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1 – 10 of 325Kristina Heinonen, Tore Strandvik and Päivi Voima
The purpose of this paper is to extend current discussions of value creation and propose a customer dominant value perspective. The point of origin in a customer‐dominant…
Abstract
Purpose
The purpose of this paper is to extend current discussions of value creation and propose a customer dominant value perspective. The point of origin in a customer‐dominant marketing logic (C‐D logic) is the customer, rather than the service provider, interaction or the system. The focus is shifted from the company's service processes involving the customer, to the customer's multi‐contextual value formation, involving the company.
Design/methodology/approach
Value formation is contrasted to earlier views on the company's role in value creation in a conceptual analysis focusing on five central aspects. Implications of the proposed characteristics of value formation compared to earlier approaches are put forward.
Findings
The paper highlights earlier hidden aspects on the role of a service for the customer. It is proposed that value is not always an active process of creation; instead, value is embedded and formed in the highly dynamic and multi‐contextual reality and life of the customer. This leads to a need to look beyond the line of visibility focused on visible customer‐company interactions, to the invisible and mental life of the customer. From this follows a need to extend the temporal scope, from exchange and use even further to accumulated experiences in the customer's life and ecosystem.
Research limitations/implications
This paper is conceptual. It discusses and presents a customer‐dominant value perspective and suggests implications for empirical research and practice.
Practical implications
Awareness of the mechanism of the customer value formation process provides companies with new insight on the service strategy, service design and new service innovations.
Originality/value
The paper contributes by extending the value construct through a new customer dominant value perspective, recognizing value as multi‐contextual and dynamic based on customers' life and ecosystem. The findings mark out new avenues for future research.
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Kristina Heinonen and Tore Strandvik
The purpose of this paper is to analyze the theoretical and practical implications of adopting customer-dominant logic (CDL) of service, focusing on how firms can become involved…
Abstract
Purpose
The purpose of this paper is to analyze the theoretical and practical implications of adopting customer-dominant logic (CDL) of service, focusing on how firms can become involved in the customers’ context.
Design/methodology/approach
Inspired by the conceptual discussion of service logic and service-dominant logic, this paper focuses on the conceptual underpinnings of CDL. CDL is contrasted with other service perspectives in marketing; CDL is a marketing and business perspective dominated by customer-related aspects instead of products, service, systems, costs or growth. It is grounded in understanding customer logic and how firms’ offerings can become embedded in customers’ lives/businesses.
Findings
The conceptual analysis challenges the prevailing assumptions of key phenomena in service research, including interaction, co-creation, service value and service. The paper presents five essential foundations of CDL: marketing as a business perspective, customer logic as the central concept, offering seen through the customer lens, value as formed and not created and the prevalence of customer ecosystems.
Research limitations/implications
The paper differentiates CDL from other marketing perspectives. Further empirical research is needed in different empirical settings to provide guidelines for adopting the perspective on a strategic and operational business level.
Practical implications
As a firm’s holistic and strategic foundation, marketing is based on understanding how providers participate, at a profit, in customers’ value formation. The paper suggests how firms can successfully conduct business in dynamic markets with empowered customers.
Originality/value
This paper expands marketing and business logic based on customer dominance. It accentuates the importance of understanding customer logic and stresses the presence of providers in the customer ecosystem.
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Kristina Heinonen, Tore Strandvik, Karl‐Jacob Mickelsson, Bo Edvardsson, Erik Sundström and Per Andersson
The paper seeks to introduce to a new perspective on the roles of customers and companies in creating value by outlining a customer‐based approach to service. The customer's logic…
Abstract
Purpose
The paper seeks to introduce to a new perspective on the roles of customers and companies in creating value by outlining a customer‐based approach to service. The customer's logic is examined in‐depth as being the foundation of a customer‐dominant (CD) marketing and business logic.
Design/methodology/approach
The authors argue that both the goods‐ and service‐dominant logic are provider‐dominant. Contrasting the provider‐dominant logic with CD logic, the paper examines the creation of service value from the perspectives of value‐in‐use, the customer's own context, and the customer's experience of service.
Findings
Moving from a provider‐dominant logic to a CD logic uncovered five major challenges to service marketers: company involvement, company control in co‐creation, visibility of value creation, scope of customer experience, and character of customer experience.
Research limitations/implications
The paper is exploratory. It presents and discusses a new perspective and suggests implications for research and practice.
Practical implications
Awareness of the mechanisms of customer logic will provide businesses with new perspectives on the role of the company in their customers' lives. It is proposed that understanding the customer's logic should represent the starting‐point for the company's marketing and business logic.
Originality/value
The paper increases the understanding of how the customer's logic underpins the CD business logic. By exploring consequences of applying a CD logic, further directions for theoretical and empirical research are suggested.
