Investigating customer value in global business markets: Commentary essay

This commentary reflects on Blocker's cross-cultural investigation of relationship value in business markets, published in this issue, and identifies several research avenues. From a theoretical point of view, researchers should develop and test hypotheses grounded in both conceptual frameworks and extant literature to expand knowledge of how national cultures-as well as other country-specific variables-affect customer value perceptions in business markets. From a methodological point of view, ongoing research should establish cross-cultural measurement equivalence on the basis of procedures specifically designed to support formative customer value models. Finally, this commentary highlights several key insights related to models of customer value in international business markets.     

From perceptions to propositions: Profiling customer value across retail contexts

The core claim made in the paper is that retailers wishing to identify and manage competitive customer value propositions succeed by measuring and modeling customer value perceptions with reference to specific contexts relevant for their competitive advantage. Hence, the purpose of the paper is to present development and validation of a scale for measuring and modeling customer value and to illustrate how contextual perspective contributes to the evaluation of customer value propositions. The findings, based on empirical data from Finland, Japan, and the U.S., validate a framework wherein customer value reflects economic, functional, emotional, and symbolic dimensions of value, associating with satisfaction and word of mouth effects. The customer value profiles generated on this basis provide analytical insight for evaluating how country, channel, product category, and competitive situation influence the criteria for contextual evaluation of customer value propositions.     

Service value revisited: Specifying a higher-order, formative measure

Recent marketing literature pays particular attention to customer value because of the potential impact on customer behavior and, ultimately, firm performance. Whereas some studies conceptualize customer value in a unidimensional manner, more recent approaches take a multidimensional approach, generally conceptualizing value as composed of various benefits and sacrifices. However, nearly all of these studies consider value components in a reflective manner, which is not only problematic but in many cases conceptually incorrect. In addition, recent customer value research includes service components to define and operationalize the construct. This study suggests that customer value in service contexts, or service value, represents a higher-order, formative construct with benefit and sacrifice components. Specifically, the authors propose a formative model of service value with four components: service quality, service equity, confidence benefits, and perceived sacrifice. A multiple-industry study substantiates the contention that this higher-order, formative approach best models value. The results theoretically and empirically support the conceptualization of service value with formative components, and the measure is robust and works well across multiple service contexts.     

Moving from customer lifetime value to customer equity

We study the consequence of moving from Customer Lifetime Value maximization to Customer Equity maximization. Customer equity has traditionally been seen as the discounted sum of the lifetime earnings from all current and future customers and thus it has been largely assumed that maximizing customer lifetime value would lead to maximum customer equity. We show that the transition from CLV to CE is not that straightforward. Although the CLV model is appropriate for managing a single non-replaceable customer, the application of a CLV model to the acquisition and valuation of customers as an ongoing concern for the firm leads to sub-optimal customer relationship management and acquisition strategies. This leads the firm following a CLV maximization approach to have a smaller and less profitable customer base than one that follows a CE maximization strategy.

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The influence of customer loyalty program design on the relationship between customer motives and value perception

Despite the strong use in marketing practice, the effectiveness of loyalty programs is still heavily questioned among researchers. In our study we present an empirically tested framework that views customer loyalty programs (CLPs) with their differing designs as a moderating tool in a means-end relationship between customer motives and value. By disentangling customer value perceptions of loyalty programs we contribute to the remaining question of the efficacy of CLPs and set the road for further research. Our results support the argument that CLPs can be an effective tool and are not only something that adds to the value of a product or service, but rather creates value by itself. However, this is only the case for programs that target prevailing customer motives and hence provide a higher level of perceived value.     

Strategies for creating value through individual and collective customer experiences

Despite tremendous interest in how online communities create value, existing research tends to focus on limited means through which such value is generated. In this article, we develop a conceptual model of customer value formation. This model rests on two dimensions, namely whether value is formed in the customer or provider domain and whether the value is individual or collective in nature. This enables value formation to be characterized in four ways and enables a more nuanced view of value formation to emerge. Firms are encouraged to reflect on their efforts to support each of the four value formation types. In particular, our conceptualization challenges companies to consider customer contexts outside of customer-firm interaction as important sources of value creation for customers. Such reflection enables practitioners to develop strategies for supporting individual and collective value creation across both the customer and provider domains.     

Analyzing systemic customer value in scalable business services

This paper examines complex service offerings and the creation of systemic customer value in such settings. We explore the extent to which customers value systemic offerings as opposed to more separated offerings. We conducted a questionnaire survey within the customer base of two Finnish service companies. We utilized t-tests to find out how systemic offerings and separated offerings differed in terms of perceived customer value along different dimensions. The findings support the claim that systemic offerings are valued more than offerings that are more separated in nature. The results of the study carry practical implications for firms offering complex and integrated service solutions. In addition, analyses of the service-value elements included in the offering and of the related customer value will enable firms to optimize their service provisioning so as to give higher customer value and subsequently enhance their competitive advantage.     

