure. Harvard Business Review, 83(12), 76.

    Google Scholar 

  • Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2003). Applied multiple regression/correlation analysis for the behavioral science (3rd ed.). London: Erlbaum.

    Google Scholar 

  • Davis, F. (1989). Perceived usefulness, perceived case of use, and user acceptance of information technology. MIS Quarterly, 13(13), 319–339.

    Google Scholar 

  • Davis, F., Bagozzi, R. D., & Warshaw, P. R. (1989). User acceptance of consumer technology: a comparison of two theoretical models. Management Science, 35(8), 982–1003.

    Google Scholar 

  • Deshpandé, R., Farley, J. U., & Webster, F. E. (1993). Corporate culture, customer orientation, and innovativeness in Japanese Firms: a quadrad analysis. Journal of Marketing, 57, 23–37.

    Google Scholar 

  • Droege, H., Hildebrand, D., & Forcada, H. M. A. (2009). Innovation in services: present findings, and future pathways. Journal of Service Management, 20(2), 131–155.

    Google Scholar 

  • Echambadi, R., & Hess, J. D. (2007). Mean-centering does not alleviate collinearity problems in moderated multiple regression modes. Marketing Science, 26(3), 438–445.

    Google Scholar 

  • Eyal, T., Liberman, N., Trope, Y., & Walther, E. (2004). The pros and cons of temporally near and distant action. Journal of Personality and Social Psychology, 86(6), 781–795.

    Google Scholar 

  • Fidler, L. A., & Johnson, J. D. (1984). Communication and innovation implementation. Academy of Management Review, 9(4), 704–711.

    Google Scholar 

  • Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: algebra and statistics. Journal of Marketing Research, 18(3), 382–388.

    Google Scholar 

  • Fornell, C., Johnson, M. D., Anderson, E. W., Cha, J., & Bryant, B. E. (1996). The American Customer Satisfaction Index: nature, purpose and findings. Journal of Marketing, 60, 7–18.

    Google Scholar 

  • Fornell, C., Rust, R. T., & Dekimpe, M. G. (2010). The effect of customer satisfaction on consumer spending and growth. Journal of Marketing Research, 47, 28–35.

    Google Scholar 

  • Garcia, R., & Calantone, R. (2002). A critical look at technological innovation typology and innovativeness terminology: a literature review. Journal of Product Innovation Management, 19(2), 110–132.

    Google Scholar 

  • George, J. M., & Bettenhausen, K. (1990). Understanding prosocial behavior, sales performance, and turnover: a group-level analysis in a service context. Journal of Applied Psychology, 75(6), 698–709.

    Google Scholar 

  • Gerbing, D. W., & Anderson, J. C. (1988). An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of Marketing Research, 25(2), 186–192.

    Google Scholar 

  • Goff, B. G., Boles, J. S., Bellenger, D. N., & Stojack, C. (1997). The influence of sales-person selling behaviors on customer satisfaction with products. Journal of Retailing, 73(2), 171–181.

    Google Scholar 

  • Gummesson, E. (2002). Relationship marketing and a new economy: it’s time for de-programming. Journal of Services Marketing, 16(7), 585–589.

    Google Scholar 

  • Gumusluoglu, L., & Ilsev, A. (2009). Transformational leadership, creativity, and organizational innovation. Journal of Business Research, 62(4), 461–473.

    Google Scholar 

  • Hauser, J., Tellis, G. J., & Griffin, A. (2006). Research on innovation: a review and agenda for Marketing Science. Marketing Science, 26(6), 687–717.

    Google Scholar 

  • Heide, J. B. (2003). Plural governance in industrial purchasing. Journal of Marketing, 67, 18–29.

    Google Scholar 

  • Heide, J. B., & Wathne, K. H. (2004). Friends, businesspeople, and relationship roles: a conceptual framework and a research agenda. Journal of Marketing, 70, 90–103.

    Google Scholar 

  • Hoeffler, S. (2003). Measuring preferences for really new products. Journal of Marketing Research, 40, 406–420.

    Google Scholar 

  • Homburg, C., & Stock, R. M. (2004). The link between sales people’s job satisfaction and customer satisfaction in a business-to-business context: a dyadic analysis. Journal of the Academy of Marketing Sciences, 32(2), 144–158.

    Google Scholar 

  • Homburg, C., & Stock, R. M. (2005). Exploring the conditions under which salesperson work satisfaction can lead to customer satisfaction. Psychology & Marketing, 22(5), 393–420.

    Google Scholar 

  • Homburg, C., Grozdanovic, M., & Klarmann, M. (2007a). Responsiveness to customers and competitors: the role of cognitive and affective organizational systems. Journal of Marketing, 71(3), 18–38.

    Google Scholar 

  • Homburg, C., Hoyer, W. D., & Stock, R. M. (2007b). How to get lost customers back? Insights into customer relationship revival activities. Journal of the Academy of Marketing Science, 35(4), 461–474.

    Google Scholar 

  • Irwin, J. R., & McClelland, G. H. (2001). Misleading heuristics and moderated multiple regression models. Journal of Marketing Research, 38(1), 100–110.

