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In demand-driven markets, customer value, sometimes called perceived use value or consumer surplus, is defined by the customer rather than the firm. The value a firm can appropriate, its profits, is driven by the customer’s willingness to pay for the value they receive, adjusted by costs. This paper introduces a conceptual framework that helps understand value creation and appropriation in demand-driven markets and shows how to influence them through strategic decision-making.

This paper uses an axiomatic approach combined with an extended analytical formulation of the jobs-to-be-done framework to contextualise demand-driven markets. It mathematically derives implications for managerial decision-making concerning selecting customer segments, optimising customer value creation and maximising firm value appropriation in a competitive environment.

Rooting strategic decision-making in the jobs-to-be-done framework allows distinguishing between what customers want to achieve (goal), what product attributes need to be satisfied (opportunity space/constraints) and what value creation criteria related to features are important (utility function). This paper shows that starting from a job-to-be-done, the problem of identifying which customer segments to serve, what product to offer and what price to charge, can be formulated as an optimisation problem that simultaneously (rather than sequentially) solves for the three decision variables, customer segments, product features and price, by maximising the value that a firm can appropriate, subject to maximising customer value creation and constrained by the competitive environment.

Applying the derived results to simultaneously deciding which customer segments to target, what product features to offer and what price to charge, given a set of competing products, allows managers to increase their chances of winning the competitive game.

This paper shows that starting from a job-to-be-done and simultaneously focusing on customers, product features, price and competitors enhances firm profitability. Strategic decision-making is formulated as an optimisation problem based on an axiomatic approach contextualising demand-driven markets.

The different dimensions and contexts within which value is co-created has generated varied views of how value is understood or formed. This study aims to examine employee-guest perceived value as important factors for the successful implementation of value co-creation (VCC).

The study employs an interpretive paradigm, using in-depth interviews, focus group discussions and participant observation in a qualitative design to increase understanding of employee-guest perceived value to aid the implementation of VCC at the dyadic level.

Findings highlight eight value perceptions including value for money, hotel location, physical evidence, mutual respect, appreciation, safety & security, quality & varieties of food and technological characteristics of service as important factors for the successful implementation of VCC at the dyadic level.

Generalisability of the findings is a limitation not only due to the smaller sample size but also due to industry-specific context. The study follows rigorous procedures to minimise biases, yet research limitation is acknowledged from the researcher’s participation in the research process.

The notion that actor’s assess value differently from the same service suggests that diverse service elements might be experienced differently. This study provides insights for hotel managers to recognise not only individuals’ value preferences but also service types that reflect employee-guest collective service preferences for sustainability.

This study integrates and extends extant literature by examining employees’ and guests’ individual and collective views at distinct hotel contexts to gain useful insights into value and VCC. The study proposes a framework that hospitality firms can use to address service failure and competition-related issues.

In servitization research, there has been a call to move further toward the development of business models based on a service approach. This article aims to answer this call by adopting service logic (SL) and developing strategies and organizational resources and processes to create a service-centric business model called servification, defined as the process of identifying and developing strategies and organizational resources and processes to create a business model based on SL.

This article is conceptual and extends servitization in the direction of service-centric business model innovation by drawing on and extending SL.

The article defines service as a higher-order concept according to SL and develops the concept of a helping strategy as the foundation for a service-based business model. Further, it develops a typology of organizational resources and processes that must be developed for the emergence of such a business model.

Since this article is the first to conceptually develop servification, more both theoretical and empirical research is naturally required. The development of servification takes servitization in the direction of service-based business model innovation and also contributes to the research on SL.

Servification enables the development of service-centric strategies and organizational resources and processes and service-based business models.

This article is the first to adopt SL in studies of business model innovation.

This study (1) assessed restaurant consumers' perceived importance of better food quality versus larger portion sizes, (2) classified restaurant consumers into different segments based on their perceived importance of seven food quality attributes (taste, texture, aroma, appearance and the use of natural, local and organic ingredients) relative to portion size and (3) compared the identified market segments.

An online survey assessed 613 USA adult participants' perceived importance of seven food quality attributes relative to portion size. A K-means cluster analysis classified participants into different segments based on their perceptions.

