International Business & Supply
Chain Marketing
Articles
Lecture 1 ............................................................................................................................................................ 1
Customer Value and Value Propositions – fundamentals ............................................................................. 1
Lecture 2 .......................................................................................................................................................... 15
When it pays to have a friend on the inside: contingent effects of buyer advocacy on B2B suppliers....... 15
How business Customers Judge Solutions: Solution Quality and Value in Use ............................................... 21
Brand awareness in business markets: When is it related to firm performance?....................................... 29
Lecture 3 .......................................................................................................................................................... 35
Design and governance of multichannel sales systems: Financial performance consequences in ................. 35
Business to Business Markets. ......................................................................................................................... 35
The role of value informed pricing in market-oriented product innovation management ......................... 39
Lecture 4 .......................................................................................................................................................... 45
Reaching the breaking point: a dynamic theory of business-to-business customer defection ................... 45
Factors influencing the effectiveness of relationship marketing: a meta-analysis...................................... 53
Value of the customer – fundamental ......................................................................................................... 60
Lecture 5 .......................................................................................................................................................... 68
Issues in Supply Chain Management ........................................................................................................... 68
What is the right supply chain for your product? ........................................................................................ 76
Supply chain postponement and speculations strategies: how to choose the right strategy ..................... 79
Lecture 6 .......................................................................................................................................................... 85
Centralized supply chain planning at IKEA ................................................................................................... 85
The influence of business conditions on supply chain information-sharing mechanisms: A study
among supply chain links of SMEs. .............................................................................................................. 91
Lecture 7 .......................................................................................................................................................... 96
Ericsson’s proactive supply chain risk management approach after a serious sub-supplier accident ........ 96
From risk to resilience: learning to deal with disruptions ......................................................................... 103
Information Distortion in a Supply Chain: The Bullwhip Effect ................................................................. 106
, Lecture 1
Customer Value and Value Propositions – fundamentals
Business-to-Business value propositions based on the value for customers: an overview
of fundamental concepts – version January 2020 Dr. Jean Pierre Thomassen
Value propositions – reason given by a settler for buying their particular product or service, based on
the value it offers customers
A. Introduction
Customer value (CV) is the value as perceived by customers. Business customers choose for a
product, service or supplier because they believe that they get a better value than they could expect
from an alternative.
The increasing competition means B2B-companies need to differentiate in CV from the competition.
- This starts by understanding what the customer needs and how they can be satisfied at a higher
customer value than the competition while doing it at a profit.
Customer value has two sides:
• Value for the customer
• Value of the customer.
Customer value could be seen as the cornerstone of business market management.
Creating and communicating value is the basis of B2B marketing.
Part 1: Understanding Value
B. Customer Value (CV)
In almost all definitions and descriptions of CV four recurring characteristics of CV can be identified:
1. It is a trade-off between benefits and sacrifices;
2. Benefits and sacrifices are multi-facetted;
3. It is a subjective concept;
4. Value perceptions are relative to alternatives.
A trade-off between benefits and sacrifices
CV is dominantly conceptualized as the customers’ perceived trade-off and difference between what
they get (benefits) and what they have to sacrifice for it.
• Benefits: more sales, more market share, perceived quality
• Sacrifices: price, time, relationship costs
Multi-facetted benefits and sacrifices
CV is a multi-dimensional rather than a single, all-compassing concept.
Depending on the CV concept used the attributions of both the benefits and sacrifices differ. Therefore, no
general conceptualization of CV can be given. Three concepts: value-in-exchange, value-in-use and value-in-
relationships.
Relative to competition
Business customers buy form those companies that they ‘perceive as offering the best value’
When comparing the market offering with the next best alternative, the attributes of benefits and
sacrifices can be divided into points of parity, difference and contention.
,
, • Point of parity elements with essentially the same performance or functionality as those of the
next best alternative
• Points of difference elements that make the suppliers’ offering either superior or inferior to the
next best alternative
• Points of contention elements about which the supplier and its customers disagree regarding
how their performance or functionality compares with those of the next best alternative
C. Customer value segments
CV is what customers desire, expect and perceive. - The average customer does not exist.
Customers differ in their value expectations,
benefit they expect form the supplier and de
sacrifices they are willing to make.
Three segments can be determined.:
• Intrinsic value customers: They see the product
or service as a commodity that is sustainable by
competitive offerings. All value is intrinsic to
the product and price. They are typical
transaction buyers.
• Extrinsic value customers: are interested in
solutions and applications (beyond the product
value). They put a premium on advice and
service. These customers focus less on price,
the value of using the product is core.
• Strategic value customers: these customers
want to leverage the suppliers’ core
competencies for their own businesses. They
are focused on the relationship and are
prepared to make radical changes in their
organization and their strategies to get the
most value from the relationship with the
supplier as a partner.
The CV can be different between the people
within customers’ organization involved in the decision to buy (buying center) or involved in the use
of a solution (usage center).
D. Three CV-concepts
The perspective of customers’ perceived value of the exchange has evolved into the value of actually
using the product/service.
The conceptualization of CV extends from the value of using the
product/service to the value of a complete B2B-relationship. In
this concept there is not only a fundamental, but also an
emotional and social dimension of benefits. Also, there is not
only the company’s perceived value, but also that perceived by
the employees working with the supplier (the usage center).
