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1 – 10 of over 12000This research aims to investigate the relationship between customer‐based performance measures (marketing measures of firm success) and business growth performance (strategy…
Abstract
Purpose
This research aims to investigate the relationship between customer‐based performance measures (marketing measures of firm success) and business growth performance (strategy measures of firm success), in the context of strategic marketing positioning decisions and suggests customer‐based metrics may play a key role in measuring overall business achievements.
Design/methodology/approach
This is an empirical survey of 209 business‐to‐business services firms.
Findings
Customer‐based performance (marketing measures) is associated with the choice of generic positioning and segmentation strategies, while strategic positioning choice (i.e. low‐cost vs differentiation) is indirectly, rather than directly, associated with business growth performance. The “both” strategy, where firms simultaneously pursue both low‐cost and differentiated strategies, leads to improved performance in these B2B services firms.
Research limitations/implications
The study potentially has industry‐ and/or service‐specific limitations.
Practical implications
This research suggests that firms that cannot measure performance at the customer level may be failing to understand the outcomes of successful marketing programs and decisions. In addition, this research suggests that both operational efficiency and differentiation are keys to growth in B2B services.
Originality/value
This study reinforces the continued applicability of Porter's generic positioning and segmentation strategies for B2B services but suggests that performance differences between strategies in this context are best captured using a customer‐based measure (share of wallet, lifetime value, retention rate and return on marketing investment) rather than a more general business growth measure.
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Ying Zhang, Zelong Wei and Jie Gao
To enhance the value of servitization in customers’ problem-solving, this study aims to examine and compare the effects of manufacturers’ service breadth and depth strategies on…
Abstract
Purpose
To enhance the value of servitization in customers’ problem-solving, this study aims to examine and compare the effects of manufacturers’ service breadth and depth strategies on their customer-based performance. It also explores how these effects are influenced by technological turbulence and a manufacturer’s supply chain position.
Design/methodology/approach
Based on data collected from 208 Chinese manufacturers, this study uses a three-stage least square approach to test the hypotheses focusing on the effects of manufacturers’ service strategies on customer-based performance and the moderating roles of technological turbulence and supply chain position.
Findings
The study reveals that manufacturers’ service depth has a significant positive effect on their customer-based performance. However, service breadth has an insignificant effect on the performance. Furthermore, technological turbulence positively moderates the effects of both service breadth and depth, and supply chain position only positively moderates the effect of service depth.
Practical implications
Manufacturers should focus on increasing service depth to improve their customer-based performance. Manufacturers in technically turbulent environments can attain ample benefits from both service breadth and depth, and those located downstream in a supply chain can benefit more from service depth.
Originality/value
By bringing a problem-solving perspective into the servitization literature, this study adds empirical insights to the impact of manufacturers’ service breadth and depth strategies on customer outcomes. The study also answers calls for insights into the environmental and structural contingencies of servitization.
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Phyra Sok and Aron O'Cass
This study seeks to extend the existing literature on value creation by specifically focusing on service brand value creation (SBVC) and the role of brand marketing.
Abstract
Purpose
This study seeks to extend the existing literature on value creation by specifically focusing on service brand value creation (SBVC) and the role of brand marketing.
Design/methodology/approach
The authors first develop a model of SBVC and simultaneously investigate SBVC from the firm perspective (service brand value offering – SBVO) and from the customer perspective (service brand perceive value‐in use – SBPVI). Subsequently, they investigate the effects of SBVO on SBPVI and integrate the moderation role of service brand marketing capability (SBMC) on the relationship between SBVO‐SBPVI outcomes. SBVO is viewed as the firms' interpretation of and responsiveness to customer requirements via the delivery of superior performance the value offering through the service brand and SBPVI customers' perceived value from the firms' service brand. The contributions of SBVC to customer‐based performance outcomes are then investigated. Hypotheses were tested using a sample of the senior managers of service firms in Cambodia and their customers. A survey was used to gather data via a drop‐and‐collect approach.
Findings
Results indicated that SBVO is positively related to SBPVI and SBPVI is positively related to customer‐based performance. Noticeably, the results revealed that SBMC enhances the positive relationship between the firm SBVO and the customers SBPVI.
Originality/value
The paper extends the previous literature on value creation to capture SBVC. More significantly, the premise of the theoretical framework provides a breakthrough in the current SBVC literature which has so far neglected to take into account the dyadic approach (firm‐customer) in understanding value creation and more specifically SBVC. The model is expanded by looking at the contingency role of SBMC in communicating value to customers.
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Ridouan Nejjari and Samira Slaoui
This study examines the impact of customer value creation on hotel performance. Customer value is seen as a multi-phase and multi-party process that combines hotel and tourist…
Abstract
Purpose
This study examines the impact of customer value creation on hotel performance. Customer value is seen as a multi-phase and multi-party process that combines hotel and tourist perspectives while also integrating the participation of frontline employees. The study also investigates financial performance (FP) and customer-based performance (CBP).
