Customer Value of Website Communication in Business-to-business Relationships

During past years, we have witnessed the widespread use of websites in communication in business-to-business relationships. If developed appropriately, such communication can result in numerous positive implications for business relationships, amplifying the importance of designing website communication that meet customer needs. In doing that, an understanding of value of website communication for customers is crucial. The study develops a theoretical framework of customer value of website communication in business-to-business relationships. Theoretically, the study builds on the interaction approach to industrial marketing, different approaches to customer value and inter-organisational communication theory. The empirical part involves a case study with a seller and nine different customer companies in the elevator industry. The data collection encompasses interviews and observations of representatives from the customer companies, interviews with the seller and an analysis of various reports of the seller. The continuous iteration between the theory and the case study resulted in the integrated approach to customer value and in the holistic theoretical framework of customer value of website communication in business-to-business relationships. The framework incorporates and elicits meanings of different components of customer value: website communication characteristics that act as drivers of customer value, customer consequences – both benefits and sacrifices, customer end-states as the final goals that lead customer actions, and different types of linkages between these components. Compared to extant research on customer value, the study offers a more holistic framework of customer value that depicts its complexity and richness. In addition, it portrays customer value in the neglected context of website communication. The findings of the study can be used as tools in any analysis of customer value. They are also of relevance in designing appropriate website communication as well as in developing effective website communication strategies. Nataša Golik Klanac is associated with the Centre for Relationship Marketing and Service Management (CERS) at Hanken.

Customer Value Formation in Practice: A Practice-Theoretical Approach

This thesis introduces a practice-theoretical approach to understanding customer value formation to be used in the field of service marketing and management. In contrast to current studies trying to understand value formation by analysing customers as independent actors and thinkers, it is in this work suggested that customer value formation can be better understood by analysing how value is formed in the practices and contexts of the customers. The theoretical approach developed in this thesis is applied in an empirical study of family cruises. The theoretical analysis in this thesis results in a new approach for understanding customer value formation. Customer value is, according to this new approach, something that is formed in practice, meaning that value is formed in constellations of the customer and contextual elements like tools, physical spaces and contextually embedded images and know-how. This view is different from the current views that tend to see value as subjectively created, co-created, perceived or experienced by the customer. The new approach has implications on how we view customer value, but also on the methods and techniques we can use to understand customer value in empirical studies. It is also suggested that services could in fact be reconceptualised as practices. According to the stance presented in this thesis the empirical analysis of customer value should not focus on individual customers, but should instead take the contextual entity of practices as its unit of analysis. Therefore, ethnography is chosen as a method for exploring how customer value is formed in practice in the case of family cruises on a specific cruise vessel. The researcher has studied six families, as well as the context of the cruise vessel with various techniques including non-participant observation, participant observation and interviews in order to create an ethnographic understanding of the practices carried out on board. Twenty-one different practices are reported and discussed in order to provide necessary insight to customer value formation that can be used as input for service development.

Relationship Drivers in Provider - Consumer Relationships. Empirical Studies of Customer Loyalty Programs (första upplagan slutsåld / first edition sold out, 'print on demand' 60 €)

The study addressed a phenomenon that has become common marketing practice, customer loyalty programs. Although a common type of consumer relationship, there is limited knowledge of its nature. The purpose of the study was to create structured understanding of the nature of customer relationships from both the provider’s and the consumer’s viewpoints by studying relationship drivers and proposing the concept of relational motivation as a provider of a common framework for the analysis of these views. The theoretical exploration focused on reasons for engaging in customer relationships for both the consumer and the provider. The themes of buying behaviour, industrial and network marketing and relationship marketing, as well as the concepts of a customer relationship, customer loyalty, relationship conditions, relational benefits, bonds and commitment were explored and combined in a new way. Concepts from the study of business-to-business relationships were brought over and their power in explaining the nature of consumer relationships examined. The study provided a comprehensive picture of loyalty programs, which is an important contribution to the academic as well as the managerial discussions. The consumer study provided deep insights into the nature of customer relationships. The study provides a new frame of reference to support the existing concepts of loyalty and commitment with the introduction of the relationship driver and relational motivation concepts. The result is a novel view of the nature of customer relationships that creates new understanding of the forces leading to loyal behaviour and commitment. The study concludes with managerial implications.

