Does your customer really want what you offer them?

Abstract

Purpose – This study aims to examine strategies for customer value assessment used by best practice suppliers in business-to-business markets. Design/methodology/approach – An exploratory two-part field study using a grounded theory approach. Findings – It should not be a difficult question – is the customer getting value for money? You offer them something, and if they like it, they pay for it and use it. However, it gets harder when the product lasts longer – particularly, if there is a significant service component. And what the customer considers important may not be what the supplier is focusing on. So, it is worth asking what companies in global business-to-business markets do to assess customer value when they deliver complex products with a high service content. What is current best practice? And is it good enough? Research limitations/implications – This is an exploratory study based on qualitative methodology, so the research process is necessarily subjective. Further research could investigate a wider group of firms and look at the performance implications of alternative strategies for customer value assessment. Practical implications – The paper focuses on well-regarded suppliers operating globally that have complex product offerings with a high service component. It identifies three distinct strategies for customer value assessment. Social implications – This study considers customer value from a supplier perspective and suggests ways in which research might be extended to include the customer perception of realized value. Originality/value – The paper draws attention to the need to consider customer value assessment as a process and determine whether expected benefits are achieved in practice.