Investigating the service brand: A customer value perspective

Despite considerable interest in the nature and role of marketing using a service perspective [Vargo S., Lusch R. Evolving to a new dominant logic for marketing. J Mark 2004; 68 (1): 1-17] there is limited research about branding. Research to date tends to be qualitative [e.g., Berry L. Cultivating service brand equity. J Acad Mark Sci 2000; 28: 128-137; de Chernatony L., Segal-Horn S. The criteria for successful services brands. Eur J Mark 2003; 37 (7/8): 1095-1118] rather than quantitative. This research closes this gap by developing and testing a theory of the influence of the service brand on the customer value-loyalty process. The model includes the traditional influence of brand image plus three additional influences that more fully reflect the broader service perspective (company image, employee trust, and company trust). Using survey data of a sample of 552 airline customers, the analysis shows there is a direct influence of all the aspects of the brand on customers' perceptions of value. In addition brand image, company image and employee trust have a mediated influence on customer value through customers' perceptions of service quality. Finally the analysis shows that a service brand does not have a direct influence on customer loyalty but rather its influence is mediated through customer value. This paper concludes with a discussion of the managerial and research implications.     

Customer value and customer loyalty: Is competition a missing link?

This study is aimed at providing an insight into the effects of competition on customer value delivery for customer loyalty. Data were collected using a questionnaire on dyads of service employees and customers. The techniques of ANOVA, ordinary least squares, and logistic regression were used to analyze the dyad data in terms of research purposes. Results show that competition is a moderator of the relationship between customer value and customer loyalty from the consumer perspective. Also, competition is a predictor of customer loyalty from the employee perspective. Insights into this asymmetry in the view on competition between employees and consumers are found. Findings of the moderating effects of competition on the customer value-customer loyalty relationship suggest the significance of competition in the service encounter. In addition, this study found that the predictive validity of the loyalty model for consumers is significantly higher than that for employees. This finding suggests that the factors driving customer loyalty are better captured from the consumer perspective. Findings of the impact of competition on the consumer’s experience of different types of value provide insights as to where to invest in generating customer value to achieve desired customer loyalty. This study also suggests to managers how service employees could be recruited and managed to achieve a service competitive advantage. This study extends our understanding of the customer value–customer loyalty relationship by uncovering the significant role of competition from a dyadic viewpoint.     

The effect of variety-seeking on customer retention in services

Intrinsic variety-seeking has been analyzed as an individual consumer trait affecting consumer's varied behavior. However, very little research has been done on the consumer service sector. In this paper, the authors explore the negative role of variety seeking on customer retention for services. This basic hypothesis is tested through structural equation modeling applied to an empirical study of food-service at three Universities. The results support the hypothesis: variety-seeking negatively affects customer retention and lessens the impact of the management efforts to improve service quality and customer satisfaction.     

Measuring intracultural bimodality and cross-cultural diversity in American-Japanese business negotiations

One of the greatest challenges facing managers and administrators in an international environment is effectively communicating and negotiating with their foreign counterparts. Yet a large portion of their time is spent in these most critical activities. Much has been written about the differences in the perception, motivation and behaviour of people from different cultures, in particular about the American and Japanese interface. However, very little scientific confirmation and measurements exist. In this empirical study the nature and intensity of cross-cultural similarities and dissimilarities were tested and measured with selected statements on a Likert-type scale for a sample of 41 American and 29 Japanese practising managers, pointing to weak intracultural bimodality, but strong cross-cultural contrasts.     

A generalized framework for estimating customer lifetime value when customer lifetimes are not observed

Measuring customer lifetime value (CLV) in contexts where customer defections are not observed, i.e. noncontractual contexts, has been very challenging for firms. This paper proposes a flexible Markov Chain Monte Carlo (MCMC) based data augmentation framework for forecasting lifetimes and estimating customer lifetime value (CLV) in such contexts. The framework can be used to estimate many different types of CLV models—both existing and new. Models proposed so far for estimating CLV in noncontractual contexts have built-in stringent assumptions with respect to the underlying customer lifetime and purchase behavior. For example, two existing state-of-the-art models for lifetime value estimation in a noncontractual context are the Pareto/NBD and the BG/NBD models. Both of these models are based on fixed underlying assumptions about drivers of CLV that cannot be changed even in situations where the firm believes that these assumptions are violated. The proposed simulation framework—not being a model but an estimation framework—allows the user to use any of the commonly available statistical distributions for the drivers of CLV, and thus the multitude of models that can be estimated using the proposed framework (the Pareto/NBD and the BG/NBD models included) is limited only by the availability of statistical distributions. In addition, the proposed framework allows users to incorporate covariates and correlations across all the drivers of CLV in estimating lifetime values of customers.

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Electronic supplementary material  The online version of this article (doi:) contains supplementary material, which is available to authorized users.

