Customer Value Management Research Articles

Analytics-based service perspective on customer value and business process management: evidence from transportation service

ABSTRACT This paper investigates customer value and business process management from the analytics-based service (ABS) view. ABS uses business analytics to support better-informed decision-making, which benefits service customers and providers. Applying descriptive/diagnostic analytics to service encounters and predictive/prescriptive analytics to post-service may improve business process management. This paper conducted predictive analytics (e.g. regression) and diagnostic analytics (e.g. bigram natural language processing), examining the mechanism to create customer value (e.g. net promoter score) and assessing customer-frontline employee interactions in business processes. This approach helps contextualize diverse and plural relationships between the service customer and provider as an enabler for design thinking. ABS may inform problem exploration with predictive analytics to identify predictors for outperforming or underperforming customer value metrics, problem definition and practice analysis with diagnostic analytics on business process scripts, and developing remedies based on prescriptive analytics powered by simulations and optimizations.

Knowledge sharing and sustainable competitive advantage: Mediating role of innovation culture and MSMEs business performance

This research aims to investigate how business performance (BP) and innovation culture (IC) mediate the relationship between knowledge sharing (KS) and sustainable competitive advantage (SCA) of MSMEs operating in Yogyakarta, Indonesia. The survey method was employed to gather the necessary data for this research. The population and sample consisted of 50 MSMEs. The unit of analysis in this study is the MSMEs fashionpreneur Jogja Fashion Dunia Incubation Program, which is represented by the owner and manager, who also serves as the respondent. The analysis method employed in this research is Partial Least Squares (PLS) using SmatPLS 4 software. The investigation results demonstrate that knowledge sharing has a significant impact on both the innovation culture and long-term competitive advantage. Additionally, the study reveals that the innovation culture significantly influences business performance and lasting competitive advantage. However, it is worth noting that business performance does not have a noticeable effect on sustainable competitive advantage. Furthermore, the study indicates that the relationship between knowledge sharing and sustainable competitive advantage is mediated by the innovation culture. On the other hand, when business performance acts as a mediator, the effect of the innovation culture and knowledge sharing on competitive advantage is indiscernible. To create exceptional customer value, policymakers and MSME management must showcase a firm dedication to innovation and connect it to supply chain agility, also known as SCA. Ultimately, this will result in comprehensive and enduring business performance.

Modelling the influence of managerial competence on managerial performance in the Ghanaian banking sector

The importance of human resource for the success and growth of every organisation, including banks in developing economies, cannot be underestimated. The banking sector in Ghana, a developing economy, has recently faced some significant performance-related difficulties, such as suspending the licences of new banks, raising the minimum capital required, and recording fraud cases. These developments in the banking sector seriously questioned the managerial competencies of bank managers providing leadership roles to these banks in Ghana. It was for this purpose that this study examined the influence of managerial competence on the performance of branch and operational managers in the Ghanaian banking sector. The study sought to achieve, among other things, to explore how managerial competencies such as customer value management, interpersonal, leadership and intrapersonal relate to managerial performance in the banking sector of Ghana. The study adopted the quantitative approach from the positivist philosophical perspective and, specifically, the cross-sectional survey method. A sample of 127 branch and operation managers from the sixteen administrative regions of Ghana was drawn for the study. Data were collected with an adopted questionnaire and analysed with partial least square structural equation modelling. The study found a significant relationship between customer value management, interpersonal, leadership, intrapersonal, technical competencies and managerial performance in the banking sector. The relative importance of each of the five managerial competencies found was customer value management competence, interpersonal competence, leadership competence, intrapersonal competence and technical competence. The study concluded that managerial competence relates to managerial performance in the banking sector in Ghana. The implications of the findings of this study are that human resource managers in the banking sector should pay attention to these managerial competencies in hiring and developing managers for their branch and operational managerial positions in developing economies.

