Skip to main content

Values and Competitive Advantages Based on Customer Value Propositions

  • Chapter
  • First Online:
Value in Business

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

Continuing the effort of the previous chapter to develop a theoretically rigorous and practically useful theory of customer value propositions (CVP), as called for repeatedly by the extant literature, this chapter, mainly based on (Forrest et al., 2021, Studies in Business and Economics Journal, 16(2)), establishes eight generally true facts that do not suffer from the constraints of data-based and anecdote-based approaches, as widely used in the relevant literature.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 119.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 159.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 159.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Acemoglu, D., & Restrepo, P. (2016). The race between man and machine: Implications of technology for growth, factor shares, and employment. NBER Working Papers No.22252.

    Google Scholar 

  • Adner, R. (2017). Ecosystem as structure: An actionable construct for strategy. Journal of Management, 43(1), 39–58.

    Article  Google Scholar 

  • Adner, R., Oxley, J. E., & Silverman, B. S. (Eds.). (2013). Collaboration and competition in business ecosystems. Emerald.

    Google Scholar 

  • Anderson, J. C., & Narus, J. A. (1998). Business marketing: Understand what customers value. Harvard Business Review, 76(6), 53–65.

    Google Scholar 

  • Ballantyne, D., Frow, P., Varey, J. R., & Payne, A. (2011). Value propositions as communication practice: Taking a wider view. Industrial Marketing Management, 40(2), 202–210.

    Article  Google Scholar 

  • Bernanke, B.S., & Gertler, M. (1999). Monetary policy and asset price volatility. Economic Review, Federal Reserve Bank of Kansas City, fourth quarter (pp. 17–51).

    Google Scholar 

  • Blocker, C. P. (2011). Modeling customer value perceptions in cross-cultural business markets. Journal of Business Research, 64(5), 533–540.

    Article  Google Scholar 

  • Carlson, C., Polizzotto, L., & Gaudette, G. R. (2019). The “NABC’s” of value propositions. IEEE Engineering Management Review, 47(3), 15–20.

    Article  Google Scholar 

  • Clarke, I., III. (2001). Emerging value propositions for M-commerce. Journal of Business Strategies, 18(2), 133–148.

    Article  Google Scholar 

  • Day, G. S. (1994). The capabilities of market-driven organizations. Journal of Marketing, 58(4), 37–52.

    Article  Google Scholar 

  • Duan, Y. Q., Edwards, J. S., & Dwivedi, Y. K. (2019). Artificial intelligence for decision making in the era of big data – Evolution, challenges and research agenda. International Journal of Information Management, 48(October), 63–71.

    Article  Google Scholar 

  • Fernando, C. S., Sharfman, M. P., & Uysal, V. B. (2017). Corporate environmental policy and shareholder value: Following the smart money. Journal of Financial and Quantitative Analysis, 52(5), 2023–2051.

    Article  Google Scholar 

  • Forrest, J. Y.-L., Buttermore, J., & Theresa Wajda, T. (2017). At Nash equilibrium when new market competitions appear? Kybernetes: The International Journal of Cybernetics, Systems and Management Sciences, 46(2), 256–271.

    Article  Google Scholar 

  • Forrest, J. Y.-L., Hopkins, Z., & Liu, S. F. (2013). Currency wars and a possible self-defense (I): How currency wars take place. Advances in Systems Science and Application, 13, 198–217.

    Google Scholar 

  • Forrest, J. Y.-L., Novikov, D. A., Larson, S., Wang, F., & Yang, J. (2021). Competitive advantages and values created and attained out of well-crafted customer value propositions, Studies in Business and Economics Journal, 16(2), 53–73.

    Google Scholar 

  • Forrest, J. Y.-L., & Orvis, B. (2016). Principles of management efficiency and organizational inefficiency. Kybernetes: The International Journal of Cybernetics, Systems and Management Sciences, 45(8), 1308–1322.

    Article  Google Scholar 

  • Forrest, J. Y.-L., Tucker, R., Lin, C. C., & Mondal, S. (2018). Impacts of manufacturing firms’ culture, structure and leadership on innovation: A systemic approach. Proceedings of the 2018 annual conference of NABET (pp. 95–120).

    Google Scholar 

  • Frow, P., & Payne, A. (2011). A stakeholder perspective of the value proposition concept. European Journal of Marketing, 45(1–2), 223–240.

    Article  Google Scholar 

  • Fuentelsaz, L., & Gómez, J. (2006). Multipoint competition, strategic similarity and entry into geographic markets. Strategic Management Journal, 27(5), 477–499.

    Article  Google Scholar 

  • Grant, J. I. (2003). Foundations of economic value added. Wiley.

    Google Scholar 

  • Hendrikse, G., Hippmann, P., & Windsperger, J. (2015). Trust, transaction costs and contractual incompleteness in franchising. Small Business Economics, 44(4), 867–888.

    Article  Google Scholar 

  • Holttinen, H. (2014). Contextualizing value propositions: Examining how consumers experience value propositions in their practices. Australian Marketing Journal, 22(2), 103–110.

    Article  Google Scholar 

  • Hsieh, K. Y., & Vermeulen, F. (2014). The structure of competition: How competition between one’s rivals influences imitative market entry. Organization Science, 25(1), 299–319.

