Does Customer Demand and Competition Affect Service Innovation and Product Performance? The Case of Jewelry Design Service Sector

The jewelry industry, as one of the most significant sectors of luxury goods due to very high consumer demand in many countries is experiencing extreme changes. In addition competition and preferences, worldwide rise of domestic businesses, and advancement in new technology significantly transformed goods and processes. This thesis empirically investigates the relationship between customer demand and competition as perceived enablers, service innovation and qunsiquently the product performance employing a self-structured questionnaire data. Specifically, linear regreesion and Moderate regression analyses are used to examine the role of enablers of service innovation in jewelry industry and in jewelry market. The findings indicating that factor enablers have a positive effect on jewelry design service innovation, and jewelry design service innovation positively influences product performance, and there is a positive and significant relationship between the independent variable and dependent variable. Furthermore, the results revealed that the relationship between enablers and jewelry design service innovation is positively strengthened by economic factor, and the relationship between enablers and jewelry design service innovation is positively strengthened by knowledge-based network. Keywords: Competition, Customer Demands, Jewelry Market, Product Performance, Service Innovation, Linear Regression