The Influence of Trust, Customer Value and Customer Relationship Management (CRM) on Loyalty Through Customer Satisfaction of Republic of Indonesia Employee Cooperatives University of Jember

This study seeks to analyze the influence of Trust Variables, customer value, and Customer Relationship Management (CRM) on customer satisfaction within the Republic of Indonesia Civil Servants Cooperative at the University of Jember. Primary data is employed for the research, and the path analysis method is applied using the SPSS 21 analysis tool. The findings highlight that Trust, customer value, and CRM factors exert both direct and indirect effects on customer satisfaction

Customer value-in-use monitoring in business markets: An investigation into its determinants and consequences

Monitoring customers' value-in-use (VIU) is the necessary next step in relationship management, as the emerging literature on customer success and value management shows. However, despite considerable academic and managerial interest, how suppliers' internal structures and processes can adequately support VIU monitoring—and what relationship effects can be expected from this process's execution—remain unclear. Drawing on two unique data sets, we build on supplier and customer evaluations of VIU monitoring to empirically examine the constructs' determinants and consequences. In Study 1, we survey 140 supplier firms to demonstrate that two factors positively affect VIU monitoring: top managers' support for customer success management and a supplier's ability to engage in task discourse with customers. In Study 2, we test VIU monitoring's effect on customer-perceived relationship value using data from 155 customer firms. Our results demonstrate that VIU monitoring positively affects relationship value as it is perceived by the customer firm. However, VIU monitoring is not equally important for each supplier–customer relationship. Moderator analysis reveals that a customer's absorptive learning capacity can partially compensate for a supplier's weak VIU monitoring activities.

How Functional and Psychosocial Benefits Impact Customer Value in Internet Shopping using Means-End Chain Approach

Marketing and strategic management revolve around customer value analysis and management. However, only some know how cognitive capability affects customer value from a functional and psychosocial perspective. Internet apparel services are transforming retail increasingly after Covid. Thus, marketing managers in the rapidly growing apparel industry must be flexible to predict other customer-valued services. This study examines customer value and functional and psychosocial benefits using cognitive capabilities. Exploratory, confirmatory, and structural equation modelling are used to better understand the relationship between functional and psychosocial benefits and customer value. These complicated benefit combinations promote customer value and help develop value generation and its causes. Using the conceptual model, managers can improve cognitive capabilities by understanding how perceived functional and psychosocial benefits affect value generation for various types of customers.

Effect of Managerial Competence on Value-Based Financial Performance of Banks

This study investigates the connections between managerial competency MC) and value-based financial performance (EVA, MVA and CVA) of acquirer banks listed on the Ghana Stock Exchange (hereafter: GSE). Correlational research design was employed for the study. Four banks: Ecobank Ghana Ltd, Access Bank Ghana Ltd, Societe Generale Ghana Limited and GCB Bank Limited were chosen for the study. Multiple regression model using Statistical Package for Social Sciences (SPSS) was employed for the data analyses. The findings suggest that MC has a positive and significant effect on value-based financial performance proxied by economic value added (EVA), market value added (MVA) and cash value added (CVA). The MCs required for merger and acquisition success in the banking sector comprised of Leadership Skills, Technical Skills, Fraud Risk Management Skills and Customer Value Management Skills. The study deepens literature on the requisite MC (intra-personal skills, interpersonal skills, leadership skills, technical/business skills, fraud risk management skills, customer value management skills) for merger and acquisition success. Should there be increased shareholder value after a merger or acquisition, managerial competence plays a cardinal role. Traditionally, this value-based model provides guidelines or framework for staff in management evaluation for selection, development and performance management. these skills can be considered as the basis for management development programs as the skills needed to be effective can be developed in adults. the study was limited to only four acquirer banks listed on GSE, further study should be conducted on all listed banks on GSE to test the validity and operability of the value-based model of MC.

