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Article
Publication date: 11 September 2017

Anne Äyväri and Annukka Jyrämä

The purpose of this paper is to provide a conceptual analysis on value proposition tools to be used in future empirical research and in building managerial insight. The…

Abstract

Purpose

The purpose of this paper is to provide a conceptual analysis on value proposition tools to be used in future empirical research and in building managerial insight. The conceptual analysis focusses on a living lab framework and recent theoretical developments around the concept of value that are reflected in the context of three managerial tools for creating value propositions.

Design/methodology/approach

Using abductive reasoning, the descriptions of the tools were analysed as cultural texts, as language-in-use in a social context.

Findings

In the context of the living labs approach, the Value Proposition Builder™ (VPB) seems to conflict with the ideas and premises of user-centric innovation processes. In the Value Proposition Canvas (VPC), the co-creation aspect is rather vague, as the enterprise and its offerings are presented as creators of value for the customer. Thus, this tool somewhat contradicts the living lab approach. The People Value Canvas (PVC) is aligned with the service-dominant logic and the premises of living labs. However, all three tools largely neglect a deeper acknowledgement of the role of the wider context, the service ecosystem, and the role of networked actors as resource integrators. Moreover, none of the tools explicitly point out the role of enterprises as intermediaries in constructing invitations for value co-creation.

Originality/value

The paper contributes to the SDL and living labs literature by conceptual analysis on different value proposition tools; the VPB™, the PVC, and the VPC which are relevant for academics as well as practitioners creating new understanding and insights on the connectedness of the living labs framework and SDL as well as their relationship to managerial tools. By identifying the absent elements of S-D logic from managerial value proposition tools, the paper contributes to current discussions by giving attention from scholars towards investigating managerial tools and by providing a new conceptual analysis for future empirical research. The critical analysis of the managerial tools contributes to managerial practice by emphasising the need to consciously evaluate the benefits and failures of tools for developing their organisations.

Details

Journal of Service Theory and Practice, vol. 27 no. 5
Type: Research Article
ISSN: 2055-6225

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Article
Publication date: 6 February 2017

Y.L.R. Moorthi and Bijuna C. Mohan

The purpose of this paper is to relate the customer value proposition offered by a bank with its structure of ownership.

Abstract

Purpose

The purpose of this paper is to relate the customer value proposition offered by a bank with its structure of ownership.

Design/methodology/approach

The study adopted a combination of exploratory and descriptive approaches. The attitudes and opinions of bank customers were gauged through a survey. Based on literature, a pool of items was identified to measure the construct of value proposition. It was hypothesized that different types of banks in India are chosen for different benefits offered by them. The relationship between value proposition and its constituent variables functional, emotional and self-expressive benefits was analyzed using multiple regression.

Findings

Results prove that while self-expressive benefits drive the choice of foreign banks (FBs), functional benefits are important for all types of banks.

Research limitations/implications

The research intends to study only the perceptions of customers having an account in Indian public sector banks, private sector banks or FBs.

Practical implications

The study helps to relate the type of bank (public, private or foreign) a customer chooses, with the value proposition it offers. Using this study, banks can configure the value proposition that is appropriate for their target segment.

Originality/value

The paper examines the value proposition offered by the three different types of banks (public, private and foreign) empirically. It links bank choice of the customer to the benefit assortment offered by different types of banks.

Details

International Journal of Bank Marketing, vol. 35 no. 1
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 14 February 2020

Helena Elisabeth Liewendahl and Kristina Heinonen

Customer value creation is dependent on a firm’s capacity to fulfil its brand promises and value propositions. The purpose of this paper is to explore frontline employees…

Abstract

Purpose

Customer value creation is dependent on a firm’s capacity to fulfil its brand promises and value propositions. The purpose of this paper is to explore frontline employees’ (FLEs’) motivation to align with value propositions.

Design/methodology/approach

The paper explores FLEs’ motivation to align with a firm’s value propositions as operationalised brand promises. A longitudinal, three-phase case study was conducted on a business-to-business company in the building and technical trade sector.

