Journal of Marketing Analytics

, Volume 6, Issue 4, pp 138–149 | Cite as

An analytical model that links customer-perceived value and competitive strategies

  • Said EchchakouiEmail author
Original Article


Several authors developed predictive analytic models that link the value that represents customers to a firm (i.e., customer lifetime value) to several outcome variables, such as customer profitability, in relationship marketing. However, similar models that link the value that customers perceive and firm outcomes or customer responses are uncommon. To reduce this gap, we construct an analytic model that links customer-perceived value and a company’s competitive strategy, achieved through a multi-attribute model, analytic hierarchy processing, and a conceptualization of value that considers disparity between benefits and sacrifices. Operationalized in a context of industrial enterprise, the model predicts and orients a company’s competitive strategy and extends generic competitive strategies introduced in Bowman’s strategy clock mode by identifying when two strategies create competitive advantages.


Analytical model Customer-perceived value Competitive strategy Bowman’s strategy clock Generic strategies Operationalization 

Supplementary material

41270_2018_43_MOESM1_ESM.docx (18 kb)
Electronic supplementary material 1 (DOCX 18 kb)


  1. Anderson, J.C., and J.A. Narus. 1999. Business market management: Understanding, creating, and delivering value. Upper Saddle River, NJ: Prentice-Hall Inc.Google Scholar
  2. Anderson, J.C., and F. Wynstra. 2010. Purchasing higher-value, higher-price offerings in business markets. Journal of Business-to-Business Marketing 17: 29–61.CrossRefGoogle Scholar
  3. Anderson, J.C., J.A. Narus, and W. van Rossum. 2006. Customer value propositions in business markets. Harvard Business Review 84: 1–4.Google Scholar
  4. Ansoff, H.I. 1986. Competitive strategy analysis on the personal computer. Journal of Business Strategy 6 (3): 28–36.CrossRefGoogle Scholar
  5. Barney, J. 1991. Firm resources and sustained competitive advantage. Journal of Management 171: 99–120.CrossRefGoogle Scholar
  6. Bayrak, M.Y., N. Çelebi, and H. Taskin. 2007. A fuzzy approach method for supplier selection. Production Planning and Control 18 (1): 54–63.CrossRefGoogle Scholar
  7. Berger, P.D., and N.I. Nasr. 1998. Customer lifetime value: Marketing models and applications. Journal of Interactive Marketing 121: 17–30.CrossRefGoogle Scholar
  8. Blocker, C.P. 2011. Modeling customer value perceptions in cross-cultural business markets. Journal of Business Research 64 (5): 533–540.CrossRefGoogle Scholar
  9. Bowman, C., and D. Asch. 1987. Strategic management. Basingstoke. London: Macmillan.CrossRefGoogle Scholar
  10. Bowman, C. 1991. Charting competitive strategy. Cranfield: Cranfield University SWP 33/91.Google Scholar
  11. Bowman, C., and D. Faulkner. 1996. Competitive and corporate strategy. London: Irwin.Google Scholar
  12. Bowman, C., and D. Faulkner. 1997. Competitive and corporate strategy, 296. London: Irwin.Google Scholar
  13. Bowman, C., and G. Johnson. 1992. Surfacing competitive strategies. European Management Journal 10 (2): 210–220.CrossRefGoogle Scholar
  14. Bremser, K., M.M. Alonso-Almeida, and L. Llach. 2018. Strategic alternatives for tourism companies to overcome times of crisis. Service Business 12 (2): 229–251.CrossRefGoogle Scholar
  15. Breur, T. 2013. Editoria. Journal of Marketing Analytics 1 (2): 63.CrossRefGoogle Scholar
  16. Chamodrakas, I., D. Batis, and D. Martakos. 2010. Supplier selection in electronic marketplaces using satisfying and fuzzy AHP. Expert Systems with Applications 37: 490–498.CrossRefGoogle Scholar
  17. Chatain, O., and P. Zemsky. 2011. Value creation and value capture with frictions. Strategic Management Journal 32 (11): 1206–1231.CrossRefGoogle Scholar
  18. Campbell-Hunt, C. 2000. What have we learned about generic competitive strategy. Strategic Management Journal 21: 127–154.CrossRefGoogle Scholar
  19. Echchakoui, S. 2015. Drivers of sales force equity in the service industry. Journal of Retailing and Consumer Services 27: 140–153.CrossRefGoogle Scholar