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Jukka Ojasalo and Katri Ojasalo
The purpose of this study is to develop a service logic oriented framework for business model development. “Service logic” covers the basic principles of the three contemporary…
Abstract
Purpose
The purpose of this study is to develop a service logic oriented framework for business model development. “Service logic” covers the basic principles of the three contemporary customer value focused business logics: service-dominant logic, service logic and customer-dominant logic.
Design/methodology/approach
This study is based on an empirical qualitative research and deployed the focus group method. The data are generated in a series of interactive co-creative focus group workshops involving both practitioners and academics.
Findings
As the outcome, a new tool was developed, called Service Logic Business Model Canvas. The new canvas is a modified version of the original Business Model Canvas (Osterwalder and Pigneur, 2010).
Research limitations/implications
This study adopts service logic in business model thinking and increases knowledge on how to keep the customer needs in the centre of business model development.
Practical implications
The developed canvas makes the theory of service-dominant logic tangible and easily applicable in practice. It enables service innovation truly based on customer value by ensuring that the customer is in the centre of all the elements of a business model. It can function both as a rapid prototype of a new business model and as a communication tool that quickly illustrates the company’s current business model. It can also help in creating a customer-centred business culture. It is designed to be applied to each customer profile separately, thus enabling a deeper understanding of the customer logic of each relevant profile.
Originality/value
Earlier business model frameworks tend to be provider-centric and goods-dominant, and require further development and adaptation to service logic. This study adopts service logic in business model thinking. It embeds the true and deep customer understanding and customer value in each element of the business model, and contributes to both business model and service-dominant logic literature.
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Fung Yi Millissa Cheung and Wai Ming To
The purpose of this paper is to explore how task- and relation-oriented customers co-create high quality services with frontline employees from the perspective of customer-dominant…
Abstract
Purpose
The purpose of this paper is to explore how task- and relation-oriented customers co-create high quality services with frontline employees from the perspective of customer-dominant (C-D) logic.
Design/methodology/approach
The authors reviewed the service management literature and identified a number of critical components that help service providers understand the psychology and behaviour of their customers, and how their customers perceive service encounters. The authors tested the theoretical model using a random survey sample of 707 consumers in Hong Kong.
Findings
The authors found that information sharing fully mediated the interactive effects of customer involvement and customer motivational orientation on customer perceived service quality and customer satisfaction. These findings support the C-D logic that customers as co-creators of value play a dominant role in service encounters.
Research limitations/implications
The authors contribute to the existing management literature by identifying the importance of the C-D logic for service delivery and management. In particular, the involvement of customers with different motivational orientations through information sharing significantly affects customers’ perceived service quality and satisfaction.
Originality/value
The paper enhances the understanding of customer’s logic by exploring the conditions and process between customer involvement and service delivery. Further directions for theoretical and empirical research are suggested.
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The aim of this paper is to give an empirical illustration of value co-creation and to argue for narrative methodology as a fruitful analytical strategy when exploring the…
Abstract
Purpose
The aim of this paper is to give an empirical illustration of value co-creation and to argue for narrative methodology as a fruitful analytical strategy when exploring the processes of value co-creation.
Design/methodology/approach
Through an in-depth case study in the non-profit housing sector in Denmark, the research explored how residents perceive and co-create value in a long-term service relationship. The point of departure is an understanding of value co-creation as a phenomenological construct determined by the beneficiary, and the research is based primarily on the perspectives of service-dominant logic and customer-dominant logic.
Findings
The research elucidated how value is both socially created and deconstructed through stories. Moreover, narrative analysis revealed how residents’ perceptions of services are deeply embedded in context and time. In this way, the study highlighted that the co-creation of value is inherently social and temporal.
Practical implications
Understanding how value is perceived and negotiated by customers might assist practitioners to refine their understanding of value co-creation and lead them to address customers in more nuanced ways.
Originality/value
Prevailing streams in service research on value co-creation argue for more studies and empirically grounded examples of value co-creation processes, especially those based in the customer sphere. This paper contributes to such an enhanced understanding of the process of value co-creation and gives the outline of a new methodology for studies in this specific area of service research.
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Leena Alakoski and Irma Tikkanen
The purpose of this paper is to increase understanding of end consumer’s value creation in the context of Finnish nature-based tourism from the viewpoint of the customer-dominant…
Abstract
Purpose
The purpose of this paper is to increase understanding of end consumer’s value creation in the context of Finnish nature-based tourism from the viewpoint of the customer-dominant logic (CD logic) of service.
Design/methodology/approach
Existing research on the CD logic of service and value creation, consumer value and value creation as a hierarchical process is reviewed. The exploratory research design was applied. The data were constituted of 40 end consumers’ interviews. Based on the means-end chain model, a laddering interview was applied.
Findings
The findings indicated that end consumer’s value created in a nature-based tourism service included five final value categories. Those categories were related to emotions and feelings, enjoyment, fun and even lifetime memories. They indicated long-term characteristics of value, individually created value, collective experience and shared value.
