Showing papers on "Value proposition published in 2011"

A stakeholder perspective of the value proposition concept

Abstract: Purpose – The value proposition concept and the stakeholder perspective have received relatively little attention within Service‐Dominant (S‐D) logic. This paper sets out to explore value propositions in the context of S‐D logic, within the multiple stakeholder domains that form part of a marketing system. Its purpose is to identify how use of the value proposition concept, in this broader context, provides new insight into value creation within a value network.Design/methodology/approach – This paper explores the development of value propositions in key stakeholder market domains. A five‐step process is developed for identifying key stakeholders and co‐creating value propositions for them within a marketing system.Findings – Value propositions have a key role in co‐creation of value between stakeholders. The development of value propositions in multiple stakeholder domains can provide an important mechanism for aligning value within a marketing system.Practical implications – Stakeholder value propositio...

How does corporate social responsibility create value for consumers

Abstract: Purpose – Research examining corporate social responsibility (CSR) demonstrates a relatively consistent level of positive support by consumers. However, CSR is poorly defined and little is known about the mechanisms by which this response occurs. This paper seeks to understand how consumers define CSR and how it can enhance the overall value proposition for consumers.Design/methodology/approach – The value typology developed by Sheth et al. is integrated with qualitative data to enhance understanding of these value paths. Interviews were conducted with consumers through the heart of the current recession, when consumers were particularly aware of value when making purchase decisions.Findings – The way in which CSR manifests itself determines consumer support. CSR can provide three forms of value to consumers: emotional, social, and functional. Each of these enhances or diminishes the overall value proposition for consumers. Further, value created by one form of CSR can either enhance or diminish other pro...

Reframing supply chain management: a service‐dominant logic perspective

Abstract: Shifting the dominant thinking of supply chain management toward the concepts of service, value cocreation, value propositions, operant resources, networks, service ecosystems and learning opens up many research opportunities and strategies for improved organizational performance. The emerging thought world of service-dominant logic is presented as a means to reframe supply chain scholarship and practice for increased relevance and impact.

Dynamics of value propositions: insights from service‐dominant logic

Abstract: Purpose – This article examines the notion of value propositions (promises of reciprocal value between service providers and their customers), value-in-exchange and value-in-use, all within the co ...

A Stakeholder-Unifying, Cocreation Philosophy for Marketing

Abstract: Marketing thought and practice is continuing its evolution from a largely goods-dominant logic to a service-dominant (S-D) logic. The authors argue that an S-D grounded logic is especially useful in a highly networked world. In a network world and organization, it is critical for enterprises to realize and operate as if marketing is no longer simply a separate business function but also a general management responsibility within a broad network enterprise where the interests of many stakeholders need to be unified with the customer and the enterprise. Furthermore, a value cocreation concept of strategy becomes increasingly relevant because it views value as not created by the business but by customers as they integrate resources. Importantly this includes firm-supplied resources, as well as other resources at the customer’s disposal in order to improve their well-being by helping them develop or codevelop solutions to problems. Consistent with the S-D logic of marketing, the firm has to think not about op...

Business Models for the Internet of Things

Abstract: The emerging Internet of Things provides a networked infrastructure that enables incremental business transformation as well as radical business changes. So far, the full potential of possible business opportunities has not been leveraged. Within this chapter we propose the concept of business models and business model innovation as a means to align “technological development and economic value creation” (Chesbrough and Rosenbloom, 2002) in the Internet of Things. A central point of this paper is the value and revenue creation in the Internet of Things. We consider information to be the main source for value proposition. To investigate resulting impacts, we draw on the “laws of information” proposed by Moore and Walsh (2002) and deduct specifics for the Internet of Things. Building on this, we describe four exemplary business model scenarios. These are visualised using the business model framework by Osterwalder and Pigneur (2009). This framework, the fundamental rules of value creation through information in the Internet of Things and the provided examples may serve as a tool-set for practitioners to analyse and change their business models when implementing the Internet of Things.

