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1 – 10 of over 79000Tore Strandvik, Kristina Heinonen and Sanna Vollmer
This paper aims to identify how, in contrast to a provider-oriented stance where customer value is conceptualised as being controlled by the provider, customer value is formed for…
Abstract
Purpose
This paper aims to identify how, in contrast to a provider-oriented stance where customer value is conceptualised as being controlled by the provider, customer value is formed for business customers beyond what is visible to the provider.
Design/methodology/approach
This paper builds on the primacy of the customer. Customer-dominant logic (CDL) is used as the conceptual underpinning, meaning that the customer, rather than the service provider or the service system, is at the centre. A case study was conducted with seven key users from three customer companies of an information and communications technology (ICT) provider of in-house services. The study used a micro-social level focus by capturing customers’ experiences of those activities where value in use is formed.
Findings
The findings indicate that value formation is not related only to direct service interactions and furthermore substantially takes place beyond a service provider’s visibility line. Hence, value formation is in large part hidden for the service provider because it is embedded in customers’ activities and experiences.
Research limitations/implications
Although the study is limited to one case concerning ICT services, these findings may apply to other service businesses, in particular to knowledge-intensive outsourcing businesses.
Practical implications
Understanding a customer’s value formation from the customer’s point of view is the key to service development for any business service provider.
Originality/value
Applying a CDL approach, the authors deepen the understanding of customer value formation as it emerges in customer activities. The study provides detailed insight into business customers’ value formation processes. The study’s findings challenge the current emphasis on interactions and co-creation and instead demonstrate the importance of understanding customer logics and contexts.
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Contemporary service and marketing research on value co-creation and value co-destruction assume a one-dimensional view on value, ranging from positive value co-creation…
Abstract
Purpose
Contemporary service and marketing research on value co-creation and value co-destruction assume a one-dimensional view on value, ranging from positive value co-creation, alignment and high value to negative value co-destruction, misalignment and low value. This limitation has recently led researchers to conceptually develop more dynamic spatial-temporal models of how value is formed during the interaction, e.g. in terms of different relationships between practice elements (procedures, understandings and engagements) both within and between actors in “value formation spaces”. However, much of this research awaits validation and is in need of more details. This study aims to address this limitation with the purpose of detailing how and why the mechanisms in such spaces are formed.
Design/methodology/approach
Two different and interlinked typologies were analytically derived from previous research and applied on ethnographically-inspired multi-perspective empirical data from a service combining health care and transport service ecosystems, using a combination of interviews, observations and service design methodologies. The design in combination with a practice theory perspective was used to articulate crucial aspects related to understanding the dynamics of value co-formation for elaborative and illustrative purposes.
Findings
The study contributes to service theory by conceptualizing as follows: a typology consisting of nine different configurations of practice elements (within and between such elements) and eight possible directions that value formation can take, suggesting a theory that explains value co-creation, value co-destruction and mixed cases.
Research limitations/implications
Although the findings have been developed in a specific empirical context, they articulate a conceptualization applicable to many other service and marketing value co-formation settings.
Practical implications
The typologies are conceptual tools to be used in identifying and measuring the alignment/misalignment of practice elements in complex organizations. The empirical findings uncover service problems faced by disabled customers.
Originality/value
The suggested typologies can guide research and practitioners in understanding and analysing value co-formation mechanisms in complex service settings.
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Heiko Gebauer, Mikael Johnson and Bo Enquist
The purpose of this paper is to explore the role of organisational capabilities (dynamic and operational) in the formation of value networks in the context of public transport…
Abstract
Purpose
The purpose of this paper is to explore the role of organisational capabilities (dynamic and operational) in the formation of value networks in the context of public transport services.
Design/methodology/approach
The theoretical argument is substantiated with qualitative data from four narratives on value network formations in the Swiss public transport system. These four narratives cover two types of new value networks: incremental improvements in established value networks; and radical leaps in emerging value networks.
Findings
These two types of new value networks entail the co‐evolution of different dynamic and operational capabilities.
Research limitations/implications
The study is limited by the qualitative research approach.
Practical implications
Public transport operators can utilise the findings on organisational capabilities to guide incremental improvements in their existing value network and/or radical leaps into an emerging value network.
Social implications
Governments should not only seek to increase transport capacity, but also aim to develop value networks to enhance public transport service experiences.
Originality/value
The paper applies value‐network thinking to public transport services. It offers a comprehensive framework to help organisations manage the formation of value networks. The results provide testable propositions that can be used to guide future research.
