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1 – 10 of 477This 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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Agnė Gadeikienė, Asta Pundzienė and Aistė Dovalienė
The rise of telehealth is evident worldwide, especially now with the COVID-19 pandemic situation, and is providing extensive opportunities for health-care organisations to create…
Abstract
Purpose
The rise of telehealth is evident worldwide, especially now with the COVID-19 pandemic situation, and is providing extensive opportunities for health-care organisations to create added value for different stakeholders. However, even in this extreme situation, the progress of telehealth is quite slow and insufficient. In this context, it is necessary to consider how the application of telehealth services allows co-creating additional value for different stakeholders. Consequently, the purpose of this paper is to explore telehealth services and the added value that they co-create for various stakeholders across publicly and privately oriented health-care ecosystems.
Design/methodology/approach
This paper adopted a qualitative research design based on an explorative and comparative approach to study the perceived added value that is co-created during telehealth encounters. The authors deployed a semi-structured interview research design. Interviews were carried out in two settings that have different health-care systems: Lithuania (publicly oriented health care) and the California Bay Area, USA, (privately oriented health care). The research covers telehealth services from the point of view of different stakeholders in the health-care ecosystem.
Findings
The paper emphasises that value-in-use is essential in the case of telehealth; however, value-in-exchange is relevant to describe the relationships between public and private insurers and health-care providers. The findings point out that despite the type of health-care system, telehealth added value-in-use was perceived quite similar in both research settings, and differences could be distinguished mainly at the sub-dimensional level. The added value-in-use for patients comprises economic, functional and emotional value; physicians potentially get functional added value-in-use. The authors also highlight that patients and physicians get relational functional and social value-in-use. The added value-in-use for health-care providers consists of economic (in both research settings) and functional value (in Lithuania). The research findings show that there is still an evident lack of health insurance companies ready to recognise telehealth as a valuable service and to reimburse similarly to in cases of in-person visits. Thus, the added value-in-exchange is hardly created and this impedes co-creation of the added value-in-use.
Originality/value
This paper contributes to the field mainly by transferring the business research applied concept of value co-creation into the social-purpose driven health-care industry. The findings are beneficial for the health-care management stream of the literature, which considers health care as a value-based industry. To the best of the authors’ knowledge, this is the first attempt to structure the perceived telehealth added value from the perspectives of different stakeholders and two different health-care ecosystems. This paper also gives a clearer understanding of the role of the value-in-exchange in such complex ecosystems as health care and gives reasons when it could be created in synergy with co-creation of the value-in-use. In this sense, the findings are beneficial from both marketing and innovation theoretical perspectives, as they give a special attention to value creation and co-creation phenomena analysis.
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Attila Pohlmann, Diego Grijalva, Fabrizio Noboa and Johanna Andrango
Associated with status, excess and wastefulness, the consumption of luxury is perceived as the antithesis to sustainable development. Entrepreneurs create business cases to…
Abstract
Purpose
Associated with status, excess and wastefulness, the consumption of luxury is perceived as the antithesis to sustainable development. Entrepreneurs create business cases to mediate positive sustainability changes, which transform markets and institutional arrangements. The purpose of this paper is to propose the concept of value-in-impact as an interface concept to integrate perspectives from entrepreneurship, marketing and ecological economics. It provides interdisciplinarily applicable, generalizable concepts to describe social entrepreneurs’ personal motivations to reconfigure market structures to produce sustainability change.
Design/methodology/approach
The case of Ecuadorian luxury chocolate manufactory To’ak is described in the context of the three pillars of sustainability, chocolate producers and cacao suppliers. Thematic analysis of the founders’ personal narratives provides insight regarding their motivation to use ostensibly antithetical luxury marketing for rainforest preservation and to foster self-reliant communities.
Findings
To’ak pays premium prices to create incentives to community farmers to propagate the rare, DNA-certified cacao exclusive to their products, thereby marginalizing oppressive suppliers. The company’s founders are motivated to excellence in the chocolate industry, having witnessed the loss of the cultural meaning of cacao, rainforest degradation and the dissipation of associated communities. The case study findings illustrate how value-in-impact is interpreted as purposeful configuration of value-in-use and value-in-exchange on luxury markets to produce positive sustainability change.
Originality/value
The notion of value-in-impact describes higher order conceptualizations in business research. It encompasses a holistic understanding of the dynamics within and between societal and natural ecosystems. Its application at the marketing/entrepreneurship interface can lead to improved management and policy decisions.