Market systems, stakeholders and value propositions

Abstract: Purpose – This paper aims to provide an overview of the European Journal of Marketing's special section on the Forum of Markets and Marketing, “Extending Service‐Dominant Logic”.Design/methodology/approach – The approach takes the form of a conceptual integration of core concepts in S‐D logic, markets, and marketing.Findings – This special section provides insight into the complexity of markets by investigating markets as configurations and systems and how value propositions drive value co‐creation.Research limitations/implications – This introduction to the special section integrates individual contributions toward advancing S‐D logic and suggests that additional research in this area will help to develop a general theory of markets and marketing.Practical implications – The overview of this special section provides insight into how the development of a positive theory of the market(s) will help to further advance normative marketing theories and practice.Originality/value – This overview of the special ...

Value proposition as a catalyst for a customer focused innovation

Abstract: Purpose – This paper seeks to advance the theory on value proposition and innovation by offering a framework for identifying value proposition elementsDesign/methodology/approach – A single embedded case study is conducted based on Amazoncom's innovationsFindings – By identifying and systematically analysing innovations by Amazoncom, the concept of value proposition was decomposed into five components: performance, ease of use, reliability, flexibility and affectivity (PERFA)Research limitations/implications – The research did not focus on the relationships between the value proposition elements and their relevance in different contexts such as product, industry or customer life cyclePractical implications – Managers should support their decision to innovate the value proposition based on customers' perceived value The findings provide guidance to managers on how to uncover innovative value propositions and potentially create new demand in an uncontested market spaceOriginality/value – The paper i

Business Intelligence Maturity: Development and Evaluation of a Theoretical Model

Abstract: In order to identify and explore the strengths and weaknesses of business intelligence (BI) initiatives, managers in charge need to assess the maturity of their BI efforts. For this, a wide range of maturity models has been developed, but these models often focus on technical details and do not address the potential value proposition of BI. Based on an extensive literature review and an empirical study, we develop and evaluate a theoretical model of impact-oriented BI maturity. Building on established IS theories, the model integrates BI deployment, BI usage, individual impact, and organizational performance. This conceptualization helps to refocus the topic of BI maturity to business needs and can be used as a theoretical foundation for future research.

An employer brand predictive model for talent attraction and retention

Abstract: Orientation: In an ever shrinking global talent pool organisations use employer brand to attract and retain talent, however, in the absence of theoretical pointers, many organisations are losing out on a powerful business tool by not developing or maintaining their employer brand correctly. Research purpose: This study explores the current state of knowledge about employer brand and identifies the various employer brand building blocks which are conceptually integrated in a predictive model. Motivation for the study: The need for scientific progress though the accurate representation of a set of employer brand phenomena and propositions, which can be empirically tested, motivated this study. Research design, approach and method: This study was nonempirical in approach and searched for linkages between theoretical concepts by making use of relevant contextual data. Theoretical propositions which explain the identified linkages were developed for purpose of further empirical research. Main findings: Key findings suggested that employer brand is influenced by target group needs, a differentiated Employer Value Proposition (EVP), the people strategy, brand consistency, communication of the employer brand and measurement of Human Resources (HR) employer branding efforts. Practical/managerial implications: The predictive model provides corporate leaders and their human resource functionaries a theoretical pointer relative to employer brand which could guide more effective talent attraction and retention decisions. Contribution/value add: This study adds to the small base of research available on employer brand and contributes to both scientific progress as well as an improved practical understanding of factors which influence employer brand.

Sustainable Green Banking Approach: The Need of the Hour

Abstract: Green banking means combining operational improvements, technology and changing client habits in banking business. It is a win -win situation for all to bring benefits in an increasingly competitive marketplace. Adoption of greener banking practices will not only be useful for environment, but also benefit in greater operational efficiencies, a lower vulnerability to manual errors and fraud, and cost reductions in banking activities. Banks are already offering many of the services necessary for businesses to enjoy these benefits. This paper has made an attempt to highlight the major benefits, confronting challenges, strategic aspects of Green Banking. It has also presented the status of Indian banks as far as Green Banking adoption is concerned. It is found that there has not been much initiative in this regard by the banks in India, though they play an active role in India’s emerging economy. Banks should go green and play a pro -active role to take environmental and ecological aspects as part of their lending principle, which would force industries to go for mandated investment for environmental management, use of appropriate technologies and management systems. They must be more vocal about the inherent green value proposition.

