Understanding and managing customer value propositions: Introduction to the special issue

2020 ◽  
Vol 87 ◽  
pp. 242-243 ◽  
Author(s):  
Andreas Eggert ◽  
Pennie Frow ◽  
Adrian Payne ◽  
Lena Steinhoff
Keyword(s):  
Customer Value ◽  
Special Issue ◽  
Value Propositions

Loyalty of on-Line Bank Customers

1999 ◽  
Vol 14 (4) ◽  
pp. 375-386 ◽  
Author(s):  
Leif B. Methlie ◽  
Herbjørn Nysveen
Keyword(s):  
Customer Value ◽  
Explanatory Power ◽  
Search Costs ◽  
Marketing Strategies ◽  
Market Place ◽  
Traditional Markets ◽  
Brand Reputation ◽  
Value Propositions ◽  
On Line ◽  
Business Sectors

Electronic commerce changes the relationships between sellers and buyers dramatically. The new properties of electronic markets offer customers added values. New customer value propositions have to be established in most markets and new marketing strategies must be formulated. One of the business sectors most heavily affected is banking. How can banks retain loyal customers when moving into electronic banking? Research in marketing has unveiled several determinants of customer loyalty. However, this knowledge is based on research on customers in traditional markets. In this paper we focus on customers’ loyalty in on-line banking. The findings indicate that determinants of loyalty in on-line banking environments are similar to those in the physical market-place. However, customer satisfaction is found to have the most significant impact, followed by brand reputation, while switching costs and search costs, although significant, have minor explanatory power. The implications of these findings on banks’ marketing strategies are discussed.

scholarly journals Value Creation Attributes—Clustering Strategic Options for Romanian SMEs

2020 ◽  
Vol 12 (17) ◽  
pp. 7007 ◽  
Author(s):  
Alin Stancu ◽  
Alina Filip ◽  
Mihai Roșca ◽  
Daniela Ioniță ◽  
Raluca Căplescu ◽  
...  
Keyword(s):  
Value Creation ◽  
Customer Value ◽  
Quantitative Research ◽  
Principal Component ◽  
Customer Experience ◽  
Value Proposition ◽  
Multiple Sources ◽  
Customer Delight ◽  
Value Propositions ◽  
Strategic Options

Value proposition can be an important source of competitive advantage for small and medium sized enterprises (SMEs). Unlike large companies which follow a rational and sequential process, developing a value proposition in an SME is instead a trial and error process. Therefore, those companies are experimenting with various options. The purpose of this paper was to identify the value strategies used by SMEs based on value dimensions and attributes and to find specific groups of SMEs with a similar market approach. We present a theoretical framework on customer value creation and customer value communication, followed by a quantitative research on 399 Romanian SMEs. We used a principal component analysis to reduce the number of choices and afterwards we ran a cluster analysis to identify the distinct groups of SMEs using specific value propositions. We found that there are three major strategic options based on customer experience, affordability and customization, and four distinct clusters: customer delight (A), multiple sources of differentiation (B), one-to-one marketing (C) and cost—effectiveness (D). Three groups use distinct value propositions—A focuses on customer experience, C on customization, D on affordability—while B mixes all of them.

scholarly journals Competitive Advantages and Values Created and Attained Out of Well-Crafted Customer Value Propositions

2021 ◽  
Vol 16 (2) ◽  
pp. 53-73
Author(s):  
Jeffrey Yi-Lin Forrest ◽  
Dmitry A. Novikov ◽  
Stephen Larson ◽  
Fen Wang ◽  
Jing Yang
Keyword(s):  
Customer Value ◽  
Market Competition ◽  
Value Added ◽  
Future Research ◽  
Competitive Advantages ◽  
Analytical Reasoning ◽  
Potential Market ◽  
Value Propositions ◽  
Game Theoretic ◽  
Generally True

Abstract To help facilitate the development of a theoretically rigorous and practically useful theory of customer value propositions (CVP), as called for repeatedly by the extant literature, this paper establishes a game-theoretic theorem regarding the dynamics of market competition and potential market entry. On top of this result and by employing logical rigor and analytical reasoning, eight generally true facts are developed without suffering from the constraints of data- and anecdote- based approaches, as widely used in the literature. In particular, these established results reveal how a newly adopted CVP is associated with the three essential processes underlying a company’s operation, how it will be pivotal for the company to attain competitive advantages, how the value added by adopted CVPs can be determined, etc. At the end, recommendations for decision-making managers and entrepreneurs and potential questions for future research are provided.

