Customer Value Creation Research Articles

Uticaj različitih dimenzija brenda na kreiranje vrednosti za potrošače

Achieving the competitive advantage on the market is one of the basic business challenges for the market oriented companies. In order to attract the greatest possible number of customers there is a need to create value which shall be recognized by the customers as a superior or a greater one in the process of estimating alternatives compared to the competitive options. Brand is one of the most important determinants in creating value for the customers. Brand is a complex category and during the analysis of its influence onto the value creation it is needed to take into account its different dimensions. In accordance with the concepts of numerous studies in the area of marketing and customer management the influence of brand on value creation for customers is regarded via four main dimensions-brand awareness, developed brand loyalty, brand trust and the possibility to recognize the expected quality and meaning of a certain brand product. The paper uses a research model which encompasses all four brand dimensions and analyzes their influence onto the customer value creation. The empirical research has been carried out on a sample of 174 respondents in Serbia. Based on the gathered empirical data a significant brand dimension for the customers in Serbia has been identified. Based on the gained research results a difference has been tested in the importance of different brand dimensions for men and women. The paper offers significant theoretical and practical implications which indicate what brand dimensions need to be emphasized in the process of product and service branding and to which extent every one of them contributes to the customer growth value. Also, a brand dimension has been identified with a different influence on creating value with men and women, which is an important implication for the marketing strategy.

Analiza uticaja različtih vrednosti za potrošače u M trgovini na satisfakciju i nameru kontinuiranog korišćenja

Creating customer value is one of the basic ways to achieve competitive advantage on the market. More and more customers satisfy their need for buying products and services in a digital surroundings. During the last few years, there is an increase in the number of customers who are accessing the digital market using mobile phones and making their purchasing transactions using these devices. The aim of the paper is to analyze the importance of m-commerce within the modern market and values due to which customers use mobile phones in performing transactions within the digital market. Understanding the values important for the customers in m-commerce is needed in order to optimize the performance strategy on the digital market which enables the achievement of competitive advantage. While analyzing different value dimensions it is important to comprehend its influence onto customer satisfaction. The empirical part of the paper uses a research model containing six variables (functional, price, comparative, epistemological value, satisfaction and the intention to continuously use m-commerce). Thereby, every variable is measured using several statements which have been retrieved from relevant literature, while the respondents have expressed their level of concordance with the given statements using a seven point Likert scale. Data have been collected on the territory of Belgrade, using a sample of 402 respondents. Data analysis first tested the model reliability and validity, and afterwards the significance and effect strength of the four dimensions of the perceived value on customer satisfaction, as well as the relationship between satisfaction and the intention to continuously use m-commerce. The reliability of every model variable has been estimated based on the Cronbach's alpha coefficient. By using the confirmatory factor analysis, the model concordance has been tested, as well as convergent and discriminatory validity. In order to measure the relations between the model variables a model of structural equations has been used. The results have shown that the functional and price value stand out as the key drivers of m-commerce users satisfaction. Obviously, the benefits, as well as price savings offered by the mobile payment systems are the main generators of user satisfaction. Additionally, the study confirms the strong significant influence of satisfaction onto the intention to continuously use mobile phones in order to realize different payments and to perform shopping. The contribution of the realized study can be seen in the analysis of four dimensions of perceived value and the measurement of their influence onto satisfaction on the example of mobile service users. Globally seen, the paper follows the behavior of customers in a new digital surroundings. A very few empirical research have been realized in the Republic of Serbia with the aim to test the relations between the mentioned variables when it comes to using m-commerce. The originality of the suggested model can be seen in the unique combination of the value dimensions, since apart from the two standard dimensions (functional and price value), the model contains the two specific value dimensions: comparative and epistemological value.