    Google Scholar 

  • Iyengar, R., Ansari, A., & Gupta, S. (2007). A model of consumer learning for service quality and usage. Journal of Marketing Research, 44(4), 529–544.

    Google Scholar 

  • James, L. R., Demaree, R. G., & Wolf, G. (1984). Estimating within-group interrater reliability with and without response bias. Journal of Applied Psychology, 69(1), 85–98.

    Google Scholar 

  • Jedidi, K., & Zhang, Z. J. (2002). Augmenting conjoint analysis to estimate consumer reservation price. Management Science, 48(10), 1350–1368.

    Google Scholar 

  • Jöreskog, K. G., & Sörbom, D. (1982). Recent developments in structural equation modeling. Journal of Marketing Research, 19(4), 404–416.

    Google Scholar 

  • Karasek, R. A., & Theorell, T. (1990). Healthy work: Stress, productivity, and the reconstruction of working life. New York: Basic Books.

    Google Scholar 

  • Kirmani, A., & Rao, A. R. (2000). No pain, no gain: a critical review of the literature on signaling unobservable product quality. Journal of Marketing, 64(2), 66–79.

    Google Scholar 

  • Lado, N., Maydeu-Olivares, A., & Martínez-Martínez, M. A. (1999). The relationship between market orientation and service innovation in the insurance business: a Spanish investigation. International Journal of Management, 16(3), 374–385.

    Google Scholar 

  • Langerak, F., Hultink, E. J., & Robben, H. S. (2004). The impact of market orientation, product advantage, and launch proficiency on new product performance and organizational performance. Journal of Product Innovation Management, 21(2), 79–94.

    Google Scholar 

  • Li, S., Sun, B., & Wilcox, R. T. (2005). Cross-selling sequentially ordered products: an application to consumer banking services. Journal of Marketing Research, 42(2), 233–239.

    Google Scholar 

  • Liao, H., & Chuang, A. (2004). A multilevel investigation of factors influencing employee service performance and customer outcomes. Academy of Management Journal, 47(1), 41–58.

    Google Scholar 

  • Lievens, A., & Moenaert, R. K. (1999). Project team communication in financial service innovation. Journal of Management Studies, 37(5), 733–766.

    Google Scholar 

  • Lievens, A., & Moenaert, R. K. (2000). New service team as information processing systems. Journal of Service Research, 3(1), 46–65.

    Google Scholar 

  • Luo, X., & Bhattacharya, C. B. (2006). Corporate social responsibility, customer satisfaction, and market value. Journal of Marketing, 70, 1–18.

    Google Scholar 

  • Magnusson, P. R., Matthing, J., & Kristensson, P. (2003). Managing user involvement in service innovation: experiments with innovating end users. Journal of Service Research, 6(2), 111–124.

    Google Scholar 

  • Meuter, M. L., Bitner, M.-J., Ostrom, A. L., & Brown, S. W. (2005). Choosing among alternative service delivery modes: an investigation of customer trial of self-service technologies. Journal of Marketing, 69(2), 61–83.

    Google Scholar 

  • Meyer, M. H., & Roberts, E. B. (1986). New product strategy in small technology-based firms: a pilot study. Management Science, 32(7), 806–821.

    Google Scholar 

  • Michel, S., Brown, S. W., & Gallan, A. S. (2008). Service-logic innovations: how to innovate customers, not products. California Management Review, 50(3), 49–65.

    Google Scholar 

  • Murray, J. Y., Kotabe, M., & Wildt, A. R. (1995). Strategic and financial performance implications of global sourcing strategy: a contingency analysis. Journal of International Business Studies, 26(1), 181–202.

    Google Scholar 

  • Nunnally, J. C. (1978). Psychometric theory (2nd ed.). New York: McGraw-Hill.

    Google Scholar 

  • OECD (2008). OECD Science, technology and industry outlook. OECD.

  • Oliver, R. (1997). Satisfaction. London: McGraw-Hill.

    Google Scholar 

  • Philips, L. (1988). The economics of imperfect information. Cambridge: Cambridge University Press.

    Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., Jeong-Yeon, L., & Podsakoff, N. P. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.

    Google Scholar 

  • Price, L. L., Arnould, E. J., & Hausman, A. (1996). Commercial friendships: Service provider-client relationship dynamics. Frontiers in Services Conference. Nashville: Vanderbilt University.

    Google Scholar 

  • Pugh, D. (2001). Service with a smile: emotional contagion in the service encounter. Academy of Management Journal, 44(5), 1018–1027.

    Google Scholar 

  • Schatzel, K., & Calantone, R. (2006). Creating market anticipation: an exploratory examination of the effect of preannouncement behavior on the new product’s launch. Journal of the Academy of Marketing Science, 34(3), 357–366.

    Google Scholar 

  • Schwartz, B. (2004). The paradox of choice: Why more is less. New York: Harper Collins.

    Google Scholar 

  • Schwartz, B., Ward, A., Monterosso, J., Lyubomirsky, S., White, K., & Lehman, D. (2002). Maximizing versus satisficing: happiness is a matter of choice. Journal of Personality and Social Psychology, 83, 1178–1197.