Five restaurant consumer segments were identified: sensory-oriented consumers, taste-oriented organic food consumers, local and natural food consumers, quantity-oriented consumers and quality-oriented consumers. In general, quality-oriented consumers were the least likely to visit fast-food restaurants, had the highest average per-meal spending and were the least likely to eat out alone. Local and natural food consumers and taste-oriented organic food consumers had higher total restaurant spending than other groups. Quantity-oriented and sensory-oriented consumers visited fast-food restaurants more often and had lower total restaurant spending and per-meal spending than other groups. Age, sex and income were significantly associated with the segmentation outcomes.

Findings suggest promising opportunities for restaurants to enhance consumer perceptions of value by prioritizing the factors that hold the greatest significance to their target customers.

This study is the first attempt to segment restaurant consumers based on their perceived importance of food quality attributes relative to portion size, effectively identifying five distinct consumer segments.

Drawing on resource and capability theory, this study aimed to analyze the relationship between the dynamic capabilities (DC), the knowledge management (KM) process (KMP) and results in customers and people. More specifically, the study argues that the KM process mediates the relationship between DC and the results outlined above. In addition, a predictive analysis is carried out that demonstrates the relevance of the KM process in the model.

The study sample is made up of 118 Spanish organizations that have some kind of recognition of excellence awarded by the European Foundation for Quality Management (EFQM). Partial least squares methodology is used to validate the research model, the hypothesis testing and the predictive analysis.

The results show that organizations which leverage the DC through the KMP improve customer and people outcomes. Moreover, the predictive power is higher when the KMPmediates the relationship between the DC and the results.

There is no consensus in the literature on the relationship between DC, KM and performance. Moreover, there are also not enough papers that study KM or DC through the dimensions that define these constructs or variables. Given this need, this work considers the KMP according to the stages of knowledge creation, storage, transfer and application. Similarly, DC is dimensioned in sensing, learning, integrating and coordinating capabilities. These, as reconfigurators of knowledge assets, influence the KMP. Accordingly, the empirical model connects these knowledge domains and analyses their link to outcomes.

This study investigates how artificial intelligence (AI) chatbots persuade customers to accept their recommendations in the online shopping context.

Drawing on the elaboration likelihood model, this study establishes a research model to reveal the antecedents and internal mechanisms of customers' adoption of AI chatbot recommendations. The authors tested the model with survey data from 530 AI chatbot users.

The results show that in the AI chatbot recommendation adoption process, central and peripheral cues significantly affected a customer's intention to adopt an AI chatbot's recommendation, and a customer's cognitive and emotional trust in the AI chatbot mediated the relationships. Moreover, a customer's mind perception of the AI chatbot, including perceived agency and perceived experience, moderated the central and peripheral paths, respectively.

This study has theoretical and practical implications for AI chatbot designers and provides management insights for practitioners to enhance a customer's intention to adopt an AI chatbot's recommendation.

1. The study investigates customers' adoption of AI chatbots' recommendation.

2. The authors develop research model based on ELM theory to reveal central and peripheral cues and paths.

3. The central and peripheral cues are generalized according to cooperative principle theory.

4. Central cues include recommendation reliability and accuracy, and peripheral cues include human-like empathy and recommendation choice.

5. Central and peripheral cues affect customers' adoption to recommendation through trust in AI.

6. Customers' mind perception positively moderates the central and peripheral paths.

The study investigates customers' adoption of AI chatbots' recommendation.

The authors develop research model based on ELM theory to reveal central and peripheral cues and paths.

The central and peripheral cues are generalized according to cooperative principle theory.

Central cues include recommendation reliability and accuracy, and peripheral cues include human-like empathy and recommendation choice.

Central and peripheral cues affect customers' adoption to recommendation through trust in AI.

Customers' mind perception positively moderates the central and peripheral paths.

Several studies have examined the relationship between service quality and willingness to pay in many industries. However, this relationship has not been explored through the lens of customer perceived value and their willingness to pay for improving and sustaining water service. This study aims to examine the impact of technical and functional service quality dimensions on customer perceived value and assess the influence of customer perceived value and socio-economic factors on customers' willingness to pay for improving and sustaining the water service.

Technical service quality includes core water service such as water delivery and maintenance, while functional service quality refers to the appearance of facilities, employees’ dress, and communication. SERVQUAL questionnaire responses were collected from 333 Palestinian household customers. Cronbach’s alpha was conducted to measure internal consistency and convergent validity. Path analysis was utilized to evaluate a causal diagram by examining the relationships among the constructs.