This evaluation of the concept of CV leads to three CV concepts:
• Value-in-Exchange
• Value-in-Use
• Value-in-Relationship
Chain Marketing
Articles
Lecture 1 ............................................................................................................................................................ 1
Customer Value and Value Propositions – fundamentals ............................................................................. 1
Lecture 2 .......................................................................................................................................................... 15
When it pays to have a friend on the inside: contingent effects of buyer advocacy on B2B suppliers....... 15
How business Customers Judge Solutions: Solution Quality and Value in Use ............................................... 21
Brand awareness in business markets: When is it related to firm performance?....................................... 29
Lecture 3 .......................................................................................................................................................... 35
Design and governance of multichannel sales systems: Financial performance consequences in ................. 35
Business to Business Markets. ......................................................................................................................... 35
The role of value informed pricing in market-oriented product innovation management ......................... 39
Lecture 4 .......................................................................................................................................................... 45
Reaching the breaking point: a dynamic theory of business-to-business customer defection ................... 45
Factors influencing the effectiveness of relationship marketing: a meta-analysis...................................... 53
Value of the customer – fundamental ......................................................................................................... 60
Lecture 5 .......................................................................................................................................................... 68
Issues in Supply Chain Management ........................................................................................................... 68
What is the right supply chain for your product? ........................................................................................ 76
Supply chain postponement and speculations strategies: how to choose the right strategy ..................... 79
Lecture 6 .......................................................................................................................................................... 85
Centralized supply chain planning at IKEA ................................................................................................... 85
The influence of business conditions on supply chain information-sharing mechanisms: A study
among supply chain links of SMEs. .............................................................................................................. 91
Lecture 7 .......................................................................................................................................................... 96
Ericsson’s proactive supply chain risk management approach after a serious sub-supplier accident ........ 96
From risk to resilience: learning to deal with disruptions ......................................................................... 103
Information Distortion in a Supply Chain: The Bullwhip Effect ................................................................. 106
, Lecture 1
Customer Value and Value Propositions – fundamentals
Business-to-Business value propositions based on the value for customers: an overview
of fundamental concepts – version January 2020 Dr. Jean Pierre Thomassen
Value propositions – reason given by a settler for buying their particular product or service, based on
the value it offers customers
A. Introduction
Customer value (CV) is the value as perceived by customers. Business customers choose for a
product, service or supplier because they believe that they get a better value than they could expect
from an alternative.
The increasing competition means B2B-companies need to differentiate in CV from the competition.
- This starts by understanding what the customer needs and how they can be satisfied at a higher
customer value than the competition while doing it at a profit.
Customer value has two sides:
• Value for the customer
• Value of the customer.
Customer value could be seen as the cornerstone of business market management.
Creating and communicating value is the basis of B2B marketing.
Part 1: Understanding Value
B. Customer Value (CV)
In almost all definitions and descriptions of CV four recurring characteristics of CV can be identified:
1. It is a trade-off between benefits and sacrifices;
2. Benefits and sacrifices are multi-facetted;
3. It is a subjective concept;
4. Value perceptions are relative to alternatives.
A trade-off between benefits and sacrifices
CV is dominantly conceptualized as the customers’ perceived trade-off and difference between what
they get (benefits) and what they have to sacrifice for it.
• Benefits: more sales, more market share, perceived quality
• Sacrifices: price, time, relationship costs
Multi-facetted benefits and sacrifices
CV is a multi-dimensional rather than a single, all-compassing concept.
Depending on the CV concept used the attributions of both the benefits and sacrifices differ. Therefore, no
general conceptualization of CV can be given. Three concepts: value-in-exchange, value-in-use and value-in-
relationships.
Relative to competition
Business customers buy form those companies that they ‘perceive as offering the best value’
When comparing the market offering with the next best alternative, the attributes of benefits and
sacrifices can be divided into points of parity, difference and contention.
,
, • Point of parity elements with essentially the same performance or functionality as those of the
next best alternative
• Points of difference elements that make the suppliers’ offering either superior or inferior to the
next best alternative
• Points of contention elements about which the supplier and its customers disagree regarding
how their performance or functionality compares with those of the next best alternative
C. Customer value segments
CV is what customers desire, expect and perceive. - The average customer does not exist.
Customers differ in their value expectations,
benefit they expect form the supplier and de
sacrifices they are willing to make.
Three segments can be determined.:
• Intrinsic value customers: They see the product
or service as a commodity that is sustainable by
competitive offerings. All value is intrinsic to
the product and price. They are typical
transaction buyers.
• Extrinsic value customers: are interested in
solutions and applications (beyond the product
value). They put a premium on advice and
service. These customers focus less on price,
the value of using the product is core.
• Strategic value customers: these customers
want to leverage the suppliers’ core
competencies for their own businesses. They
are focused on the relationship and are
prepared to make radical changes in their
organization and their strategies to get the
most value from the relationship with the
supplier as a partner.
The CV can be different between the people
within customers’ organization involved in the decision to buy (buying center) or involved in the use
of a solution (usage center).
D. Three CV-concepts
The perspective of customers’ perceived value of the exchange has evolved into the value of actually
using the product/service.
The conceptualization of CV extends from the value of using the
product/service to the value of a complete B2B-relationship. In
this concept there is not only a fundamental, but also an
emotional and social dimension of benefits. Also, there is not
only the company’s perceived value, but also that perceived by
the employees working with the supplier (the usage center).
This evaluation of the concept of CV leads to three CV concepts:
• Value-in-Exchange
• Value-in-Use
• Value-in-Relationship
