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Article
Publication date: 18 July 2016

Vladyslav Biloshapka, Oleksiy Osiyevskyy and Marc Meyer

Good companies innovate. In the process, they consider target markets, target customers, new product or service offerings, and the positioning of these relative to competitors…

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Abstract

Purpose

Good companies innovate. In the process, they consider target markets, target customers, new product or service offerings, and the positioning of these relative to competitors. This forms a basic strategy for the innovation. However, the lesson of competitive dynamics today is that innovation effort stops short of its ultimate potential if it does not also embrace the business model possibilities provided by the innovation itself. This short article provides a strategic lens for considering the efficacy and power of a business model for a product or service innovation.

Design/methodology/approach

The current paper is grounded in the empirical results of an ongoing longitudinal study (undertaken by the authors team in the U.S., Canada and Ukraine) aimed at exploring the structure, characteristics, evolution, and performance outcomes of organizational business models.

Findings

The business model’s key characteristics are customer value (the “effectiveness side” of the equation, i.e., doing right things for customers that the latters are ready to appreciate and pay for, but not always to the focal firm) and business value (the “efficiency side” of the equation, reflecting translation of the customer value into profit). Importantly, our evidence strongly reveals the dynamic nature of the business model construct, implying that the companies evolve in terms of these two dimensions.

Practical implications

The recommendations part of the article is primarily based on the in-depth analysis of the recent history of large companies that were struggling to: sustain customer value, and develop and apply internal product and production platforms to increase operating efficiency, and hence business value. All these firms had either slipped into or were in the danger of slipping into Impostor status, and were seeking ways to regain and sustain their Innovation advantage, often over newer entrants in their respective industries.

Originality/value

Introduction of the Business Model Value Matrix allowing to analyze the current company’s business model; practical recommendations regarding getting to and remaining in the Winner quadrant

Details

Strategy & Leadership, vol. 44 no. 4
Type: Research Article
ISSN: 1087-8572

Keywords

Article
Publication date: 12 January 2024

Daniela Corsaro and Grazia Murtarelli

Scholars have affirmed that a conceptualization of value co-creation in business relationships should reflect the nature and characteristics of interactional processes that occur…

Abstract

Purpose

Scholars have affirmed that a conceptualization of value co-creation in business relationships should reflect the nature and characteristics of interactional processes that occur in use. The advent of sales and marketing technologies, however, is changing the nature and dynamics of interactions. New trends in digitalization have played a significant role in emphasizing and facilitating the occurrence of business-to- business (B2B) collaborative or sharing economy. The B2B sharing economy and value co-creation are closely intertwined, as businesses harness the power of shared resources and collaboration to generate value in diverse ways. This study highlights the importance of going beyond value co-creation in studying B2B collaborative economy, unpacking the interconnected value processes that influence value co-creation. It also aims at showing the activities that characterize multiple joint value spheres among actors.

Design/methodology/approach

The study consists of 49 qualitative interviews with managers operating in different industries.

Findings

The paper shows that when considering digital B2B contexts, five joint value spheres in business relationships should be considered: a value co-creation, a value appropriation, a value communication, a value measurement and a value representation sphere. Each one is characterized by specific activities that are relevant from a managerial point of view.

Originality/value

This study highlights that value co-creation has often been over stressed when discussing business interactions, also with the advent of new technologies. Rather, this study offers a more comprehensive view of value co-creation that includes different value processes occurring in joint value spheres. These further processes are relevant because failure and success in business relationships within the B2B sharing economy are often dependent from activities outside the value co-creation process, which strongly affect it. Such knowledge will also open up new research venues and opportunities to better contribute to the practice of value management in business relationships.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 23 May 2018

Vladyslav Biloshapka and Oleksiy Osiyevskyy

The article describes how a well-functioning, competent system of self-evaluation of customer value creation and delivery can be an essential part of a corporate initiative to…

Abstract

Purpose

The article describes how a well-functioning, competent system of self-evaluation of customer value creation and delivery can be an essential part of a corporate initiative to reach or sustain the winner state.”