What drives the choice of a third party logistics provider

Abstract: It is generally believed that companies choose supply chain partners on the basis of their distinctive value propositions — a fact one would also expect holds true when companies choose a logistics service provider. However, faced with the complexities of varied customer demands, it can be difficult for logistics service companies to obtain an effective understanding of how customers differentially value the service components they offer. In this paper, we address this issue by identifying the factors that are important in a customer's choice of a logistics service provider. Using stated choice methods we explore the relative importance of seven service attributes using a sample of 309 managers with a central role in purchasing logistics services across a range of industries and countries. The results reveal that three distinct decision models populate our data where the preferences for different logistics service attributes — such as price and delivery performance — vary greatly between customer groups represented by these models. Strategically, our findings provide the management of a third‐party logistics provider with a logical starting point from which to determine the goals that are set for their operations, particularly in choosing the customer segments to service.

Bridging the theory to application gap in value‐based selling

Abstract: Purpose – Increasing pressure to reduce costs and skepticism of promised value‐added are forcing suppliers to produce tangible proof of the monetary value they create for customers. The academic literature on the practical activities related to value‐based selling remains sparse. This paper aims to bridge the gap between the abundant theoretical customer value frameworks and implementation practices to create a practical foundation for value‐based sales activities in firms that aim to become value creators.Design/methodology/approach – Based on two case studies, the authors map the best practices in customer value quantification from the point of view of industrial customers, and study value‐based sales processes to uncover the value‐based sales activities for implementing and profiting from customer value.Findings – The results suggest a customer‐focused sales process that centers on creating value, quantifying the value created, and creating a situation where customer and supplier maximize their utility...

Key Dimensions of Service Systems in Value-Creating Networks

Abstract: The aim of this chapter is to identify the key dimensions of service systems and to describe how they interact in the process of value co-creation. The four key dimensions identified in the analysis are: customers; people (including employees and other stakeholders); information; and technology. The chapter also characterises the value-creation process in service systems as consisting of three related stages: value proposition; acceptance; and fulfilment. The main conclusion of the chapter is that the four key dimensions interact at all three stages in a network of relationships that co-create value through the integration of resources. In details, the interactions between the key dimensions shape two kinds of nets: (i) a social network; (ii) a technological network. These nets are the basis for a greater value-creating network aimed at increasing stakeholder value. Conclusions have practical implications for managers and theoretical implications for researchers.

Employer Brand Image as Predictor of Employee Satisfaction, Affective Commitment & Turnover

Abstract: Background Employer branding has captured considerable attention in recent times. Academicians and practitioners have reported evidence of organisations expending considerable resources on development of employer brand programme indicating its value (Backhaus & Tikoo 2004). Employer branding as a concept is an extension of relationship marketing principles (Christopher, Payne & Ballantyne 1991, Kotler 1992, Morgan & Hunt 1994), which identify the need to build acquisition and retention strategies across a number of critical stakeholder markets through closer relationships. One of the most basic understandings about brand comes from the definition provided by the American Marketing Association which defines a brand as "a name, term sign, symbol, or design, or combination of them which is intended to identify the goods and services of one seller group or group of sellers and to differentiate them from those of competitors" (Backhaus & Tikoo 2004). The term employer branding is used for the application of branding principles to human resource management. The concept is being increasingly used for attracting prospective employees while engaging the present employees to the organisation. In a seminal work on employer branding, also one of the earlier definitions on the subject, Ambler and Barrow (1996) defined employer brand in terms of benefits, calling it 'the package of functional, economic and psychological benefits provided by employment and identified with the employing company'. Further, employer branding or employer brand management involves internally and externally promoting a clear view of what makes a firm different and desirable as an employer. According to Backhaus and Tikoo (2004), employer branding is essentially a three step process. First, a firm develops a concept of the particular value it offers to prospective and current employees. This value proposition provides the central message that is conveyed by the employer brand. It is of key importance that this value proposition derives from a thorough audit of the characteristics that make the firm a great place to work. Once the value proposition is determined, the second step in employer branding consists of externally marketing this value proposition to attract the targeted applicant population. The third step involves carrying the brand "promise" made to recruits in to the firm and incorporating it as part of the organisational culture. In a sense the last step consists of internally marketing the employer brand. Human Resource consultants Hewitt Associates suggests five steps to developing a strong employer brand: (1) understand your organisation, (2) create a 'compelling brand promise' for employees that mirrors the brand promise for customers, (3) develop standards to measure the fulfilment of brand promise, (4) ruthlessly align all people practices to support and reinforce brand promise, and (5) execute the measure (Berthon et al. 2005). According to Ritson (2002) companies with strong employer brands can potentially reduce the cost of employee acquisition, improve employee relations, increase employee retention and even offer lower salaries for comparable staff to firms with weaker employer brands. The present study focuses on the image audit step of the employer branding process because it is the basis on which other steps develop. Given the key role of image audit step, it should incorporate important stakeholder beliefs about the characteristics of an attractive employer. Therefore, the purpose of this study is to examine the relative importance of different aspects of employer brand Review of Literature Despite employer brand gaining considerable popularity in HR practitioner literature (e.g., Frook 2001) empirical research is still relatively inadequate (Cable & Turban 2001). Backhaus & Tikoo (2004) and Davies (2007) echo the same sentiments and feel that the advent of the employer brand as concept has been recent in academic field and its theoretical foundation is gradually being developed even though it is being considered and applied by practitioners for sometime now. …