A conceptual framework for customer value management

It is essential for a company to be engagement-oriented and analyze how marketing variables affect customer value and how it improves efficiency in both customer attraction and retention. But a comprehensive, integrated assessment of all marketing variables and their interdependencies is an arduous and complex task and thereby, an unsettled issue. Using relationship marketing literature as the theoretical basis of this research, this study overviews marketing variables empirical research, from a customer value perspective. First, we describe the most relevant relationships between each variable and customer value. Then we present a structured framework of the relationships observed between the variables. Lastly, we give some guidelights to manage marketing variables in a unitary manner, considering that the strategies and budgets for attraction and retention should be carried out jointly. The resulting framework shows that customer value is necessarily achieved over customer lifetime, and mainly through four clear predictors: perceived value, purchase intention, satisfaction and switching costs. Such framework can be used by entrepreneurs and marketing managers as a roadmap to customer value that facilitates understanding the significance of marketing variables predicting customer value and their underlying relations.

The Relationship Between Supply Chain Integration and Firm Performance: Focusing on the Mediating Effect of Customer Value

Purpose - This research is to verify the relationship between supply chain integration, customer value, and firm performance; that is, which supply chain integration structure creates a clear customer value pursued by a company and secures a competitive advantage by improving firm performance. Design/Methodology/Approach - The measurement items were constructed based on previous studies, and confirmatory factor analysis was performed using AMOS 18 to evaluate the reliability, validity, and the fit of the measurement model. Findings - First, among the factors of supply chain integration, supplier integration was found to have a significant positive (+) effect on firm performance, but internal integration and customer integration had no significant effect. Second, it was found that the supply chain integration factors, such as internal integration, supplier integration, and customer integration, all had significant positive (+) effects on customer value creation. Third, it was found that customer value plays a mediating role in the relationship between internal integration, customer integration, and firm performance, respectively. Research Implications - In order to realize the customer value that companies are targeting, it will be necessary to first establish supply chain integration strategy suitable for the company. In order for a company to achieve long-term performance and competitive advantage, a company must clearly promise the value it will provide to customers before pursuing supply chain integration. For this, it will be necessary to establish a suitable customer value management strategy.

Research and Application of Improved Clustering Algorithm in Retail Customer Classification

Clustering is a major field in data mining, which is also an important method of data partition or grouping. Clustering has now been applied in various ways to commerce, market analysis, biology, web classification, and so on. Clustering algorithms include the partitioning method, hierarchical clustering as well as density-based, grid-based, model-based, and fuzzy clustering. The K-means algorithm is one of the essential clustering algorithms. It is a kind of clustering algorithm based on the partitioning method. This study’s aim was to improve the algorithm based on research, while with regard to its application, the aim was to use the algorithm for customer segmentation. Customer segmentation is an essential element in the enterprise’s utilization of CRM. The first part of the paper presents an elaboration of the object of study, its background as well as the goal this article would like to achieve; it also discusses the research the mentality and the overall content. The second part mainly introduces the basic knowledge on clustering and methods for clustering analysis based on the assessment of different algorithms, while identifying its advantages and disadvantages through the comparison of those algorithms. The third part introduces the application of the algorithm, as the study applies clustering technology to customer segmentation. First, the customer value system is built through AHP; customer value is then quantified, and customers are divided into different classifications using clustering technology. The efficient CRM can thus be used according to the different customer classifications. Currently, there are some systems used to evaluate customer value, but none of them can be put into practice efficiently. In order to solve this problem, the concept of continuous symmetry is introduced. It is very important to detect the continuous symmetry of a given problem. It allows for the detection of an observable state whose components are nonlinear functions of the original unobservable state. Thus, we built an evaluating system for customer value, which is in line with the development of the enterprise, using the method of data mining, based on the practical situation of the enterprise and through a series of practical evaluating indexes for customer value. The evaluating system can be used to quantify customer value, to segment the customers, and to build a decision-supporting system for customer value management. The fourth part presents the cure, mainly an analysis of the typical k-means algorithm; this paper proposes two algorithms to improve the k-means algorithm. Improved algorithm A can get the K automatically and can ensure the achievement of the global optimum value to some degree. Improved Algorithm B, which combines the sample technology and the arrangement agglomeration algorithm, is much more efficient than the k-means algorithm. In conclusion, the main findings of the study and further research directions are presented.