Creating Superior Value in the Eyes of the Customer: An Analysis of the Two Generic Value Drivers and Value Paths

Despite the considerable body of work on customer value, the literature remains highly fragmented and thus surprisingly silent on two elementary questions: (1) whether a firm should focus more strongly on the product core (a product’s basic elements) or the product surrounding (a product’s additional elements) and (2) whether a firm should focus on the cognitive path (a product’s actual value) or the intuitive path (the signaling of efforts to create a product of high value). Given the large investments required for customer value creation and firms’ increased need for cost control, the answers to these questions are especially important, as they would help managers avoid misallocation of human and financial resources and would offer valuable insights into how communication and sales activities can best support a customer value strategy. On the basis of an integrative framework and a dyadic dataset, this paper finds that the answers to these questions depend significantly on the specific product context (the type of product, extent of product commoditization, and product involvement). For example, services firms may concentrate more strongly on the product core and should particularly focus on the intuitive path. By contrast, manufacturing firms should rely more heavily on the product surrounding and may focus almost equally on the cognitive path and the intuitive path.

Трансформация бизнес-моделей “Большой фармы”

The article explores the main directions and drivers of transformation of Big Pharma business models over the last quarter century. Key features of the traditional blockbuster model are revealed in the context of the main trends in pharma business environment that might have an adverse impact on this model effectiveness, in particular skyrocketing R&D costs, massive patent cliffs and tightening regulatory pressure on drug prices. The author analyzes various adaptive strategies used by Big Pharma firms, including mega mergers and acquisitions, intensive globalization and expansion into emerging markets, and makes the conclusion that these strategic moves had a limited effect in bringing about lasting change. The key solution to industry challenges had been found on the way of reconsidering the dominant players’ business model. The author relates the emergence of the new specialty pharma model to the serious changes in the basic architecture of customer value creation, delivery and capture mechanisms. The rapid growth of specialty care drugs in the portfolios of Big Pharma companies led to dramatic shifts not only in the target customer audience but also in the fundamental approach that these firms had to take regarding customer interaction, promotion and distribution systems, as well as the way of making profit. Even more significant changes could be observed in R&D sphere where Big Pharma companies have been intensively developing symbiotic relationships with innovative biotechnological firms. Given their effective and flexible R&D mechanism, the dynamic biotech firms have already become the most attractive participants of Big Pharma emerging innovation ecosystems. The author concludes that most of today’s Big Pharma companies represent a hybrid business model meaning parallel development of the traditional blockbuster and the new specialty pharma models. This combination allows pharmaceutical giants to retain effective control over the rapidly changing global industry marketplace.

An axiomatic model of customer value creation and firm value appropriation enhancing strategic decision-making based on the jobs to be done theory

An axiomatic model of customer value creation and firm value appropriation enhancing strategic decision-making based on the jobs to be done theory

Servitization in the Manufacturing Industry: Where Do We Stand? Where Do We Come From?

Manufacturers are increasingly shifting their strategic focus from products to services to create customer value and defend a competitive edge in the marketplace. The transition process from product- to service-centric logic is referred to as servitization. Despite a large and growing body of academic literature, we are missing a descriptive view on the current state and the varying transition trajectories towards servitization in manufacturing industries. Against this backdrop, we provide a comprehensive empirical analysis of the servitization process in the U.S. manufacturing industry over the last 10 years. Using a unique panel dataset of 1,381 U.S. manufacturers, we draw a pronounced picture of firms’ servitization trajectories. Our descriptive results establish servitization as an ongoing trend in several sectors of the manufacturing industry. The commercial machinery and electronic equipment sectors put the strongest emphasis on services, while services play only a minor role in the chemical products sector. Moreover, we distinguish different service types and reveal their specific role in the servitization process. Product-oriented services, such as maintenance and repair services, have reached a high yet saturated level of strategic importance; customer-oriented services, such as systems and solutions, have become the major focus of the ongoing servitization process. A fine-grained analysis reveals considerable differences between large and medium-sized enterprises. These insights help managers to benchmark and improve their servitization strategy.