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Xueqin Wang, Yiik Diew Wong, Chee-Chong Teo and Kum Fai Yuen
Although a dominant marketing concept, value co-creation (VCC) is not without controversy. Inspired by value co-destruction (VCD), the purpose of this paper is to review the…
Abstract
Purpose
Although a dominant marketing concept, value co-creation (VCC) is not without controversy. Inspired by value co-destruction (VCD), the purpose of this paper is to review the scattered literature on the uncertainties in collaborative value formation, synthesising contingency factors of value outcomes in VCC.
Design/methodology/approach
The paper is based on an examination of 84 peer-reviewed journal articles. Recognising the drawbacks of the macroscopic abstraction in existing the VCC literature, the authors adopt a zooming-in approach to identify distinct patterns of contingency factors in the collaborative value-formation process.
Findings
From a macro-social perspective, VCC may connote a sense of exploitation of “consumers” and a need for consumer control of “producers”, impeding harmonious value formation. Zooming into actor-to-actor interactions, the collaborative relationship is found to be a source of uncertainties in value formation, which is further complicated by differences in the knowledge intensities of services. Finally, reviewing the individual consumer reveals a most nuanced picture that demonstrates heterogeneities of consumers’ VCC involvement and complexities in their perceptions and behaviours. Five propositions and a contingency framework are proposed.
Research limitations/implications
Six value formation mechanisms are proposed based on interconnected and multi-level perspectives, providing implications for managers and future researchers.
Originality/value
This paper contributes to rebalancing VCC research by synthesising insights on the potential contingencies, which are relatively under-explored yet vital to keep the controversy alive and relevant, and re-invigorating business processes.
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Magdalena Marchowska-Raza and Jennifer Rowley
Social media has significantly impacted the value creation processes within the consumer–brand relationship. This study aims to examine value formation processes within a…
Abstract
Purpose
Social media has significantly impacted the value creation processes within the consumer–brand relationship. This study aims to examine value formation processes within a cosmetics social media brand community and to establish the types of value formation associated with different categories of interactions within a social media brand community.
Design/methodology/approach
The research adopted a netnographic approach and followed the operational protocols of netnography. Conversations in one large cosmetics social media brand community were observed and downloaded for analysis over a two-month period. Examples of value-creation and formation processes were identified using netnographic interpretative procedures to develop higher-order themes.
Findings
The findings supported the creation of a “Consumer and brand value creation and co-creation framework” highlighting disparate value types within the following interactions: consumer-to-consumer; brand-to-consumer; and consumer-to-brand. The identified value types were specific to the actors (i.e. consumers and brands) involved in value formation processes. The analysis also revealed consumers’ ability to independently generate value through direct interaction with a social media brand community and the brands’ role in supporting consumers in value formation through value facilitation.
Originality/value
The pivotal role of disparate actors’ interactions in value formation processes is highlighted, alongside the autonomous ability to form value with the aid of resources stored and shared within the social media brand community. The network of interactions and value-creation processes contribute to a holistic understanding of the interactions in a social media brand community. Furthermore, the research explores and highlights the emerging role of social media brand communities as “value vestiges”.
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Kristina 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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Shoaib M. Farooq Padela, Ben Wooliscroft and Alexandra Ganglmair-Wooliscroft
This paper aims to conceptualise and characterise brand systems and outline propositions and research avenues to advance the systems’ view of branding.
Abstract
Purpose
This paper aims to conceptualise and characterise brand systems and outline propositions and research avenues to advance the systems’ view of branding.
Design/methodology/approach
A conceptual synthesis approach is adopted to integrate the extant branding research perspectives. The conceptual framework is grounded in the theoretical foundation of marketing systems theory.
Findings
The conceptual framework delineates brand inputs, throughputs, outcomes and feedback effects within a brand system. It configures the complexity and dynamics of brand value formation among brand actors within the branding environment.
Research limitations/implications
This paper contributes to systems thinking in branding and brand value co-creation research. It extends marketing systems theory into the branding context and provides research directions for exploring the structural and functional configurations, cause–consequence processes and outcome concerns of brand value formation.
Practical implications
This conceptual framework informs brand development, management and regulation at a macro level. Managers can apply the brand system concept to identify and manage conflicting expectations of brand actors and alleviate adverse brand outcomes such as negative brand externalities, enhancing overall brand system health and societal value.