The Implementation of New Technologies in Customer Value Management—A Sustainable Development Perspective

The constant development of information and communication technologies (ICT) has led to numerous social and economic changes. In this article, we aimed to identify the framework of use of new technologies in the process of customer value management from the perspective of sustainable development in the context of the concept of the engaged customer. The research objective involves an empirical verification of the forms of customer engagement from the point of view of the utilisation of ICT. To discover and explore the patterns that follow, research based on quantitative methods was carried out. The study was conducted with a sample of 1134 individual respondents from Poland, which is one of the biggest and fastest growing e-market in Europe. The findings prove that in the process of customer value management, informal communication, both offline and online plays a critical role. From the perspective of business practice, a company should stimulate customer engagement by making use of the online environment, thus gaining greater control over the entire process of co-creation of value for both customers and itself. Taking advantage of ICT in the process of customer value management is highly relevant and much desired during the time of the Coronavirus Disease 2019 (COVID-19) pandemic.

Applications of the Internet in customer value management processes in Poland in the light of the results of quantitative research

New technologies that are applied in many areas of social and economic life, make the processes of creating, distributing and communicating value to customers continuously transform. It is also connected with redefining the roles performed by market entities, including producers, service providers, distributors and consumers. New technologies expand the possibilities of engaging the consumer in processes that have been conducted before only by companies. In this context, technology management is important. It translates into creating a spiral of values, in which what is possible in the field of new technologies will inspire what is indicated in the area of value management for the customer and vice versa. This is reflected in the concept of technological determinism, as well as in the ongoing changes in consumer behaviour and consumption virtualization. The aim of the paper is to present the scope of Internet applications in the processes of managing value for customers in Poland. The paper is based on literature studies and the results of a quantitative empirical study, which was performed on a sample of 156 companies operating on the Polish market. The research included people responsible for the use of the Internet in marketing or for maintaining contacts with customers with the use of new technologies. The analysis of the research results shows that the Internet is used to a greater extent to communicate and distribute value rather than to involve customers in its creation.

Conceptual Framework of Customer Value Management (CVM) in Indian Banking Sector

With the financial development of any country in rapid growth manner, the function of the banking sector is gaining importance. In an agitated bidding markets, all the commercial banks in India were confronted towards the challenging tasks in favor of holding on to the prevailing customers as well as fascinating novel customers. There exist struggle in describing customer value owing to its complexity, moreover it is necessary for the long term profitability as well as productivity. Thus, Bankers must make maximizing the value of customer, an unambiguous and assessed business goal. Many businesses have capitalized in huge customer databases to monitor, understand, and impact customer behavior. The subsequent information is cast-off to obtain and recall customers as well as to bring out the behavior of customer with the marketing approaches like the value of all present and upcoming customers are enhanced. A conceptual foundation is a tool which can aid the managers in manipulating the distribution approaches in a value-based field. The representation can guide executive thinking in framing the value of customer in a system of banking. This paper conceptualizes the value of customer in a dissemination system as the interactions among customer service, costs, acquisition factors, and customer feedback.

