Ana Isabel Rodríguez-Escudero, Carmen Camarero-Izquierdo and María Redondo-Carretero
The decision concerning the degree of product and service customization is crucial, yet has scarcely been studied for small businesses in business-to-business (B2B) contexts…
Abstract
Purpose
The decision concerning the degree of product and service customization is crucial, yet has scarcely been studied for small businesses in business-to-business (B2B) contexts. Although such a decision allows relationships with potential customers to be strengthened, it might involve high opportunity costs given the investment required. This paper aims to analyse the profitability of customization undertaken by small businesses in terms of cost–benefit and examine the drivers of profitable customized projects vis-à-vis the ability to strengthen relationships with clients (relationship investment and customer involvement) and the firm’s resources related to processes and technology (expertise and modularity).
Design/methodology/approach
To test the proposed hypotheses, data were collected from 140 small Spanish firms involved in two sectors characterized by the offer of customized solutions: information and professional, scientific and technical services.
Findings
Analysis reveals that customer involvement in the customized solution, even when it requires investing in equipment, time or human resources has a positive effect on customization and ultimately on profitability, as the cost of this customer interaction is lower than the revenue it provides. Likewise, supplier investment in the relationship allows for a solution that is adapted to the client, although it requires a cost associated with investing in specific assets. Such costs cancel out the positive indirect effect through the customized solution. Finally, expertise enables appropriate use of the flexibility derived from modularity to satisfy customer requirements, with both being key company resources for driving profitability through customized solutions.
Originality/value
This study makes a contribution to the domain of customization. The authors extend current knowledge on B2B customization by proving that small firms can use their available capabilities and knowledge to achieve a successful customization strategy.
Details
Keywords
The purpose of this paper is to examine the impact of various cultural amenities on tourism demand in 168 European cities.
Abstract
Purpose
The purpose of this paper is to examine the impact of various cultural amenities on tourism demand in 168 European cities.
Design/methodology/approach
Using data from the European Commission’s Culture and Creative Cities Monitor 2017, a series of regressions are estimated to examine the impact of various cultural amenities on tourism demand while also controlling for other factors that may impact on tourism demand. Diagnostic tests are also conducted to check the robustness of the results.
Findings
The results reveal that cultural amenities in the form of sights, landmarks, museums, concerts and shows have a positive impact on tourism demand. By pinpointing the cultural amenities that are important for increasing tourism demand, the findings aid stakeholders in the tourism industry as they develop post-pandemic recovery plans.
Originality/value
This paper identifies two key aspects of the cultural tourism literature that require deeper investigation and aims to address these aspects. Firstly, while many studies focus on a specific or narrow range of cultural amenities, this study includes a series of measures to capture a range of cultural amenities. Secondly, while many studies are narrow in geographical scope, this paper includes data on 168 European cities across 30 countries.