Informell marknadskommunikation. Teoretisk analys jämte en studie av användningsmöjligheter inom banksektorn

Det är helt naturligt att konsumenterna sprider marknadsinformation genom att sinsemellan prata om sina konsumtionserfarenheter. Även om man i marknadsföringslitteraturen betonar den konsumentdominerade informella marknadskommunikationens genuina karaktär jämfört med den företagsdominerade formella marknadskommunikationen, så har man rätt dåliga kunskaper om företagets möjligheter att systematiskt utnyttja denna typ av marknadskommunikation. Min analys tyder på att den beteendevetenskapliga och den företagsekonomiska word-of-mouth-forskningen anlägger olika perspektiv som inte möter varandra. Den beteendevetenskapliga word-of-mouth-forskningen har tydligare satt fokus på själva företeelsen informell marknadskommunikation, men perspektivet har inte varit speciellt företagsorienterat. Den företagsekonomiska word-of-mouth-forskningen har i sin tur varit betydligt tydligare fokuserad på möjligheterna att använda informell marknadskommunikation, men däremot har man inte fäst speciellt mycket uppmärksamhet vid själva företeelsen informell marknadskommunikation. Min kontribution till den vetenskapliga diskussionen om företagens möjligheter att systematisera utnyttjandet av informell marknadskommunikation består i att överbrygga denna dualism inom word-of-mouth-forskningen genom att anlägga ett företagsperspektiv på den sociala dynamiken för informell marknadskommunikation. Denna ansats har sin teoretiska förankring hos de s.k. moderna men bortglömda pionjärerna, med vilka jag avser Johan Arndt, Donald Cox och Ernest Dichters kontribution till den företagsorienterade word-of-mouth-forskningen redan i slutet av 1960-talet. Efter det har deras synpunkter och insikter varken förts vidare eller vidareutvecklats, vilket jag betraktar som ett bakslag för den företagsorienterade word-of-mouth-forskningen. Föreliggande studie har bidragit till word-of-mouth-forskningen på tre olika sätt: genom 1) bidrag baserat på litteraturanalys, 2) bidrag baserat på empirianalys och 3) bidrag baserat på begreppsligande av informell marknadskommunikation. Min litteraturanalys framställer word-of-mouth-forskningens uppkomst och utveckling i ny dager. Min empirianalys har genererat empiriska begrepp, dels för att beskriva informell marknadskommunikation som företeelse, dels för att beskriva företagens förfarande för att systematisera utnyttjandet av sådan marknadskommunikation. Den begreppsliga kontributionen accentueras i informell marknadskommunikation som ett samlingsbegrepp för olika typer av interkonsumentkommunikation.

Visst gör kunden en stor del av jobbet. Referensramar för kunders medverkan vid tillkomsten av konsumenttjänster

I detta arbete accentueras kunden som medverkande aktör vid tillkomsten av tjänster och specifikt då inom den konsumentorienterade sektorn, vilken är en naturlig del av vårt vardagsliv. Såväl kommersiella som icke-kommersiella tjänster beaktas och på denna grund står kundrollen i centrum. Detta är primärt parallellt med valet av perspektiv, vilket genomgående får en fundamental betydelse. Kunders aktiva medverkan framstår som en naturlig och väsentlig ingrediens inom tjänstesektorn, vilket understryks och poängteras i detta arbete inom ramen för en samlad bild av kunden i rollen som medverkande aktör. Därmed markeras betydelsen av att söka förstå fenomenet ”kundmedverkan” utifrån en helhetssyn och med denna utgångspunkt tydliggöra en helhet, en samlad bild, och de delar som bygger och formar denna. Tre ingredienser aktualiseras härvid som tongivande och dessa präglar den bild som i detta arbete framträder av kunden som medverkande part. I ett första steg klarläggs sådana aktiviteter som bygger och formar kundens medverkan. Denne engagerar sig och presterar olika aktiviteter, insatser, vilka framstår som ett fundament i fenomenet. På denna grund skapas och formas kundens input i tjänsteprocessen, dennes processbidrag. Därmed fokuseras kundens processnära funktion, samtidigt som vikten av att parallellt uppmärksamma insatser respektive processbidrag betonas. Vidare klarläggs de effekter som kan uppkomma för såväl kunden själv som tjänsteorganisationen och andra inblandade kunder. Olika typer av effekter lyfts fram och tydliggörs med koppling till bland annat tidsrelaterade inslag. Kunders inflytande på såväl kvalitetsupplevelser som produktivitet är härvid av naturligt intresse. Teoretisk analys och begreppsutveckling har varit tongivande inslag i forskningsstrategin, samtidigt som perspektivfrågan har intagit en avgörande position. Vidare har erfarenhetsbaserade bilder av ”kundens vardag” byggt en väsentlig grund, parallellt med teoretiska erfarenheter. I arbetet utvecklas och presenteras referensramar för kunders medverkan i tjänsteprocessen. Inom ramen för en samlad bild erbjuds härigenom möjligheter till analys av konsumentrelaterade verksamheter av skiftande karaktär. Detta framstår som väsentligt med hänsyn till de variationer som kan framträda inom tjänstesektorn.