An analysis of configurations of relationship quality dimensions to explain sources of behavioral outcomes in globalized manufacturing

PurposeThis paper aims to explore the role of configurations of relationship quality dimensions for explaining sources of behavioral outcomes in the globalized manufacturing industry.Design/methodology/approachA joint analysis of behavioral and objective performance data from globalized manufacturing links perceptual customer metrics that relate to dimensions of relationship quality (i.e. attitudinal loyalty, perceived customer orientation, customers’ perceived innovativeness of the supplier and perceived customer influence on supplier innovation) with behavioral outcomes (i.e. share of wallet (SOW) and customer account profitability). Using data from a global business-to-business (B2B) customer survey together with archival performance data from a multinational mechanical engineering firm, a fuzzy set qualitative comparative analysis (fsQCA) is performed.FindingsThe fsQCA results suggest that perceptual customer metrics related to innovation can be relevant aspects of relationship quality, in line with Anderson and Mittal’s (2000) satisfaction-repurchase-profitability chain framework and its adaptation to SOW. However, the underlying complexities in the different combinations of attributes in the recipe are such that they are not equifinal in leading to higher SOW or higher profitability. This paper finds indications for non-linearities between perceptual measures investigated and profitability of customer accounts, with particular relevance for the role of perceived customer orientation, perceived product innovativeness of the supplier and attitudinal loyalty.Research limitations/implicationsThe analysis faces a number of limitations, starting with its reliance on cross-sectional survey data, which does not enable us to account for feedback mechanisms, for example, arising from customer perceptions regarding innovation aspects. The lack of a multidimensional conceptionalization of the perceptual customer constructs may have limited the analysis, considering also recent evidence from retail companies in the furniture sector in Spain, suggesting that the multidimensional conceptualization of relationship value explained satisfaction and loyalty levels to a greater extent than the one-dimensional conceptualization (Ruiz-Martínezet al., 2019).Practical implicationsIn terms of managerial implication, the results suggest that customers perceive limited value in participating in the focal firm’s innovation value chain funnel, hence customer loyalty cannot be bought using simple incentive strategies. The results with regard to customer account profitability suggest that B2B customers investigated here may distinguish when interacting with their globalized supplier in the innovation funnel: they may see a positive customer value when the innovation is a product, and thus, relation-specific, whereas they may see limited customer value when innovation is considered in more generic terms (customers’ perceived influence on supplier innovation in general).Originality/valueThis paper starts from the premise that perceptual customer metrics can matter for supplier performance, as the customer relationship and customer value management research has shown. However, there is limited empirical evidence from globalized manufacturing sectors incorporating perceptual constructs in behavioral outcomes, and limited evidence assessing customer-perceived value in such sectors through alternate approaches to main-effects focused analyzes. We employ qualitative comparative analysis using fuzzy sets (Russoet al., 2019) to address these gaps, focusing on two key behavioral outcomes, namely, customer account profitability and SOW.

The Relation between Sustainable Development Trends and Customer Value Management

The sustainable development movement is an essential trend that can resist the excessive consumption and over-exploitation of resources. There have been considerable changes in the perception of the term “sustainable development” over the last 30 years. Difficulties in implementing the principles of rational use of natural resources have resulted from a general conflict between the objectives of economic development and the increasing dynamics of industrial production, the quality of the environment and the objectives of environmental protection. This research goal was to describe ways of linking sustainable development trends and the customer value management process. Research also aimed to indicate what this relationship drives. In order to process the collected individual in-depth interview (IDI) material, the author applied a qualitative analysis. As a result of the exploratory research, it was found that there is no complete agreement on who is responsible for implementing the sustainable development assumptions: producers or customers. However, the process of linking sustainable development trends and customer value management can be pointed out. According to this study, as those who make purchasing decisions, customers are the axis of this relationship. On the basis of the results of this research, as long as customers buy particular products, they will be offered by producers.

