Practices and functions of customer reference marketing — Leveraging customer references as marketing assets

This multiple-case study focuses on the practices and functions of customer reference marketing and on the ways through which customer references can be deployed as marketing assets. Analysis of 38 interviews with managers in four case companies suggests that customer references can be leveraged externally as marketing assets to (1) gain status-transfer effects from reputable customers, (2) signal passing a selection process, (3) concretize and demonstrate complex solutions, and (4) provide indirect evidence of experience, previous performance, technological functionality, and delivered customer value. Customer references can also be leveraged internally to (1) facilitate organizational learning, (2) advance offering development, (3) motivate personnel, and (4) develop understanding of customer needs, internal competencies, and delivered customer value. By identifying the practices and functions related to customer reference marketing, the paper deepens understanding of this highly relevant but relatively under-researched phenomenon and contributes to the literature on customer-based marketing assets.     

Measuring and managing customer relationship risk in business markets

There have been repeated calls from top management and marketing academics for greater accountability in marketing so that the financial returns of marketing investments can be more robustly evaluated. These are coalescing around the issue of whether or not marketing delivers shareholder value. One promising line of enquiry explores customer lifetime value and the profitable management of these relationships. Although helpful, this approach fails to make the final link with shareholder value since customer lifetime value is still essentially a profit or cash flow measure and does not fully account for customer risk. This paper describes empirical research which explores differing approaches to measuring customer risk and the creation of shareholder value through customer relationship management (CRM). We develop a customer relationship scorecard which proves an innovative tool for managers to use in determining the risks in their customer relationships and developing risk mitigation strategies. The scorecard is then used to forecast retention probabilities, from which a risk-adjusted customer lifetime value is calculated. Both the scorecard and the calculations have an impact on the CRM practices of the customer relationship managers. From a theoretical perspective, an enhanced consideration of customer risk and returns is an important additional step towards demonstrating that marketing creates shareholder value.     

Role of competences in creating customer value: A value-creation logic approach

This paper addresses the issue through what kind of competences companies are producing value for their business customers. First, a value typology, clarifying the complex character of value, is constructed, together with suggestions on how the question of value creation can be framed. In order to understand and manage supplier-customer relationships, it essential to comprehend how both customers and suppliers perceive value and their roles in value creation. The matching of customers' and suppliers' perspectives is discussed by developing a framework depicting the business-to-business marketing types. Then the competences needed for creating value for customers and suppliers alike are examined by identifying what kind of competences are required in each marketing type.     

Capturing value creation in business relationships: A customer perspective

Collaborative relationships in business markets are of growing importance to customers and suppliers alike. Customers need to decide whether to invest in a new supplier relationship, to maintain and develop a valued relationship, or to divest from a low-value relationship. Suppliers, in turn, face growing commoditization of products and seek to differentiate themselves through relationships. The measurement of value creation in buyer-seller relationships is still in its infancy, and a sound understanding of how firms create and deliver value in business relationships is needed. Emerging studies investigate relationship value based on dimensions derived from theory and lack a managerial perspective. Therefore, the present research explored relationship value from a grounded theory perspective. In-depth interviews with purchasing managers identified eight value drivers in manufacturer-supplier relationships. Implications for the measurement of the concept are discussed, and directions for further research are suggested.     

Managing the trade-off between relationships and value networks. Towards a value-based approach of customer relationship management in business-to-business markets

The management of buyer-seller relationships was an early antecedent to the development of customer relationship management (CRM) concepts. Currently, CRM concepts are being challenged by the rise of value networks. Value networks can and, often, do interfere with customer relationships and thereby call for a broader range of concepts to analyze and understand relationship management and the influence of value networks on relationships. This introductory article describes the nature of the problem between relationships and value networks, reviews the current state of research, and describes the contributions of the articles presented in this special issue on CRM in business-to-business markets.     

Towards a framework of customer value assessment in B2B markets: An exploratory study

This paper examines the key processes and activities of customer value assessment in business-to-business (B2B) markets. Given that an increasing number of B2B firms are providing combinations of products and services, or integrated solutions, the present study examines customer value assessment from the solution supplier's perspective. Specifically, based on an exploratory field study and in-depth interviews with 18 managers in three different firms, the present study identifies five key processes (i.e., value potential identification, baseline assessment, performance evaluation, long-term value realization, and systematic data management) and 11 related activities involved in customer value assessment in B2B markets, and integrates them into a managerially grounded framework. The findings from this study contribute to the literature on customer value and solution research, and provide useful insights for managers on how to assess the value delivered by their offerings to customers.     

Marketing solutions in accordance with the S-D logic: Co-creating value with customer network actors

In the last ten years industrial companies have gone from offering products to offering products/services and then to offering solutions. At the same time, the theory of marketing has also evolved to provide, under the heading of S-D logic, an enlarged conceptual framework. In this article we apply the conceptual framework of S-D logic to the marketing of solutions. Based on two case studies, we highlight the limits to current offering strategies in terms of co-creation and involving customer network actors. We suggest an approach to co-create value in customer networks based on a switch from customer value proposition to customer network value proposition.     