Economic, Environmental, and Health/Well-Being Benefits Associated with Green Industry Products and Services: A Review

Abstract: Green industry firms have competed for decades on the basis of quality and service. While these competitive dimensions are still important, the industry has continued along its path of maturation and firms must incorporate other factors into their value proposition in order to be successful in this hypercompetitive market. Given the recent economic downturn of 2008–2009, consumers are more value-conscious than ever, but are still willing to consume, and pay premiums for, products and services that enhance their quality of life. This paper summarizes the peer-reviewed research regarding the economic benefits, environmental benefits (eco-systems services), and health/well-being benefits of green industry products and services that serve to enhance the quality of life for consumers.

Applying employer brand management to employee engagement

Abstract: Purpose – This paper aims to examine the degree to which employer brand management is being deployed to support internal employee engagement, in addition to its more common application in external image building and talent acquisition.Design/methodology/approach – This paper presents findings from an international benchmark survey conducted among 104 companies actively involved in employer brand development, alongside a more detailed examination of the development process and measures of success applied by one of the benchmark participants, Coca‐Cola Hellenic.Findings – This paper demonstrates a trend towards organizations taking a more integrated internal/external approach to employer brand development and management, with practical case study material detailing how a major European soft drinks company, Coca‐Cola Hellenic, created an employee value proposition that could provide a central reference point for both its employee engagement strategy and recruitment communication.Practical implications – Empl...

Building an Innovation Community

Abstract: OVERVIEW:Companies are increasingly using social media and other technologies to broaden the approach to idea generation and innovation both within and outside the walls of the organization. However, managers can tend to focus on installing the technology, rather than on designing a socio-technical system that can meet the organization's goals and foster authentic participation. In 2008, Pitney Bowes, a $5.4 billion provider of technology and services for mail and digital communications, initiated an effort to build an employee innovation community aimed at driving organic growth and fostering a culture of innovation among its 30,000 employees around the globe. The Pitney Bowes Employee Innovation Program team took a human-centered approach and used primary research and co-creation with individuals across all levels of the organizational hierarchy to design a program that both met company objectives and satisfied a value proposition for managers and employees. The resulting program delivered measurable va...

The Role of Knowledge When Studying Innovation and the Associated Wicked Sustainability Problems in Agriculture

