Abstract

The main purpose of this study is to investigate the impact of service innovation (interactive and supportive) on customer satisfaction and mediating role of customer value creation. Cross sectional study is conducted in non-contrived setting and primary data is collected from the mobile users. Hypotheses are tested with a sample of 275 respondents and mediation whereas model fit is done using Smart PLS3. Results indicate that customer value creation significantly mediates the relationship between service innovation and customer satisfaction. The research is conducted on small scale and data has been collected from small geographical location (Riyadh/ Jeddah). The research would be more robust if it is conducted in other geographical area and variable (i.e. value co-creation) would be studied as mediator and customer participation as moderator. This research high lights the customer satisfaction process through value creation.

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