Description
This study investigates what creates value for customers and how providers can improve value for their customers.
CUSTOMER VALUE ANALYSIS IN FINANCIAL SERVICES
PETER MAAS
ALBERT GRAF
WORKING PAPERS ON RISK MANAGEMENT AND INSURANCE NO. 36
EDITED BY HATO SCHMEISER
CHAIR FOR RISK MANAGEMENT AND INSURANCE
FEBRUARY 2007
CUSTOMER VALUE ANALYSIS IN FINANCIAL SERVICES
Peter Maas
Albert Graf
*
JEL-Classification: M10, M20
ABSTRACT
This study investigates what creates value for customers and how providers can
improve value for their customers. A comprehensive analytical model with a four-
step approach is presented and applied in the field of financial services. In a first
step, the main customer value drivers are identified and five value dimensions are
derived, based on qualitative interviews with customers. These results are then
compared to value assumptions made by customer-contact employees, and the gaps
between customer and employee perceptions are analyzed. Subsequently, implica-
tions for CV management are derived and finally implications of findings for ser-
vice marketing practice and research are discussed.
1. INTRODUCTION
In recent years, firm strategy and marketing research have focused on the identi-
fication, creation, and delivery of value to customers. The customer value con-
cept has become one of the most popular approaches among business managers
and marketing researchers. Delivery of customer value (CV) is considered the
fundamental basis of marketing activities and an effective source of competitive
advantage in promoting profit growth and ensuring long-term success (Gale,
1994; Hamel and Prahalad, 1994; Woodruff, 1997; Flint et al., 2002). Despite
this emphasis and importance, the literature suggests that the study of CV is still
in its infancy (Day and Crask, 2000; Flint et al., 2002).
A great deal of research has been devoted to answering the first question: “What
creates value for customers?” resulting in a wide variety of different and partially
competing CV models and approaches. The empirical evidence to date is quite
*
The authors are with the University of St. Gallen, Institute of Insurance Economics, Kirchlistrasse 2,
9010 St. Gallen, Switzerland, E-Mail: [email protected], [email protected].
2
limited and sometimes ambiguous. However, a sound understanding of the con-
cept is a prerequisite for developing reliable and valid assessment tools (Eggert
and Ulaga, 2002). Furthermore, there is still a great need to provide managers
with effective CV analysis tools which enable them to assess their firm’s CV and
then either create or improve it (Ulaga, 2003; Kumar, Lemon, & Parasuraman,
2006). Most existing approaches consider CV analysis to be a research method or
a pricing tool. We argue that CV analysis is much more. It is a strategic market-
ing tool for identifying and measuring customers’ needs, gaps between customer
and company perceptions of value and competitive positioning (Ulaga and
Chacour, 2001).
In the present article, we focus on CV drivers, CV dimensions, and gaps between
customer and company perceptions of value within the financial services field.
Its main objective is: to provide and test a managerial tool for identifying what is
creating value and analyzing the gaps between customer and company value per-
ceptions in order to improve a company’s value proposition and value delivery.
In working toward these goals, the article is structured as follows. First, we out-
line the underlying CV understanding. Next, we describe the CV analysis model
and research methodology, taking into consideration the specific industry char-
acteristics of financial services, followed by presentation and discussion of our
empirical results. We initially conducted 20 in-depth interviews with customers
of a financial services broker in the retail market. After analyzing and interpret-
ing the results, we were able to identify five CV dimensions. These results are
compared to the results of 24 in-depth interviews conducted with advisors of the
financial services broker. Finally, implications are derived for CV management
as well as for research.
2. CUSTOMER VALUE UNDERSTANDING
Typically, customers will value many aspects of an exchange, which may involve
a service, a product, a store, a brand, or personal interaction with a salesperson
(e.g., Zeithaml, 1988; Holbrook, 1994; Lai, 1995; Flint et al., 2002). Ideas about
how to conceptualize and model CV vary widely and a multitude of different
models, concepts, and definitions can be found in the literature. Most researchers
consider CV as a theoretical, subjective, and multidimensional construct that is
dynamic in nature and commonly perceived relative to competition. Basically,
CV can be distinguished by its various levels of abstraction (Parasuraman, 1997;
3
Van der Haar, Kemp, and Omta, 2001). At the first-order level, perceived cus-
tomer value (PCV) focuses on the concrete attributes of products and services.