Synergy Relationship between TQM and Knowledge Management to Create Customer Value Perceptions

Total quality management (TQM) has been trusted by many quality-oriented companies in the world in order to improve performance in terms of customer value.n However, studies on the implementation of TQM and knowledge management in relation to customer value are still very few. The main aim of this research is to understand how customer's perceived value is influenced by TQM and knowledge management. A literature review was conducted to identify key TQM and knowledge management practices and the concept of customer value. This study adopted a cross-sectional design with a quantitative approach to test the research model. Data was collected using the survey method by distributing questionnaires online and sent using their respective e-mail addresses and using the business WA group. Based on a survey of service sector business actors, the PLS estimation approach is used to achieve research objectives and test hypotheses. The empirical results show that TQM has a positive signaling effect on knowledge management and customer value perceptions. In addition, it was found that knowledge management has a significant effect on customer value perceptions. This study was limited to the food service sector in Bali, Indonesia and a cross-sectional design was used to examine the hypothesized relationships at one point in time. The research model developed can add insight to knowledge by practitioners and policy makers and the basis for making critical policies in the future. The paper addresses the gap in the literature by analyzing the relationship between TQM and knowledge management in the process of strengthening customer value perceptions.

BAGAIMANA HARGA GANJIL MEMBANTU ANDA MEMANFAATKAN KEKUATAN PSIKOLOGI

Price is one of the important points in marketing as well as in creating customer value. Odd prices.are..one of the strategies made by companies to form the impression of low prices in the minds of consumers. The goal of this study is to understand the relationship between odd prices and consumer involvement in purchase intentions. Non-random sampling (convenience sampling) was used in this study for data collection. The respondents numbered 112 people who were in Kupang. Questionnaires were disseminated to customers who used shopee (Flash sale product) in Kupang. The research method is a survey and outcome were analyzed and interpreted using Structure Equation Modeling (SEM). The relationship between odd prices, customer involvement shows positive influence on each other. 
 Keywords: Odd price, consumer involvement, purchase intention

Exploring the impact of customer experience on customer loyalty in e-commerce

Abstract In recent years, with the remarkable growth of the global digital market, specialists took a new direction of focus in the field of marketing, considering customer experience an important differentiator in today’s digital landscape. In an online setting, in contrast to traditional marketing, the dimensions of customer experience include informativeness, entertainment, social presence and sensory, elements that create customer value. The experience is an increasingly significant component in defining the success of an online company, becoming a source of competitive advantage for any e-business. Yet, to accomplish these favorable results, a business needs to focus on customer loyalty, a concept that is understood from a relational perspective as the consumer’s preferences to sustain a stable relationship with the brand, fact that involves consistent visits of the site, and in consequence, repeat purchases. The research presented in this paper is based on the literature review. Subsequently, a conceptual model was proposed as the intersection of the online customer experience dimensions with the concept of customer loyalty, which, in turn, includes consumer’s attitudes and behaviors toward an online business. The purpose of this study is twofold: (1) to offer an outline of opportunities to use customer experience for increasing customer loyalty and (2) to provide managerial implications and guides future research opportunities to empirically measure the impact of online customer experience components on customer loyalty.

