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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 customersactivities 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.

Details

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

Keywords

Article
Publication date: 7 October 2013

Karl-Jacob Mickelsson

Customer activity in service has mainly been understood within the boundaries of interactions with service providers. This paper goes beyond this view to focus on the customer's…

4238

Abstract

Purpose

Customer activity in service has mainly been understood within the boundaries of interactions with service providers. This paper goes beyond this view to focus on the customer's independent activity, of which interaction is only a part. Moreover, the concept of customer activity remains largely unexplored and undefined. Hence, the purpose of this paper is to develop the concept of customer activity and to show how it can be applied in an empirical study.

Design/methodology/approach

The paper reviews the concept of customer activity in service marketing. It then goes on to characterise and operationalise the concept, and finally apply it to an explorative study. The study contrasts customer activity from the provider's interaction-centric point of view with customer activity from the customer's own point of view.

Findings

This paper defines customer activities as discrete sequences of behaviour that aim at creating or supporting some types of value in the customer's life or business. A customer-dominant perspective on customer activity allows companies to understand the role of their service in the various activities of different types of customers.

Originality/value

The paper contributes to service research by bringing attention to the concept of customer activity and contrasting it with alternative concepts. The paper is the first to show how customers combine different activities (where service interaction is only one type) into systems, which they maintain to create value for themselves. By profiling customers according to activity systems, providers can understand their own role in the customer's network of value-creating activities.

Details

Journal of Service Management, vol. 24 no. 5
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 16 November 2020

Tram-Anh Ngoc Pham, Jillian Carol Sweeney and Geoffrey Norma Soutar

This study aims to examine the impacts various types of resources had on customer effort in mandatory and voluntary value cocreation activities and the contribution of efforts in…

Abstract

Purpose

This study aims to examine the impacts various types of resources had on customer effort in mandatory and voluntary value cocreation activities and the contribution of efforts in these different activity types to quality of life.

Design/methodology/approach

Data from customers across five chronic health conditions were collected through an online survey. Rasch analysis helped identify hierarchies of activities representing varying levels of effort across four activity types (mandatory (customer), mandatory (customer or organization), voluntary in-role and voluntary extra-role activities). The conceptual model that was developed to examine the relationships of interest was analyzed using partial least squares structural equation modeling.

Findings

While clinical resources helped mandatory activities and personal network resources facilitated voluntary activities, psychological resources had greater impacts on customer effort across the whole range of activities. Effort in each activity type contributed to the quality of life differently, with voluntary activities having the greatest impacts on quality of life.

Practical implications

This study lends support to a holistic approach to health service that requires the mobilization of networks of resources to encourage customers’ engagement in a broad range of activities. Understanding the resources facilitating effort in distinct activity types provides insights to develop strategies to drive value cocreation efforts that subsequently contribute to improvements in quality of life.

Originality/value

Drawing on an extensive and nuanced categorization of activities, this study broadened the understanding of the networks of resources that are integrated in customer value cocreation processes and the link between value cocreation efforts and quality of life.

Details

Journal of Services Marketing, vol. 35 no. 3
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 6 March 2017

Aurélien Rouquet, Kiane Goudarzi and Tatiana Henriquez

The starting point of the paper is the fact that customers participate in the logistics activities of the supply chain (SC) (Johnston, 1989; Granzin and Bahn, 1989). Having…

2605

Abstract

Purpose

The starting point of the paper is the fact that customers participate in the logistics activities of the supply chain (SC) (Johnston, 1989; Granzin and Bahn, 1989). Having established that customers can and do participate in logistics, firms can consider transferring some of their logistics activities to/from their customer. The transfer can take two contrasting forms: outsourcing by the company of some logistics activities to its customers or insourcing by the company of some logistics activities from its customers. The purpose of this paper is to contribute to a theoretical understanding of these company/customer transfers.

Design/methodology/approach

To address this emerging issue, the authors build on the service management literature and on the study of two contrasting cases of transfer. The first (IKEA) examines the outsourcing of some logistics activities to the consumer. The second (AuchanDrive) examines the reverse process of insourcing.

Findings

Based on the service management literature and the two case studies, the authors develop a theoretical model for the transfer of logistics activities between a firm and its customers. The findings confirm several elements, such as the importance of managing customer participation and adapting service production during a transfer. Most importantly, the findings show that a key issue for a firm during a transfer is the need to redesign its SC in terms of transport, warehousing and production. The main contribution of the research therefore is showing that customer participation in logistics is a key variable in SC design.