Abstract: Scientific institutions all over the world emphasize the importance of effective links between science and society when pursuing sustainable development thereby linking science and development Unfortunately, the knowledge paradox implies that too much research is not applied, partly because the research community is still rather inward looking, creating a gap between what is written and what is achieved in practice The Dutch government initiated, therefore, the large 6-year TransForum program to enhance innovation in agriculture, not allowing the regular research circuit to set the agenda TransForum emphasized the relevance of connected value development when dealing with wicked problems associated with sustainable development, requiring a balance between the well-known people, planet, and profit aspects of sustainable development Thus new and innovative 3P businesses were created through the sequence of value proposition, -creation, and -capture, together constituting connected value development This required transdisciplinary interaction between knowledge institutions, entrepreneurs, nongovernmental organizations (NGOs), and governmental bodies working together on innovation (KENGi partners), each of these partners contributing different opinions, goals, and values In this chapter, four case studies are used to illustrate that innovation was achieved by successively working together on value proposition, -creation, and -capture Only the committed persistence of entrepreneurs supported by knowledge brokers and development of new business and organizational models ultimately led to the desired connected value development, representing a successful link between knowledge creation and societal appreciation The process involved mobilization and strategic injection of various forms of tacit and scientific knowledge in the overall interaction process that often took more than 10 years to mature, requiring an important role for knowledge brokers with hard knowledge and social intelligence (“T-shaped skills”) as well as long-term funding The development of value propositions needed much more attention than is usually provided Research planning and management procedures as well as judgement procedures need to be adapted to fit transdisciplinary requirements The cases demonstrate that the process of connected value development is unique for each project; there is no standard recipe Track records of case studies, as presented, can be used in education as a learning tool to create awareness for possible opportunities as well as pitfalls in transdisciplinary studies

Key Dimensions of Service Systems: Interaction in Social & Technological Networks to Foster Value Co-Creation

Abstract: The aim of this chapter is to identify the key dimensions of service systems and to describe how they interact in the process of value co-creation. The four key dimensions identified in the analysis are: customers; people (including employees and other stakeholders); information; and technology. The chapter also characterises the value-creation process in service systems as consisting of three related stages: value proposition; acceptance; and fulfillment. The main conclusion of the chapter is that the four key dimensions interact at all three stages in a network of relationships that co-create value through the integration of resources. In details, the interactions between the key dimensions shape two kinds of nets: (i) a social network; (ii) a technological network. These nets are the basis for a greater value-creating network aimed at increasing stakeholder value. Conclusions have practical implications for managers and theoretical implications for researchers.

Determinants of customer satisfaction in Islamic banking: evidence from Iran

Abstract: Purpose – The purpose of this paper is to clarify and extend the conceptualization and measurement of customer satisfaction in the Islamic banking sector in Iran.Design/methodology/approach – The authors perform a review of the set of attributes which are capable of being incorporated in the measure of customer satisfaction for Islamic banks. Later, the possibility is posed of grouping these attributes into dimensions of quality, proceeding to value various alternative structures by means of confirmatory factor analysis methodology and testing their reliability and validity.Findings – The findings from this study reveal that service quality in Iranian banking adopting the commercial format of Islamic services has a two‐factor structure: Value proposition quality and Service delivery quality.Originality/value – The paper contributes to the literature on Islamic Banking in a Middle Eastern economy.

Rejuvenating importance‐performance analysis

Abstract: Purpose – Importance‐performance analysis (IPA) is a simple marketing tool commonly used to identify the main strengths and weaknesses of a value proposition. The purpose of this paper is to propose a revision of traditional IPA prompted by intuitions arising from the three‐factor theory of customer satisfaction. The ultimate goal is to propose a decision support method, which is as simple and intuitive as the original IPA, but more precise and reliable than the solutions proposed thus far.Design/methodology/approach – In order to estimate indirect measures of attribute importance, the study uses the coefficients of a multiple regression with overall satisfaction ratings as the dependent variable. Additional calculations are then introduced in order to manage non‐linear effects.Findings – Using empirical data from a survey among 5,209 customers of a European bank, the authors show how the proposed method can be more accurate than other solutions, especially as disregarding non‐linear effects can prompt su...

An integrated model of value creation based on the refined Kano's model and the blue ocean strategy

Abstract: It is not sufficient for a contemporary firm to satisfy its customers; to be really successful, a firm must create value for its customers. In so doing, it will also derive value from its customers. The pursuit of both value for customers and value from customers is thus a ‘win–win’ strategy. In this regard, the present study first redefines the categories of customer value by suggesting a new category of ‘creative value’, and then discusses how this category of ‘creative value’ relates to other forms of ‘value’. The paper then explores the concepts inherent in the refined Kano's model and the actions associated with the ‘blue ocean’ strategy. Using these concepts, the study presents an integrated model of ‘value creation’ and explains how this model can be used to select appropriate practical actions to enhance customer value, and by implication, also enhance customer retention, customer acquisition, and customer margin – all of which make significant contributions to company profits. A case study is pre...