Findings

This study reveals factors that foster and weaken employees’ motivation to align with a firm’s brand promises and value propositions. The findings show that co-activity and authentic, practice-driven promises and value propositions foster FLEs’ motivation to uphold brand promises and value propositions, whereas an objectifying stance and power struggle weaken their motivation.

Practical implications

The study indicates that a bottom-up approach to strategising is needed and that FLE is to be engaged in traditional managerial domains, such as in developing value propositions. By creating space and agency for FLE in the strategising process, their motivation to align with value propositions is fostered. Four motivational modes are suggested to support bottom-up strategising.

Originality/value

The paper is unique in its focus on FLEs’ motivation. Developing value propositions traditionally falls within the domain of management strategising, while employees are ascribed the role of enactment. Contrary to the established norm, this paper highlights employees’ active role in strategising and developing value propositions.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 3
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 4 February 2014

Adrian Payne and Pennie Frow

Research into the identification and development of value propositions has recently been identified as a key research priority by the Marketing Science Institute. The…

Abstract

Purpose

Research into the identification and development of value propositions has recently been identified as a key research priority by the Marketing Science Institute. The purpose of this article is to identify and develop a process for value proposition deconstruction that can help organizations transform their value propositions in order to gain an improvement in their competitive position.

Design/methodology/approach

A case study of an exemplar organization in the health care sector is used to develop an approach for value proposition deconstruction. Using the business system concept as a theoretical framework, the key value-adding elements that comprise this organization's value proposition are identified. A leading financial services firm is used to demonstrate how this learning approach can be successfully applied in developing a new and innovative value proposition.

Findings

Using the business system framework, a structured process for deconstructing value propositions is developed. This framework is extended to explicitly acknowledge the value-in-use that results from different encounters, to incorporate learning processes and to recognize its interactive and recursive nature.

Practical implications

The authors provide practitioners with insight into how to formulate new or improved value propositions.

Originality/value

This work addresses two important and previously unaddressed research questions: how can the process of deconstruction of an exemplar organization's value proposition provide a more comprehensive understanding of the elements that comprise a superior value offering; and how can this process be applied to other organizations seeking to improve their value proposition?

Details

European Journal of Marketing, vol. 48 no. 1/2
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 11 June 2019

Andre Nijhof, Marjolein Bakker and Henk Kievit

This paper aims to elucidate what concepts of encroachment in business-to-consumer markets explain the market share increase of companies with sustainability value

Abstract

Purpose

This paper aims to elucidate what concepts of encroachment in business-to-consumer markets explain the market share increase of companies with sustainability value propositions. It documents the encroachment field, analyses the practice of ten companies and proposes and defines the additional concept of transparency encroachment.

Design/methodology/approach

Semi-structured interviews were conducted with representatives of companies with an increase in customers and market share due to their sustainability value proposition. These were supplemented with secondary data, like documented interviews, sustainability reports and reports on market development. The interview transcripts and secondary data notes were coded using template analysis.

Findings

As the literature on encroachment assumes that new value propositions take away market share from incumbents due to advantages for customers, it is questionable whether it can explain how value propositions with advantages for society as a whole can encroach markets. The results of this study show that the dominant forms of encroachment in the current literature – high-end encroachment, low-end encroachment and business model encroachment – can only partly explain encroachment through sustainability value propositions. An additional encroachment form is identified: transparency encroachment.

Research limitations/implications

This research adds greater clarity to what companies do when they encroach markets with sustainability value propositions. Furthermore, the pattern of transparency encroachment is discussed to define the common aspects of this concept and to argue why these aspects are needed for encroachment. It implies that marketing activities should start from the perception that customers are allies – and not kings – in the development toward higher levels of sustainability.