Research limitations/implications

This research is based on the analysis of two cases. To generalise these results, further research needs to be conducted.

Practical implications

This research proposes recommendations to help managers and organisations to transfer some logistics activities to or from their customers.

Originality/value

The originality of the framework is that it considers both the company and its customers. This comprehensive approach establishes a link between supply chain management research and marketing.

Details

International Journal of Operations & Production Management, vol. 37 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 28 August 2019

Tram-Anh N. Pham, Jillian C. Sweeney and Geoffrey N. Soutar

The purpose of this paper is to suggest a typology of customer value cocreation activities and explore the psychological drivers and quality of life outcomes of such activities in…

1173

Abstract

Purpose

The purpose of this paper is to suggest a typology of customer value cocreation activities and explore the psychological drivers and quality of life outcomes of such activities in a complex health care service setting.

Design/methodology/approach

Focus groups with people with Type 2 diabetes and in-depth interviews with diabetes educators were conducted.

Findings

Four types of customer value cocreation activities were found (mandatory (customer), mandatory (customer or organization), voluntary in-role and voluntary extra-role activities). In addition, health locus of control, self-efficacy, optimism, regulatory focus and expected benefits are identified as key psychological factors underlying the customers’ motivation to be active resource integrators and resulting in physical, psychological, existential and social well-being.

Originality/value

The study highlights the various types of customer value cocreation activities and how these affect the various quality of life dimensions.

Details

Journal of Service Theory and Practice, vol. 29 no. 3
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 18 May 2021

Pilar Gardiazabal and Constanza Bianchi

This paper aims to analyze the well-being consequences of value co-creation activities at an ecosystem level, focusing specifically on the micro and meso levels. This study is…

1837

Abstract

Purpose

This paper aims to analyze the well-being consequences of value co-creation activities at an ecosystem level, focusing specifically on the micro and meso levels. This study is performed in a retail ecosystem, a highly relevant context where individuals spend a considerable amount of time and resources, but where well-being is usually not deemed as a relevant outcome.

Design/methodology/approach

The investigation analyzes qualitative data from micro and meso level actors of a retail ecosystem. At the micro-level, in-depth interviews performed with customers, employees and suppliers were assessed. The meso level analysis included most of the actors embedded in the retail ecosystem: employees’ headquarters, suppliers’ headquarters, nearby competitors, family, other retail outlets and external employees.

Findings

This study is one of the first in the transformative service research area to analyze well-being from a retail ecosystem perspective. Hence, this analysis broadens the literature on transformative service by considering supermarket retailing, an everyday service context that is not assumed to generate well-being outcomes. Results reveal that actors who spend more time or have fewer options available for them in the retail ecosystem see their well-being deeply affected. It also extends the conceptualization of value co-creation to a retail ecosystem, a specific ecosystem, which differs from previous studies that focus mostly on health-care ecosystems.

Research limitations/implications

Although useful to understand new insights, a limitation of this investigation is that it is based upon a single qualitative study.

Practical implications

The study portrays how activities happening within a business context have consequences beyond traditional measures such as loyalty or turn-over. It proposes specific value co-creation actions to be performed by employees, suppliers and customers to promote positive well-being consequences for the micro and meso level retail ecosystem.

Social implications

Retail ecosystems are usually not deemed as relevant when trying to understand societal well-being outcomes. This study empirically depicts that all services, even the ones without transformative goals, need to be aware of the impact they have on societal well-being.

Originality/value

This paper provides a novel conceptualization of well-being effects in a retail ecosystem. Specifically, this is the first study in the transformative service research literature to identify the micro and meso level well-being consequences of value co-creation activities within a retail ecosystem.

Article
Publication date: 12 August 2014

Sabine Fliess, Stefan Dyck and Mailin Schmelter

The purpose of this paper is to investigate customer perceptions of their own contribution to service provision, in order to enhance our understanding of customer contribution and…

2630

Abstract

Purpose

The purpose of this paper is to investigate customer perceptions of their own contribution to service provision, in order to enhance our understanding of customer contribution and its dimensions.

Design/methodology/approach

In total, 27 in-depth interviews were conducted across nine service contexts. Qualitative data were then analyzed to identify the various dimensions of customer contribution.

Findings

First, the study contributes to the understanding of customer contribution in identifying physical, mental, and emotional dimensions. The physical and mental dimensions of customer contribution are represented by activities, while emotions comprise mood and emotional states. Second, relationships among the three dimensions were identified; in particular, physical and mental activities were found to influence customer emotions. Third, the findings reveal that customer understanding of their own contribution to service provision encompass the co-creative sphere of customer and provider, and extends to the customer-sphere before the service encounter.