Transitioning and co-evolving to upgrade value offerings: A competence-based marketing view

This article shows how subcontractors in the steel and metalworking industry can effectively upgrade their customer value offerings. The study intends to identify internal and external drivers for successful transitions. It builds on the IMP's (Industrial Marketing and Purchasing Group) research tradition by looking into value creation and competence-based marketing within business networks. Using qualitative methods, the research identifies ‘ideal’ value-added market positions and relates these to specific competence configurations. It also reveals the need to manage co-evolution with other network partners in order to make a successful transition from basic to value-added offerings. The paper contributes to business marketing science by looking explicitly into the mechanisms of internal alignment when upgrading value offerings (a pre-condition often overlooked in extant literature) and by extending the concept of co-evolution.     

Exploring the creation of systemic value for the customer in Advanced Multi-Play

This paper explores the creation of systemic value for the customer as it emerges in Advanced Multi-Play. An anomaly found in customer surveys suggested the possibility of systemic value creation at the offering level. In order to build a theoretical explanation for this anomaly, the role of intrinsic, user network and complement-network attributes is discussed, along with the concepts of complementarities, value of time and goal achievement. More daily communication goals are proposed to form a time boundary condition for an individual, which is relieved by integration providing systemic consistency, experienced as increased efficiency and convenience. As a result, one theoretical model is presented to describe the creation of customer value in the case of integrated offerings. Two propositions are derived from the model, followed by two hypotheses, which are tested. Results indicate customer value creation at the general offering level as a result of integration. The reliability and validity of cross-tabulation is concluded. Finally, suggestions for future research are presented.     

Industrial brand value and relationship performance in business markets — A general structural equation model

This paper develops a general model of industrial brand value and relationship performance in business-to-business markets from the perspectives of consumer and industrial marketing literature. The structural equation model integrates the analysis of industrial brand value and relationship performance. The model describes the extent to which supplier-buyer transaction performance is influenced by the eight important factors: supplier competence, purchasing value, customer satisfaction, switching cost, brand trust and loyalty, relationship quality, commitment, and transactional performance.The general model is applied to organizational buyer groups of comprehensive industrial markets (Electronics, Chemicals, Equipment, etc). The analysis finds that supplier competence directly affects purchasing value and customer satisfaction, and via purchasing value and customer satisfaction, it indirectly affects commitment, switching cost, brand trust and loyalty. The managerial implications of the study results are also discussed.     

Supplier representative activities and customer perceived value in complex industrial solutions

The study of value delivery through complex industrial solutions involves a service-rich deployment of resources, many of which are human. Despite this realization, few studies consider the activities of specific actors in this service-dominant context. Through an exploratory netnography of ten online community discussion boards, this study investigates the link between the activities of supplier representatives and the effects on customer perceived value in complex industrial solutions. The findings reveal four major categories of activity (communication, planning, risk management and coordination) as important sources of intangible value (conceptualized as emotional, social and functional outcomes). The data shows, however, that activities must be executed in a timely, accurate, appropriate and value-added manner. The study compliments research in complex industrial solutions through explicit consideration of activities and their relationship with perceived value from a supplier perspective.     

The roles of service encounters, service value, and job satisfaction in achieving customer satisfaction in business relationships

Along with variables like the service process, perceived service value and customer satisfaction, job satisfaction of service employees plays a vital role in customer evaluation of service result. However, there has been little in-depth research into the nature of this relation, in particular in the context of B2B relations. In the sphere of an organization providing financial intermediation services to the banking sector and on the basis of a literature review, hypotheses are developed which establish the mediator role of service value and the moderator role of job satisfaction of service employees when delimiting customer satisfaction. Reliability and validity analysis give satisfactory results and our conclusions establish firstly that service encounter directly and significantly affects perceived service value which is the final antecedent to customer satisfaction and secondly, that the level of employment satisfaction moderates its effect on service value.     

基于顾客体验的价值共创影响机理研究及实证分析

通过总结价值共创理论研究方面的成果,构建基于顾客体验的价值共创前因要素、过程及结果之间的影响机理模型,并提出了路径的因果关系假设。在此基础上,以医疗服务行业为例,通过问卷调查的方式收集数据,运用结构方程模型进行实证分析。研究结果表明,顾客组织社会化、感知公平和感知风险与顾客参与价值共创行为存在正向相关关系,顾客通过参与价值共创可以提升体验价值,并对企业获取顾客忠诚有积极的促进作用。最后讨论了该研究的管理启示与局限。     

The effects of customer and supplier involvement on competitive advantage: An empirical study in China

The focus of this paper is on the effects of customer and supplier involvement on competitive advantage in the firm. Using the resource-based view and knowledge-based view of the firm, hypotheses are developed concerning customer involvement, supplier involvement, and competitive advantage. Hierarchical multiple regressions are employed to test the hypothesized relationships. The data used was collected from 139 Chinese manufacturing firms across different industries. Each variable except control variables in the model is measured by a number of scale items. Both reliability and validity (content validity, convergent validity, and discriminate validity) are demonstrated. The results of the regression analysis show that (1) customer involvement has positive impact on product quality, delivery reliability, process flexibility, and customer service; and (2) supplier involvement leads to decreased cost. These findings are interpreted in the context of Chinese manufacturing setting and enhance the understanding of the roles of customer and supplier involvement in China's business environment.     