Practical implications

The paper offers practical implications insofar as it deconstructs three aspects of transparency encroachment that are enacted by companies. Customer awareness, unique experience and customer contribution are all needed to enact transparency encroachment. It is argued that other companies introducing sustainability value propositions to encroach markets should find their own application of these three aspects to create the potential for successful encroachment.

Social implications

Because of the focus on sustainability aspects of value propositions, this study generates knowledge about the marketing and encroachment of products with a relatively positive impact on society. Adoption of the identified concept of transparency encroachment contributes to sustainable development.

Originality/value

To date, there has been very little marketing research that explores the role of sustainability value propositions in the encroachment of markets. Nonetheless, nowadays customers seem to look beyond their own benefits and are increasingly demanding a new approach that builds upon the sustainability aspects of products. This research adds greater clarity to encroachment through sustainability value propositions.

Details

European Journal of Marketing, vol. 53 no. 10
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 28 January 2014

Laura Smith, Roger Maull and Irene C.L. Ng

The purpose of this paper is to provide further insight into operations management of the product-service (P-S) transition, known as servitization, and the resulting…

Abstract

Purpose

The purpose of this paper is to provide further insight into operations management of the product-service (P-S) transition, known as servitization, and the resulting product service system (PSS) offerings. In exploring the P-S transition, this paper adopts a service-dominant (S-D) logic view of value creation, using it as a lens through which to explore value propositions of the P-S transition and their operations design.

Design/methodology/approach

This paper presents an in-depth case study of an original equipment manufacturer of durable capital equipment who, over the last five years, has expanded its offerings to include use- and result-orientated PSS. The research design uses a multi-method approach; employing 28 in-depth qualitative interviews with customers and employees and analysis of texts, documents and secondary data including five years of enterprise resource planning (ERP), call centre and contract data.

Findings

The paper identifies ten generic P-S attributes that are abstracted into four nested value propositions: asset value proposition; recovery value proposition; availability value proposition; and outcome value proposition. In examining the operations design for delivery of these value propositions, it is found that the role and importance of contextual variety increases as the organisation moves through the value propositions. Interdependencies amongst the value propositions and differences in operational design for each value proposition are also found.

Research limitations/implications

The paper investigates PSS through a S-D logic mindset. First, the paper considers value propositions of PSS not according to “product” or “service” but in terms of how resources (both material and human) are optimally designed to co-create customer value. Second, a value co-creation system of nested value propositions is illustrated. In so doing, the findings have a number of implications for literature on both PSS and S-D logic. In addition, the research adds to the PSS literature through the identification and consideration of the concept of contextual use variety.

Practical implications

The paper demonstrates the complexity of the transition from product to service. Specifically, service cannot be seen as a bolt-on extra to their product offering; complexity caused by interactions and changes to the core offering require a systems perspective and consideration of both firm and customer skills and resources.

Originality/value

This paper extends existing literature on the P-S transition and its implications for operations management. Notably, it takes an S-D logic perspective of value creation and in so doing highlights the importance and role of contextual use variety in the P-S transition. It also provides further empirical evidence that the P-S transition cannot be treated as discrete stages but is evolutionary and requires a complex systems perspective.

Details

International Journal of Operations & Production Management, vol. 34 no. 2
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 24 October 2018

Eija-Liisa Heikka and Satu Nätti

The purpose of this paper is to explore what value dimensions and related value components are highlighted in the value proposition of knowledge-intensive business…

Abstract

Purpose

The purpose of this paper is to explore what value dimensions and related value components are highlighted in the value proposition of knowledge-intensive business services (KIBS), both at the relationship and project levels, how value propositions can differ between new and established customer relationships, and finally what is characteristic to the evolution of value proposition in the KIBS context.

Design/methodology/approach

This study uses a comparative, qualitative multiple case study method.

Findings

The aim is to offer a comprehensive picture of the variety of value components in KIBS relationships, likewise, how the nature and composition of value proposition changes as a relationship evolves from conducting a single project toward a more established customer relationship. Individual experts seem to possess a crucial role in that development.