Design/methodology/approach
Data were collected from Morocco through multiple-informant design surveys to explore three perspectives related to three actors involved in the process, that is, the managers, the employees and the tourists. The hypotheses were tested with SmartPLS4.
Findings
The findings reveal that customer value positively and significantly impacts not only the FP of hotels but also the CBP. The results highlight a sequential relationship in which each actor drives the subsequent phase to definitively enhance the hotel's performance. The results further show significant mediation effects in the customer value sequence. Moreover, the results show a significant and positive effect of CBP on FP.
Research limitations/implications
Theoretical and managerial implications of the research are discussed and future important researches are drawn from the study limitations.
Practical implications
Managers must be aware that frontline employees and guests are crucial for creating customer value, which enables to improve their performance. The results highlight that hotels should motivate and involve frontline employees in value propositions (VP) development. Furthermore, the guests are the final arbiters of value who drive hotels' performance. Moreover, for additional FP, managers are required both to deliver superior value and create loyal customers.
Originality/value
This study mostly confirms previous findings and highlights a sequential relationship among three phases involving three actors of customer value. However, it reveals more reasonable and robust results in the mediation effect of the value offering (VO) between the VP and the perceived value-in-use (PVI). This study is also the first to provide evidence on the mediation effect of the PVI between the VO and the CBP.
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Xiaoyan Wang, Ping Li, Yi Zheng, Ling (Alice) Jiang and Zhilin Yang
Drawing on conservation of resources (COR) theory and the motivation-opportunity-ability (MOA) framework, this study examines how salespersons' self-monitoring and psychological…
Abstract
Purpose
Drawing on conservation of resources (COR) theory and the motivation-opportunity-ability (MOA) framework, this study examines how salespersons' self-monitoring and psychological capital influence sales performance.
Design/methodology/approach
This study uses survey data from 293 salespersons employed in China and their archival sales performance to test the hypotheses posited.
Findings
The results show that both salespersons' self-monitoring and psychological capital enhance sales performance via adaptive selling. However, these elements are primarily substitutes in influencing adaptive selling. In addition, by dividing social capital into two types (i.e. family-based social capital and customer-based social capital), the results reveal that salespersons' self-monitoring enhances family-based social capital, but not customer-based social capital. Finally, customer-based social capital, but not family-based capital, improves sales performance.
Research limitations/implications
This paper extends the literature on sales force management, which examines various psychological traits and their influences on sales performance. While self-monitoring and psychological capital have been investigated separately, this research simultaneously examines these two factors by drawing on resource conservation theory. Furthermore, it explores how these psychological traits impact salespersons' ability development (i.e. adaptive selling) and capital accumulation (i.e., family-based social capital and customer-based social capital), which, in turn, affect sales performance.
Practical implications
The results offer managerial insights into sales force selection and management. In particular, managers should encourage salespersons to obtain greater customer-based social capital, which is more valuable than family-based social capital in boosting sales performance.
Social implications
The present research is also beneficial for employee psychological health management, as it seeks to illuminate the role of psychological traits, ability development and capital accumulation. It offers insights into sociological research on social capital by categorizing it into family-based and customer-based capital.
Originality/value
This paper extends the literature on salespersons' psychological traits, selling abilities and social capital by examining the impacts of self-monitoring and psychological capital on adaptive selling and social capital. Specifically, this study examines the interplay between self-monitoring and psychological capital from the perspective of resources conservation theory.
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Dhananjay Bapat and Linda D. Hollebeek
The objective of the paper is to explore the relationship among perceived quality value, hedonic value, social value, price value, customer engagement and customer-based brand…
Abstract
Purpose
The objective of the paper is to explore the relationship among perceived quality value, hedonic value, social value, price value, customer engagement and customer-based brand equity using stimulus-organism-response (S-O-R), customer engagement and customer-perceived value theories for digital payment apps. In addition, the study examines the mediating role of customer engagement between customer value dimensions and customer-based brand equity and analyzes the moderating role of age.
Design/methodology/approach
Partial least squares-based structural equation modeling was used to test the proposed hypotheses through a sample of 316 respondents who used digital payment apps.
Findings
The findings indicate that customer engagement mediates the relationship between customer value dimensions and customer-based brand equity. Age does not moderate the relationship between customer value dimensions and customer engagement. The study confirmed the pronounced effect of specific paths for various age groups.
Originality/value
This study contributes novel insight to S-O-R, customer engagement, and customer value research.
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Shampy Kamboj and Zillur Rahman
The purpose of this paper is to broaden the body of knowledge on marketing capabilities (MC) and firm performance (FP) by presenting a systematic review of literature along with…
Abstract
Purpose
The purpose of this paper is to broaden the body of knowledge on marketing capabilities (MC) and firm performance (FP) by presenting a systematic review of literature along with providing a path for future research agenda.