Examining the relationship between customer bonding,customer participation,and customer satisfaction

This study empirically analyzes the relationship between customer bonding, customer participation, and customer satisfaction. It uses data from 804 VIP customers of South Korea's commercial banks. The hypotheses are tested using the structural equations modeling technique. The results show that social and structural bonding are the main antecedents of customer participation. Additionally, customer participation positively impacts customer participation value and worth. The findings also show that customer participation, customer participation value, and customer participation worth strongly and positively affect customer satisfaction. Furthermore, it finds that customer participation value and worth are essential mediators between customer participation and satisfaction.     

Price fairness perceptions and customer loyalty in a retail context

Loyalty and fairness are major research topics in the marketing literature. However, research examining how customer loyalty and fairness perceptions affect each other is lacking. This study examines these two topics in the context of a retailer increasing its prices, develops hypotheses, and tests these hypotheses using an experimental design approach. Results indicate that loyalty has a positive effect on fairness perceptions when price increases are low, though no such effect is found when price increases are high. Also, justifiable reasons for price increases lead to increased fairness perceptions when price increases are low, but any reason offered when price increases are high increases fairness perceptions. Whether distributive or procedural fairness influences post customer loyalty in the presence of price increases is dependent on both the level of the price increase and the reason offered for the price increase. This research provides implications for retailers and directions for future research.     

Co-production and customer loyalty in financial services

Recent developments in marketing thought and practice highlight the opportunities that co-production of services provide for creating customer value. The authors propose a model of co-production with which they investigate the links between co-production and customer loyalty and the factors likely to increase the level of co-production in a financial services context, with support from an investigation in the medical services context. Further, the authors consider the relationships of customer expertise, customer–advisor communication, customer affective commitment, and interactional justice with the level of co-production. On the basis of testing with a sample of 1,197 customers of a large multinational financial services organization and 100 patients of medical services, the model is partially supported. Therefore, the authors suggest that co-production may have an important role as a basis for competition in the financial services industry.     

Short-term and long-term effects of touchpoints on customer perceptions

Recent literature highlights the importance of touchpoints, yet fails to test empirically their long-term effects on essential customer perceptions. This study assesses the short- and long-term impacts of different provider-controlled touchpoints on firm expertise, service reliability and service excellence. A random panel dataset of more than 2,000 customers over five years is used to test the proposed model. The results confirm that sales force and product are crucial for long-term customer perceptions, while the effect of consulting, tangibles and standardized contacts is weaker over time. The findings of this managerial-oriented study reveal how the effectiveness of touchpoints changes over time.     

Economic influences on perceived value,quality expectations and customer satisfaction

Consumer research has extensively analysed psychological determinants of customer satisfaction. As macro‐level customer satisfaction data were not available until recently, researchers have only taken first steps towards analysing economic determinants of customer satisfaction. Based on a more complex conceptual framework and on data from Germany and Japan, this article examines how economic processes influence the perceived value of goods and services, quality expectations and customer satisfaction. Using principal component analysis, regression analysis and structural equation modelling, this study finds that perceived value is positively influenced by both economic growth and lagged economic expectations. Customer satisfaction is positively influenced by economic growth and negatively by current economic expectations, with half of the impact mediated by perceived value. Economic expectations positively influence expectations regarding the quality of goods and services. These results imply that consumer researchers should no longer ignore economic influences on consumer attitudes. Marketing managers are advised to be cautious not to misinterpret economic‐induced variations in customer satisfaction as caused by corporate performance.     

Influence of customer application experience and value in use on loyalty toward retailers

This study aims to explain the mechanism by which user experience with retailer applications could lead to loyalty toward retailers. The data were collected through a survey in Indonesia (n = 717). The results support the positive impact of customer experience (i.e., sensorial experiential state, affective experiential state, interactivity, and relative advantage) on value in use. Value in use mediates the effects of customer experience on satisfaction and loyalty toward retailer application. In turn, these two constructs increase loyalty toward the retailer. These findings contribute to the theoretical and practical understanding of the impact of retailer applications on the customer-retailer relationship.     

无锡电信业顾客价值分析

企业竞争力的本质是为顾客创造比竞争对手更高的价值。电信市场的激烈竞争使得研究电信业顾客价值成为必要。文章通过问卷调查的方式在无锡市对电信业的用户进行随机调查,采用因子分析法对收集的数据进行分析处理,寻找衡量电信业顾客价值指标的基本结构,进而提出提高电信行业顾客价值的建议。     

The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image

This study examines the mediating role of customer relationship management (CRM) quality to better explain the effects of service evaluation variables (service quality, customer satisfaction and customer value) on customer loyalty. The study also investigates the moderating effect of brand image on these mediated relationships. The mediating role of CRM quality on the relationship between the service evaluation variables and customer loyalty is supported. Further, it is found that the indirect effect of customer satisfaction on customer loyalty via CRM quality is stronger when perceived brand image is high than when it is low. The results have implications for relationship managers, brand managers and scholars who use service evaluation and relational metrics to predict customer loyalty.