  20. Elrod, T., R.D. Johnson, and J. White. 2004. A new integrated model of noncompensatory and compensatory decision strategies. Organizational Behavior and Human Decision Processes 95: 1–19.CrossRefGoogle Scholar
  21. Faulkner, D., and C. Bowman. 1992. Generic strategies and congruent organizational structures: some suggestions. European Management Journal 10 (4): 494–500.CrossRefGoogle Scholar
  22. Faulkner, D., and C. Bowman. 1995. The essence of competitive strategy. Hertfordshide: Prentice Hall.Google Scholar
  23. Goldrin, D. 2017. Constructing brand value proposition statements: a systematic literature review. Journal of Marketing Analytics 5: 57–67.CrossRefGoogle Scholar
  24. Grant, R.M. 1998. Contemporary strategy analysis: Concepts, techniques, applications, Third Edition. Blackwell Publishing.Google Scholar
  25. Grant, R. 2011. Contemporary strategy analysis, 1st ed. Chichester: Wiley.Google Scholar
  26. Greenwood, R.A., C.D. Wrege, P.J. Gordon, and J. Joos. 2009. Louis J. DeLamarter: can he save a dying industry? Journal of Management History 15 (2): 134–146.CrossRefGoogle Scholar
  27. Gupta, S., D.R. Lehmann, and J.A. Stuart. 2004. Valuing customers. Journal of Marketing Research 411: 7–18.CrossRefGoogle Scholar
  28. Herzallah, A.M., L. Gutiérrez-Gutiérrez, and J.F. Munoz Rosas. 2014. Total quality management practices, competitive strategies, and financial performance: the case of the Palestinian industrial SMEs. Total Quality Management & Business Excellence 25: 635–649.CrossRefGoogle Scholar
  29. Holbrook, M.B. 2006. Consumption experience, customer value, and subjective personal introspection: an Illustrative photographic essay. Journal of Business Research 59: 714–725.CrossRefGoogle Scholar
  30. Huang, H.C., M.C. Lai, and L.H. Lin. 2011. Developing strategic measurement and improvement for the biopharmaceutical firm: using the BSC hierarchy. Expert Systems with Applications 38 (5): 4875–4881.CrossRefGoogle Scholar
  31. Johnson, G., K. Scholes, and R. Whittington. 2005. Exploring corporate strategy, 7th ed. Pearson: Harlow.Google Scholar
  32. Johnson, G., G. Whittington, P. Regnér, K. Scholes, and D. Angwin. 2017. Exploring strategy: text and cases, 11th ed. Harlow: Pearson.Google Scholar
  33. Kahneman, D., and A. Tversky. 1979. Prospect theory: an analysis of decision under risk. Econometrica 47: 263–291.CrossRefGoogle Scholar
  34. Kotler, P., and K. Keller. 2012. Marketing management, 14 editions. Hertfordshide: Prentice Hall.Google Scholar
  35. Köksal, M.H., and E. Özgül. 2010. The export competitive advantages of Turkish manufacturing companies. Marketing Intelligence & Planning 28 (2): 206–222.CrossRefGoogle Scholar
  36. Kumar, V., B. Rajan, and R. Venkatesan. 2009. Implementing profitability through a customer lifetime value management framework. Marketing Intelligence Review 1 (2): 32–43.CrossRefGoogle Scholar
  37. Lai, A.W. 1995. Consumer value, product benefits and customer value: a consumption behaviour approach. Advances in Consumer Research 22: 381–388.Google Scholar
  38. Mathwick, C., N. Malhotra, and E. Rigdon. 2001. Experiential value: conceptualization, measurement and application in the catalog and Internet shopping environment. Journal of Retailing 771: 39–56.CrossRefGoogle Scholar
  39. Morgan, A. 2015. Competitive strategies-how these are vital for volatile markets’ sub-parts. Scholedge International Journal of Business Policy & Governance 2 (11): 1–4.Google Scholar
  40. Ossi, Y. 2018. Guidelines for assessing the value of a predictive algorithm: a case study. Journal of Marketing Analytics 6 (1): 19–26.CrossRefGoogle Scholar
  41. Palmatier, R.W., L. Scheer, M. Houston, K. Evans, and S. Gopalakrishna. 2007. Use of relationship marketing programs in building customer-salesperson and customer-firm relationships: differential influences on financial outcomes. International Journal of Research in Marketing 24 (3): 10–223.CrossRefGoogle Scholar
  42. Palmatier, R.W. 2008. Interfirm relational drivers of customer value. Journal of Marketing 72 (3): 76–89.CrossRefGoogle Scholar
  43. Payne, A., P. Frow, and A. Eggert. 2017. The customer value proposition: evolution, development, and application in marketing. Journal of the Academy of Marketing Science 454: 467–489.CrossRefGoogle Scholar
