"Superior Customer Value" (SCV) advances theory and offers new tools useful for measuring value dimensions and strength. Achieving highly useful sense making about the value concept and value metrics is important because of the substantial evidence that: customer assessments of total value in a product/service offering strongly affects acceptance and initial purchase; customer evaluations of value experiences relate strongly with retaining them and growing the share-of-business these customers award specific suppliers; and increases in delivered-value implemented strategies relates positively to increases in profitability. "SCV" focuses on advancing value theory, research, and strategy in business-to-business contexts. Coverage includes in-depth case research findings for existing and disruptively new products and services and all papers in this volume embrace the proposition that context is a major force affecting planning and implementing strategy."SCV" is relevant in particular to European and North American B-to-B contexts. However, the tools and theories in the volume are certainly relevant for research by scholars and decisions by executives working in Asia and Australia. "SCV" is essential reading for improving thinking, decisions, and actions relating to the creation, marketing, and purchasing of superior value in products and services - critical abilities for product-service executives.
Author(s): Arch G. Woodside, Michael Gibbert, Francesca Golfetto
Year: 2008
Language: English
Pages: 477
ADVANCES IN BUSINESS MARKETING AND PURCHASING......Page 1
List of Contributors......Page 2
sdarticle_002.pdf......Page 4
sdarticle_003.pdf......Page 5
Editorial review board......Page 6
Customer value: Theory, research, and practice......Page 7
Strategic stance favoring theory and measurement of value......Page 8
Measuring perceived benefits versus consequences realized......Page 9
Estimating total benefits of alternative product-service designs......Page 12
Identifying customer value heuristics......Page 16
Central management issues......Page 17
Modeling antecedents and consequences of customers’ assessments of value......Page 23
Intangible Value in Buyer-Seller Relationships......Page 24
Customer Value Metrics......Page 25
Configurations and Control of Resource Interfaces in Industrial Networks......Page 26
Competence-Based Value Framing for B-to-B Customers......Page 27
Conclusion......Page 28
References......Page 29
Intangible value in buyer-seller relationships......Page 30
Introduction......Page 31
Research Question......Page 32
Context of the Study......Page 35
Key Concepts......Page 37
Structure of the Paper......Page 39
Transaction Cost Economics......Page 40
IMP Interaction Approach......Page 42
Network Approach......Page 43
Resource-Based View of the Firm......Page 46
Competence Theory......Page 50
Agency Theory......Page 52
Application of Relationship Theories......Page 53
Meaning and management of relationship value......Page 56
The Concept of Relationship Value......Page 57
Value Provision by Relationships......Page 61
Conceptualizing the intangible value framework......Page 64
Model Structure......Page 70
Instrument Development......Page 71
Survey Data Collection......Page 78
Analysis......Page 79
Value Dimensions......Page 84
Structure of the Value Model......Page 87
Theoretical Implications......Page 88
Managerial Implications......Page 90
Limitations and future research......Page 91
References......Page 94
Final customers’ value in business networks......Page 102
The challenge of managing in business networks......Page 103
Exchange and value......Page 106
Dyadic Value in Marketing Exchanges......Page 107
Networks and the final customer......Page 110
The Challenge of the Absolute Value Horizon......Page 113
Optimize the Derived Value......Page 114
Optimize Value Capture......Page 115
The Impossibility of the Absolute Value Horizon......Page 117
The Extended Value Horizon......Page 118
Interlocking Value Horizons......Page 120
Integrators as Focal Companies in a Network......Page 121
Creating Interlocking Relationship......Page 122
Conclusions......Page 123
Implications and further research......Page 124
References......Page 125
Functions, trust, and value in business relationships......Page 131
Customer relationship value......Page 132
Relationship functions......Page 133
Direct Relationship Functions......Page 134
Indirect Relationship Functions......Page 135
Customer trust......Page 136
Empirical study......Page 137
Results......Page 138
Discussion and outlook......Page 140
References......Page 142
Volume Function......Page 144
Relationship Value......Page 145
Customer Trust (1equalsStrongly Disagree, 7equalsStrongly Agree)......Page 146
Total cost of ownership and customer value in business markets......Page 149
Introduction......Page 150
Direct versus Indirect......Page 151
Classification Based on Order of Occurrence......Page 152
For Organizational Buyers......Page 153
For Sales and Marketing......Page 155
Approaches to calculate total cost of ownership......Page 157
A TCO analysis: how a lubrication system can lower total cost for a food and beverage manufacturer......Page 160
The Savings......Page 161
Limitations of the TCO approach......Page 162
Conclusions and implications......Page 163
References......Page 164
Linking Customer Value to Customer Share in Business Relationships......Page 165
Introduction......Page 166
Customer Share in Business Markets......Page 167
Customer-Perceived Value in Business Relationships......Page 175
Development of hypotheses......Page 176
Survey Instrument......Page 177
Sampling Procedure......Page 178
Nonresponse Bias and Common Method Bias......Page 179
Results......Page 180
Discussion and implications......Page 181
References......Page 183
Relationship costs......Page 190
Configurations and control of resource interfaces in industrial networks......Page 192
Introduction......Page 193
Theoretical frame of reference......Page 195
The Value of Resources......Page 196
Resource Interfaces and Value......Page 198
Value Creation and the Control of Resource Interfaces......Page 202
Method: investigating and analyzing resource interfaces......Page 205
Creating a light-weight paper: a solution to many problems......Page 206
Resource Interfaces in Developing and Using a Low-Weight Newsprint......Page 216
Control and the Development of a Low-Weight Newsprint Grade......Page 222
Development of an electricity efficient pulping technology......Page 224