Practical implications
The findings increased understanding of end consumer’s value creation as a process. The paper provided ideas for developing better nature-based tourism service offerings, value propositions and insights into end consumer’s value creation in terms of individual and shared value. The findings are valuable for nature-based tourism researchers and stakeholders.
Originality/value
New knowledge on end consumer’s value creation process was created by presenting the hierarchical value maps. The five final value categories indicated the value-in-use. The final value categories emphasised either individual or shared value, which included the end consumer’s life and previous experiences. The preliminary findings will help to develop hypotheses and research problems for future research.
Dr Dongmei Zha, Pantea Foroudi and Reza Marvi
This paper aims to introduce the experience-dominant (Ex-D) logic model, which synthesizes the creation, perceptions and outcomes of Ex-D logic. It is designed to offer valuable…
Abstract
Purpose
This paper aims to introduce the experience-dominant (Ex-D) logic model, which synthesizes the creation, perceptions and outcomes of Ex-D logic. It is designed to offer valuable insights for strategic managerial applications and future research directions.
Design/methodology/approach
Employing a qualitative approach by using eight selected product launch events from reviewed 100 event videos and 55 in-depth interviews with industrial managers to develop an Ex-D logic model, and data were coded and analysed via NVivo.
Findings
Results show that the firm’s Ex-D logic is operationalized as the mentalizing of the three types of customer needs (service competence, hedonic excitations and meaning making), the materializing of three types of customer experiences and customer journeys (service experience, hedonic experience and brand experience) and the moderating of three types of customer values (service values, hedonic values and brand values).
Research limitations/implications
This study has implications for adding new insights into existing theory on dominant logic and customer experience management and also offers actionable recommendations for managerial applications.
Originality/value
This study sheds light on the importance of Ex-D logic from a strategic point of view and provides an organic view of the firm. It distinguishes firm perspective from customer perspective, firm experience from customer experience and firm journey from consumer journey.
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Rebekah Russell-Bennett and Steve Baron
– The purpose of this paper is to highlight and promote fresh thinking in services marketing research.
Abstract
Purpose
The purpose of this paper is to highlight and promote fresh thinking in services marketing research.
Design/methodology/approach
The topic of the special issue was deliberately chosen to encourage fresh ideas and concepts that will move the discipline forward. The accepted papers have been categorised for ease and convenience of reading by scholars and practitioners, with a short commentary on each category.
Findings
There is a wealth of forward-thinking by service(s) marketing researchers that bodes well for the future of the sub-discipline.
Research limitations/implications
The special issue does not address fresh thinking in all areas of services marketing research. Other potential areas for fresh thinking are identified.
Originality/value
New thinking in a scholarly field is necessary to propel the discipline forward.
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Sumit Saxena, Amritesh, Subhas C. Mishra and Bhasker Mukerji
This paper aims to examine the origins of value co-creation (VCC) knowledge streams, vis-a-vis their progression over the past 18 years. The study explores how knowledge of this…
Abstract
Purpose
This paper aims to examine the origins of value co-creation (VCC) knowledge streams, vis-a-vis their progression over the past 18 years. The study explores how knowledge of this discipline emerged across the tripartite strategic paradigms of business transformation.
Design/methodology/approach
Co-citation analysis (CCA) and co-word analysis (CWA) are used as bibliometric techniques, for which, a group of articles is retrieved using Scopus’s usual keyword-based search. The initial collection consists of 3,431 research articles published in business and management publications. By explaining the article clusters generated through CCA and keyword connections generated through CWA, the findings outline the origins and development of VCC research. A CWA-based chronological study adds further insights to the development of VCC research themes.
Findings
The results depict that VCC research has grown multifold in the past 18 years, whereby it has shifted its attention from a dyadic interaction approach to a multistakeholder ecosystem-based approach detailing the phenomenological instances of resource integration and institutional processes. Notably, extant research in this field has grown at a much faster rate since 2008. In fact, a stronger concentration of research emerged in the experience domain, particularly in terms of hedonic services. Development of engagement platforms has been driven by research into technologies such as IoT and artificial intelligence.
Research limitations/implications
The theoretical framework of the VCC paradigm is used to describe the aggregation of co-creation research around the three strategic pillars. This framework is useful for business strategy and to track VCC research over time.
Practical implications
This work identifies the practices and strategies of VCC at three different levels: capacity, platform and experience. The study offers insights into a variety of co-creation practices at their respective levels, incorporating micro-level dyadic interactions and macro-level processes in a service ecosystem.
Originality/value
This study uses different bibliometric methodologies to investigate the development of this scientific field over time. “Document co-citation” analysis, a more preferred bibliometric technique under CCA, is used to construct the cluster of theoretical cores of this area. The results are classified under the strategic framework of the co-creation paradigm (Ramaswamy and Ozcan, 2014).
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