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Article
Publication date: 13 September 2019

Pennie Frow, Janet R. McColl-Kennedy, Adrian Payne and Rahul Govind

This paper aims to conceptualize and characterize service ecosystems, addressing calls for research on this important and under-researched topic.

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Abstract

Purpose

This paper aims to conceptualize and characterize service ecosystems, addressing calls for research on this important and under-researched topic.

Design/methodology/approach

The authors draw on four meta-theoretical foundations of S-D logic – resource integration, resource density, practices and institutions – providing a new integrated conceptual framework of ecosystem well-being. They then apply this conceptualization in the context of a complex healthcare setting, exploring the characteristics of ecosystem well-being at the meso level.

Findings

This study provides an integrated conceptual framework to explicate the nature and structure of well-being in a complex service ecosystem; identifies six key characteristics of ecosystem well-being; illustrates service ecosystem well-being in a specific healthcare context, zooming in on the meso level of the ecosystem and noting the importance of embedding a shared worldview; provides practical guidance for managers and policy makers about how to manage complex service ecosystems in their quest for improving service outcomes; and offers an insightful research agenda.

Research limitations/implications

This research focuses on service ecosystems with an illustration in one healthcare context, suggesting additional studies that explore other industry contexts.

Practical implications

Practically, the study indicates the imperative for managing across mutually adapting levels of the ecosystem, identifying specific new practices that can improve service outcomes.

Social implications

Examining well-being in the context of a complex service ecosystem is critical for policymakers charged with difficult decisions about balancing the demands of different levels and actors in a systemic world.

Originality/value

The study is the first to conceptualize and characterize well-being in a service ecosystem, providing unique insights and identifying six specific characteristics of well-being.

Details

European Journal of Marketing, vol. 53 no. 12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 20 September 2023

Jillian C. Sweeney, Pennie Frow, Adrian Payne and Janet R. McColl-Kennedy

The purpose of this study is to examine how servicescapes impact well-being and satisfaction of both hospital customers (patients) and health care professional service providers.

Abstract

Purpose

The purpose of this study is to examine how servicescapes impact well-being and satisfaction of both hospital customers (patients) and health care professional service providers.

Design/methodology/approach

The study investigates how a hospital servicescape impacts two critical outcomes – well-being and satisfaction – of both hospital patients (customers) and health care professionals, who are immersed in that environment.

Findings

The hospital servicescape had a greater impact on physical, psychological and existential well-being for professionals than for patients. However, the reverse was true for satisfaction. The new servicescape enhanced the satisfaction and physical and psychological well-being of professionals but only the satisfaction of customers.

Research limitations/implications

The study implications for health care policy suggest that investment in health care-built environments should balance the needs of health care professionals with those of customers to benefit their collective well-being and satisfaction.

Practical implications

Based on the findings, the authors propose that servicescape investments should focus on satisfying the physical needs of patients while also placing emphasis on the psychological needs of professionals.

Social implications

Health care spending on physical facilities should incorporate careful cost-benefit analysis, ensuring that beneficial features for both user groups are included in new hospital designs, omitting features that are less supportive of well-being.

Originality/value

To the best of the authors’ knowledge, this study is the first to compare the impact of the same real-life servicescape on the satisfaction of both customers and service providers (professionals) and considers the critical health outcome of well-being.

Details

Journal of Services Marketing, vol. 37 no. 9
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 13 February 2017

Adrian Payne and Pennie Frow

This paper aims to review the growth and development of the field of relationship marketing and, through a consideration of this body of work, identifies key research priorities…

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Abstract

Purpose

This paper aims to review the growth and development of the field of relationship marketing and, through a consideration of this body of work, identifies key research priorities for the future of relationship marketing. The paper also delineates the frequently confused associated concepts of customer relationship management and customer management and considers how they fit within the broader concept of relationship marketing.

Design/methodology/approach

This paper undertakes a review of the relationship marketing literature, supplemented by the authors’ on-going interactive research with managers.

Findings

The paper reviews alternative approaches to relationship marketing, reflects on the development of the field of relationship marketing and identifies three critical priorities for future research in relationship marketing.

Practical implications

The research priorities that are identified in this paper represent important priorities for scholars, managers, regulators and policy makers.

Originality/value

Although there is now a substantial body of research on relationship, marketing, much of this work focuses on the customer-firm dyad, with a smaller body of work focusing on a broader range of stakeholders. This paper argues for the broadening of the role of relationship marketing to consider ecosystems; the need for firms to shift from a value-in-exchange to a value-in-use perspective when addressing customer relationships; and the critical need to address “dark side” behaviour and dysfunctional processes in relationship marketing.

