Advertisement

Value Network Segmentation: A Three-Factor Model

  • Nanda ViswanathanEmail author
Conference paper
Part of the Developments in Marketing Science: Proceedings of the Academy of Marketing Science book series (DMSPAMS)

Abstract

The evolution toward a service-dominant logic necessitates a reexamination of how value is created and a consideration of how co-created value impacts marketing strategy. The effect of co-created value networks on a specific aspect of marketing strategy; market segmentation is examined. Heterogeneity in market demand as represented by the intensity level of customer participation in value creation, in combination with stages of value creation, and customer type is identified as a new basis for market segmentation.

Keywords

Segmentation Co-creation Customer value Marketing strategy 

References

  1. Anderson, J. C., Narus, J. A., & Rossum, W. V. (2006). Customer value propositions in business markets. Harvard Business Review, 84, 91–99.Google Scholar
  2. Bagozzi, R. P. (1999). Goal setting and goal striving in consumer behavior. Journal of Marketing, 63(Special issue), 19–32.CrossRefGoogle Scholar
  3. Beckman, T. N. (1957). The value added concept as a measurement of output. Advanced Management, 22(April), 6–9.Google Scholar
  4. Bendapudi, N., & Leone, R. P. (2003). Psychological implications of customer participation in co-production. Journal of Marketing, 67(1), 14–28.CrossRefGoogle Scholar
  5. Bitner, M. J., Brown, S. W., & Meuter, M. L. (2000). Technology infusion in service encounters. Journal of the Academy of Marketing Science, 28(1), 138–149.CrossRefGoogle Scholar
  6. Boone, D. S., & Roehm, M. (2002). Retail segmentation using artificial neural networks. International Journal of Research in Marketing, 19(3), 287–301.CrossRefGoogle Scholar
  7. Boulding, W., Staelin, R., Ehret, M., & Johnston, W. J. (2005). A customer relationship management roadmap, potential pitfalls and where to go. Journal of Marketing, 69(4), 155–166.CrossRefGoogle Scholar
  8. Chen, Y., Iyer, G., & Padmanabhan, V. (2002). Referral infomediaries. Marketing Science, 21(4), 412–434.CrossRefGoogle Scholar
  9. Christopher, H. L., & Young, R. F. (1979). Look to consumers to increase productivity. Harvard Business Review, 57(May-June), 168–178.Google Scholar
  10. Dibb, S., & Simkin, L. (2009). Editorial: Bridging the segmentation theory/practice divide. Journal of Marketing Management, 25(3-4), 219–225.CrossRefGoogle Scholar
  11. Dickson, P. R. (1982). Person-situation: Segmentation’s missing link. Journal of Marketing, 46(Fall), 56–64.CrossRefGoogle Scholar
  12. Dickson, P. R., & Ginter, J. L. (1987). Market segmentation, product differentiation, and marketing strategy. Journal of Marketing, 51(2), 1–10.CrossRefGoogle Scholar
  13. Firat, A. F., & Venkatesh, A. (1995). Liberatory postmodernism and the reenchantment of consumption. Journal of Consumer Research, 22(3), 239–267.CrossRefGoogle Scholar
  14. Frels, J. K., Shervani, T., & Srivastava, R. K. (2003). The integrated networks model: Explaining resource allocations in network markets. Journal of Marketing, 67(January), 29–45.CrossRefGoogle Scholar
  15. Grewal, D. R., Monroe, K. B., & Krishnan, R. (1998). The effects of comparison advertising on buyers’ perceptions of acquisition value and transaction value. Journal of Marketing, 62(2), 46–59.Google Scholar
  16. Grönroos, C. (1997). Value-driven relational marketing: From products to resources and competencies. Journal of Marketing Management, 13(5), 407–419.CrossRefGoogle Scholar
  17. Grönroos, C. (2011). Value co-creation in service logic: A critical analysis. Marketing Theory, 11(3), 279–267.CrossRefGoogle Scholar
  18. Gronroos, C., & Voima, P. (2013). Critical service logic: Making sense of value creation and co-creation. Journal of the Academy of Marketing Science, 41, 133–150.CrossRefGoogle Scholar