Adaptation in triadic business relationship settings: A study in corporate travel management

ANNE HOLMA ADAPTATION IN TRIADIC BUSINESS RELATIONSHIP SETTINGS – A STUDY IN CORPORATE TRAVEL MANAGEMENT Business-to-business relationships form complicated networks that function in an increasingly dynamic business environment. This study addresses the complexity of business relationships, both when it comes to the core phenomenon under investigation, adaptation, and the structural context of the research, a triadic relationship setting. In business research, adaptation is generally regarded as a dyadic phenomenon, even though it is well recognised that dyads do not exist isolated from the wider network. The triadic approach to business relationships is especially relevant in cases where an intermediary is involved, and where all three actors are directly connected with each other. However, only a few business studies apply the triadic approach. In this study, the three dyadic relationships in triadic relationship settings are investigated in the context of the other two dyads to which each is connected. The focus is on the triads as such, and on the connections between its actors. Theoretically, the study takes its stand in relationship marketing. The study integrates theories and concepts from two approaches, the industrial network approach by the Industrial marketing and purchasing group, and the Service marketing and management approach by the Nordic School. Sociological theories are used to understand the triadic relationship setting. The empirical context of the study is corporate travel management. The study is a retrospective case study, where the data is collected by in-depth interviews with key informants from an industrial enterprise and its travel agency and service supplier partners. The main theoretical contribution of the study concerns opening a new research area in relationship marketing by investigating adaptation in business relationships with a new perspective, and in a new context. This study provides a comprehensive framework to analyse adaptation in triadic business relationship settings. The analysis framework was created with the help of a systematic combining approach, which is based on abductive logic and continuous iteration between the theory and the case study results. The framework describes how adaptations initiate, and how they progress. The framework also takes into account how adaptations spread in triadic relationship settings, i.e. how adaptations attain all three actors of the triad. Furthermore, the framework helps to investigate the outcomes of the adaptations for individual firms, for dyadic relationships, and for the triads. The study also provides concepts and classification that can be used when evaluating adaptation and relationship development in both dyadic and triadic relationships.

Fading Customer Relationships

This dissertation is based on the assumption that fading customer relationships are important phenomena to understand in order for companies to prevent a future relationship termination, manage a desired relationship termination, or manage the situation where the relationship strength temporarily or permanently has weakened but where the customer still stays with the same service provider. It is assumed that fading could take different forms and develop through a range of different processes. The purpose of the thesis is therefore to define and describe fading, reveal different types of fading relationship processes, and discuss the dynamics of these processes. In services literature there is a lack of research focusing on the weakening of customer relationships. Fading therefore represents a new approach to understanding issues related to the ending of customer relationships. A fading relationship process could precede a relationship ending, but could also represent a temporal weakening of the relationship without leading to termination. It thus distinguishes the concept from other concepts within ending research which focus solely on relationships that have been terminated, taking a larger aspect of the relationship into account (as a relationship could build on constant changes). A pilot study created an understanding of difficulties related to understanding and detecting fading customer relationship, which led to a follow-up study incorporating qualitative interviews in relationship dyads characterised as fading with both private banking customers and their respective financial advisor. The focus remained on the understanding of the fading process resulting in a model for analysing different types of fading processes. Four types of fading processes were also revealed; the crash landing process, the altitude drop process, the fizzle out process and the try out process. The dissertation contributes to a broadened understanding of different types of fading processes within the research area of ending relationships emphasising the dynamic aspects of the phenomenon. Managerial implications include the management of different types of fading processes and also the understanding of the financial advisor’s role in influencing the development of these processes. Helena Åkerlund is associated with CERS, the Centre for Relationship Marketing and Service Management at Hanken, Swedish School of Economics and Business Administration, Helsinki

Collective Network Capability in International Project Business Networks - A Case Study of the Business Network for the Ashanti Electrification Project in Ghana