Design/methodology/approach
In total, 101 empirical research papers from 51 different journals of online databases were selected systematically. The papers were reviewed thoroughly and summarized under strategic, functional and operational marketing capability classifications.
Findings
The paper depicts a research field that is immature and developing quickly. The results found were diverse in terms of publication trend, industries and countries studied in reviewed articles. Product, price, promotion and distribution found as majorly studied measures of MC with mainly positive and significant impact on FP. In identified 38 different measures of FP, highly used were market share, customer satisfaction, sales growth, profitability and ROI. The findings also present the summary of different internal and contextual factors driving MC. In addition, from the review some of the research gaps also found that helps scholars in future research.
Research limitations/implications
The review was guided by considering peer review journals with inclusion criteria that have restricted the findings. This paper will be utilitarian for both academicians and managers.
Originality/value
This is the first paper that demonstrates a systematic review of literature on MC and FP for the period 1987-2014. The study also addresses gaps in this field and represent them in the form of research inquiries for further probe.
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Jan Eklof, Katerina Hellstrom, Aleksandra Malova, Johan Parmler and Olga Podkorytova
The purpose of this paper is to assess the usefulness and efficiency of customer-based measures such as customer satisfaction (CSI) and perceived loyalty for monitoring and…
Abstract
Purpose
The purpose of this paper is to assess the usefulness and efficiency of customer-based measures such as customer satisfaction (CSI) and perceived loyalty for monitoring and enhancing the financial performance in corporations.
Design/methodology/approach
General financial data for the empirical modeling is compiled from national and international databases (Alla Bolag, IMF/IFS, Bloomberg, Eurostat, etc.) and company-specific data from the studied corporation. Customer perception data (like CSI and loyalty) are taken from the Extended Performance Satisfaction Index-initiative database (annual observations for the period 2001-2014 and quarterly for 2008-2014). A hierarchy of structural models is devised on a combined time-series and cross-section (panel and multi-level) approach. The results are based on models estimated by Arellano–Bond procedures (Arellano and Bond, 1991).
Findings
The core findings are two. First, there is a strong positive relationship between customer-based measures and financial performance. Second, it is effective to regularly monitor CSI as a forward- looking indicator for understanding future financial performance.
Practical implications
Customer-based measures are highly useful as leading indicators of companies’ future performance and should be incorporated even more into corporate decisions.
Originality/value
According to this survey of contemporary research, very little is academically documented for the full-circle from corporate to branch level. Thus, the prevailing study should be of potential value for companies in general.
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Haizhong Wang, Yujie Wei and Chunling Yu
There is a growing interest in brand formation and brand valuation among global firms today, but global marketers typically ignore one of the key factors of brand building …
Abstract
Purpose
There is a growing interest in brand formation and brand valuation among global firms today, but global marketers typically ignore one of the key factors of brand building – corporation ability association (CAA). This paper aims to explore the structural relationship between CAA and consumer‐based brand equity variables and its product‐market outcomes.
Design/methodology/approach
Utilizing Aaker and Keller's theoretical framework of brand equity, this paper develops a brand equity model combining customer‐based brand equity with product‐market outcome approaches. A set of scales are developed and tested on a national sample of Chinese consumers.
Findings
The data provide support for ten of the 12 hypotheses. The results indicate that CAA is an important factor in building and preserving brand equity. CAA and brand awareness have impact on quality perception, which has positive impact on brand resonance, brand extensibility, and price flexibility. Brand resonance has positive influence on brand extensibility and the intention to repurchase.
Practical implications
For global marketers operating in China, brand equity is a cultural market‐based asset and global companies must focus on building corporation ability association in China in order to enjoy the substantial competitive and economic advantages provided by brand equity. Theoretically, the proposed brand equity model is an extension of the model proposed by Keller.
Originality/value
For the first time, CAA is integrated into fhe brand equity model. This may provide a theoretical base for further research in the endorsement role of company ability in brand equity building.
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Claire Louise Stone and J. Maria Banks
Discusses the degree to which customer‐ and employee‐based measures of performance are used within The Times top 500 companies, as revealed by a postal survey carried out in 1995…
Abstract
Discusses the degree to which customer‐ and employee‐based measures of performance are used within The Times top 500 companies, as revealed by a postal survey carried out in 1995 and from initial findings from six in‐depth case studies. The inquiry was initiated as a result of the continuing wave of changes resulting from the performance measurement revolution and ongoing developments in the field of total quality management. Investigates the generation and use of the measures and assesses the commonality between management theory and reported practice. Concludes that, although best practice (in academic terms) is apparent in some companies, the use of these measures in the determination of business strategy has not yet become standard practice.
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