B2B services branding in the logistics services industry

Abstract: Purpose – The purpose of this paper is to conduct an exploratory study of the branding of business‐to‐business (B2B) services, specifically examining the commodity‐like logistics services industry.Design/methodology/approach – The paper is of a multiple‐methods research design.Findings – Managers should first strive to develop compelling and differentiated value propositions associated with their B2B service brands. They should then invest in communicating their brands' value to internal and external audiences. Finally, they should commit resources to ensure consistent and favorable customer experiences with the brand. These three steps influence the strength of the brand, which comprises brand awareness and brand meaning.Practical implications – B2B service firms in commodity‐like industries such as the logistics service industry cannot rely on differences in product attributes to develop brand meaning. Rather, they should focus on developing distinctive customer experiences with the brand by encouraging...

The Dynamics of Information Collaboration: A Case Study of Blended IT Value Propositions for Health Information Exchange in Disability Determination

Abstract: Special Issue Recent developments in health information technology (health IT) for health information exchange suggest that successful public-private collaborations should devote more attention to understanding the dynamics of collaboration. In the context of health information sharing for disability determination, this case study examines early instances of public-private interorganizational sharing of health information. The theoretical focus of the paper is on the construction of blended value propositions and their role in collaboration for health information exchange. For this purpose, we performed a case analysis of a prototype health IT application to be shared between the United States Social Security Administration and Beth Israel Deaconess Medical Center. The case analysis found that business, socio-organizational, and technical dynamics were operative during the planning and execution of the prototype. From a theoretical perspective, the case study provides insight into blended value propositions in terms of understanding and potentially predicting the success of newly established Health Information Exchanges (HIEs). The findings have implications for further development of collaboration value propositions and their evolution over the course of IT deployments for health information exchange.

The new meaning of customer value: a systemic perspective

Abstract: Purpose – Today, as services and products are becoming increasingly intertwined and the competition increasingly global, delivering customer value is not as simple as it used to be. In this article, we suggest that in contemporary business environment customer value is often systemic by nature. This means that managers need to assess their firm's offering through systems‐thinking perspective in order to find out what are the most effective ways to create value for the customer.Design/methodology/approach – Evidence of systemic customer value is provided in the form of illustrative examples from Apple's and Google's offerings. Furthermore, we utilize a quality function deployment (QFD) tool to provide an example of modeling of the systemic value attributes.Findings – This paper illustrates how such systemic customer value in the firm's offering can be modeled. This enables the tracking down of the functions that produce the most value in terms of meeting various customer needs. A firm that understands the ...

Global approaches to the service business in manufacturing companies

Abstract: Purpose – The article aims to investigate how product manufacturing firms can configure their global service approach.Design/methodology/approach – A qualitative, multi‐case research design was employed.Findings – The following four global service approaches could be identified: integrated and ethnocentric; integrated and polycentric; separated and polycentric; and separated and geocentric.Research limitations/implications – The research findings are limited in generalizability because of the qualitative research approach.Practical implications – Exploring global forms of and supply chain configurations for services supports the efforts of manufacturing firms in developing new service‐based and relationship‐based value propositions.Originality/value – The study contributes to the debate on integrating versus separating the service organization. It offers a complementary explanation on integrating and separating the service business, through a differentiation into central and local (market) organizations.

Value marketing through corporate reputation : an empirical investigation of Thai hospitals

Abstract: This study examines the value proposition through corporate reputation, as corporate reputation best communicates to consumers and the public the company's value orientation. The research setting for the study was the Thai private hospital industry. A quantitative methodology was employed, using Confirmatory Factor Analysis (CFA) to purify our measurement items and then using regression analysis to test our hypothesis. A model of corporate reputation is proposed, based primarily on a combination of institutional theory, impression management theory, and signalling theory. The study contrasts with most previous studies on this subject, which employ a single approach in researching corporate reputation. Lastly, it explores the implications of corporate reputation with regards to value offering for practitioners and policy makers.