An integrative framework for managing customer value propositions

Abstract

The customer value proposition (CVP) is an important concept integrating theory and practice in business research and management. While recent studies have yielded important insight into the aspects of managing CVPs, an integrative approach is needed, for synthesis of understandings under a unifying framework. The paper introduces an integrative framework for managing CVPs, developed via a narrative-based approach in combination with conceptual differentiation and integration related to the domain of managing CVPs. This conceptual framework, illustrated via Discovery’s Vitality insurance, represents three components of considering this domain: 1) dimensions (strategic vs. operational and perceiving vs. proposing), 2) perspectives (customer, company, co-creation, and context), and 3) processes (identifying competitive CVPs, developing competencies and resources, facilitating value creation, and setting goals and measuring CVPs for competitive advantage). Via the framework, academic research can be better integrated, in ways resonating also with practitioners’ needs in the management of CVPs.