Abstract
Many manufacturers look to business solutions to provide growth; however, success is far from guaranteed, and it is unclear how such solutions can create superior perceived value. This article explores what constitutes value for customers from solutions over time - conceptualized as "value in use" - and how this arises from quality perceptions of the solution's components. The authors develop a framework for solution quality and value in use through 36 interviews combining repertory grid technique and means-end chains. The findings significantly extend the extant view of quality as a function of the supplier's products and services, and show that customers also assess the quality of their own resources and processes, as well as the quality of the joint resource integration process. The authors report that value in use corresponds not just to collective, organizational goals but also to individuals' goals, a finding that strongly contrasts with prior research. Four moderators of the quality-value relationship demonstrate customer heterogeneity across both firms and roles within what the authors term the "usage center." When shifting toward solutions, manufacturers require very different approaches to market research; account management; solution design; and quality control, including the need for value-auditing processes.
| Original language | English |
|---|---|
| Pages (from-to) | 96-120 |
| Number of pages | 25 |
| Journal | Journal of Marketing |
| Volume | 80 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 1 May 2016 |
Funding
The authors gratefully acknowledge funding from the Engineering and Physical Sciences Research Council through the Cranfield Innovative Manufacturing Research Centre (grant number EP/E001874/1). The authors also acknowledge with thanks the assistance of Tim Baines, Marko Bastl, Helen Bruce, Ignas Bruder, Alice Duda, Steve Evans, Rick Greenough, Mark Johnson, Helen Lockett, Veronica Martinez, Andy Neely, Kamran Razmdoost, Emanuel Said, Mark Tang, Amir Toossi, and the anonymous practitioner informants. They also thank the three anonymous JM reviewers for their helpful suggestions on previous versions of the article. Werner Reinartz served as area editor for this article.
Keywords
- means-end chains
- product-service systems
- repertory grid
- resource integration
- servitization