Details

Journal of Services Marketing, vol. 31 no. 1
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 21 May 2020

Linda D. Peters, Suvi Nenonen, Francesco Polese, Pennie Frow and Adrian Payne

This paper aims to develop a conceptual framework based on the identification and examination of the mechanisms (termed “viability mechanisms”) under which market-shaping…

Abstract

Purpose

This paper aims to develop a conceptual framework based on the identification and examination of the mechanisms (termed “viability mechanisms”) under which market-shaping activities yield the emergence of a viable market: one able to adapt to the changing environment over time while remaining stable enough for actors to benefit from it.

Design/methodology/approach

This paper uses extant literature to build a conceptual framework identifying viability mechanisms for market shaping and a case illustration examining how a viable market for Finnish timber high-rise buildings was created. The case exemplifies how the identified viability mechanisms are practically manifested through proactive market shaping.

Findings

The proposed conceptual framework incorporates four viability mechanisms identified in the extant literature: presence of dissipative structures, consonance among system elements, resonance among system elements and reinforcing and balancing feedback loops. It illustrates how these mechanisms are manifested in a contemporary case setting resulting in a viable market.

Practical implications

First, firms and other market-shaping organizations should look for, or themselves foster, viability mechanisms within their market-shaping strategies. Second, as failure rates in innovation are extremely high, managers should seek to identify or influence viability mechanisms to avoid premature commercialization of innovations.

Originality/value

This study identifies how these viability mechanisms permit markets to emerge and survive over time. Further, it illuminates the workings of the non-linear relationship between actor-level market-shaping actions and system-level market changes. As such, it provides a “missing link” to the scholarly and managerial discourse on market-shaping strategies. Unlike much extant market-shaping literature, this study draws substantively on the systems literature.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 9
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 12 September 2018

Bo Edvardsson, Pennie Frow, Elina Jaakkola, Timothy Lee Keiningham, Kaisa Koskela-Huotari, Cristina Mele and Alastair Tombs

The purpose of this paper is to explore the role of context in service innovation by developing a conceptual framework that illuminates the key elements and trends in context…

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Abstract

Purpose

The purpose of this paper is to explore the role of context in service innovation by developing a conceptual framework that illuminates the key elements and trends in context change.

Design/methodology/approach

The paper adopts a service ecosystem lens for understanding how elements and trends in context foster service innovation. A conceptual framework identifying the role of context change in fostering service innovation is developed and justified through illustrations across industry settings of health, retailing, banking and education.

Findings

Context change is conceptualized by three trends – speed, granularity and liquification – that provide an analytical foundation for understanding how changes in the elements of context – space, resources and institutional arrangements – can foster service innovation. The analysis indicates emerging patterns across industries that allow exploring scenarios, grounded in emerging trends and developments in service innovation toward 2050.

Practical implications

Managers are offered a framework to guide service innovation and help them prepare for the future. The paper also suggests areas for further research.

Originality/value

The paper contributes with a new conceptualization of context change to identify and explain service innovation opportunities. Managers are offered a framework to guide service innovation and help them prepare for 2050. The paper also suggests areas for further service innovation research, zooming in on contextual changes to prepare for 2050.

Details

Journal of Service Management, vol. 29 no. 5
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 14 April 2014

Adrian Payne and Pennie Frow

Scholars identify the value proposition as representing the essence of strategy and the firm's single most important organizing principle. However, research suggests less than 10…

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Abstract

Purpose

Scholars identify the value proposition as representing the essence of strategy and the firm's single most important organizing principle. However, research suggests less than 10 per cent of companies formally develop value propositions. The purpose of this paper is to undertake case study research investigating the process by which leading companies develop their value propositions.

Design/methodology/approach

The research identifies that the financial services and telecommunications vertical markets are viewed as the highly sophisticated industry sectors in terms of customer management. These industry sectors are selected for investigation. The paper develops case studies of two companies’ approaches to developing value propositions in the business-to-business (B2B) and business-to-consumer (B2C) sectors within these vertical markets.

Findings

This paper contributes to the marketing literature by examining how two large and complex service enterprises have adopted structured processes for developing innovative value proposition within the B2B and B2C sectors. The authors argue that innovation in value proposition development represents a substantive opportunity for marketing to reassert its influence in the boardroom.

Practical implications

This case study research provides guidelines of the processes by which enterprises can successfully develop innovative value propositions.

Originality/value

This research is considered to be the first case-based academic exploration of the formal processes by which large organizations develop value propositions.

Details

Journal of Service Management, vol. 25 no. 2
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 4 February 2014

Adrian Payne and Pennie Frow

Research into the identification and development of value propositions has recently been identified as a key research priority by the Marketing Science Institute. The purpose of…

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Abstract

Purpose

Research into the identification and development of value propositions has recently been identified as a key research priority by the Marketing Science Institute. The purpose of this article is to identify and develop a process for value proposition deconstruction that can help organizations transform their value propositions in order to gain an improvement in their competitive position.

