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Managers and academics alike focus on value creation in business relationships. This paper adds to existing literature by analyzing functions of business relationships and their impact on value perception. Applying a customer perspective, direct relationship functions are concerned about payment, quality, and volume. Indirect functions include innovation, access, and scouting. Furthermore, trust and number of alternative suppliers are included in the study. The empirical results illustrate the important role of direct and indirect functions for value creation. Understanding these functions is instrumental for driving customer value, both for the supplier and the seller. Direct functions do have a much stronger impact on value than indirect functions that still do have a significant impact. Thus, increasing direct function fulfillment is much more effective in order to gain key supplier status than relying only on indirect functions. But indirect functions may offer ample differentiation opportunities. Being a strong driver of relationship value, trust is also driven by function fulfillment. Thus, relationship value depends on rational elements (functions) and social elements (trust). Availability of alternative suppliers increases the importance of relationship function fulfillment on customer value and customer trust. In highly competitive markets, suppliers need clear understanding and communication of relationship value in order to succeed.

Today, as services and products are becoming increasingly intertwined and the competition increasingly global, delivering customer value is not as simple as it used to be. In this article, we suggest that in contemporary business environment customer value is often systemic by nature. This means that managers need to assess their firm's offering through systems‐thinking perspective in order to find out what are the most effective ways to create value for the customer.

Evidence of systemic customer value is provided in the form of illustrative examples from Apple's and Google's offerings. Furthermore, we utilize a quality function deployment (QFD) tool to provide an example of modeling of the systemic value attributes.

This paper illustrates how such systemic customer value in the firm's offering can be modeled. This enables the tracking down of the functions that produce the most value in terms of meeting various customer needs. A firm that understands the systemic nature of customer value is better able to concentrate on improving the core functions of its offering, thus gaining competitive advantage and value‐based differentiation over its rivals.

The paper identifies three key issues and best practices concerning systemic value that are helpful for practitioners in improving their firms' offerings, i.e. connectivity, the importance of platforms, and the emerging role of free functions.

The novelty of this paper lies in its analysis of systemic value. Value creation for the customer is often approached from a rather narrow perspective, without understanding the systemic viewpoint.

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 value–customer 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.

This first paper examines total benefits and total costs of product–service designs as antecedents to customer value assessment. It introduces the reader to all the papers in this volume. The first half of the paper offers a model of customer value assessment. This section describes research studies in industrial marketing contexts that illustrate the core propositions in the model. The second half of the paper provides brief introductions to the papers in this volume; these papers offer further evidence supporting the view that discontinuous innovations offer superior customer value but customers tend to eventually become increasingly comfortable with the status quo and move away from adopting superior proven technologies. This paper advocates being mindful of the marketplace dynamics affecting value. The volume serves to increase knowledge and understanding of the dynamic forces affecting changes in customer value.

The aims of this article are threefold. First of all, to show the concept of value to customers as a determiner of a company’s competitive advantage. Second, to explain the changing role of marketing activities toward social responsibility. Third, to assess the influence of social marketing activities on a company’s image and the resulting value to customers.

By drawing on existing corporate social responsibility (CSR) and marketing literature, the achievements and gaps of socially responsible marketing (SRM) can be demonstrated. In addition, the literature review focuses on showing the relationship between SRM and value to a customer. In order to achieve the purposes of the chapter, an analysis of market research based on secondary data as well as qualitative interviews has been conducted.

Marketing activities should accomplish both economic and social objectives as well as aim at delivering expected value to customers. Nowadays value comes not only from lower prices or a better product range. According to research, customers are becoming increasingly sensitive to evil and to social injustice, damage to the environment, as well as the increasing level of poverty. This makes companies develop new strategies for creating value for customers. These should come from socially responsible activities the company is undertaking. Thus, companies, which implement a concept of SRM, are more likely to count on increased interest and loyalty from their customers.

This chapter offers a fresh approach to the study of the evolution of marketing toward social responsibility and the impact on the value for customers.

There is an ongoing challenge to map the efficacy of e-retailing strategies in building both value co-creation opportunities for online customers and customer value for companies. Based on the service-dominant (S-D) logic, an integrative model is provided that connects the impact of convenience and personalisation strategies (CPSs) on an e-retailer's performance – by offering co-creation opportunities and customer engagement.

The survey instrument is validated and the model is tested with data from active online customers using a novel methodology that blends artificial neural network (ANN) analysis with partial least squares (PLS) in both the measurement model and the path analysis.

The findings robustly support the model and yield evidence of the contribution of CPSs in effective value propositions, the interface between the S-D logic and customer engagement, and the direct effect of customer engagement on tangible forms of value for companies.

This study is the first scholarly effort to provide a comprehensive understanding of how and why CPSs can maximise customer value for the e-retailer, while simultaneously testing the customer value/engagement interface with a new blended ANN-PLS method.

