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Recent studies and publications provide convincing evidence that customer orientation plays a pivotal role in the service development activities of best practice companies. It is obvious to assume that customer-involvement in service development gives companies the potential to be more professional and successful in fulfilling the customers' expectations and needs. It is not clear, however, in which phase of the service development and performance process that customer-oriented service engineering procedures and methods will offer promising potential and competitive advantages. This uncertainty has been analyzed in a case study. This paper