New service development: initiation strategies

This paper addresses the issue of initiating new service development (NSD) projects. The aim of the article is to investigate whether firms use systematic procedures to generate and screen ideas for new services. Utilising a survey of marketing managers in UK service companies, data were collected in the areas of NSD strategy, idea generation and screening. It was found that only half the sample have a formal NSD strategy, idea generation is undertaken on an ad hoc basis and idea screening, although more prevalent, is failing to support the NSD strategy. Management implications and areas for further research are discussed.