In modern society, experience is more important than the function of tangible products to more and more customers. Every customer has his own unique experience, so the service for customers should be heterogeneous. Under this circumstance, enterprise should provide individualized service for different customers and service innovation for every customer is necessary. But most extant theory of innovation is come from product innovation theory, service innovation become very difficult for service itself can be imitated easily. This paper deeply analyzes academically the dilemma of service innovation and explores the nature and characteristics of service innovation in experience economy.
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