Resource Interfaces Involved in Developing ThermoPulp......Page 233
Control and the Development of ThermoPulp......Page 237
Analysis and discussion......Page 240
Configuration and Control of Resource Interfaces in the Holmen Low-Weight Newsprint Case......Page 241
Resource Configurations and the Use of Control Mechanisms in the ThermoPulp Case......Page 246
Concluding remarks: the role of control in value creation......Page 251
References......Page 255
Creating superior value through network offerings......Page 258
Introduction......Page 259
Project Marketing......Page 260
Solution Selling......Page 262
Buying Center and Transaction Cycles......Page 263
Discontinuity as a Key Feature......Page 266
Project Marketing: An Upstream Approach......Page 267
Solution Selling: A Downstream Approach......Page 268
A Reference Framework......Page 270
Case 1: BATIR and the La Roche Project......Page 272
Case 2: The 2012 Olympic Games......Page 275
Identification of the Actors Around the Customer......Page 277
Identification of the Mobilizing Factors of Targeted Actors......Page 278
Setting up a Value-Creation Approach with the Customer......Page 279
References......Page 280
Competence-based value framing for business-to-business customers......Page 284
Introduction......Page 285
The resource-based view of value creation: a review of previous research......Page 287
Value Creation through Input Resources and Competencies......Page 288
Value Creation through Output Resources and Competencies......Page 291
Research method......Page 294
Tuscan Spinners......Page 296
Picanol......Page 298
Filtrauto......Page 300
IBM IT Systems......Page 301
Competence-Based Value Analysis: A Forward-Looking Diagnosis of Competence Needs......Page 303
Competence-Based Value Creation: Overlapping Suppliers’ Know-How with Buyer’s Business Processes......Page 306
Competence-Based Value Communication: Sharing the Tacit Elements of Competencies through Experience-Based Communication Approaches......Page 307
Competence-Based Value Delivery: Enabling Competence Accessibility......Page 310
Discussion and conclusion......Page 311
References......Page 315
Customer value metrics......Page 319
Value for the Customer and Competitive Landscape......Page 320
From Customer Value to Company Value: Towards a Customer-Based View of the Firm......Page 322
Shareholder Value is a Function of the Value of the Firm’s Customer Base (Customer Equity)......Page 323
Customer Equity Originates from the Size and Quality of the Market and Customer Relationships......Page 326
The Size and Quality of Customer Relationships Depend on Customer Satisfaction, Trust, and Loyalty......Page 327
Customer Satisfaction, Trust, and Loyalty Depend on the Firm’s Capability to Manage Customer Value Over Time (Customer Life Cycle)......Page 328
Value for the Customer Depends on the Firm’s Stock of Resources, Competences, and Capabilities......Page 332
Companies must Continually Enhance Resources and Competences through Investments Aimed at Improving Customer Value Management Capabilities......Page 334
Understanding value for the customer: a conceptual framework......Page 335
Customer Value Chain: A Qualitative Approach to Customer Value Analysis......Page 338
Qualitative Research Techniques for Mapping the Customer Value Chain......Page 342
Laddering Applications......Page 344
From Customer Value Chain to Customer Behavior: Models of the Buying Decision Process......Page 345
Customer Involvement......Page 346
Information Selection and Organization......Page 348
Beliefs......Page 349
Interrelations between Beliefs......Page 350
Hierarchy of Effects Underlying Product Evaluation......Page 351
Decision Strategies in Comparison Activities......Page 353
Measuring value for the customer: key methodological approaches......Page 356
Desk Approaches to Measuring EVC and the Total Cost of Ownership......Page 358
Field Approaches: Compositional and Decomposition Methods......Page 360
Hybrid Approaches......Page 367
Concluding remarks......Page 369
References......Page 370
Value delivery and value-based pricing in industrial markets......Page 375
Value delivery and value-based pricing in industrial markets - how are they differentquest......Page 376
Customer value in business markets - a stock-take of current research......Page 379
Customer value in business markets - a proposed model......Page 383
Pricing in business markets - a review of the state of the art......Page 390
The value of value-based pricing......Page 401
A Myth: Premium Prices and High Market Share are Incompatible......Page 405
Are Customers Really as Price Sensitive as Commonly Believed?......Page 407
Clearly Define and Communicate Goals......Page 408
Create and Deliver Value......Page 410
Unique Value Effect......Page 411
Difficult Comparison Effect......Page 412
Price-Quality Effect......Page 413
Be Fair (or, at Least, Create the Impression of Being So)......Page 414
Set Price Level......Page 415
Customer Value Analysis......Page 416
The Drivers of Purchase Decisions......Page 420
CVP Analysis......Page 421
Threat of New Entrants......Page 423
Information About Distribution Channels......Page 424
Customer Segmentation......Page 425
Evaluate Benefits and Costs of Different Channel/Functional Combinations......Page 426
Implement Value Delivery and Pricing Strategy......Page 427
Involve Sales Executives in Pricing and Value Delivery Decisions......Page 428
Reward Sales Personnel for Profits and not Sales......Page 429
Commercial and Technical Personnel Should Converge......Page 430
Practical applications of the framework - illustrative case studies......Page 431
Conclusions and directions for further research......Page 434
References......Page 437
Value creation options for contract manufacturers: Market strategy transition and coevolution in networks......Page 443
Introduction and problem statement......Page 444
Research Problem and Methodology......Page 446
Findings......Page 449
Globalization......Page 450
Role Proliferation......Page 452
Challenges......Page 453
Value Creation and Market Positioning for Metalworkers......Page 454
Critical Success Factors......Page 455
Critical Success Factors for the Efficient Capacity Supplier......Page 456
Critical Success Factors for the Design Partner......Page 459
Facing the Gaps Along the Development Paths......Page 460
The Need for Active Coevolution......Page 461
Conclusion......Page 467
Limitations......Page 468
References......Page 469