Marketing of competence-based solutions to buyers in exploratory relationships: Perspective of OEM suppliers

In face of mounting challenges from delocalized production, commoditized products, and escalated demand from professional buyers, providing solutions rather than selling products has been put forward in the normative literature as a promising business model for creating high-value differentiated offerings. Nonetheless, empirical survey research into the processes whereby traditional suppliers of “basic products, spare parts and services” migrate towards marketing of “integrated solutions” is still sparse. Grounded in a competence-based marketing view, the current research addressed the research problem of how OEM suppliers upgrade their value offerings via competence-based solutions. The research model was tested by a sample of 403 contract/OEM manufacturers located in China. This resultant findings revealed the processes undertaken by OEM suppliers during the development of competence-based solutions, found out the internal coordination and innovation capabilities required to support competence-based solutions, and uncovered the external communication/disclosure of competence needed to strengthen the link between competence-based solutions and upgraded relationship value.     

服装消费市场中的顾客感知价值及营销策略

随着消费者可支配收入的增长,服装消费者的消费理念和消费方式随之改变,顾客感知价值也就相应地发生了改变。顾客在购买服装时不再仅仅关注商品本身,而是越来越注重一种精神文化意境的传达。与此同时,购物、消费时的环境、心情与感受对消费者消费决策的影响也越来越凸显其重要性,对应的市场营销策略也应运而生。     

The role of boundary spanners in the formation of customer attractiveness

This paper examines the question of how to understand the formation of suppliers perceived customer attractiveness. It argues that existing conceptualization of buyer–supplier relationships are too simplistic to understand the full complexity involved in the formation of such perceptions, and models the buyer–supplier relationship as a set of micro-dyads and intra-, inter-organizational exchange relationships. In exploring these micro-dyads this research apply an embedded case study approach and explores three buyer–supplier relationships. Following Bacharach et al. [Bacharach, S.B., Bamberger, P., & Sonnenstuhl, W.J. (1996). The organizational transformation process: The micropolitics of dissonance reduction and the alignment of logics of action. Administrative Science Quarterly, 41(3), 477–506.], it is interested in the involved actors sense-making processes and the concept of “logics of action” is deployed. The analysis demonstrates how suppliers' formation of perceptions related to customer attractiveness can be understood as constituted through a set of discrete historical means/ends alignments and misalignments between boundary spanning roles in the involved organizations.     

Incumbents,technological change and institutions: How the value of complementary resources varies across markets

This article examines the influence of complementary resources on the performance of incumbents after a radical technological change. In investigating this relationship, we join the technological management literature and the institution‐based view of strategy and maintain that the value of complementary resources is contingent on the institutional environment in which the firm operates. In particular, we submit that formal institutions, both economic and political, moderate the relationship between the stock of complementary assets and firm performance. We test our hypotheses in the context of the world mobile telecommunications industry (39 countries and 134 mobile service providers). Our findings reveal how these resources are more valuable for incumbents in markets where market‐supporting institutions are weaker and political stability is higher. Copyright © 2014 John Wiley & Sons, Ltd.     

Refining value-based differentiation in business relationships: A study of the higher order relationship building blocks that influence behavioural intentions

Research on the behavioural intentions (BI) of business-to-business customers has focused on the influence and the interactions among constructs driving BI, giving rise to two perspectives for the structural equation modeling of constructs influencing BI. In the first perspective, BI is impacted directly by relationship quality (RQ) and its antecedents such as relationship benefits (RB) and relationship sacrifices (RS). The second perspective suggests that antecedent dimensions of RB and RS may act indirectly through the construct of relationship value (RV), which drives RQ but also directly influences BI. The current study was undertaken to resolve the differences between these two perspectives. The findings indicate that RQ has a strong direct influence on BI while RV has a weak direct influence but a significant indirect influence on BI through the RQ construct. In addition, the constructs of RB and RS influence RQ directly, as well as through the RV construct.     

Creating value in the face of declining performance: firm strategies and organizational recovery

Firms that have failed to meet the performance expectations of investors must seek new ways of creating value or face the loss of financial support. Using resource‐based arguments, we find that valuable and difficult‐to‐imitate strategies that recombine the firm's existing stock of resources to create new products, processes, or technologies have a positive effect on organizational recovery as measured by investors' expectations. Similarly, acquiring new resources through mergers or acquisitions also has positive effects on investors' expectations. In contrast, valuable and difficult‐to‐imitate strategies that provide the firm with access to new resources through alliances or joint ventures do not affect investors' expectations of performance. We also find that taking actions that are not valuable and difficult‐to‐imitate either have no effect on performance or may lead to further performance declines. Lastly, our results show that valuable and difficult‐to‐imitate strategic actions that use existing resources in new ways contribute the most to organizational recovery. Copyright © 2007 John Wiley & Sons, Ltd.