Research limitations/implications

The qualitative study is limited in terms of generalizability, since the 27 interview cases were based on nine interviews each covering three service settings. Further research is needed to investigate how the dimensions of customer contribution are linked to different outcomes (e.g. service value, satisfaction, loyalty), thus providing a quantitative validation of our findings.

Practical implications

Understanding the customer contribution to service provision is pivotal for service design. Service managers need to reflect on how the different dimensions of contribution manifest in their existing or potential service offering, since physical and mental customer activities shape their emotions, which in turn impact on the service experience and value.

Originality/value

Little in-depth research has been conducted on the nature and dimensionality of customer contributions to service provision, particularly with regard to perceptions of their own contribution. Most previous empirical research on customer contribution is limited to a specific context and concerned with customer behaviors. Hence, this qualitative study examines customer contribution across different service context, focussing on customer perceptions in terms of physical, mental, and emotional contributions to service provision.

Details

Journal of Service Management, vol. 25 no. 4
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 28 September 2012

Michael Leyer and Jürgen Moormann

A major problem of operational control in the services industry is the integration of customers in the delivery process. The aim of this paper is to develop a method that allows…

1166

Abstract

Purpose

A major problem of operational control in the services industry is the integration of customers in the delivery process. The aim of this paper is to develop a method that allows service companies to evaluate the impact of customer integration on operational control in service processes.

Design/methodology/approach

The development of the proposed method follows a design science approach. Thus, the method is conceptualised on the basis of production, services and information systems research. A case study of loan processing in a bank serves to evaluate the applicability of the method.

Findings

As a result of this study, customer integration should be included into operational control following three steps: identification of the type of customer integration; quantification and characterisation of the impact of the integration; and identification of the appropriate mechanisms of operational control to deal with the customer integration better. The results of the case study show that customer integration has an impact on certain activities within a service process only but the results can be used to enhance operational control.

Practical implications

The method can be used by process managers of service companies to identify the impact of customer integration on operational control. Thus, decisions within operational control and consequently the overall productivity of a service process can be improved.

Originality/value

The paper delivers a new insight how customer integration and operational control can be linked in service processes. Thus, a theoretical gap in service operations literature is filled. Furthermore, the case study demonstrates how the method can be used in practice.

Details

Management Research Review, vol. 35 no. 11
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 29 March 2021

Tram-Anh Ngoc Pham, Jillian Carol Sweeney and Geoffrey Norman Soutar

Drawing on an extensive range of activities across different types, including mandatory (customer), mandatory (customer or organisation), voluntary in-role and voluntary…

Abstract

Purpose

Drawing on an extensive range of activities across different types, including mandatory (customer), mandatory (customer or organisation), voluntary in-role and voluntary extra-role activities, this study aims to identify different health-care customer value cocreation practice styles based on the combinations of value cocreation activities they undertake and empirically examine how customers adopting different styles differ in terms of well-being and satisfaction.

Design/methodology/approach

The study was conducted across health customers with a variety of chronic conditions. Data were collected from three focus groups and an online survey.

Findings

Five customer practice styles, namely, the highly active, other-oriented, provider-oriented, self-oriented and passive compliant customers, were revealed. While a moderate to a high level of activities is often recommended as it is associated with higher levels of physical, psychological, existential and social well-being and customer satisfaction, the results also suggest there is no single ideal style as different styles may be associated with the same level of outcomes.

Research limitations/implications

As customers cocreate value differently, it is crucial to understand the underlying heterogeneity and its implications to outcomes.

Practical implications

Highly active and provider-oriented are the two styles that should be particularly encouraged because of their association with positive outcomes. Personalised strategies need to be developed and resources need to be put in place to build productive relationships amongst service providers, customers and peers and to increase the perceived value of such interactions so as to shift customers towards more active styles.

Originality/value

The study advances the understanding of customer value cocreation and its link to well-being by empirically deriving five distinct practice styles and demonstrating how they differ across meaningful well-being and satisfaction dimensions.

Details

European Journal of Marketing, vol. 55 no. 7
Type: Research Article
ISSN: 0309-0566

Keywords

Abstract

Details

Servitization Strategy and Managerial Control
Type: Book
ISBN: 978-1-78714-845-1

1 – 10 of over 124000