    Article  Google Scholar 

  • Khantimirov, D. (2017). Market share as a measure of performance: Conceptual issues and financial accountability for marketing activities within a firm. Journal of Research in Marketing, 7(3), 587–592.

    Google Scholar 

  • Kotler, P. (1977). From sales obsession to marketing effectiveness. Harvard Business Review, 55(6), 67–75.

    Google Scholar 

  • Kowalkowski, C. (2011). Dynamics of value propositions: Insights from service-dominant logic. European Journal of Marketing, 45(1/2), 277–294.

    Article  Google Scholar 

  • Lanning, M., & Michaels, E. (1988). A business is a value delivery system. McKinsey staff paper no. 41, July.

    Google Scholar 

  • Li, T., & Ma, J. H. (2015). Complexity analysis of dual-channel game model with different managers’ business objectives. Communications in Nonlinear Science and Numerical Simulation, 20, 199–208.

    Article  Google Scholar 

  • Lin, Y., & OuYang, S. C. (2010). Irregularities and prediction of major disasters. CRC Press.

    Book  Google Scholar 

  • Marketing Science Institute. (2010). MSI research priorities 2010–12. MSI.

    Google Scholar 

  • McGrath, R. G. (2013). The end of competitive advantage: How to keep your strategy moving as fast as your business. Harvard Business Review Press.

    Google Scholar 

  • Nohria, N., & Garcia-Pont, C. (1991). Global strategic linkages and industry structure. Strategic Management Journal, 12(Summer Special Issue), 105–124.

    Article  Google Scholar 

  • Parasuraman, A. (1997). Reflections on gaining competitive advantage through customer value. Journal of the Academy of Marketing Science, 25, 154. https://doi.org/10.1007/BF02894351

    Article  Google Scholar 

  • Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: Evolution, development, and application in marketing. Journal of the Academy of Marketing Science, 45, 467–489.

    Article  Google Scholar 

  • Pyper, K., Doherty, A. M., Gounaris, S., & Wilson, A. (2019). Investigating international strategic brand management and export performance outcomes in the B2B context. International Marketing Review, 37(1), 98–129.

    Article  Google Scholar 

  • Randall, W. S., Defee, C. C., & Brady, S. P. (2010). Value propositions of the U.S. trucking industry. Transportation Journal, 49(3), 5–23.

    Google Scholar 

  • Rintamäki, T., & Kirves, K. (2017). From perceptions to propositions: Profiling customer value across retail contexts. Journal of Retailing and Consumer Services, 37(July), 159–167.

    Article  Google Scholar 

  • Rintamaki, T., Kuusela, H., & Mitronen, L. (2007). Identifying competitive customer value propositions in retailing. Managing Service Quality, 17(6), 621–634.

    Article  Google Scholar 

  • Robins, J. A. (1992). Organizational considerations in the evaluation of capital assets: Toward a resource-based view of strategic investment by firms. Organization Science, 3(4), 442–562.

    Article  Google Scholar 

  • Sheehan, N. T., & Bruni-Bossio, V. (2015). Strategic value curve analysis: Diagnosing and improving customer value propositions. Business Horizons, 58(3), 317–324.

    Article  Google Scholar 

  • Smith, A. M. (2013). The value co-destruction process: A customer resource perspective. European Journal of Marketing, 47(11/12), 1889–1909.

    Article  Google Scholar 

  • Srivastava, R. K., Shervani, T. A., & Fahey, L. (1999). Marketing, business processes, and shareholder value: An organizationally embedded view of marketing activities and the discipline of marketing. Journal of Marketing, 63(4), 168–179.

    Article  Google Scholar 

  • Starch, D. (1914). Advertising: Its principles, practice, and technique. Scott, Foresman.

    Google Scholar 

  • Webster, F. E. (2002). Market-driven management: How to define, develop and deliver customer value (2nd ed.). Wiley.

    Google Scholar 

  • Williams, P., & Naumann, E. (2011). Customer satisfaction and business performance: A firm-level analysis. Journal of Services Marketing, 25(1), 20–32.

    Article  Google Scholar 

  • Wouters, M. (2010). Customer value propositions in the context of technology commercialization. International Journal of Innovation Management, 14(6), 2099–1127.

    Article  Google Scholar 

  • Wouters, M., & Kirchberger, M. A. (2015). Customer value propositions as interorganizational management accounting to support customer collaboration. Industrial Marketing Management, 46(April), 54–67.

    Article  Google Scholar 

  • Yrjölä, M. (2015). Uncovering executive prioritization: Evaluating customer value propositions with the pairwise comparison method. Journal of Service Science and Management, 8(1). https://doi.org/10.4236/jssm.2015.81001

  • Zhang, T. C., Gu, H. M., & Jahromi, M. F. (2019). What makes the sharing economy successful? An empirical examination of competitive customer value propositions. Computers in Human Behavior, 95(June), 275–283.

    Article  Google Scholar 

  • Zheng, C. D., Yu, X. F., & Jin, Q. M. (2017). How user relationships affect user perceived value propositions of enterprises on social commerce platforms. Information Systems Frontiers, 19, 1261–1271.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Forrest, J.YL., Liu, Y. (2022). Values and Competitive Advantages Based on Customer Value Propositions. In: Value in Business. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-82898-1_15

Download citation

Publish with us

Policies and ethics