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11 – 20 of over 52000Timo 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.
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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 environments. The…
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.
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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.
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Scholars identify the value proposition as representing the essence of strategy and the firm's single most important organizing principle. However, research suggests less than 10…
Abstract
Purpose
Scholars identify the value proposition as representing the essence of strategy and the firm's single most important organizing principle. However, research suggests less than 10 per cent of companies formally develop value propositions. The purpose of this paper is to undertake case study research investigating the process by which leading companies develop their value propositions.
Design/methodology/approach
The research identifies that the financial services and telecommunications vertical markets are viewed as the highly sophisticated industry sectors in terms of customer management. These industry sectors are selected for investigation. The paper develops case studies of two companies’ approaches to developing value propositions in the business-to-business (B2B) and business-to-consumer (B2C) sectors within these vertical markets.
Findings
This paper contributes to the marketing literature by examining how two large and complex service enterprises have adopted structured processes for developing innovative value proposition within the B2B and B2C sectors. The authors argue that innovation in value proposition development represents a substantive opportunity for marketing to reassert its influence in the boardroom.
Practical implications
This case study research provides guidelines of the processes by which enterprises can successfully develop innovative value propositions.
Originality/value
This research is considered to be the first case-based academic exploration of the formal processes by which large organizations develop value propositions.
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Sara Leroi-Werelds, Sandra Streukens, Yves Van Vaerenbergh and Christian Grönroos
The purpose of this paper is to examine whether explicitly communicating the customer’s resource integrating role in value propositions improves or diminishes value proposition…
Abstract
Purpose
The purpose of this paper is to examine whether explicitly communicating the customer’s resource integrating role in value propositions improves or diminishes value proposition effectiveness.
Design/methodology/approach
Based on existing research on value propositions, three effectiveness criteria are used: role clarity, expected customer value, and purchase intention. Two experiments manipulating the presence of the customer’s resource integrating role in value propositions test the conceptual model in both an indirect interaction (Study 1, toothpaste, n=207) and a direct interaction context (Study 2, fitness program, n=228). Additionally, Study 2 includes the moderating role of resource availability.
Findings
Explicitly communicating the customer’s resource integrating role in value propositions increases customers’ role clarity, which in turn influences customer’s attitude toward the service and purchase intention through a service-related (i.e. expected benefits and expected efforts) and an ad-related (i.e. ad credibility and attitude toward the ad) route. However, these results only hold for customers high in resource availability.
Originality/value
This research provides initial empirical support for the often-stated claim that value propositions should include the (potential) value of the offering as well as the (resource integrating) role of the customer. Taking a broader perspective, this research provides initial empirical support for recent calls to develop marketing communication practices that facilitate value-in-use. This paper’s findings show that adopting service logic in marketing communications seems to improve value propositions’ effectiveness.
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This paper aims to examine the notion of value propositions (promises of reciprocal value between service providers and their customers), value‐in‐exchange and value‐in‐use, all…
Abstract
Purpose
This paper aims to examine the notion of value propositions (promises of reciprocal value between service providers and their customers), value‐in‐exchange and value‐in‐use, all within the conceptual context of service‐dominant (S‐D) logic.
Design/methodology/approach
Responding to calls in the recent literature for an academic critique of S‐D logic, its key constructs, and its application in marketing situations of varying complexity, the paper presents a conceptual analysis of the determinants of value emphasis in value propositions from the S‐D perspective.
Findings
Four guiding principles are derived from a rigorous analysis of the relevant literatures. Ways are discussed in which firms might achieve greater flexibility in designing their market offerings, and thus manage different customer segments using different value propositions. The general conclusion is that the ability to communicate a firm's value propositions strategically and effectively is a new area for the development of competence at the core of competitive advantage.
Research limitations/implications
The findings pave the way for empirical research into the dynamics of value propositions. Since the main focus of the conceptual framework is on the customer‐provider dyad, future studies should broaden coverage to multilateral settings and networked environments.
Practical implications
Factors that determine the relative emphasis in value propositions between value‐in‐exchange and value‐in‐use are discussed, and the management implications derived from each of the four principles identified.
Originality/value
The paper elaborates the application of S‐D logic in marketing by investigating the determinants of relative emphasis of value propositions.
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Rong Zhu, Yaoyao Fu, Ao Wen and Jiaxin Zhao
This study aims to examine an emerging product–place co-branding marketing practice in China’s rural areas. The role of this practice in inclusive development is analyzed from the…
Abstract
Purpose
This study aims to examine an emerging product–place co-branding marketing practice in China’s rural areas. The role of this practice in inclusive development is analyzed from the perspectives of value proposition innovation, market legitimacy, media coverage and brand value. Both research and practice indicate value proposition innovation to exert an important influence on brand value enhancement, but little is known about the mediating and moderating mechanisms underlying this relation.