Despite thirty years of research in interorganizational networks and project business within the industrial networks approach and relationship marketing, collective capability of networks of business and other interorganizational actors has not been explicitly conceptualized and studied within the above-named approaches. This is despite the fact that the two approaches maintain that networking is one of the core strategies for the long-term survival of market actors. Recently, many scholars within the above-named approaches have emphasized that the survival of market actors is based on the strength of their networks and that inter-firm competition is being replaced by inter-network competition. Furthermore, project business is characterized by the building of goal-oriented, temporary networks whose aims, structures, and procedures are clarified and that are governed by processes of interaction as well as recurrent contracts. This study develops frameworks for studying and analysing collective network capability, i.e. collective capability created for the network of firms. The concept is first justified and positioned within the industrial networks, project business, and relationship marketing schools. An eclectic source of conceptual input is based on four major approaches to interorganizational business relationships. The study uses qualitative research and analysis, and the case report analyses the empirical phenomenon using a large number of qualitative techniques: tables, diagrams, network models, matrices etc. The study shows the high level of uniqueness and complexity of international project business. While perceived psychic distance between the parties may be small due to previous project experiences and the benefit of existing relationships, a varied number of critical events develop due to the economic and local context of the recipient country as well as the coordination demands of the large number of involved actors. The study shows that the successful creation of collective network capability led to the success of the network for the studied project. The processes and structures for creating collective network capability are encapsulated in a model of governance factors for interorganizational networks. The theoretical and management implications are summarized in seven propositions. The core implication is that project business success in unique and complex environments is achieved by accessing the capabilities of a network of actors, and project management in such environments should be built on both contractual and cooperative procedures with local recipient country parties.

What is A Virtual Service?- Broadening the Perspective on Technology-Based Services

This article expands the discussion of the impact of technology on services and contributes to a broader comprehension of the nature of virtual services. This is done by discovering dimensions that distinguish physical services from virtual services, i.e. services that are distributed by electronic means and where the customer has no direct human interaction with the service provider. Differences in the core characteristics of services, servicescape and service delivery are discussed. Moreover, dimensions that differentiate between virtual services are analysed. A classification scheme for virtual services is proposed, including the origin of the service, the element of the service offering, the customisation process, stage of the service process performed, and the degree of mobility of the service.

Towards a Dynamic Communication Model: A Useful Tool in Relationship Communication

In order to bring insight into the emerging concept of relationship communication, concepts from two research traditions will be combined in this paper. Based on those concepts a new model, the dynamic relationship communication model, will be presented. Instead of a company perspective focusing on the integration of outgoing messages such as advertising, public relations and sales activities, it is suggested that the focus should be on factors integrated by the receiver. Such factors can be historical, future, external and internal factors. Thus, the model put a strong focus on the receiver in the communication process. The dynamic communication model is illustrated empirically using it as a tool on 78 short stories about communication. The empirical findings show that relationship communication occurs in some cases; in some cases it does not occur. The model is a useful tool in displaying relationship communication and how it differs from other communication. The importance of the time dimension, historical and future factors, in relationship communications is discussed. The possibility of reducing communications costs by the notion of relationship communication is discussed in managerial implications.

Kundklubbar och lojalitetsprogram i ett relationsmarknadsföringsperspektiv

Kundklubbar och lojalitetsprogram, marknadsföringsåtgärder som snabbt anammats inom de flesta branscher, utgör strategiska och taktiska åtaganden som direkt stöder en relationsmarknadsföringsansats i företag. Turistbranschen är inget undantag och idag ser vi hur även researrangörer utvecklat egna kundklubbar. Den frekvens med vilken finländska turister köper paketresor till "södern" per år ligger långt från den frekvens med vilken affärsresenärerna utnyttjar flygbolagens lojalitetsprogram. Trots det finns det ingen diskussion som belyser frågan hur väl relationsmarknadsföringsteorier utvecklade för marknader med hög köpfrekvens (flygbolagens lojalitetsprogram) är användbara på marknader där köpfrekvensen är lägre (t.ex. researrangörsbranschen). I denna artikel sammankopplas relationsmarknadsföringsteorier med teorier om lojalitetsprogram och kundklubbar. Artikeln syftar till att fördjupa förståelsen för lojalitetsprogrammens och kundklubbarnas relevans i en relationsmarknadsföringsansats. Ur diskussionen härleds forskningsfrågor som kan användas för att identifiera nya centrala forskningsområden. Artikeln fokuserar på den forskning som finner sin empiriska förankring i turistbranschen.