Design/methodology/approach

The true value the firm’s customers are obtaining from interactions with the firm can be assessed by obtaining candid answers to the following three strategic value-focused business model questions: 10;(1)9;How do you make sure you are offering the benefits your customers really appreciate most? 10;(2)9;What group of customers is the primary focus of your efforts? 10;(3)9;How do you help your customers fully appreciate the delivery of the benefits offered? 10;These three questions were derived from an in-depth investigation of the business models of real-world firms that succeeded in moving to and remaining in the winner state, an ongoing longitudinal study undertaken by the authors’ team in North America, Southeast Asia and Europe.

Findings

Based on the authors’ research, companies with sustainable winning business models institutionalize the processes of systematic, ongoing collection of the information about customer value, integrating it into the strategic decision making processes.

Practical implications

To be effective, according to our research, the analysis needs to consider value proposition (what is promised), value targeting (who is the primary recipient) and value delivery (how the promise is fulfilled) separately, which most companies don’t do.

Originality/value

The article offers top executives, marketing executives and board members process for updating and adjusting the business model so that it continues to produce superior revenue, operating profit and ongoing customer and shareholder satisfaction.

Details

Strategy & Leadership, vol. 46 no. 3
Type: Research Article
ISSN: 1087-8572

Keywords

Book part
Publication date: 11 June 2009

Anca E. Cretu and Roderick J. Brodie

Companies in all industries are searching for new sources of competitive advantage since the competition in their marketplace is becoming increasingly intensive. The…

Abstract

Companies in all industries are searching for new sources of competitive advantage since the competition in their marketplace is becoming increasingly intensive. The resource-based view of the firm explains the sources of sustainable competitive advantages. From a resource-based view perspective, relational based assets (i.e., the assets resulting from firm contacts in the marketplace) enable competitive advantage. The relational based assets examined in this work are brand image and corporate reputation, as components of brand equity, and customer value. This paper explores how they create value. Despite the relatively large amount of literature describing the benefits of firms in having strong brand equity and delivering customer value, no research validated the linkage of brand equity components, brand image, and corporate reputation, simultaneously in the customer valuecustomer loyalty chain. This work presents a model of testing these relationships in consumer goods, in a business-to-business context. The results demonstrate the differential roles of brand image and corporate reputation on perceived quality, customer value, and customer loyalty. Brand image influences the perception of quality of the products and the additional services, whereas corporate reputation actions beyond brand image, estimating the customer value and customer loyalty. The effects of corporate reputation are also validated on different samples. The results demonstrate the importance of managing brand equity facets, brand image, and corporate reputation since their differential impacts on perceived quality, customer value, and customer loyalty. The results also demonstrate that companies should not limit to invest only in brand image. Maintaining and enhancing corporate reputation can have a stronger impact on customer value and customer loyalty, and can create differential competitive advantage.

Details

Business-To-Business Brand Management: Theory, Research and Executivecase Study Exercises
Type: Book
ISBN: 978-1-84855-671-3

Book part
Publication date: 4 September 2003

Robert B Woodruff and Daniel J Flint

In today’s markets, many organizations feel pressure to become more responsive to their customers. Managing your business to deliver superior value to targeted customers may…

Abstract

In today’s markets, many organizations feel pressure to become more responsive to their customers. Managing your business to deliver superior value to targeted customers may provide a strong avenue to improved performance. The route from value-based strategies to share holder value can be complicated, however. These strategies have the most direct impact on performance with your customers in the form of customer satisfaction, word of mouth and loyalty. Successful customer performance should translate into higher market performance, as evidenced by a supplier’s higher customer retention rates and sales. Finally, market performance provides the engine for increasing company performance or shareholder value. Attaining shareholder value through customer value strategies requires committing major management attention to how best to create, deliver and communicate superior value to targeted customers.

