The purpose of this paper is to conceptually examine how value is created in (social) practices in which consumers use offerings as operand resources.
Abstract
Purpose
The purpose of this paper is to conceptually examine how value is created in (social) practices in which consumers use offerings as operand resources.
Design/methodology/approach
Drawing on service‐dominant logic, practice and consumer culture theories, this paper conceptualizes the operational logic of value creation in practices and draws implications to marketing theory and practice. The approach to markets is “markets as practices” in value networks.
Findings
Value is tied to practices, not to offerings. Therefore, a key research unit for examining value creation is a practice. Value creation is socially constructed because a practice‐specific meaning structure, influenced by the context and consumer resources, configures consumers' activities. Guided by it, consumers do what makes best sense to do in the practice in the specific moment. As the context and consumer resources are unfixed, fragmented consumers emerge. Therefore, segmentation of value‐creating practices offers a valid description of value creation.
Originality/value
The paper extends the examination of value creation from use to practices. Drawing on marketing and other social sciences, it conceptualizes the operational logic of value creation in a practice: it defines practice elements, their roles and interdependencies in the value‐creation process. The operational logic introduces meaning structures as value‐creation mediators: influenced by the context and consumer resources, they steer consumer participation in the practice (including the use of offerings) and experienced value. Understanding meaning structures helps firms to identify value improvement opportunities which can be transferred to improved or new value propositions. Finally, the paper proposes segmentation of practices in the presence of fragmented consumers.
Details
Keywords
Rodrigo L. P. Alvarez, Marcelo Ramos Martins and Marcia Terra Silva
The purpose of this paper is to contribute to the understanding of the servitization process of typical manufacturing companies that already provide after-sales services, by…
Abstract
Purpose
The purpose of this paper is to contribute to the understanding of the servitization process of typical manufacturing companies that already provide after-sales services, by identifying the phases and organizational elements that enable the delivery of more services.
Design/methodology/approach
A servitization maturity model for consumer durables companies is proposed. Servitization is an evolutionary process based on customer profiling, company profiling, the nature of the service, maturity of the process and process characteristics. The capacity of maintaining organizational relationships among players in the value chain describes the organizational maturity needed to advance towards the next phase. The research has been conducted as an exploratory study, in which four different case studies of consumer durables companies were performed to validate the proposed maturity model and detail each phase and the critical resources needed to become servitized.
Findings
Four category levels of organizational relationships were identified: first, company and customers; second, company and production network; third, company and market, in addition to; fourth, the internal relations of the company.
Practical implications
The means to evaluate companies that undergo servitization are also presented to provide a better understanding of their placement in the process and guide managers through the next necessary steps of action.
Originality/value
The development and application of this model allowed exploring the levels of servitization as an evolutionary process based on the relationships among players in the value chain by gathering, structuring, organizing several critical requirements and highlighting important attributes that must be examined by companies during the servitization process.
Details
Keywords
Providing that branded applications (apps) became a new trend in mobile marketing, the purpose of this study, thus, is to explore how to promote app users’ continuance intention…
Abstract
Purpose
Providing that branded applications (apps) became a new trend in mobile marketing, the purpose of this study, thus, is to explore how to promote app users’ continuance intention and purchase intention (i.e. “app continuance”) toward a specific branded app.
Design/methodology/approach
By integrating both goods-dominant logic (GDL) and service-dominant logic (SDL), this study uses a unifying model to examine whether perceived usefulness and task-service fit (TSF) have different effects on the two parts of app continuance. This study identifies task characteristic and four service characteristics (interactivity, presence, localization and ubiquity) as antecedents of TSF. Furthermore, psychological barriers are examined as mediators of TSF and purchase intention within SDL. Data collected from 631 users of the targeted branded apps support all of the proposed hypotheses.
Findings
The findings show that besides perceived usefulness, TSF is an essential determinant of both app continuance in the context of branded apps and a partial mediator of psychological barriers between TSF and purchase intention.
Originality/value
Unlike prior studies, which have focused on traditional GDL to examine continuance intention, this study incorporates SDL and the notion of psychological barriers to explore such matters. The evidence concerning the significantly higher explanatory power of the full model suggests that a deeper understanding of the antecedents of app continuance is possible when the alternative view is taken into consideration, thus providing a promising avenue for future research.
Details
Keywords
Samy Belaid, Dorsaf Fehri Belaid, J. Ricky Fergurson, Maria Petrescu, Selima Ben Mrad and Costinel Dobre
The study evaluates the complexities of brand value co-creation among stakeholders within B2B ecosystems. This exploration is critical due to identified gaps in existing…
Abstract
Purpose
The study evaluates the complexities of brand value co-creation among stakeholders within B2B ecosystems. This exploration is critical due to identified gaps in existing literature regarding B2B branding models, especially in the context of strategic decision-making within emerging economies, taking an emerging market as a prime example.
