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Deconstructing the value proposition of an innovation exemplar

Adrian Payne (School of Marketing, University of New South Wales, Sydney, Australia)
Pennie Frow (Discipline of Marketing, University of Sydney, Sydney, Australia)

European Journal of Marketing

ISSN: 0309-0566

Article publication date: 4 February 2014

5331

Abstract

Purpose

Research into the identification and development of value propositions has recently been identified as a key research priority by the Marketing Science Institute. The purpose of this article is to identify and develop a process for value proposition deconstruction that can help organizations transform their value propositions in order to gain an improvement in their competitive position.

Design/methodology/approach

A case study of an exemplar organization in the health care sector is used to develop an approach for value proposition deconstruction. Using the business system concept as a theoretical framework, the key value-adding elements that comprise this organization's value proposition are identified. A leading financial services firm is used to demonstrate how this learning approach can be successfully applied in developing a new and innovative value proposition.

Findings

Using the business system framework, a structured process for deconstructing value propositions is developed. This framework is extended to explicitly acknowledge the value-in-use that results from different encounters, to incorporate learning processes and to recognize its interactive and recursive nature.

Practical implications

The authors provide practitioners with insight into how to formulate new or improved value propositions.

Originality/value

This work addresses two important and previously unaddressed research questions: how can the process of deconstruction of an exemplar organization's value proposition provide a more comprehensive understanding of the elements that comprise a superior value offering; and how can this process be applied to other organizations seeking to improve their value proposition?

Keywords

Acknowledgements

The authors wish to thank Daryl Urquhart, Business Development Director, Shouldice Hospital and Gary Stott, Managing Director – Corporate Partnerships, AXA Insurance for their assistance in developing this paper and the reviewers for their helpful comments on earlier drafts.

Citation

Payne, A. and Frow, P. (2014), "Deconstructing the value proposition of an innovation exemplar", European Journal of Marketing, Vol. 48 No. 1/2, pp. 237-270. https://doi.org/10.1108/EJM-09-2011-0504

Publisher

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Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited

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