Service Productivity: Toward a Conceptualisation of the Transformation of inputs

The productivity of a process is related to how effectively input resources are transformed into value for customers. For the needs of manufacturers of physical products there are widely used productivity concepts and measurements instruments. However, in service processes the underlying assumptions of these concepts and models do not hold. For example, manufacturing-based productivity models assume that an altered configuration of input resources in the production process does not lead to quality changes in outputs (the constant-quality assumption). However, in a service context changes in the production resources and productions systems do affect the perceived quality of services. Therefore, using manufacturing-oriented productivity models in service contexts are likely to give managers wrong directions for action. Research into the productivity of services is still scarce, because of the lack of viable models. The purpose of the present article is to analyse the requirements for the development of a productivity concept for service operations. Based on the analysis, a service productivity model is developed. According to this model, service productivity is a function of 1) how effectively input resources into the service (production) process are transformed to outputs in the form of services (internal or cost efficiency), 2) how well the quality of the service process and its outcome is perceived (external or revenue efficiency), and 3) how effectively the capacity of the service process is utilised (capacity efficiency). In addition, directions for developing measurement models for service productivity are discussed.

The Value of Being on the Net- the effects of Web sites of companies on consumer decision making

The unique characteristics of marketspace in combination with the fast growing number of consumers interested in e-commerce have created new research areas of interest to both marketing and consumer behaviour researchers. Consumer behaviour researchers interested in the decision making processes of consumers have two new sets of questions to answer. The first set of questions is related to how useful theories developed for a marketplace are in a marketspace context. Cyber auctions, Internet communities and the possibilities for consumers to establish dialogues not only with companies but also with other consumers make marketspace unique. The effects of these distinctive characteristics on the behaviour of consumers have not been systematically analysed and therefore constitute the second set of questions which have to be studied. Most companies feel that they have to be online even though the effects of being on the Net are not unambiguously positive. The relevance of the relationship marketing paradigm in a marketspace context have to be studied. The relationship enhancement effects of websites from the customers’ point of view are therefore emphasized in this research paper. Representatives of the Net-generation were analysed and the results show that companies should develop marketspace strategies while Net presence has a value-added effect on consumers. The results indicate that the decision making processes of the consumers are also changing as a result of the progress of marketspace

Rethinking Service Companies’ Business Logic: Do We Need a Customer-Dominant Logic as a Guideline?

Purpose –This paper explores and expands the roles of customers and companies in creating value by introducing a new a customer-based approach to service. The customer’s logic is examined as being the foundation of a customer-based marketing and business logic. Design/methodology/approach – The authors argue that both goods-dominant logics and service-dominant logics are provider-dominant. Contrasting the customer-dominant logic with provider-dominant logics, the paper examines the creation of service value from the perspectives of value-in-use, the customer’s own context, and the customer’s experience of service. Findings –Moving from a provider-dominant logic to a customer-dominant logic uncovered five major challenges to service marketers: Company involvement, company control in co-creation, visibility of value creation, locus of customer experience, and character of customer experience. Research limitations/implications – The paper is exploratory. It presents and discusses a conceptual model and suggests implications for research and practice. Practical implications –Awareness of the mechanisms of customer logic will provide businesses with new perspectives on the role of the company in their customer’s lives. We propose that understanding the customer’s logic should represent the starting-point for the marketer’s business logic. Originality/value – The paper increases the understanding of how the customer’s logic underpins the customer-dominant business logic. By exploring consequences of applying a customer-dominant logic, we suggest further directions for theoretical and empirical research.

Kritisk-händelse-baserad metodutveckling

Denna artikel diskuterar den metodutveckling inom marknadsföring som baseras på den allmänt och mycket frekvent använda kritisk-händelse metod som grundar sig på Flanagen (1954). Genom att forskningen inom nämnda område alltmer handlar om kundrelationer är det naturligt att även metoder som används anpassas till detta. Det finns emellertid flere frågetecken när man fokuserar på kritiska händelser och kundrelationer. Ett sådant är konsekvensen av den kritiska händelsen. Utan att kartlägga en verklig konsekvens av kritiska händelser som inträffat (verkligt beteende) är det emellertid svårt att utveckla metoder för framtida och kommande beteende. Därför diskuteras dessa frågor här i avsikt att föra utvecklingen mot en applicering av kritisk-händelse metoder i pågående kundrelationer.