Four steps to re-ignite Japan’s innovation leadership

2016 ◽  
Vol 44 (6) ◽  
pp. 35-45
Author(s):  
Kazuaki Ikeda ◽  
Anthony Marshall ◽  
Shuma Okamura
Keyword(s):  
Customer Value ◽  
Business Leaders ◽  
Leadership Role ◽  
Content Type ◽  
Ecosystem Connectivity ◽  
Value Propositions ◽  
Innovation Leadership ◽  
Opening Up ◽  
Innovation Processes ◽  
Innovation Paradigms

Purpose This analysis assesses the barriers to innovation Japanese executives must contend with and outlines key strategies to help their organizations, and all companies that seek to compete in global marketplaces, assume a leadership role in implementing a business ecosystem strategy. Design/methodology/approach To better understand the economic and management challenges Japan’s business leaders face and how they are addressing them, the IBM Institute for Business Value in collaboration with Oxford Economics conducted a survey of 1,151 Japanese executives across 17 industries. Findings While the strategy of opening up innovation processes to customers, partners and other stakeholders has been adopted successfully in many nations, Japanese organizations appear stuck in closed, insular innovation paradigms Practical implications Japanese organizations need to embrace entirely new customer value propositions, build new partnering arrangements and more effectively harness the power of innovation by taking four key sets of actions that: Re-imagine customer experience; Redefine business ecosystems; Promote ecosystem connectivity; Revitalize innovation governance. Originality/value A bold analysis of why Japanese business leaders largely ignore new forms of competition emanating from startups or emergent cross-industry players, even as traditional industries such as banking now anticipate massive technology-fueled disruption and how they can change.

scholarly journals The value propositions of multi-, cross-, and omni-channel retailing

2018 ◽  
Vol 46 (11/12) ◽  
pp. 1133-1152 ◽  
Author(s):  
Mika Yrjölä ◽  
Hannu Saarijärvi ◽  
Henrietta Nummela
Keyword(s):  
Conceptual Framework ◽  
Customer Value ◽  
Design Methodology ◽  
Content Type ◽  
Case Examples ◽  
Multiple Channel ◽  
Shopping Motivations ◽  
Value Propositions ◽  
Conceptual Paper ◽  
Practical Implications

Purpose This study examines how retailers leverage multiple-channel strategies in relation to their customer value propositions (CVPs). More specifically, the purpose of this paper is to identify and analyze how multi-, cross- and omni-channel CVPs differ in terms of how they create value and which types of shopping motivations they aim to satisfy. Design/methodology/approach This conceptual paper presents and synthesizes three theoretical discussions pertaining to consumer shopping motivations, CVPs and multiple-channel retailing strategies into a tentative conceptual framework. Nine case examples are used to illustrate three different channel strategies: multi-channel, cross-channel and omni-channel retailing. Findings A tentative framework for understanding retailers’ channel strategies is suggested. Practical implications Retailers will benefit from a structured and synthesized understanding of the differences between multiple-channel strategies and their links to CVPs. Originality/value This paper introduces and integrates the concept of CVPs with the literature on multi-channel retailing strategies.

Strategy, Process, Organization, and Systems

2012 ◽  
pp. 35-83
Keyword(s):  
Information Technology ◽  
Business Strategy ◽  
Customer Value ◽  
Corporate Strategy ◽  
Basic Principles ◽  
Technology Deployment ◽  
Strategy Process ◽  
Value Propositions ◽  
Alignment Model

Building on the understanding of the theories and models of firms, this chapter reviews the basic principles of strategic management of business enterprises. Firstly, the basic principles of business strategy are explained. Secondly, the role of corporate strategy and its relationships with business unit strategies are discussed. Thirdly, this chapter describes the principles of strategy maps—a customer-centered strategic alignment model which is widely used in industry as a methodology for managing the diligent execution of strategy to deliver on the differentiating customer value propositions. Finally, because of the increasing importance of corporate governance compliance, such as Sabiane Oxley, firms must also pay due consideration to ethics in information technology deployment.

SRI’s turnaround: how four principles guided high-value, market-creating innovation

2017 ◽  
Vol 45 (4) ◽  
pp. 3-8
Author(s):  
Steve Denning
Keyword(s):  
Business Model ◽  
Customer Value ◽  
Large Scale ◽  
Leadership Strategies ◽  
Content Type ◽  
Value Propositions ◽  
On Line ◽  
Market Needs ◽  
Working Hypotheses ◽  
Practical Implications

Purpose The article explores the leadership strategies of a CEO who defied the odds against culture change and accomplished a storied turnaround, Curt Carlson who introduced a culture of innovation at SRI International. Design/methodology/approach Under Carlson’s leadership, SRI developed a methodology for rapid, large-scale, serial innovation, starting with a focus on important customer and market needs. The innovation proposals had to develop compelling hypotheses for both the product offering and the business model. Findings Need, Approach, Benefits per costs and Competition (NABC). the methodology Carlson and his team developed, contains the fundamental framework for creating customer value, it applies to the entire enterprise. It brings all functions together using a short, easy to remember meme that starts every conversation with a focus on customer need. Practical implications One of the most spectacular and best-known SRI innovation wins was Siri, the intelligent personal computer assistant and on-line knowledge navigator, an integral part of the iPhone. As a case example, Siri illustrates the power of the NABC approach. Originality/value Carlson stresses that the key element in SRI’s success with Siri was not just the technology. It was getting the entire value proposition right. “One of the things that changed at SRI was the realization that we needed to have really solid working hypotheses, both for the product and the business model, before we started spending significant money on technology. That’s one of the biggest mistakes firms make. They rush ahead and want to build the product before they de-risk their value propositions.

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