This study examines how service innovation influences consumers’ perceived service luxuriousness and willingness to pay more. Service innovation influences willingness to pay more when service luxuriousness mediates. Type of service (functional vs. emotional) and level of brand equity (high vs. low) moderate the relationship between service innovation and service luxuriousness.

• Tony Garrett(Korea University Business School, Republic of Korea)
• Jong-Ho Lee(Korea University Business School, Republic of Korea)
• Sungkyu Lee(Akita International University, Japan)