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In the discussion on service‐dominant logic and its consequences for value creation and marketing the inner meaning of the value‐in‐use notion and the nature of service marketing…
Abstract
Purpose
In the discussion on service‐dominant logic and its consequences for value creation and marketing the inner meaning of the value‐in‐use notion and the nature of service marketing have not been considered thoroughly. The purpose of this paper is to analyze the meaning of a service logic as a logic for consumption and provision, respectively, and explore the consequences for value creation and marketing.
Design/methodology/approach
Being a research‐based paper, the topic is approached by theoretical analysis and conceptual development.
Findings
Discussing the differences between value‐in‐exchange and value‐in‐use, the paper concludes that value‐in‐exchange in essence concerns resources used as a value foundation which are aimed at facilitating customers' fulfilment of value‐in‐use. When accepting value‐in‐use as a foundational value creation concept customers are the value creators. Adopting a service logic makes it possible for firms to get involved with their customers' value‐generating processes, and the market offering is expanded to including firm‐customer interactions. In this way, the supplier can become a co‐creator of value with its customers. Drawing on the analysis, ten concluding service logic propositions are put forward.
Research limitations/implications
The analysis provides a foundation for further development of a service logic for customers and suppliers, respectively, (“service logic” is preferred over the normally used “service‐dominant logic”) as well for further analysis of the marketing consequences of adopting such a business and marketing logic.
Practical implications
Marketing practitioners will find new ways of understanding customers' value creation and of developing marketing strategies with an aim to engage suppliers with their customers' consumption processes in order to enhance customer satisfaction.
Originality/value
For a scholarly audience, the paper provides a more truly service‐centric understanding of value creation and of its marketing consequences. For a practitioner audience, it offers service‐based means of further developing marketing practices.
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Katherine Butler, Ross Gordon, Kate Roggeveen, Gordon Waitt and Paul Cooper
Drawing on value theory, this study aims to explore the perceived value of using energy efficiently amongst a low-income older population group. It aims to provide an empirical…
Abstract
Purpose
Drawing on value theory, this study aims to explore the perceived value of using energy efficiently amongst a low-income older population group. It aims to provide an empirical exploration of the concept of value-in-behaviour, and, in doing so, identify that it is a logical addition to the extant concepts of value-in-exchange and value-in-use.
Design/methodology/approach
Exploratory focus group research was conducted to explore older, low-income people’s perceived value towards using energy efficiently in the contexts of their everyday lives. The research was conducted in regional New South Wales, Australia, with 11 focus groups of 59 people (40 females, 19 males) aged over 60 with a personal disposable income below $26,104 per annum.
Findings
Using this framework, functional, economic and ecological value appeared to be the most pertinent value dimensions for using energy efficiently, while social or emotional value was less relevant. Attention is drawn to how value in using energy efficiently emerges within the everyday contingencies and constraints configured by individual households’ financial, social, material and cultural contexts. These findings suggest that programmes in this area and with similar target groups would benefit from trying to promote and co-create such value.
Originality/value
The present study provides empirical evidence that consumers in a social marketing context appear to perceive value-in-behaviour in relation to using energy efficiently. This approach inspires social marketers to foster individual behaviour change through a better understanding of how value is created in everyday practices. This builds upon existing work on value in social marketing and suggests that value is an important concept that warrants continued theoretical, empirical and practical exploration.
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Nick French and Georgina Wiseman
This paper discusses concepts of value from the point of view of the user of the space and the counter view of the provider of the same. Land and property are factors of…
Abstract
This paper discusses concepts of value from the point of view of the user of the space and the counter view of the provider of the same. Land and property are factors of production. The value of the land flows from the use to which it is put, and that in turn, is dependent upon the demand (and supply) for the product or service that is produced/provided from that space. If there is a high demand for the product (at a fixed level of supply), the price will increase and the economic rent for the land/property will increase accordingly. This is the underlying paradigm of Ricardian rent theory where the supply of land is fixed and a single good is produced. In such a case the rent of land is wholly an economic rent. Economic theory generally distinguishes between two kinds of price, price of production or “value in use” (as determined by the labour theory of value), and market price or “value in exchange” (as determined by supply and demand). It is based on a coherent and consistent theory of value and price. Effectively the distinction is between what space is “worth” to an individual and that space’s price of exchange in the market place. In a perfect market where any individual has access to the same information as all others in the market, price and worth should coincide. However in a market where access to information is not uniform, and where different uses compete for the same space, it is more likely that the two figures will diverge. This paper argues that the traditional reliance of valuers to use methods of comparison to determine “price” has led to an artificial divergence of “value in use” and “value in exchange”, but now such comparisons are becoming more difficult due to the diversity of lettings in the market place, there will be a requirement to return to fundamentals and pay heed to the thought process of the user in assessing the worth of the space to be let.