Reviews Posted And Ratings Given By Consumer Endorsers: Gaining Customer Value

Purpose: The purpose of this paper is to investigate the impact of attractiveness of consumer endorser, trustworthiness of consumer endorser and expertise of consumer endorser on review and rating given by consumer endorser. The source credibility model has been used for the purpose of this study. Design/Methodology/Approach: The final data of 249 samples of age group between 17 to more than 45 years of age was analysed for the purpose of this study. The data was collected through Google forms (online). The statements in questionnaire were based on source credibility model. For purpose of the study null hypothesises were formed and tested. Regression was performed to test the hypothesis of the study. SPSS and AMOS are used to test the hypothesis in the current study.Findings: It is evident from the result of the study that all null hypotheses got rejected. Which reflects that attractiveness of consumer endorser, trustworthiness of consumer endorser and expertise of consumer endorser have significant impact on review and rating by consumer endorser.Limitation: The source credibility model has been studied with reference to consumer endorsement creating customer value. Further researches can include purchase intention of consumer as and when affected by endorsement. Review and ratings impact on consumer’s attitude and purchasing pattern can be studied by future researchers. Different industries and sectors can also be part of study.Originality/Value: The study can be used to understand what is the relevance of review and rating done by consumer endorse? It has huge managerial implication which signifies that attractiveness, trustworthiness and expertise of consumer endorser play a crucial role. The results can help many researchers of consumer behaviour; managers engaged in advertisement planning and brand management for a better way of communication of product and services as a part of usefulness and usage to end users.

Creating customer value in the sharing economy: an investigation of Airbnb users and their tripographic characteristics

PurposeThis paper aims to investigate the roles of different types of customer value in influencing in customer evaluations of Airbnb. In particular, this study empirically tests the roles of four value dimensions in shaping existing Airbnb users’ attitudes and future behavioral intentions along with the effects of tripographic characteristics on users’ post-purchase evaluative judgments.Design/methodology/approachThis study adopted a multi-study approach to test the hypotheses. In Study 1, theoretical relationships between constructs were proposed and empirically analyzed; and in Study 2, a different sample was used to validate the hypothesized model and enhance the external validity of the findings. After completing both studies, the two samples were combined to test for the moderating effects of several key tripographic factors among Airbnb users.FindingsThis study found that price value, emotional value, quality value and social value were critical factors exerting differential effects on customers’ evaluations of Airbnb. Further analysis of group differences revealed that Airbnb customers’ value perceptions differed significantly depending on the length of stay, group size and number of previous trips. The number of previous trips also had a significant moderating effect on the relationship between social value and attitudes.Research limitations/implicationsThe findings of this study contribute to the literature on Airbnb by presenting a comprehensive assessment of the differential effects of value components in evaluating Airbnb experiences with the consideration of tripographic characteristics. While supporting the importance of emotional, social, quality and price value to Airbnb guests, the results also show that Airbnb seems to appeal particularly to visitors who stay longer, travel with large groups and have used the platform several times in the past.Originality/valueThe findings of this study provide important insight into which customer values contribute to users’ attitudes and consequent favorable behaviors. More importantly, this study emphasized the importance of understanding the moderating effects of tripographic characteristics in the relationships between customer values and existing users’ evaluative judgment of Airbnb experiences.

Analyzing Determinants for Adoption of Intelligent Personal Assistant: An Empirical Study

With the accelerating advances in artificial intelligence (AI) technologies, the rising demand for the intelligent personal assistant is expected to rapidly increase in the following decades. As customer loyalty has become a critical element in gaining a competitive advantage and many marketers pay great attention to it, this research aims to explore the factors that directly affect customer loyalty toward the intelligent personal assistant. The main motivation is to investigate and identify the direct effects that variables such as customer innovativeness and perceived value have on customer loyalty. Additionally, both product knowledge and corporate image will be examined as moderators. The results obtained demonstrate that perceived value has a positive influence on customer loyalty. Furthermore, product knowledge moderates the influence of functional and hedonic innovativeness on customer satisfaction. The study’s main contributions provide a better understanding of customer loyalty. This research aims to be viewed as a specific guide to provide effective practices that companies should implement to help them reallocate resources appropriately and enhance customer value creation. The results indicate that the higher the level of customer perceived value, the better the customer loyalty will be. The findings represent that corporate image has a positive moderating effect on the influence of customer innovativeness on perceived value. This study draws on the outcomes of administrative suggestions and recommends a few observational strategies to improve the monetary administration in the intelligent personal assistant industry.

