New service’s expectation positioning by applying Cumulative Prospect Theory

Abstract

In the context of service innovation, the question of when to assess a new service by customer and how to achieve personalized assessment are yet to be explored. This is especially true under the situations of uncertainty when it comes to bringing the effectiveness of new service’s promotion and decision making, i.e., for service provider to attain service competitiveness and for potential service customer to decide whether to try the new service. Accordingly, an appropriate expectation positioning method proposed in this study aims to collect and analyze psychological information from potential service customer in order to make service promotion decisions capable of achieving service provider’s purpose as well as satisfying service customer, utilizing Cumulative Prospect Theory.