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Article
Publication date: 19 June 2017

Andreas Eggert, Eva Böhm and Christina Cramer

Many manufacturing firms entrust partners to provide services on their behalf. However, it is not clear whether and when firms can capture the potential value advantages…

Abstract

Purpose

Many manufacturing firms entrust partners to provide services on their behalf. However, it is not clear whether and when firms can capture the potential value advantages of outsourcing business services. The purpose of this paper is to investigate the effects of different types of business service outsourcing on firm value.

Design/methodology/approach

The paper uses event study methodology to estimate the impact of business service outsourcing announcements on abnormal returns of publicly traded manufacturing companies in Europe.

Findings

External service outsourcing that directly affects the company’s customers leads to more favorable outcomes than internal service outsourcing. This effect is contingent on the strategic outsourcing intention, the service’s reliance on technology, and the choice of the outsourcing partner.

Research limitations/implications

Findings show that firm value depends critically on the service value it delivers to customers. Future research could explore further contingency variables, and investigate the role of service outsourcing networks and relationships.

Practical implications

The insights of this study help managers to decide why, how, and to whom they should outsource their business services, as well as how to justify their outsourcing decisions, and how to communicate them toward the financial markets.

Originality/value

This research sheds light on the value implications of outsourcing decisions. Two types of business service outsourcing are distinguished, namely, internal and external. Furthermore, the study enhances our understanding of a contingency perspective on service outsourcing decisions.

Details

Journal of Service Management, vol. 28 no. 3
Type: Research Article
ISSN: 1757-5818

Keywords

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Book part
Publication date: 1 November 2008

Wolfgang Ulaga and Andreas Eggert

Marketing metrics represent a growing concern for practitioners and scholars alike. Among the performance measures at the individual account level, customer share emerges…

Abstract

Marketing metrics represent a growing concern for practitioners and scholars alike. Among the performance measures at the individual account level, customer share emerges as a concept of growing interest, yet marketing lacks rigorous customer share metrics in business markets. In addition, the construct's position within the nomological net of relationship marketing in a business-to-business (B2B) context remains unclear. This research reports findings of a cross-sectional study among purchasing managers in U.S. manufacturing industries, which indicate a positive link between customer value and customer share in business relationships. Relationship benefits have a stronger impact on customer share than do relationship costs, such that sourcing and operations benefits appear to represent the most promising levers for effective customer share management. The results finally suggest that researchers should operationalize customer share in relative terms when investigating key supplier relationships across different industries.

Details

Creating and managing superior customer value
Type: Book
ISBN: 978-1-84855-173-2

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Article
Publication date: 13 March 2009

Andreas Eggert, Wolfgang Ulaga and Sabine Hollmann

Business marketers increasingly pursue greater shares of their customers' business. While the merits of such a strategy are straightforward from a supplier perspective…

Abstract

Purpose

Business marketers increasingly pursue greater shares of their customers' business. While the merits of such a strategy are straightforward from a supplier perspective, this paper aims to explore its consequences from the customer's point‐of‐view.

Design/methodology/approach

Drawing on resource‐dependence theory, value and dependence are established as fundamental characteristics of buyer‐seller relationships. Data envelopment analysis is used as a benchmarking tool to integrate these characteristics into a common efficiency score indicating the customer‐perceived attractiveness of a sourcing relationship. A post‐DEA‐regression‐analysis explores the link between sourcing attractiveness and relative customer share.

Findings

This research suggests a quadratic relationship between sourcing attractiveness and relative customer share. The perceived level of sourcing attractiveness improves until the local maximum is reached and declines beyond a relative customer share of 61.33 per cent.

Research limitations/implications

Additional fraction of variability (R2) in sourcing attractiveness explained by customer share displays a modest, yet substantial, level. Studies on customer share in comparable contexts found similarly low levels.

Practical implications

Sourcing attractiveness provides an interesting metric for assisting managers in their decision‐making. Instead of comparing supplier relationships across the board, the proposed approach allows to compare relationships against their best‐in‐class benchmark. Findings suggest that the vast majority of supplier relationships still offers avenues for further improving the existing supply bases. Pushing the share of customer beyond its optimum level, however, will have negative consequences for the customer‐perceived attractiveness of the sourcing relationship.

Originality/value

The paper contributes to a better understanding of the consequences of customer share marketing from the customer's perspective.

Details

Journal of Business & Industrial Marketing, vol. 24 no. 3/4
Type: Research Article
ISSN: 0885-8624

Keywords

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Article
Publication date: 1 March 2006

Wolfgang Ulaga and Andreas Eggert

Established models of buyer‐seller relationships do not reflect managerial emphasis on supplier performance evaluation when modelling business relationships. Proposes that…

Abstract

Purpose

Established models of buyer‐seller relationships do not reflect managerial emphasis on supplier performance evaluation when modelling business relationships. Proposes that relationship value should be included as a key constituent in such models. Aims to explore the construct's links with key constituents of relationship quality, i.e. commitment, satisfaction, and trust.