Customer satisfaction and value creation through supply chain management in organized vis-à-vis unorganized retail for fruits and vegetables in South Gujarat

Customer satisfaction and value creation through supply chain management in organized vis-à-vis unorganized retail for fruits and vegetables in South Gujarat

Creating customer value from data: foundations and archetypes of analytics-based services

The digital transformation offers new opportunities for organizations to expand their existing service portfolio in order to achieve competitive advantages. A popular way to create new customer value is the offer of analytics-based services (ABS)—services that apply analytical methods to data to empower customers to make better decisions and to solve complex problems. However, research still lacks to provide a profound conceptualization of this novel service type. Similarly, actionable insights on how to purposefully establish ABS in the market to enrich the service portfolio remain scarce. We perform a cluster analysis of 105 ABS and triangulate it with a revelatory case study to identify four generic ABS archetypes and to unveil their specific service objectives and characteristics. We also isolate essential factors that shape decision-making regarding the choice of adequate archetypes and subsequent transitions between them. The detailed characterization of different ABS types contributes to a more profound theorizing process on ABS as well as provides a systematization for strategic opportunities to enrich service portfolios in practice.

Customer Value Creation for the Emerging Market Middle Class: Perspectives from Case Studies in India

This paper examines the customer value creation framework and discusses the design of the key elements for product development in emerging markets. A scientometric/bibliometric scoping literature review identifies a clear gap in the current research in studying prerequisites for customer value creation in emerging market contexts. Observing experiences of Daikin and Renault in the context of India, the purpose of this paper is to identify value creation strategic choices following which comprehensive customer value offerings in products and services can be successfully created by firms across the four facets of the framework in emerging markets. Value creation strategies include having a nuanced understanding of the latent contextual needs to offer localized high-quality products that embody distinct functional attributes that provide a functional value and being responsive to specific emotional needs and epistemic experiences of the target customers in product and service offerings to deliver a greater experiential value. Furthermore, the products should adopt a localized operational excellence strategy throughout the value chain to reduce costs for competitive price offerings in order to deliver superior cost value and develop brand image and equity strategy, thereby allowing for the provision of a greater symbolic value. Experiences of successful firms demonstrate the need for extensive local research into the emerging market followed by localization of production and development of a distribution network to be able to offer customized products at competitive prices whilst maintaining the brand value. We thus extend the customer value creation framework by introducing localization as a necessary condition for successful organizational performance in emerging markets.

The Experiences, Challenges and Acceptance of Online Food Application by the Consumers and the Enhancement of Value Through Blockchain Technology

Technology has played a role to revolutionise the food delivery service from phone based to online ordering to satiate consumers’ ever-shifting demands, making its way to the top. Today, the business of food delivery services is one of the fastest segments of e-commerce. This study is conducted to know how consumer expectations from online food service providers. Customer value creation is the utmost requirement for the sustainability of these services. To create value the bottlenecks need to be removed from the service process to enhance highest quality of customer experience through the application of blockchain technology. This paper studies the relationship between information quality and availability at various levels with customer satisfaction through a technology adoption model and value creation through blockchain.

BARRIERS AND OPPORTUNITIES OF IMPLEMENTING DESIGN THINKING IN PRODUCT DEVELOPMENT PROCESS OF A BUSINESS TO BUSINESS COMPANY

AbstractCustomer centricity is described as placing value creation for customers at the core of business decisions and organizational practices and is progressively regarded as a foundation of sustainable competitive advantage by companies. Hence in recent years, there is a shift from companies being product-centric to them adapting customer-centric practices as a practice to create balanced and sustainable businesses. Although there are several methods and processes that can help companies become customer-centric; Design Thinking (DT) is championed by many practitioners and academics alike as being effective in introducing customer-centricity in organizations. Despite being a highly researched topic in the last decade, the bulk of the research is focused on success stories or one-off cases of using design thinking in Business to Customer (B2C) environments. This paper is based on a qualitative study performed at a high-tech Swedish electronics company and focuses on highlighting the barriers and opportunities of adapting DT in Business to Business (B2B) companies with established product development processes. The barriers we identified can help companies to address the impediments and will make the DT implementation easier for companies