    Google Scholar 

  • Shankar, V., Smith, A. K., & Rangaswamy, A. (2003). Customer satisfaction and loyalty in online and offline environments. International Journal of Research in Marketing, 20(2), 153–175.

    Google Scholar 

  • Sheth, J. N. (1981). Psychology of innovation resistance: the less developed concept (LDC) in diffusion research. Research in Marketing, 4, 273–282.

    Google Scholar 

  • Shugan, S. M. (2007). Does good marketing cause bad unemployment? Marketing Science, 26(1), 1–17.

    Google Scholar 

  • Spence, M. (1973). Job market signaling. Quarterly Journal of Economics, 87(3), 355–374.

    Google Scholar 

  • Spreng, R. A., MacKenzie, S. B., & Olshavsky, R. W. (1996). A reexamination of the determinants of consumer satisfaction. Journal of Marketing, 60(3), 15–33.

    Google Scholar 

  • Stigler, G. J. (1961). The economics of information. Journal of Political Economy, 69, 213–225.

    Google Scholar 

  • Stock, R. M. (2005). Can customer satisfaction decrease price sensitivity in business-to-business markets? Journal of Business-to-Business Marketing, 12(3), 59–87.

    Google Scholar 

  • Stock, R. M. (2006). Interorganizational teams as boundary spanners between supplier and customer companies. Journal of the Academy of Marketing Science, 31(4), 558–599.

    Google Scholar 

  • Stock, R. M., & Hoyer, W. D. (2005). An attitude-behavior model of salespeople’s customer orientation. Journal of the Academy of Marketing Science, 23(4), 536–552.

    Google Scholar 

  • Subramaniam, M., & Youndt, M. A. (2005). The influence of intellectual capital on the types of innovative capabilities. Academy of Management Journal, 48(3), 450–463.

    Google Scholar 

  • Szymanski, D. M., Kroff, M. W., & Troy, L. C. (2007). Innovativeness and new product success: insights from the cumulative evidence. Journal of the Academy of Marketing Science, 35(1), 35–52.

    Google Scholar 

  • Tatikonda, M. V., & Montoya-Weiss, M. M. (2001). Integrating operations and marketing perspectives of product innovation: the influence of organizational process factors and capabilities on development performance. Management Science, 47(1), 151–172.

    Google Scholar 

  • Thompson, D. V., Hamilton, R. W., & Rust, R. T. (2005). Feature fatigue: when product capabilities become too much of a good thing. Journal of Marketing Research, 42(4), 431–442.

    Google Scholar 

  • Tuli, K. R., & Bharadway, S. G. (2009). Customer satisfaction and stock returns risk. Journal of Marketing, 73(6), 184–197.

    Google Scholar 

  • van Bruggen, G. H., Lilien, G., & Kacker, M. (2002). Informants in organizational marketing research: why use multiple informants and how to aggregate responses. Journal of Marketing Research, 39(4), 469–478.

    Google Scholar 

  • Vargo, S. L., & Lusch, R. F. (2004). The four service marketing myths: remnants of a goods-based, manufacturing model. Journal of Service Research, 6(4), 324–335.

    Google Scholar 

  • Wallenburg, C. M. (2009). Innovation in logistics outsourcing relationships: proactive improvement by logistics service providers as a driver of customer loyalty. Journal of Supply Chain Management, 45(2), 75–93.

    Google Scholar 

  • Wang, C.-C., Lo, S.-K., & Fang, W. (2008). Extending the technology acceptance to mobile telecommunication innovation: the existence of network externalities. Journal of Consumer Behaviour, 7(2), 101–110.

    Google Scholar 

  • Wieseke, J., Homburg, Ch, & Lee, N. (2008). Understanding the adoption of new brands through salespeople: a multilevel framework. Journal of the Academy of Marketing Science, 36(2), 278–291.

    Google Scholar 

  • Zeithaml, V. A., Parasuraman, A., & Berry, L. L. (1985). Problems and strategies in services marketing. Journal of Marketing, 49, 33–46.

    Google Scholar 

  • Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31–46.

    Google Scholar 

  • Zeithaml, V. A., Bitner, M. J., & Gremler, D. (2009). Services marketing: Integrating customer focus across the firm (5th ed.). New York: McGraw-Hill.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Darmstadt University of Technology, Hochschulstr. 1, 64289, Darmstadt, Germany

    Ruth Maria Stock

Authors
  1. Ruth Maria Stock
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Ruth Maria Stock.

Additional information

The author thanks Gisela Bieling, Joe P. Cannon, Christian Homburg, Martin Klarmann, Lisa Scheer, Björn Six, and Nicolas Zacharias for their valuable comments. In addition, the author thanks three anonymous JAMS reviewers for their valuable comments and their helpful suggestions.

Appendix

Appendix

Table 4 Measures and items
Full size table

Rights and permissions

Reprints and permissions

About this article

Cite this article

Stock, R.M. How does product program innovativeness affect customer satisfaction? A comparison of goods and services. J. of the Acad. Mark. Sci. 39, 813–827 (2011). https://doi.org/10.1007/s11747-010-0215-4

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11747-010-0215-4

Keywords

Search

Navigation