The results showed that technical and functional service quality and relative price explain 52% of the customer perceived value variation. Additionally, the results revealed that customer perceived value, technical service quality, and relative price significantly impact the customer’s willingness to pay for improving and sustaining service. In contrast, the functional service quality and socio-economic factors have insignificant effects. These predictors explain 60% of the customer’s willingness to pay for improving and sustaining service.

The study suggests that water providers should prioritize improving and sustaining technical service quality to increase customer willingness to pay. Furthermore, they should be aware that other factors, such as employee appearance and politeness, are less influential in driving customers’ willingness to pay.

The study presents a water service improvement model that utilizes data from a developing country to assess the influence of perceived customer value, along with its dimensions, on the willingness to pay for improving and sustaining water service quality.

Digital transformation (DT) has created a number of significant opportunities and related alterations in consumers' behaviours. However, consumers differ in adopting DT. There is still a need to investigate consumer's capabilities and his/her perception of other customers that supports or hinders the DT process. This study aims to investigate human thinking capabilities (critical thinking, holistic thinking and creative thinking) as drivers of two specific types of outcomes: DT barriers and/or DT nurture. In addition, this research also examines the linkage between human capabilities (three types of thinking) and other customers' perception. Finally, it postulates that other customers' perception drives DT barriers and/or DT nurture.

Applying to the public, private and international banking sectors, 273 questionnaires were collected. The collected data was analysed using AMOS as well as the PROCESS macro.

The results showed that human thinking capabilities have different effects on DT barriers and nurture. While critical thinking has a significant effect on DT barriers, both holistic thinking and creative thinking have a significant effect on DT nurture. Other customers' perception construct has a significant effect on both DT barriers and nurture. In addition, only holistic thinking has an effect on other customers' perception.

This study advances knowledge in three ways. Firstly, it examined DT barriers and nurture as variables from the customer's perspective. Secondly, it examined each human thinking capability on DT barriers and nurture, giving more insights. Thirdly, it studied human thinking capabilities as one of the main factors that might affect other customers' perception and DT barriers and nurture, while most previous studies focused only on other customers' perception's impact on DT barriers and nurture.

This research aims to determine to what extent corporate social responsibility (CSR) actions developed by bank entities in Spain improve the vulnerable customers' emotions and quality perception of the banking service. Consequently, this increases the quality of their relationship regarding satisfaction, trust and engagement.

Data from 734 vulnerable banking customers were analyzed through structural equations modeling (EQS 6.2) to test the relationships of the proposed variables.

Vulnerable customers' emotional disposition exerts a strong influence on their perceived service quality. The antecedent effect is concentrated primarily on the CSR towards the client, with a residual secondary weight on the CSR towards society. These positive service emotions are determinants of the outcome quality perceived by vulnerable customers, directly in terms of higher satisfaction and trust and indirectly through engagement.

This research contributes to understanding how financial service providers should adapt to the specific characteristics and needs of vulnerable clients by adopting a strategy of approach, personalization and humanization of the service that seems to move away from the actions implemented by the banking industry in recent years.

This study has adopted a theoretical and empirical perspective on the impact of CSR on service emotions and outcome quality of vulnerable banking customers. Moreover, banks can adopt a dual conception of CSR: a macro and external scope toward society and a micro and internal scope toward customers.

The authors' research examines how negative electronic word-of-mouth (e-WOM) alters focal customers' post-recovery justice perceptions and attitudes to determine their future behavior with the service provider. Specifically, this paper develops and tests a conceptual model to investigate how negative e-WOM alters focal customers' perceptual and attitudinal outcomes after the service recovery experience. It also examines the post-recovery effect of negative e-WOM on focal customers’ willingness to patronize the service after their recovery experience.

To test the hypotheses, two pretests and two experimental studies with created scenarios in the retail context were conducted.

The authors' findings reveal that services are judged during and well beyond failure and recovery occurrences. To maintain a loyal customer base, service managers should develop processes that address service complaints both within and beyond the service consumption stage. The authors also find that despite a favorable recovery, focal customers gravitate toward the failure experience and develop unfavorable attitudes toward the service provider, leading to likely defections.

The authors' research demonstrates the persuasive power of negative e-WOM at the post-service recovery stage, making a unique contribution to the service recovery literature. This research also contributes to the persuasive effect of negative e-WOM, demonstrating message context as a boundary condition of negative e-WOM effects. In general, the authors' work highlights the importance of understanding the psychological processes involved in eliciting the persuasive influence of negative e-WOM in the post-service recovery stage that may lead to the defection of “so-called” successfully recovered customers.