Design/methodology/approach

A two‐stage research design was used. First, depth‐interviews were conducted with ten senior‐level purchasing managers in US manufacturing companies. Second, data were gathered in a nation‐wide mail survey among 400 purchasing professionals.

Findings

The findings suggest that relationship value is an antecedent to relationship quality and behavioural outcomes in the nomological network of relationship marketing. Value displays a stronger impact on satisfaction than on commitment and trust. Value also directly impacts a customer's intention to expand business with a supplier. In turn, its impact on the propensity to leave a relationship is mediated by relationship quality. Contrary to previous research, trust does not appear in this study as an antecedent of behavioural outcomes, but as a mediator of the satisfaction‐commitment link.

Research limitations/implications

Confirms the role of value as a key relationship building‐block. Researchers should integrate this cognitive performance‐based construct in models of business relationships. Limitations and research directions refer to the sampling procedure, the need to include the supplier's value perceptions, the possibility of conducting longitudinal research, and the opportunity to assess additional moderating variables.

Practical implications

When the goal is to increase business with an existing customer, managers should focus on relationship value. In turn, when managers are concerned with the risk of customers leaving a relationship, they should focus on relationship quality. Trust appears as an important ingredient in stabilising existing business relationships.

Originality/value

Stresses the pivotal role of relationship value in marketing. Contributes to a better fit between relationship marketing models and managerial practice in business markets.

Details

European Journal of Marketing, vol. 40 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

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Article
Publication date: 1 April 2002

Andreas Eggert and Wolfgang Ulaga

In recent years, there has been a resurgence of interest in the value construct among both marketing researchers and practitioners. Despite a growing body of research, it…

Abstract

In recent years, there has been a resurgence of interest in the value construct among both marketing researchers and practitioners. Despite a growing body of research, it is still not clear how value interacts with related marketing constructs. Researchers have called for an investigation of the interrelationship between customer satisfaction and customer value to reduce the ambiguities surrounding both concepts. Investigates whether customer value and satisfaction represent two theoretically and empirically distinct concepts. Also addresses whether value is a better predictor of behavioral outcomes than satisfaction in a business marketing context. Two alternative models are developed and empirically tested in a cross‐sectional survey with purchasing managers in Germany. The first model suggests a direct impact of perceived value on the purchasing managers’ intentions. In the second model, perceived value is mediated by satisfaction. This research suggests that value and satisfaction can be conceptualized and measured as two distinct, yet complementary constructs.

Details

Journal of Business & Industrial Marketing, vol. 17 no. 2/3
Type: Research Article
ISSN: 0885-8624

Keywords

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Book part
Publication date: 1 November 2008

Abstract

Details

Creating and managing superior customer value
Type: Book
ISBN: 978-1-84855-173-2

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Book part
Publication date: 1 November 2008

Arch G. Woodside, Francesca Golfetto and Michael Gibbert

This first paper examines total benefits and total costs of product–service designs as antecedents to customer value assessment. It introduces the reader to all the papers…

Abstract

This first paper examines total benefits and total costs of product–service designs as antecedents to customer value assessment. It introduces the reader to all the papers in this volume. The first half of the paper offers a model of customer value assessment. This section describes research studies in industrial marketing contexts that illustrate the core propositions in the model. The second half of the paper provides brief introductions to the papers in this volume; these papers offer further evidence supporting the view that discontinuous innovations offer superior customer value but customers tend to eventually become increasingly comfortable with the status quo and move away from adopting superior proven technologies. This paper advocates being mindful of the marketplace dynamics affecting value. The volume serves to increase knowledge and understanding of the dynamic forces affecting changes in customer value.

Details

Creating and managing superior customer value
Type: Book
ISBN: 978-1-84855-173-2

Content available

Abstract

Details

Journal of Business & Industrial Marketing, vol. 22 no. 6
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 13 March 2009

Adam Lindgreen, Balázs Révész and Mark Glynn

The purpose of this article is to provide a brief summary of all the articles in this special issue.

Abstract

Purpose

The purpose of this article is to provide a brief summary of all the articles in this special issue.

Design/methodology/approach

Briefly discusses each article in this special issue.

Findings

This special issue of Journal of Business & Industrial Marketing aims to understand in greater depth both business‐to‐business purchasing and various types of buyer‐seller relationships. The authors selected 14 articles that provide an in‐depth understanding of the critical issues involved in purchasing orientations.

Originality/value

The article highlights how the papers in the special issue seek to understand in greater depth both business‐to‐business purchasing and various types of buyer‐seller relationships.

Details

Journal of Business & Industrial Marketing, vol. 24 no. 3/4
Type: Research Article
ISSN: 0885-8624

Keywords

Content available
Article
Publication date: 13 March 2009

Abstract

Details

Journal of Business & Industrial Marketing, vol. 24 no. 3/4
Type: Research Article
ISSN: 0885-8624

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