TY  - JOUR
AB  - Purpose This paper aims to identify how, in contrast to a provider-oriented stance where customer value is conceptualised as being controlled by the provider, customer value is formed for business customers beyond what is visible to the provider.Design/methodology/approach This paper builds on the primacy of the customer. Customer-dominant logic (CDL) is used as the conceptual underpinning, meaning that the customer, rather than the service provider or the service system, is at the centre. A case study was conducted with seven key users from three customer companies of an information and communications technology (ICT) provider of in-house services. The study used a micro-social level focus by capturing customers’ experiences of those activities where value in use is formed.Findings The findings indicate that value formation is not related only to direct service interactions and furthermore substantially takes place beyond a service provider’s visibility line. Hence, value formation is in large part hidden for the service provider because it is embedded in customers’ activities and experiences.Research limitations/implications Although the study is limited to one case concerning ICT services, these findings may apply to other service businesses, in particular to knowledge-intensive outsourcing businesses.Practical implications Understanding a customer’s value formation from the customer’s point of view is the key to service development for any business service provider.Originality/value Applying a CDL approach, the authors deepen the understanding of customer value formation as it emerges in customer activities. The study provides detailed insight into business customers’ value formation processes. The study’s findings challenge the current emphasis on interactions and co-creation and instead demonstrate the importance of understanding customer logics and contexts.
VL  - 34
IS  - 6
SN  - 0885-8624
DO  - 10.1108/JBIM-11-2017-0259
UR  - https://doi.org/10.1108/JBIM-11-2017-0259
AU  - Strandvik Tore
AU  - Heinonen Kristina
AU  - Vollmer Sanna
PY  - 2018
Y1  - 2018/01/01
TI  - Revealing business customers’ hidden value formation in service
T2  - Journal of Business & Industrial Marketing
PB  - Emerald Publishing Limited
SP  - 1145
EP  - 1159
Y2  - 2024/04/23
ER  -