Details

Evaluating Marketing Actions and Outcomes
Type: Book
ISBN: 978-0-76231-046-3

Open Access
Article
Publication date: 12 June 2023

Christine Falkenreck, Grzegorz Leszczyński and Marek Zieliński

Customer value perception of Internet of Things (IoT)-based services has not been studied in the context of a company’s readiness to adopt IoT technology. The purpose of this…

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Abstract

Purpose

Customer value perception of Internet of Things (IoT)-based services has not been studied in the context of a company’s readiness to adopt IoT technology. The purpose of this paper is to address this gap by indicating a research framing that combines insights from the IoT business model literature and customer perception of the value of such models and their drivers.

Design/methodology/approach

The interplay between a company’s IoT readiness and its perception of the value of IoT services is tested using a sample of 90 Eastern European business customers in a competitive business field. The conceptual framework described also examines relationships among constructs that refer to relationship quality. This study evaluates its quantitative sample using partial least squares path modeling.

Findings

Customers’ perceived value of IoT business models strongly relates to their digitalization capabilities and their own company’s innovativeness. When referring to disruptive technical offerings, existing trustful and satisfactory relationships cannot enhance the customer’s value perception.

Research limitations/implications

The sample of Eastern European buyers is not representative of the majority of manufacturing companies. A randomized sample using other sources such as large industry databases could be useful. In addition, a replication of the study in other countries would allow for a cross-border validation of this study’s results.

Practical implications

This study suggests a detailed process that is based on a careful preselection of test customers working for innovative companies. A marketing communication approach must state clearly the benefits the buyers get in return for their sacrifice of sharing data.

Originality/value

Technology readiness refers to the user’s propensity to embrace and use new technologies. The results indicate that IoT readiness influences the successful launch of IoT-related business models. For managers, this study proposes a process to implement IoT-related business models.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 6 May 2014

– This study aims to examine strategies for customer value assessment used by best practice suppliers in business-to-business markets.

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Abstract

Purpose

This study aims to examine strategies for customer value assessment used by best practice suppliers in business-to-business markets.

Design/methodology/approach

An exploratory two-part field study using a grounded theory approach.

Findings

It should not be a difficult question – is the customer getting value for money? You offer them something, and if they like it, they pay for it and use it. However, it gets harder when the product lasts longer – particularly, if there is a significant service component. And what the customer considers important may not be what the supplier is focusing on. So, it is worth asking what companies in global business-to-business markets do to assess customer value when they deliver complex products with a high service content. What is current best practice? And is it good enough?

Research limitations/implications

This is an exploratory study based on qualitative methodology, so the research process is necessarily subjective. Further research could investigate a wider group of firms and look at the performance implications of alternative strategies for customer value assessment.

Practical implications

The paper focuses on well-regarded suppliers operating globally that have complex product offerings with a high service component. It identifies three distinct strategies for customer value assessment.

Social implications

This study considers customer value from a supplier perspective and suggests ways in which research might be extended to include the customer perception of realized value.

Originality/value

The paper draws attention to the need to consider customer value assessment as a process and determine whether expected benefits are achieved in practice.

Article
Publication date: 24 January 2023

Dawn Holmes, Judith Zolkiewski and Jamie Burton

Despite data being a hot topic, little is known about how data can be successfully used in interactions in business-to-business relationships, specifically in the boundary…

Abstract

Purpose

Despite data being a hot topic, little is known about how data can be successfully used in interactions in business-to-business relationships, specifically in the boundary spanning contexts of firms working together to use data and create value. Hence, this study aims to investigate the boundary spanning context of data-driven customer value projects to understand the outcomes of such activities, including the types of value created, how resulting value is shared between the interacting firms, the types of capabilities required for firms to deliver value from data and in what contexts different outcomes are created and different capabilities required.