Originality/value
This research expands the scope of brand actor agency and identifies the likelihood of disproportionate brand outcomes. It provides methodological guidelines for analysis and intervention in brand systems.
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Hyunsu Kim, Hyejo Hailey Shin and Kevin Kam Fung So
This study aims to present a novel examination of actor value formation (AVF) in the sharing economy by uncovering its key dimensions (i.e. information seeking, personal…
Abstract
Purpose
This study aims to present a novel examination of actor value formation (AVF) in the sharing economy by uncovering its key dimensions (i.e. information seeking, personal interaction and feedback) at each stage of Airbnb consumption. Using multi-source data, how the key dimensions of AVF affect consumers’ evaluative judgment capturing the key aspects of consumption experiences (i.e. communication quality, value for money and overall evaluations) was empirically tested.
Design/methodology/approach
This study adopted a triangulated, multi-study approach to test and validate the hypotheses. In Study 1, the authors analyzed 586,778 online reviews through deductive and inductive approaches to determine how three AVF dimensions could be captured and examine these dimensions’ effects on consumers’ evaluative judgments. In Study 2, an online survey was adopted to improve the reliability and validity of findings.
Findings
This study identified positive and negative outcomes of AVF. The results also revealed which AVF dimensions significantly led to communication quality and value for money, which in turn influenced consumers’ overall evaluations. The findings further provided robust support for the mediating role of value for money as a mechanism in the relationships between AVF and overall evaluations across the two studies.
Originality/value
This study contributes to the literature by empirically identifying the three key dimensions of AVF in each consumption stage and subsequently testing a conceptual model using different data, research methods and analytical techniques to cross-validate the results. The authors also extended the scope of AVF by integrating both positive and negative aspects in the context of Airbnb.
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Juha Munnukka and Pentti Järvi
This study aims to explore: first, the formation of the customer value of high‐tech consumer products through application of intrinsic and extrinsic cues of product quality; and…
Abstract
Purpose
This study aims to explore: first, the formation of the customer value of high‐tech consumer products through application of intrinsic and extrinsic cues of product quality; and second, the effect of the mental price category of the product on the construction of customer value.
Design/methodology/approach
The study was conducted in the Finnish consumer market in 2008. In total, 453 completed interview forms were collected through the structured interview method. The factor model was constructed through explorative factor analysis and hypothesis testing was conducted through linear multiple‐regression analysis.
Findings
The high‐tech product's price category was found to have a significant effect on the construction of the customer value. The mental price category in which consumers located the product was found to dictate how the perceived value was constructed through the intrinsic and extrinsic dimensions of product quality. The customer value of high‐tech consumer products was composed of visual appeal, excellence, and price satisfaction. Intrinsic cues of product quality were emphasised.
Originality/value
The study provides new insights into how the formation of customer value is dictated by the mental price category perceived by consumers. Also, new information on how intrinsic and extrinsic cues of product quality affect the customer value of high‐tech consumer products was provided.
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Gustav Medberg and Kristina Heinonen
The purpose of this paper is to explore value formation in the customer-bank relationship outside the line of visibility of service encounters. The customer's own context has been…
Abstract
Purpose
The purpose of this paper is to explore value formation in the customer-bank relationship outside the line of visibility of service encounters. The customer's own context has been overlooked by the bank marketing literature as it is traditionally focused on value created by the service process and outcome.
Design/methodology/approach
Positioned within the customer dominant logic, a netnography was conducted to explore how bank relationships are realised in customers’ own contexts and experiences. A total of 579 postings from discussions of retail banking in 18 online communities were collected and analysed.
Findings
The study uncovered four factors of invisible bank service value experienced by customers: shared moral value, responsibility value, relationship value, and heritage value.
Research limitations/implications
The study conceptualises bank service value as realised in the customers’ own contexts and thus highlights previously hidden sources of value in banking. The findings can be used for further conceptualisations of the customer dominant value formation of bank services.
Practical implications
The netnographic method illustrates how naturalistic data about customers’ retail bank experiences can be retrieved unobtrusively. The findings help bank management to understand what comprises customer value beyond the service encounter.
Originality/value
The paper contributes to the research in service marketing and bank marketing in three ways: first, a methodological contribution is the introduction of a netnographic approach to bank service value research. Second, a theoretical contribution is the uncovering of invisible value formation in the customer-bank relationship. Third, the paper uses the customer dominant logic in a banking context, thus providing insights into how banks are involved in the customer's own life.
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