Originality/value

This study contributes theoretically by providing insights into the current literature on core dimensions and components of value propositions in this specific context, and differences there can be between new and established customer relationships. The study also offers much-needed, context-specific knowledge of knowledge-intensive services for managers. Empirically, these findings reflect the perspectives of both the service provider and four of its customers, ensuring a multi-sided description of the phenomenon.

Details

Journal of Business & Industrial Marketing, vol. 33 no. 8
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 20 November 2007

Timo Rintamäki, Hannu Kuusela and Lasse Mitronen

The purpose of this paper is to develop a framework for identifying competitive customer value propositions in retailing.

Abstract

Purpose

The purpose of this paper is to develop a framework for identifying competitive customer value propositions in retailing.

Design/methodology/approach

The paper draws on existing literature on customer value and competitive advantage in order to form an understanding of the key dimensions of customer value, developing a hierarchical model of value propositions and establishing a link between customer value and competitive advantage.

Findings

The work suggests a framework for identifying competitive customer value propositions (CVPs) where four hierarchical key dimensions of customer value – economic, functional, emotional, and symbolic – are first identified. In the second stage, a CVP is developed on the basis of these value dimensions. In the third stage, the CVP is evaluated for competitive advantage. It is proposed that economic and also functional CVPs are more likely to represent points of parity, whereas emotional and social CVPs represent points of difference for retail companies seeking differentiation from their competition and gaining of competitive advantage.

Originality/value

Identifying competitive CVPs, the paper combines a hierarchical perspective on customer value and the concept of competitive advantage in a manner that offers managers a strategic positioning tool that links the customer's value needs to company resources and capabilities.

Details

Managing Service Quality: An International Journal, vol. 17 no. 6
Type: Research Article
ISSN: 0960-4529

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Article
Publication date: 1 March 2004

Umit S. Bititci, Veronica Martinez, Pavel Albores and Joniarto Parung

This is a theoretical paper that examines the interplay between individual and collective capabilities and competencies and value transactions in collaborative…

Abstract

This is a theoretical paper that examines the interplay between individual and collective capabilities and competencies and value transactions in collaborative environments. The theory behind value creation is examined and two types of value are identified, internal value (shareholder value) and external value (value proposition). The literature on collaborative enterprises/network is also examined with particular emphasis on supply chains, extended/virtual enterprises and clusters as representatives of different forms and maturities of collaboration. The interplay of value transactions and competencies and capabilities are examined and discussed in detail. Finally, a model is presented which consists of value transactions and a table that compares the characteristics of different types of collaborative enterprises/networks. It is proposed that this model presents a platform for further research to develop an in‐depth understanding into how value may be created and managed in collaborative enterprises/networks.

Details

International Journal of Physical Distribution & Logistics Management, vol. 34 no. 3/4
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 15 November 2011

Jaka Lindič and Carlos Marques da Silva

This paper seeks to advance the theory on value proposition and innovation by offering a framework for identifying value proposition elements.

Abstract

Purpose

This paper seeks to advance the theory on value proposition and innovation by offering a framework for identifying value proposition elements.

Design/methodology/approach

A single embedded case study is conducted based on Amazon.com's innovations.

Findings

By identifying and systematically analysing innovations by Amazon.com, the concept of value proposition was decomposed into five components: performance, ease of use, reliability, flexibility and affectivity (PERFA).

Research limitations/implications

The research did not focus on the relationships between the value proposition elements and their relevance in different contexts such as product, industry or customer life cycle.

Practical implications

Managers should support their decision to innovate the value proposition based on customers' perceived value. The findings provide guidance to managers on how to uncover innovative value propositions and potentially create new demand in an uncontested market space.

Originality/value

The paper is an original attempt to correlate value proposition and innovation. It provides researchers and practitioners with a better understanding of the structure of a value proposition and how innovation can influence it.

Details

Management Decision, vol. 49 no. 10
Type: Research Article
ISSN: 0025-1747

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