Abstract

Prior exploration of the service encounter process placed the focus on personal interactions or the relationship with various factors in the immediate environment, without addressing the impact that the interaction between the service personnel and the customer has on development of service innovation activities. This study explores, in detail, the interaction between the point of service offering (service personnel) and the point of service request (customers), examines the push and pull roles each side takes on and the meaning of "service innovation" in this context. We employ the Critical Incident Technique in collecting qualitative data to illustrate how the formation of service innovation is a continuous and repeatedly escalating cycle. Through this repeating and renewing innovation process, service providers work towards the goal of excellent performance through the pursuit of continuous service innovation.

Key words: Service innovation cycle, service encounter, push-pull theory, critical incident technique.