Design/methodology/approach

Three abductive case studies were undertaken with firms from different business-to-business domains. Data were coded in NVivo and interpreted using template analysis and cross-case comparison. Findings were sense checked with the case study companies and other practitioners for accuracy, relevance and resonance.

Findings

The findings expand our understanding of firm interactions when extracting value from data, and this study presents 15 outcomes of value created by the firms in the study. This study illustrates the complexity and intertwined nature of the process of value creation, which emphasises the need to understand distinct types of outcomes of value creation and how they benefit the firms involved. This study goes beyond this by categorising these outcomes as unilateral (one actor benefits), developmental (one actor benefits from the other) or bilateral (both actors benefit).

Research limitations/implications

This research is exploratory in nature. This study provides a basis for further exploration of how firm interactions surrounding the implementation of data-driven customer value projects can benefit the firms involved and offers some transferable knowledge which is of particular relevance to practitioners.

Practical implications

This research contributes to the understanding of data-driven customer-focused projects and offers some practical management tools. The identification of outcomes helps define project goals and helps connect these goals to strategy. The organisation of outcomes into themes and contexts helps managers allocate appropriate human resources to oversee projects, mitigating the impacts of a current lack of talent in this area. Additionally, using the findings of this research, firms can develop specific capabilities to exploit the project outcomes and the opportunities such projects provide. The findings can also be used to enhance relationships between firms and their customers, providing customer value.

Originality/value

This work builds on research that explores the creation of value from data and how value is created in boundary spanning contexts. This study expands existing work by providing greater insight into the mechanics and outcomes of value creation and by providing specific examples of value created. This study also offers some recommendations of capability requirements for firms undertaking such work.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 25 September 2018

Tore Strandvik, Kristina Heinonen and Sanna Vollmer

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…

Abstract

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 customersvalue 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.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 15 November 2011

Liem Viet Ngo and Aron O'Cass

The purpose of this paper is to adopt a customer‐centric value creation perspective to provide insights into the contribution of business orientations, especially marketing…

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Abstract

Purpose

The purpose of this paper is to adopt a customer‐centric value creation perspective to provide insights into the contribution of business orientations, especially marketing orientation and innovation orientation to the creation of customer‐centric value (customer equity and brand performance).

Design/methodology/approach

To undertake this examination, a model was developed and then tested to validate its applicability in the context of both developed and developing economies. The paper includes partial least squares.

Findings

The findings demonstrate that being marketing‐oriented and innovation‐oriented appears to be important in creating customers, keeping them, and increasing add‐on selling to them and rewards the firm with greater brand performance in the marketplace. Importantly, these relationships are universally held across developed and developing business environments. Interestingly, marketing orientation was found to contribute more to the creation of customer‐centric value than innovation orientation in developing business environment, whereas the opposite was found in the context of developed business environment.

Research limitations/implications

The data incorporate only the subjective measures of customer‐centric value. Future studies can use financial measures to complement the self‐reporting approach used in this paper. This dual‐approach to measuring the value of customers to the firm (customer equity) and brand performance would provide additional insights into the customer‐centric marketing literature.

Practical implications

The findings suggest that managers should strive to develop a high level of marketing orientation and innovation orientation as two efficient ways to achieve higher levels of customer equity. They are also advised that if their firms are more effective in acquiring potential customers, retaining current customers, and enhancing add‐on selling, they see their brands perform better. Importantly, the findings also provide guidance for managers on how to allocate their resources to key business activities (e.g. marketing and innovation) in the context of international business (developing versus developed business environments).

Originality/value

This study contributes to customer‐centric marketing theory by enhancing understanding of the contribution of marketing and innovation to the creation of customer‐centric value in different business environments. This study also contributes to the business orientation literature by demonstrating the utility of a cultural‐behavioral approach in measuring marketing orientation and innovation orientation.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 23 no. 5
Type: Research Article
ISSN: 1355-5855

Keywords

1 – 10 of over 138000