  19. Gummesson, E. (1994). Making relationship marketing operational. International Journal of Service Industry Management, 5(5), 5–20.CrossRefGoogle Scholar
  20. Hofstede, F. T., Steenkamp, J., & Wedel, M. (1999). International market segmentation based on consumer-product relations. Journal of Marketing Research, 36(1), 1–17.CrossRefGoogle Scholar
  21. Holbrook, M. B. (1994). The nature of consumer value. In R. T. Rust & R. L. Olivier (Eds.), Service quality: New directions in theory and practice (pp. 21–71). Nebury Park, CA: Sage.CrossRefGoogle Scholar
  22. Hult, G. T. M. (2011). Toward a theory of the boundary spanning marketing organization and insights from 31 organization theories. Journal of the Academy of Marketing Science, 39, 509–536.CrossRefGoogle Scholar
  23. Jayachandran, S., Sharma, S., Kaufman, P., & Raman, P. (2005). The role of relational information processes and technology use in customer relationship management. Journal of Marketing, 69(4), 177–192.CrossRefGoogle Scholar
  24. Lovelock, C. H. & Young, R. F. (1979). Look to customers to increase productivity. Harvard Business Review, 57, 168–178.Google Scholar
  25. Normann, R., & Ramirez, R. (1993). From value chain to value constellation. Harvard Business Review. 65–77.Google Scholar
  26. Parasuraman, A., & Grewal, D. (2000). The impact of technology on the quality-value-loyalty chain: A research agenda. Journal of the Academy of Marketing Science, 28(1), 168–174.CrossRefGoogle Scholar
  27. Payne, A., & Frow, P. (2005). A strategic framework for customer relationship management. Journal of Marketing, 69(4), 167–176.CrossRefGoogle Scholar
  28. Prahalad, C. K., & Ramaswamy, V. (2000). Co-opting customer competence. Harvard Business Review, 78, 79–90.Google Scholar
  29. Prahalad, C. K., & Ramaswamy, V. (2004). Co-creating unique value with customers. Strategy & Leadership, 32(3), 4–9.CrossRefGoogle Scholar
  30. Richins, M. L. (1994). Valuing things: The public and private meanings of possessions. Journal of Consumer Research, 21(December), 504–521.CrossRefGoogle Scholar
  31. Simonson, I. (2005). Determinants of customers’ responses to customized offers: Conceptual framework and research propositions. Journal of Marketing, 69(1), 32–45.CrossRefGoogle Scholar
  32. Slater, S. F., & Narver, J. C. (2000). Intelligence generation and superior customer value. Journal of the Academy of Marketing Science, 28(1), 120–127.CrossRefGoogle Scholar
  33. Smith, W. R. (1956). Product differentiation and market segmentation as alternative marketing strategies. Journal of Marketing, 21(1), 3–8.CrossRefGoogle Scholar
  34. Steenkamp, J., & Hofstede, F. T. (2002). International market segmentation: Issues and outlook. International Journal of Research in Marketing, 19, 185–213.CrossRefGoogle Scholar
  35. Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1–17.CrossRefGoogle Scholar
  36. Wedel, M., & Kamakura, W. A. (2000). Market segmentation: Conceptual and methodological foundations (2nd ed.). Norwell, MA: Kluwer Academic.CrossRefGoogle Scholar
  37. Wind, Y. (1978). Issues and advances in segmentation research. Journal of Marketing Research, 15(August), 317–338.CrossRefGoogle Scholar
  38. Wind, J., & Rangaswamy, A. (2001). Customerization: The second revolution in mass customization. Journal of Interactive Marketing, 15(1), 13–32.CrossRefGoogle Scholar
  39. Womack, J. P., & Jones, D. T. (1996). Lean thinking : banish waste and create wealth in your corporation. Journal of the Operational Research Society, 48(11), 1148.Google Scholar
  40. Woodruff, R. B. (1997). Customer value: The next source for competitive advantage. Journal of the Academy of Marketing Science, 25(2), 139–153.CrossRefGoogle Scholar
  41. Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 52, 2–22.Google Scholar

Copyright information

© Academy of Marketing Science 2019

Authors and Affiliations

  1. 1.Farmingdale State College (SUNY)FarmingdaleUSA

Personalised recommendations