The Service Innovation on Customer Advocacy and the Role of Customer Perceived Value and Willingness to Pay

Innovation is creating something in order to maintain the competitive advantages. Service innovation is an increasingly and important factor in maintaining a company’s competitive advantage. This study purpose is to investigate the effect of service innovation on customer advocacy and also to find out the role of customer perceived value and willingness to pay for coffee on demand. The research was done on a start-up company that built an application for the customer to purchase online easily. The sample were collected from the buyer that used the application to purchase the beverages in one store of coffee shop X. The total of 293 respondents participated in this study. This study found that service innovation is not statically significant to customer advocacy, however, it is significantly positive when mediating variable (customer perceived value and willingness to pay) is taken into account.