What are the best ways to conceptualize and understand customer value?
•
How do you get beyond the buyer to identify the values of the right people in the buyer's firm?
•
What approaches and measurement methods exist, can be adapted, or can be developed to assess customer value in business markets?
•
How can the value of the core product or service and its augmenting services, programs, and systems be separately assessed?
•
How do and how should buyers assess the value of alternative suppliers' market offerings?
•
How are value, quality, and customer satisfaction conceptually and empirically related?
•
How can we measure the value of collaborative relationships with customers?
Further considerations that are overarching and not specifically mentioned in the framework, but affect all its elements, include the ongoing debate about power, trust, commitment; as well as a growing concern for the environment, ethics and corporate and social responsibility. In summary, there is wide scope for research to refine these elements and also add new ones going forward in this new decade and beyond.
4. Managerial implications
Deriving implications for value analysis, value creation, and value delivery in business and industrial marketing requires reflection upon the state-of-the-art in terms of managerial practice. Fifteen years ago, Flint and Woodruff (1997) bemoaned the fact that they could offer little normative advice for managers seeking to understand how the concept of value and managerial perceptions of value were changing. They sought to respond to this lacuna by developing a customer value change theory and, in so doing, they presented a call for new research that could underlie managerial prescriptions of value change.
Since that time, the value movement has evolved and a proliferation of interest in the concept of value in business markets has been witnessed (Ramani & Kumar, 2008). Nowadays, the virtues of value are extolled by many: consultancies peddle their value solutions-focused diagnostics, tools, and techniques; normative advice is offered by academicians; managerial prescriptions are conveyed by thought leaders; and, airport bookstores carry several, mostly competing, treatises from value creators. Advice is seemingly ubiquitous. However, managers seek this advice despite their appetite being rarely nourished.
Based on the value analysis, value creation, and value delivery framework depicted in this article, we present a process model for value orchestration in business and industrial markets (Fig. 2). Founded upon the resource-based view of the firm, we contend that resources are instrumental to value creation based upon the development of competitive advantages (Ireland, Hitt, & Sirmon, 2003). However, the mere possession of resources is a first principle and so managers need to accumulate, combine and exploit their resource base in order to realize value (Sirmon, Hitt, & Ireland, 2007). In the following section, we overlay this managerial process of resource management (presented as three managerial resource activities—structuring, bundling, and leveraging) upon the value analysis, value creation, and value delivery framework in a bid to articulate a series of managerial prescriptions for value creation.
What are the best ways to conceptualize and understand customer value?
•
How do you get beyond the buyer to identify the values of the right people in the buyer's firm?
•
What approaches and measurement methods exist, can be adapted, or can be developed to assess customer value in business markets?
•
How can the value of the core product or service and its augmenting services, programs, and systems be separately assessed?
•
How do and how should buyers assess the value of alternative suppliers' market offerings?
•
How are value, quality, and customer satisfaction conceptually and empirically related?
•
How can we measure the value of collaborative relationships with customers?
Further considerations that are overarching and not specifically mentioned in the framework, but affect all its elements, include the ongoing debate about power, trust, commitment; as well as a growing concern for the environment, ethics and corporate and social responsibility. In summary, there is wide scope for research to refine these elements and also add new ones going forward in this new decade and beyond.
4. Managerial implications
Deriving implications for value analysis, value creation, and value delivery in business and industrial marketing requires reflection upon the state-of-the-art in terms of managerial practice. Fifteen years ago, Flint and Woodruff (1997) bemoaned the fact that they could offer little normative advice for managers seeking to understand how the concept of value and managerial perceptions of value were changing. They sought to respond to this lacuna by developing a customer value change theory and, in so doing, they presented a call for new research that could underlie managerial prescriptions of value change.
Since that time, the value movement has evolved and a proliferation of interest in the concept of value in business markets has been witnessed (Ramani & Kumar, 2008). Nowadays, the virtues of value are extolled by many: consultancies peddle their value solutions-focused diagnostics, tools, and techniques; normative advice is offered by academicians; managerial prescriptions are conveyed by thought leaders; and, airport bookstores carry several, mostly competing, treatises from value creators. Advice is seemingly ubiquitous. However, managers seek this advice despite their appetite being rarely nourished.
Based on the value analysis, value creation, and value delivery framework depicted in this article, we present a process model for value orchestration in business and industrial markets (Fig. 2). Founded upon the resource-based view of the firm, we contend that resources are instrumental to value creation based upon the development of competitive advantages (Ireland, Hitt, & Sirmon, 2003). However, the mere possession of resources is a first principle and so managers need to accumulate, combine and exploit their resource base in order to realize value (Sirmon, Hitt, & Ireland, 2007). In the following section, we overlay this managerial process of resource management (presented as three managerial resource activities—structuring, bundling, and leveraging) upon the value analysis, value creation, and value delivery framework in a bid to articulate a series of managerial prescriptions for value creation.
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