Design/methodology/approach
The study employs qualitative dyadic interviews to gain deeper insights into the B2B value co-creation process. These interviews center on understanding the intricacies of brand value co-creation between retail chain distributors and private label producers, specifically in the Tunisian market.
Findings
Findings reveal the paramount importance of resource sharing and the cultivation of strong interpersonal relationships. The results show the role of comprehensive contracts as a foundation for enduring collaboration across various facets, including product development, pricing strategies, branding initiatives and market positioning.
Research limitations/implications
While the research offers pivotal insights into the Tunisian market, it is essential to acknowledge its context-specific nature. This underscores the imperative for broader studies encompassing diverse emerging markets to generalize the findings.
Practical implications
The findings of this study provide helpful insights for retailers and private brand manufacturers in emerging countries, allowing them to improve their business strategies and adapt their operations. Marketers in the B2B area can consider the factors underlined by our study when formulating their collaborative relations with current and potential business partners, especially in the North African region.
Originality/value
While numerous studies have spotlighted the service-dominant logic in brand value co-creation, this research systematically evaluates the interactions and relationships between primary stakeholders, highlighting modern business-to-business models.
Details
Keywords
Huiru Yang, Delia Vazquez and Marta Blazquez
The competitive luxury market raises higher requirements for luxury brands to effectively involve young generations in creating and endowing meanings to products, services and…
Abstract
The competitive luxury market raises higher requirements for luxury brands to effectively involve young generations in creating and endowing meanings to products, services and experiences. Several researchers suggest that art experiences create a fertile source of co-creation practices for cultural customers as they could engage in cognitive, emotional and imaginal activities to endowing meanings to products or services. Hence, bridging art and luxury is of significance for luxury brands to create value and engage their customers. This chapter delivers the essence of value for luxury brands and their customers and focusses on how luxury brands deploy art-based initiatives as a favourable technique in which value co-creation takes place.
Details
Keywords
Tom Chen, Judy Drennan, Lynda Andrews and Linda D. Hollebeek
This paper aims to propose user experience sharing (UES) as a customer-based initiation of value co-creation pertaining to service provision, which represents customers’ level of…
Abstract
Purpose
This paper aims to propose user experience sharing (UES) as a customer-based initiation of value co-creation pertaining to service provision, which represents customers’ level of effort made for the direct benefit of others in their service network. The authors propose and empirically examine a user experience sharing model (UESM) that explicates customer-to-customer (C2C) UES and its impacts on firm-desired customer-based outcomes in online communities.
Design/methodology/Approach
Based on an extensive review, the authors conceptualize UES and UESM. By using online survey data collected from mobile app users in organic online communities, the authors performed structural equation modeling analyses by using AMOS 24.
Findings
The results support the proposed UESM, showing that C2C UES acts as a key driver of both firm-desired customer efforts and customer insights. The results also confirmed that service-dominant (S-D) logic-informed motivational drivers exert a significant impact on C2C UES. Importantly, C2C UES mediates the relationship between S-D logic-informed motivational drivers and firm-desired customer-based outcomes.
Originality/value
This study offers a pioneering attempt to develop an overarching concept, UES, which reflects customers’ initiation of value co-creation, and to empirically examine C2C UES. The empirical evidence supports the key contention that firms should proactively facilitate C2C UES.
Details
Keywords
Tram-Anh Ngoc Pham, Hau Nguyen Le, Dung Tien Nguyen and Thuy Ngoc Pham
Understanding customers’ expertise for better service co-creation is of great importance. To be an effective co-creator, customers need to have much more knowledge than a basic…
Abstract
Purpose
Understanding customers’ expertise for better service co-creation is of great importance. To be an effective co-creator, customers need to have much more knowledge than a basic literacy, which is appropriate for passive service consumption. This paper aims to propose the concept of customer service co-creation literacy (SCL) to capture not only the basic expertise but also the expertise for active service co-creation. This study then investigates how SCL can be cultivated and how it facilitates customer co-creation behavior, which subsequently leads to enhanced value.
Design/methodology/approach
A conceptual model was developed and tested in the health-care service context using a sample of 310 patients. CB-SEM/AMOS software package was used for data analysis.
Findings
SCL has different impacts on three components of co-creation behavior, which in turn influence the service value differently. SCL not only solely facilitates co-creation behavior but also directly increases customer value. SCL can be cultivated by social support and frontline employee interaction.
Practical implications
The findings offer managerial and societal implications for cognitive interventions to develop customers’ SCL, which is aligned to customers’ needed literacy for co-creation and well-being.