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Nadia Zainuddin and Ross Gordon
This paper aims to provide a review of the extant literature on value creation and destruction in social marketing services for social change, for the purposes of developing a…
Abstract
Purpose
This paper aims to provide a review of the extant literature on value creation and destruction in social marketing services for social change, for the purposes of developing a research agenda for future research in this area. Creating value in social marketing services is now identified as a key focus for social marketing (Russell-Bennett et al., 2009; Domegan et al., 2013), yet work in this area is nascent and conceptual, methodological, and empirical work is needed to advance the research agenda (Zainuddin et al., 2013; 2016).
Design/methodology/approach
To help shape the future of research on value in social marketing services, this paper appraises the contributions of the current research literature, and identifies gaps in the current knowledge. A systematic literature review was conducted, following the PRISMA protocol for conducting and reporting systematic reviews (Moher et al., 2009). The review covers the areas of value creation in social marketing, value destruction in social marketing, dimensions of value in social marketing, and from value-in-exchange, to value-in-use, to value-in-behaviour in social change.
Findings
A research agenda for further work in this area is provided within the themes of 1. conceptual development, 2. broadening ontological, epistemological, and methodological foundations, 3. research contexts, and 4. measuring and evaluating value in social marketing services. Within each of these themes, a series of research questions are provided to guide further work in the four identified themes.
Originality/value
This paper is the first to offer a review of the extant literature on value creation and destruction in social marketing and social marketing services, and offer a research agenda for future work in this area. This paper contributes to services marketing and the development of service thinking as key component of social marketing, and the role that value creation plays in this (Russell-Bennett et al., 2013).
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Fengwen Chen, Lu Zhang, Fu-Sheng Tsai and Bing Wang
This study focuses on the self-organized cooperative consumption of platform participants on social media platform, and reveals how the brand owner cooperates with two-sided…
Abstract
Purpose
This study focuses on the self-organized cooperative consumption of platform participants on social media platform, and reveals how the brand owner cooperates with two-sided customers to achieve value co-creation.
Design/methodology/approach
The authors adopted a case study approach to explore how a Chinese beauty startup developed collaborative networks from 2013 to 2022, and tracked the the changes of network structure and cooperation mechanism.
Findings
The study finds that the brand owner cooperates with two-sided customers to integrate resources and establish diverse relational trust, which enhances the evolution of a heterogeneous collaborative network for value co-creation.
Originality/value
The study builds upon traditional dyadic actor-to-actor interactions between providers and customers, develops a novel interaction framework of actor-to-network to explain the value co-creation by collaborative networking, reveals the self-organized mechanism of cooperative consumption on social media.
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Stephen L. Vargo, Robert F. Lusch, Melissa Archpru Akaka and Yi He
Kerry Chipp, E. Patricia Williams and Adam Lindgreen
By combining consumer culture theory and service dominant logic, this study proposes that value might be understood as value-in-acquisition, such that value outcomes result from…
Abstract
Purpose
By combining consumer culture theory and service dominant logic, this study proposes that value might be understood as value-in-acquisition, such that value outcomes result from the acquisition process in which broader social forces shape the exchange process.
Design/methodology/approach
This study addresses low-income consumers, for whom societal arrangements strongly determine service interactions. Qualitative interviews reveal service value processes and outcomes for low-income consumers during acquisition processes.
Findings
For low-income consumers, inclusion, status, resource access and emotional relief represent key value outcomes. Important value processes shape those value outcomes, reflecting broader societal arrangements at macro, meso and micro levels. Marketing constitutes an institutional arrangement that establishes an empowered “consumer” role. Value processes are hindered if consumers sense that their agency in this role is diminished, because marketing interactions give precedence to other social roles.
Research limitations/implications
Marketing should be studied as an institutional arrangement that shapes value creation processes during acquisition. Micro-level value processes have important implications for service quality and service value. Value outcomes thus might be designed in the acquisition process, not just for the offering.
Practical implications
The acquisition process for any good or service should be designed with its own value proposition, separate to the core product or service. Careful design of value processes during acquisition could mitigate conflict between social roles and those of consumption.
Originality/value
There is value in the acquisition process, independent of the value embedded in the goods and services.
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