Design/methodology/approach
A moderated mediation model is constructed to examine whether market legitimacy mediates the relationship between value proposition innovation and brand value. vWhether this mediating process is moderated by media coverage is also examined. The primary data are collected from semi-structured interviews and observations conducted with two common cases to develop proper scales for value proposition innovation and market legitimacy. The research includes 100 product–place co-brandings published by the Ministry of Agriculture and Rural Affairs in 2019. Hypotheses are tested using hierarchical regression and a Bootstrap model.
Findings
Value proposition innovation has a positive effect on brand value, and market legitimacy partially mediates this relationship. Media coverage positively moderates the relationship between value proposition innovation and market legitimacy, and positively moderates the mediating effect of market legitimacy; the higher the media coverage, the stronger the mediating effect of market legitimacy.
Research limitations/implications
Based on data availability and accessibility, the study sample focused on indicators from 100 brands in 2019. If the Ministry of Agriculture and Rural Affairs discloses consecutive annual information for other years, future studies could explore panel data to further test the study’s conclusions from a longitudinal perspective.
Originality/value
First, this paper adds to the emerging literature on product–place co-branding business models by examining the relationship between value proposition innovation and brand value. Second, this paper enriches institutional theory by including market legitimacy as a mediator between value proposition innovation and brand value. Third, this paper identifies the moderating role of media coverage, thus broadening the theoretical implications of institutional theory with respect to improving market legitimacy.
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This chapter employs institutional theory and the demand-side approach to discuss the entry of new companies into industries. Theory and empirical evidence provides support for…
Abstract
This chapter employs institutional theory and the demand-side approach to discuss the entry of new companies into industries. Theory and empirical evidence provides support for the hypothesis that the industry stage of development is the primary factor that determines whether a company should use innovation or imitation as an entry wedge. The evidence suggests that innovation is most often used successfully during the introduction and decline stages of industry development. Imitation is most often used successfully during the growth stage of industry development. During the mature phase both innovation and imitation are used, but usually with limited success.
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Lisa Källström and Jens Hultman
Using service-based logic as its theoretical lens, this study aims to approach residents’ place satisfaction in a novel way. The purpose is to explore residents’ perception of the…
Abstract
Purpose
Using service-based logic as its theoretical lens, this study aims to approach residents’ place satisfaction in a novel way. The purpose is to explore residents’ perception of the place in which they live and to shed new light on their place satisfaction.
Design/methodology/approach
The paper is based on explorative qualitative focus group research. Data were collected in two typical municipalities in southern Sweden. The sampling procedure was purposive, resulting in six focus groups, consisting of a total of 33 residents. The empirical material was transcribed and analyzed using a structured content analysis inspired by grounded theory.
Findings
A model for understanding residents’ perceptions of what constitutes a good place to live is introduced. The model shows that many value propositions are produced in the provider sphere, independent of the user, for example by the municipality or the business sector. Other value propositions are co-created in a joint sphere, meaning that the user is actively involved in the production of these value propositions. The resident then uses different value propositions to create value-in-use in the resident sphere, independent of the provider, and to co-create value-in-use in the joint sphere.
Originality/value
The study creates a bridge between the stream of research on place satisfaction and studies that take stakeholders and co-creation into consideration; it shifts from the prevalent provider perspective on place branding and static place attributes to a focus on the relationship between users and providers.
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Hallgrim Hjelmbrekke, Ola Lædre and Jardar Lohne
From a project owner's perspective, it is obvious that a project shall contribute to achieving the organisation's strategic goals. The purpose of this paper is to find out what…
Abstract
Purpose
From a project owner's perspective, it is obvious that a project shall contribute to achieving the organisation's strategic goals. The purpose of this paper is to find out what project owners can do to ensure value creation in their projects, what owners actually do in the few cases in which they are actively involved in ensuring value creation and what is the result of their choice.
Design/methodology/approach
The authors have analysed 12 projects in the Norwegian construction industry, using a qualitative approach. A general business framework for understanding projects has been applied in order to identify possible shortcomings and success factors. The authors have used semi-structured in-depth interviews combined with questionnaires for data collection.
Findings
The study reveals an absence of project strategy, resulting in projects which only to a small extent achieve strategic goals. This lack of strategic perspective in project management is also recognised by the research literature as a common tendency. Traditional project management approaches concentrate on time, cost and quality, instead of on providing strategic success. Based on business literature, the authors identify the value proposition and the customer value proposition as being essential.
Practical implications
The authors recommend construction project owners – as described in the literature – to appoint a project sponsor responsible for communicating a value proposition and business rationale to the project supplier. The sponsor should also be responsible for aligning the suppliers’ customer value proposition with the owner's strategy. The authors recommend that the project sponsor be supported by a project governance body. This will help project owners to ensure value creation in their projects, as described in the literature. The authors pinpoint a need for bridging theory and practice.
Originality/value
The originality of the paper lies in introducing insights from business literature to the construction industry. In the value proposition the owner defines the benefits the project is to provide. The customer value proposition is the statement where the supplier aligns the proposed project output with the project owner's needs. The project governance body is responsible for ensuring this communication process.
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