Many multinational companies have entered the market of organic cosmetics and toiletries (OCT) in the global marketplace. This study attempts to analyze the impact of economic and relational variables on customer and brand values in reference to OCT products in Mexico through empirical investigation in selected department stores that attract high profile customers. The study proposes a framework for future research in measuring the customer value in specific reference to the non‐conventional products.

This study is based on the primary data using the information of 369 respondents, who were involved in shopping at chosen retail self‐service stores in Mexico City, administering a semi‐structured questionnaire. The study was conducted in 11 retail self‐service stores in Mexico City including four departmental stores spread over three locations in Mexico. The data has been fit to the model developed for the study using linear equations. One of the prominent features emerged during the study is that customer perception is largely governed by marketing communications.

The study reveals that strategic product positioning and effective retailing augment the customer perceptions and help building the long‐run customer values towards the non‐conventional products owning unfamiliar brands. Results of empirical data have also shown that advertising and promotional strategies of the OCT brands helped customers review their preferences against the synthetic cosmetics and toiletries which appreciated the brand value for the OCT products of the companies in Mexican market.

Like many other empirical studies this research might also have some limitations in reference to sampling, data collection and generalization of the findings. Samples drawn for the study may not be enough to generalize the study results. Open ended questions were answered by the Mexican respondents in Spanish and sometimes transcription of the audio might have overlooked some issues. However, to ensure that the data cover a wider spatial and temporal dimensions in the study region, data should be cleansed and filtered with many variability factors affecting the consumer behavior and retailer performance.

Marketing of organic cosmetics encouraged by the growing environmental consciousness among the customers, is a recent phenomenon in the business. However, there is paucity of literature on this subject particularly in reference to Latin America. Hence, this paper attempts to contribute to the existing studies.

This study aims to develop a framework to explain the reciprocity of the value co-creation process in mobile hotel booking context and to clarify values for customer and supplier.

A research framework was developed based on the previous literature to derive insights on value co-creation process. Online surveys were conducted among mobile hotel bookers in China. Confirmatory factor analysis and structural equation modeling were used to test the proposed framework.

The findings suggested that suppliers should improve the values for customers (functionality, usability and perceived value) to achieve values for themselves [customer lifetime value (CLV), customer knowledge value (CKV), customer referral value (CRV) and customer influencer value (CIV)]. The relation between satisfaction and CLV was moderated by the CIV from other customers.

Suppliers should enhance customer value from the aspects of functionality, usability and perceived value to earn a competitive advantage. Moreover, for suppliers, non-transactional values such as other CIV play an increasingly critical role apart from economic value for development.

This study not only added empirical analysis on value co-creation in m-Tourism but also extended the current literature by validating a research model which integrates website evaluation research with Kumar et al. (2010)’s customer engagement value framework. Instead of serving as a mediator, mobile app was regarded as one of the indispensable actors involved in value co-creation.

This study aims to systematically review the literature on the use of customer value for the evaluation of inter-organizational performance, with a wide perspective embracing different contexts and settings.

Searching within the Scopus and ISI Web of Science databases, a systematic literature review has been conducted analyzing 41 papers published between 1991 and 2020.

Categorization of customer value and inter-organizational performance measures were developed and the main differences among different settings were discussed.

The results presented in this study may be helpful for practitioners and managers who, in the completion of their activities, have to maintain strong and frequent relationships with other organizations. In fact, practitioners and managers interested in enhancing customer value and measuring inter-organizational performance may find an innovative perspective linking the two dimensions. They could find the categorizations presented in this study as a starting point for developing a performance evaluation framework suitable for evaluating their present business relationships. In fact, the categorizations provide a panorama of how scholars have measured until now inter-organizational performance through customer value, and therefore, they could choose the measures more appropriate for their situation.

No systematic literature review of the use of customer value for assessing inter-organizational performance has previously been undertaken, especially considering different settings.

The purpose of this paper is to present how the construct of relationship value (RV) has the potential to help suppliers understand how to create superior value in their customer relationships and ultimately improve their competitiveness. Nowhere is this truer than in the Canadian wood products industry, where sales to its most important market, the USA, have recently been dwindling. The paper seeks to present how RV was adapted in this research context and extended over elements of scope, range of potential applications, scale of measurement, and computational techniques.

A multiple‐case study was undertaken and consisted of the evaluation of 58 customer relationships for three wood products manufacturers.

Findings highlight the necessary distinction between “value for” and “value of” customers when measuring relationship value from a supply perspective. Based on the value and orientation of exchange, a new segmentation of customer relationships emerges which differentiates “questionable”, “supportive”, “promising”, and “strategic” relationships.

The case study will serve in the development of value‐driven relationship management approaches, which are likely to become a major source of competitive advantage, not only in the wood products industry, but in business in general.