Customers Acuity Towards Usage of E- Banking Services During COVID-19: A Study with Reference to Thane City

Rapid shift in technologies, increasing knowledge intensity and development in internet and telecommunications systems has brought lot of changes in almost all facets of life including banking sector. These advances have given bent to digital economy. E- banking has almost replaced the traditional banking system and act as a competent and viable means to create customer value. The covid outbreak has posed a serious threat to Indian economy. One virus has halted the entire nation. During the covid-19 situation the Government has announced a lockdown, thus allowing banks to function with limited staff. People cannot meet their regular needs for banking thereby diverting customers to opt for E-banking services. The need for E-banking has increased during the covid-19 situation. During lockdown banks were strenuous more on online banking providing better service and satisfaction of the customers. The present paper explores the major factors responsible for customers acuity towards e- banking during covid-19. Analysis of variance technique is employed to study the significant relationship between the selected variables and customer acuity towards usage of e-banking services during covid-19. The research substantiated to conceptual framework will help the bankers to understand the customers need in better way.

Netflix in India: expanding to success

Learning outcomes After completing the case, students should be able to understand: the importance and uniqueness of the individual market and developing a suitable marketing strategy. The concept of value creation and learn the importance of developing the right value proposition to compete and succeed in a market. The target audience and how to create the right marketing mix. Competition in a digital landscape and the importance of developing an appropriate strategy to counter its rivals and position the brand effectively. Case overview/synopsis During his visit to India in December 2019, Netflix’s founder and chief executive officer Reed Hastings talked about a series of steps the company had taken in the recent past to successfully face stiff competition and move towards achieving its stated target of 100 million viewers. These steps involved significant changes in their marketing mix such as reworking their pricing, developing a rich portfolio of Indian content and building various partnerships. Since Netflix’s launch in India (December 2016), it faced fierce competition from players such as Hotstar and Amazon Prime, both of whom had developed a rich portfolio of Indian content and adopted a very aggressive pricing strategy thus, making these changes essential. At the time of their launch, Netflix had set a very ambitious target of gaining 100 million viewers within five years (by 2021) while adopting a premium pricing strategy and positioning themselves uniquely based on their international content. They quickly learned that they would have to reevaluate their approach if they wanted to achieve their target on time. The changes announced by Hastings were an effort in that direction. The moot question was whether these steps would help Netflix India reach its goal. This challenge was further compounded by an almost 40% hike in data tariffs by three major wireless carriers considering most Indians watched over-the-top media content on their mobile phones. Complexity academic level The case is designed for undergraduates, as well as for fundamental marketing courses in the Master of Business Administration and other graduate level programmes. It can be taught in the Principles of Marketing, Marketing Strategy and International Marketing courses. It is ideal for topics such as understanding the operation of a digital business in a new market, customer value creation and value drivers, brand and brand positioning, product promotion, strategies for business growth and expansion, fighting competition in a digital landscape. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 8: Marketing.

Customer value creation in the development of digital health services: discourse analysis

The study’s aim was to describe how customer value creation is reflected in the development of digital health services. To this end, we used discourse analysis to evaluate documentation from the ODA (Self-Treatment and Digital Value Services) project, which provides national-scale digital health services. Three main discourses emerged: 1) a discourse on the active role of the customer, 2) a discourse on technology that activates the customer to create value, and 3) a discourse on the benefits of customer value creation. The research provided new insight into customer value creation in digital health service development. Speech about customer value creation was a part of the social reality of the digital health service’s development. The customer appeared as an active player and a key resource within the service. The role of the active customer was considered demanding and responsible. Our findings suggest that the new digital service changed customer behavior, with technology acting as an enabler of this change. Customer activity and information sharing were seen as enablers of value creation and the associated benefits, and there was a willingness to strengthen the customer’s role as a need determiner.