A framework proposition to identify customer value through lean practices

PurposeCustomer value is the key to successful innovation management. This task is considered complex and abstract. For this reason, several models have been proposed to that end, among them, Lean approaches. Lean's background has been applied to value identification, providing many benefits. This paper aims at analyzing the practices employed to identify customer value through Lean approaches.Design/methodology/approachThrough a systematic literature review, the main Lean practices for customer value identification were categorized based on five main streams: (1) customer development, (2) customer value, (3) lean product, (4) lean start-up, and (5) lean innovation. These practices were organized into a framework that addresses value identification based on ideation, value prospection, requirements, construction and measurement, and value delivery.FindingsIn total, 33 practices were found to support capturing the value from the customer's perception. Additionally, a discussion is provided on the complementarity and differences between practices.Originality/valueA framework is proposed to integrate the five streams and the corresponding practices for value identification. The results provide mechanisms that can benefit practitioners to better understand the value demanded by customers during innovation management. In fact, practitioners can use the proposed framework to identify value to customers in a holistic way. Academically, the results gather research on customer value and innovation management to contribute with a novel artifact for customer value identification in operations management using Lean approaches. Finally, a future research agenda on value identification is proposed.

The Impact of Customer Value Management on Potential Profits - A Proposed Management Accounting Framework

Purpose- The purpose of this study is to propose a customer value management framework to improve the potential profits using the Management accounting techniques.Design/methodology/approach- Based on the literature, this study identifies and adapts the most appropriate management accounting techniques to manage the customer value and hence improve potential profits. It also tests the perceptions of managers and management accountants of the Egyptian service sector concerning the relative merits of such a framework.Findings- The most significant finding is that the current study accepted the revised model because it provided better fit indices compared with the fit indices of the hypothesized model. A key finding in the current study that has not been investigated in previous studies is that the customer value analysis has a positive and significant impact on companies’ profitability. The study also found that there is an indirect relationship between customer profitability analysis and companies’ profitability. Other factors in the proposed framework have significant positive relationships.Originality/value- This paper contributes to management accounting literature by proposing a framework for managing customer value for the potential profits improvement purpose, using customer profitability analysis; customer value analysis; and value add-costing techniques together with the proposed sequences. It is also a practical contribution to improving the potential profits of the Egyptian service sector.

Value champions in business markets: Four role configurations

Customer value management has become a key priority in business markets, but many firms struggle to implement it. While the prior literature has considered this primarily as sales responsibility, emerging research suggests that best practice firms employ dedicated value champions to implement customer value management. However, at present, we know little about the characteristics, and the tradeoffs between different value championing approaches in business markets. Based on a discovery-oriented field research and interviews with 59 managers in 11 firms, this study illustrates four alternative role configurations firms use to employ value champions, and unpacks the characteristics and implications of each approach. Collectively, this study advances industrial marketing theory by shedding light on an emergent and contemporary management practice, and offering practical insights into how firms can employ value champions in business markets.

Effects of Customer Relationship Management on Product Innovation in Nigeria. A Case Study of Xerox HS Nigeria Limited

Customers generally are regarded as king in every business and they should be treated as such. In doing so, an organization is expected to get close to them and treat them well. The study was carried out to determine the effects of customer relationship management on product innovation in Nigeria, with emphasis on Xerox H. S Nigeria Limited. The research design adopted was survey research. The population of the study consisted of 83 staff drawn from Lagos and Abuja Offices of the Company. Primary data were sourced through self-administered questionnaires, and the formulated hypotheses tested using Pearson Correlation (r) and multiple regression. The findings revealed that customer information management has significant effect on product innovation, and that there is a significant effect of customer value management on product innovation. Also, multi channel management have significant effect on product innovation. The study recommended among others that organizations make customer relationship management a priority so as to have adequate product innovation, also when designing and implementing a multi channel strategy, objectives and goals of internal and external parties affected by the multi channel approach should be considered.

Management of Customer Value A Methodological and Thematic Review

Customer value is the most important aspect of making business strategy that can enhance profit margin and growth of the business. Many research have been done which showed that product does not carry the value but its customer perception of the product which decide if product has value or not. In this paper an attempt is made to identify the main methods and process to create and manage customer value by using system literature review. 35 papers were reviewed and provided 5 major themes for research named as managing customer value, customer value creation, perceived customer value, developing customer value and customer value feedback. The use of customer value, its scope, limitations and future of customer value with conclusion provided based on the research done on various theme included in the paper.