Design/methodology/approach

A case study of an exemplar organization in the health care sector is used to develop an approach for value proposition deconstruction. Using the business system concept as a theoretical framework, the key value-adding elements that comprise this organization's value proposition are identified. A leading financial services firm is used to demonstrate how this learning approach can be successfully applied in developing a new and innovative value proposition.

Findings

Using the business system framework, a structured process for deconstructing value propositions is developed. This framework is extended to explicitly acknowledge the value-in-use that results from different encounters, to incorporate learning processes and to recognize its interactive and recursive nature.

Practical implications

The authors provide practitioners with insight into how to formulate new or improved value propositions.

Originality/value

This work addresses two important and previously unaddressed research questions: how can the process of deconstruction of an exemplar organization's value proposition provide a more comprehensive understanding of the elements that comprise a superior value offering; and how can this process be applied to other organizations seeking to improve their value proposition?

Details

European Journal of Marketing, vol. 48 no. 1/2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 26 April 2011

Pennie Frow, Adrian Payne, Ian F. Wilkinson and Louise Young

The paper aims to consider the neglected area of customer relationship management (CRM) and customer management's “dark side”; and identify the key types of dark side behaviours…

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Abstract

Purpose

The paper aims to consider the neglected area of customer relationship management (CRM) and customer management's “dark side”; and identify the key types of dark side behaviours of service providers as well as integrated approaches to CRM that will assist in overcoming dark side behaviour.

Design/methodology/approach

Based on an extensive literature review, supplemented by insights drawn from an on‐going longitudinal study of CRM, the authors develop a classification of dark side behaviour types.

Findings

The paper identifies ten forms of dark side behaviour that may be grouped into three broad categories based on means used and target. It illustrates how different types of dark side behaviours may be linked to the key strategic CRM processes.

Practical implications

The paper examines how these dark side practices may be addressed by adoption of a more enlightened approach to CRM.

Originality/value

The dysfunctional forms of CRM and customer management have been neglected as an area of research in marketing. The paper identifies and classifies service provider dark side practices and outlines how adoption of a more strategic approach to CRM can address dark side behaviours and move towards more enlightened marketing practices.

Details

Journal of Services Marketing, vol. 25 no. 2
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 15 February 2011

Pennie Frow and Adrian Payne

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…

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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 propositions provide enhanced opportunities for value co‐creation and can assist managers in aligning value and stabilizing relationships within an organization's value network.

Originality/value

This paper considers a broader view of value through creation of value propositions for key stakeholders. An iterative framework is proposed that couples the stakeholder concept and value co‐creation.

Details

European Journal of Marketing, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0566

Keywords

Book part
Publication date: 25 June 2012

Kaj Storbacka, Pennie Frow, Suvi Nenonen and Adrian Payne

Purpose – The aim of this chapter is to investigate how a focal market actor may design or redesign business models for improved value co-creation.Findings – We posit that value…

Abstract

Purpose – The aim of this chapter is to investigate how a focal market actor may design or redesign business models for improved value co-creation.

Findings – We posit that value is co-created in use as actors integrate resources in practices, which makes practices a fundamental unit of value creation. Greater density of resources, relevant to a specific practice and to the goals or mission of the actor, corresponds to greater value. The role of a provider is to support other actors in their value-creation processes by providing resources that ‘fit’ into their practices.

We identify 12 categories of business model design elements that need to be defined and developed in parallel. We conclude that a focal actor needs to strive for both intra-actor and inter-actor (meso-level) configurational fit of business model elements in order to enable purposeful co-creation in specific practices.

Finally, we propose that meso-level configurations develop in a three-phase process of origination, mobilization and stabilization. A focal actor wishing to improve co-creation in a network needs to develop value propositions not only for customers but also for other actor domains. Overall, the performative power of a market actor is dependent on its network position, the relative strength of its business model and the actor's ability to author compelling meanings.

Originality – The research contributes to the discussion on value co-creation by identifying three shifts in the unit of analysis: (1) we argue that use-value is co-created as actors integrate resources in practices, rendering practices a fundamental unit of analysis, (2) as practices are outcomes of business models, we identified business model design as a key unit of analysis for the improvement of value co-creation and (3) our view on business models is network-centric and we focus on how to introduce new business model elements in a specific actor network.

Practical implications – The realization of the fact that value creation occurs in networks of interdependent actors pinpoints the need for increased transparency both between functional silos and between actors. The business model framework identifies 12 design elements, which can act as a ‘checklist’ for managers wanting to engage in co-creative business models.

Details

Special Issue – Toward a Better Understanding of the Role of Value in Markets and Marketing
Type: Book
ISBN: 978-1-78052-913-4

Keywords

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