  44. Peteraf, M.A., and J.B. Barney. 2003. Unraveling the resource-based tangle. Managerial and Decision Economics 24: 309–323.CrossRefGoogle Scholar
  45. Porter, M.E. 1980. Competitive strategy: techniques for analyzing industries and competitors. New York: The Free Press.Google Scholar
  46. Porter, M.E. 1985. Competitive advantage. New York: The Free Press.Google Scholar
  47. Porter, M.E. 1996. What is strategy. Harvard Business Review 74: 61–78.Google Scholar
  48. Porter, M.E. 2008. The competitive forces that shape strategy. Harvard Business Review 86 (1): 57–71.Google Scholar
  49. Prunea, A. 2014. Competitive advantage in the enterprise performance. Annals of the University of Oradea, Economic Science Series 23 (1): 524–531.Google Scholar
  50. Rad, A., B. Naderi, and M. Soltani. 2011. AHP Algorithms: a case study in Iran. Expert Systems with Applications 38: 755–763.CrossRefGoogle Scholar
  51. Rintamaki, T., H. Kuusela, and L. Mitronen. 2007. Identifying competitive customer value propositions in retailing. Managing Service Quality 17 (6): 621–634.CrossRefGoogle Scholar
  52. Saaty, L T. 1970. Optimization in integers and related extreme problems. McGraw-Hill Book Co., New York, 1970. From a course given at the University of California, Los Angeles, and at George Washington University.Google Scholar
  53. Saaty, T.L. 1977. A scaling method for priorities in hierarchical structures. Journal of Mathematical Psychology 15: 234–281.CrossRefGoogle Scholar
  54. Saaty, T.L., and L.G. Vargas. 2007. Dispersion of group judgments. Mathematical and Computer Modeling 46: 918–925.CrossRefGoogle Scholar
  55. Saunders, L. 2015. Academic libraries’ strategic plans: top trends and under-recognized areas. The Journal of Academic Librarianship 41: 285–291.CrossRefGoogle Scholar
  56. Shavarini, S.K., H. Salimian, J. Nazemi, and M. Alborzi. 2013. Operations strategy and business strategy alignment model (case of Iranian industries). International Journal of Operations & Production Management 33 (9): 1108–1130.CrossRefGoogle Scholar
  57. Swain, S.D., P.D. Berger, and B.D. Weinberg. 2014. The customer equity implications of using incentives in acquisition channels: a nonprofit application. Journal of Marketing Analytics 2 (1): 1–17.CrossRefGoogle Scholar
  58. Teece, D.J. 2007. Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal 28 (13): 1319–1350.CrossRefGoogle Scholar
  59. Teeratansirikool, L., S. Siengthai, Y. Badir, and C. Charoenngam. 2013. Competitive strategies and firm performance: the mediating role of performance measurement. International Journal of Productivity and Performance Management 62: 168–184.CrossRefGoogle Scholar
  60. Töytäri, P., R. Rajala, and T. Alejandro. 2015. Organizational and institutional barriers to value-based pricing in industrial relationships. Industrial Marketing Management 47: 53–64.CrossRefGoogle Scholar
  61. Tsai, W.C. 2009. Fuzzy measures of supplier evaluation under lean concepts. The Journal of the Operational Research Society 60 (7): 1005–1011.CrossRefGoogle Scholar
  62. Tsao, H.Y., J. Ma, and L. Pitt. 2014. Budget allocation to grow market share and maximize customer equity: the effect of inertial segment size. Journal of Marketing Analytics 2 (4): 205–217.CrossRefGoogle Scholar
  63. Wright, S. 2013. Converting input to insight: organizing for intelligence-based competitive advantage. In Competitive intelligence, analysis and strategy: creating organizational agility, ed. S. Wright, 1–35. Abingdon: Routledge.Google Scholar
  64. Woodall, T. 2003. Conceptualising “Value for the customer”: an attributional, structural and dispositional analysis. Academy of Marketing Science Review 12: 1–41.Google Scholar
  65. Yadav, V., and M.K. Sharma. 2016. Multi-criteria supplier selection model using the analytic hierarchy process approach. Journal of Modelling in Management 11 (1): 326–354.CrossRefGoogle Scholar
  66. Zeithaml, V.A. 1988. Consumer perceptions of price, quality, and value: a medium-end model and synthesis of evidence. Journal of Marketing 52 (3): 2–22.CrossRefGoogle Scholar

Copyright information

© Springer Nature Limited 2018

Authors and Affiliations

  1. 1.University of Quebec at RimouskiLévisCanada

Personalised recommendations