Originality/value
The newly proposed concept of SCL is shown to be more appropriate in research adopting the service-dominant logic. Its importance as one type of customer operant resource for value co-creation is underscored. Findings also uncover how other actors indirectly contribute to customers’ value co-creation via developing their SCL resources.
Details
Keywords
Yuri Seo, Carol Kelleher and Roderick J. Brodie
While extant service-centric research has largely focussed on managerial advantages, few studies have addressed how brand engagement emerges in the broader context of consumer…
Abstract
Purpose
While extant service-centric research has largely focussed on managerial advantages, few studies have addressed how brand engagement emerges in the broader context of consumer lives. The purpose of this paper is to develop a novel intersubjective hermeneutic framework that bridges the socially constructed as well as the individualised meanings of brand engagement in the context of service research.
Design/methodology/approach
This conceptual paper adopts a theory-building approach based on recent developments in the service-centric marketing literature.
Findings
The authors offer a novel theoretical perspective that recognises the intersubjective and phenomenological nature of individual and collective consumer brand experiences, and show how such experiences emerge from socially constructed brand engagement practices using the co-constituting lens of value-in-use.
Research limitations/implications
The proposed conceptual framework invites further empirical and contextual investigations of intersubjective brand engagement in both online and offline contexts.
Originality/value
The contribution of this framework is twofold. First, the authors draw on the intersubjective orientation and hermeneutic framework to provide conceptual clarity in relation to the nature of brand engagement practices, brand experiences, and value-in-use, and discuss their interrelationships. Second, the authors address the nature of meaning ascribed to engagement beyond customer-firm-brand relationships, and discuss why any given consumer’s experience of brand engagement reflects a complex dialectic between socially constructed and individualised brand meanings. In doing so, the integrative framework recognises the interplay between the intersubjective and phenomenological natures of consumer brand experiences, and offers insights as to how these experiences are framed by broader socially constructed engagement practices.
Details
Keywords
Eric MacIntosh and Milena Parent
In a major multi-sport event, the athlete is both a benefactor and producer of organizational activities. Athletes’ centrality makes understanding their satisfaction with the…
Abstract
Purpose
In a major multi-sport event, the athlete is both a benefactor and producer of organizational activities. Athletes’ centrality makes understanding their satisfaction with the event an important management activity. The purpose of this paper is to examine the lived athletes experience (during the event), so as to provide insight into the important Games facets contributing to their satisfaction and to explore the controllable aspects of the event from an organizer’s perspective that athletes felt made the Games special and memorable.
Design/methodology/approach
A multi-dimensional instrument (i.e. Athlete Experience Questionnaire) was designed and tested at previous iterations of a major multi-sport event and was employed during Games-time. In total, 813 athletes completed the questionnaire during the 2014 Glasgow Commonwealth Games.
Findings
The findings demonstrated an overall high level of satisfaction with the event. Several important facets contributed to athlete satisfaction including social-, service- and communication-related aspects. Further, athletes reported on the importance of cultural opportunities within their Games experience.
Research limitations/implications
The paper denotes the importance of the social and cultural interactions and opportunities which lie outside the athletes’ actual competition experience and increase their specialness of the event. Theoretical and practical implications are drawn from the findings relative to the service-dominant logic and service-quality literature within a major multi-sport event Games for the athlete stakeholder.
Originality/value
This paper explores how athletes experience the major international multi-sport event environment. Moreover, this paper offers a significant contribution from a hard-to-reach population (i.e. elite-level international athletes), adopts their perspective of the Games environment and determines what contributes to their satisfaction. As the authors highlight, the paper denotes the importance of the planned social and cultural interactions and opportunities, which lie outside the athlete’s actual competition event experience, to increase athlete satisfaction; in contrast, basic sport competition needs seem to be a “basic” expectation.
Details
Keywords
Barry J. Babin and Kevin W. James
This chapter focuses on how retailers can do the right thing and be successful at the same time, particularly in the light of technological innovation. Service dominant logic…
Abstract
This chapter focuses on how retailers can do the right thing and be successful at the same time, particularly in the light of technological innovation. Service dominant logic (SDL), with the notion of operant and operand resources as a means to connect the retailer to the customer, provides a framework for the chapter. Normative decision making is presented as a necessary ethical and practical mindset to solve problems, and we illustrate the relationship between normative decision making and value. Value becomes the ultimate outcome to the customer that will allow for sustainable retailing into the future. Utilitarian value and hedonic value are presented and elaborated upon to show how companies and consumers come together to transform resources into value through service. Sections are included showing how value delivery will evolve into the future and what mix of value will be necessary so that retailing can see continued success.