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1 – 2 of 2Randall Perrey, Alex Johnston, Mark Lycett and Ray Paul
This paper argues that enterprise scale information systems integration should be driven by business value propositions rather than system level requirements. It reviews the…
Abstract
This paper argues that enterprise scale information systems integration should be driven by business value propositions rather than system level requirements. It reviews the existing literature of value and presents a summary of the issues and insights. A study of attitudes and perceptions from an enterprise system vendor organisation is presented. The study uses cognitive mapping to analyse the data and grounded theory to derive the concept of value proposition as a suitable concept for comprehending integration. The concept is further developed from a synthesis of the issues from literature with the results. The determination of a value proposition is argued to be a process of defining the consumer and providing perspectives. The provider perspective of value proposition is shown to be competency based whilst the consumer is results oriented. Discussion of the implications of value proposition driven integration projects leads onto recommendations for industry and implications for further academic research.
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Chadwick J. Miller and Daniel C. Brannon
The purpose of this paper is to investigate whether consumers in pre-owned durable goods markets (such as pre-owned automobiles) purchase products with higher premium/luxury…
Abstract
Purpose
The purpose of this paper is to investigate whether consumers in pre-owned durable goods markets (such as pre-owned automobiles) purchase products with higher premium/luxury positioning in a vertical line-up compared to consumers in new durable goods markets. The moderating role of brand loyalty on choice is also investigated.
Design/methodology/approach
The hypotheses are tested using a data set that includes the sales of new and pre-owned vehicles from an independently owned automotive dealer in the Northwestern USA during the first nine months of 2017 (N = 200). An ordered logit regression is used to estimate the relationship between consumers’ purchase of pre-owned vs new vehicles and the premium-level of the model that they choose, while controlling for the vehicle price. Two experimental robustness tests are conducted to provide empirical evidence of the proposed theoretical process.
Findings
Consumers who purchased pre-owned vehicles chose models with higher premium/luxury positioning compared to consumers who purchased new vehicles, even when controlling for price. This effect was moderated by brand loyalty, such that consumers’ premium-level of purchase was magnified if they previously owned a vehicle of the same brand. The results of an experimental robustness test indicated that consumers’ preference for pre-owned vehicles with higher premium/luxury positioning was because of greater perceptions of the quality along the dimensions of versatility, performance and prestige.
Practical implications
Sellers of complex durable goods (e.g. automobiles) should consider segmenting their upselling strategies for pre-owned vs new products. They should specifically focus more effort on the upselling of pre-owned durables as buyers appear more likely to pursue premium/luxury alternatives compared to new durables. Further, they should focus upselling efforts for pre-owned durables on brand loyal consumers.
Originality/value
To the best of the authors’ knowledge, this work is the first to examine consumers’ desire for pre-owned durable goods with premium/luxury positioning in a vertical product line-up. Further, it is also the first to explore the role of brand loyalty in shaping consumer preferences for premium/luxury pre-owned durable goods. As such, it makes an important contribution to an emerging literature exploring the appeal of premium and luxury pre-owned goods. Much work in this area has focused on the motivations that consumers have for buying pre-owned premium and luxury nondurable goods, such as vintage clothing or accessories. By contrast, the present research investigates the appeal of premium/luxury positioning for complex, pre-owned durable goods (vehicles), which are more difficult for consumers to evaluate at the point-of-purchase.
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