This level is characterized by the trade-off between the benefits and costs of a
product and/or service, which the customer perceives during the purchasing deci-
sion and usage phase. At the second-order level, desired customer value (DCV)
comes into play. DCV consists of the benefits customers are looking for in order
to fulfill their needs (Flint et al., 1997). At this level, customers choose actions
that maximize desired effects and minimize undesired effects (Peter and Olson,
1990). There are two basic DCV approaches. One is based on a means-end
model; the other conceptualizes DCV as a bundle of benefit/value dimensions.
In the present study, we focus on DCV conceptualized as a bundle of dimensions,
for several reasons. First, from a customer perspective, products are viewed as a
bundle of benefits/value dimensions, not as sum of single attributes (Day, 1994;
Peter and Olson, 1990; Lai, 1995). Second, DCV is of high strategic relevance
for companies. By focusing on the central DCV question, “What do customers
want to happen?” (Flint et al., 1997: 168), empirical data generates the informa-
tion necessary for creating a differentiated product offering for target customers
(Van der Haar et al., 2001). This capability is especially important if a com-
pany’s objective is to develop new products and services. In this study and in line
with Woodruff (1997), we posit that CV is derived from a customer’s perception
and evaluation of those product and service attributes, attribute performances,
and consequences that facilitate (or block) achieving the customer’s desired pur-
poses or goals.
In the literature some limitations of the conceptualization of CV as a bundle of
value dimensions can be found. DCV approaches fail to pay sufficient attention
to the sacrifices a customer is likely to make in acquiring, using, or disposing of
the product/service and neither do they elaborate on the tradeoffs customers are
expected to make between benefits and sacrifices (Khalifa, 2004). Furthermore,
although the discussion of whether higher-order constructs, such as CV, should
be conceptualized as formative or reflective, has attracted considerable attention
in other fields (see, e.g., Diamatopoulos and Winklhofer, 2001; Jarvis,
MacKenzie, and Podsakoff, 2003), it has yet to be addressed by CV research.
From the reflective perspective, higher-order constructs are assumed to cause
their dimensions, which consequently are considered strongly correlated (e.g.,
Lapierre, 2000). In contrast, the formative perspective assumes that higher-order
4
constructs are caused and defined by their dimensions, which need not necessar-
ily be highly correlated with one another (e.g., Ulaga, 2003). Furthermore, sev-
eral authors stress the importance of taking into consideration specific industry
characteristics, e.g. by Liang and Wang (2004), Varki and Colgate (2001), Ball,
Coelho, and Machas (2004) in the field of financial services. However, to our
knowledge, no study has yet investigated CV in financial services in an industry-
specific context. We aim to fill this gap in literature and to address the above
outlined limitations in this study.
3. ANALYSIS MODEL AND METHODOLOGY
Applying the concept of CV to the financial services industry requires the inclu-
sion of industry-specific characteristics, which are discussed in the following
section before a CV analysis model is developed and the applied research meth-
odology is described.
3.1 Characteristics of Financial Services
Certain service-specific characteristics, such as intangibility, customer involve-
ment, and confidentiality, are inherent to the products or services of most finan-
cial service providers, including insurers, banks, brokers, and investment advi-
sors. Compared to other industries, aspects such as risk, uncertainty, trust, and
personal relationships play an important role in the financial services industry.
For example, if customers buy insurance coverage for housing or health, they do
not know if they will ever need it. Furthermore, in the case of certain diseases or
damages (e.g., catastrophes), it is doubtful whether they will ever receive any
coverage. With regard to investments, when customers buy certain shares or life
insurance, for example, they are rarely guaranteed what they will receive at the
end. Therefore, contracts in financial services often have a promising character
with limited customer guarantees. This implies also that the real outcome only
unfolds over time and performance cannot really be assessed in the short term
(Beloucif, et al. 2004). In the early stages of the relationship between customer
and financial service provider, trust is particularly significant and appears to be
especially important when uncertainty and risk are present and warranties absent,
as is the case for many professional services (Beloucif et al., 2004). Furthermore,
relationships in this industry are usually long term in nature and come to possess
5
important attributes for all involved (e.g., reliability, security, confidence, and
trust), which are critical to success.
3.2 Conceptual and Analytical Framework
Identifying and measuring customer expectations, value perceptions, and experi-
ences in the domain of personal services is an enormous challenge for service
providers. Therefore, one objective of the present article is to provide a manage-
rial tool that will (1) identify the relevant value dimensions and their corre-
sponding value drivers; and (2) analyze the gaps between customer and company
value perceptions in order to improve a company’s value proposition, value de-
livery, and performance. An analytical model with a four-step approach is pre-
sented here and applied to the field of financial services.
Step 1. Desired and Perceived CV Exploration: Several studies investigate CV
based on dimensions derived from theory (e.g., Lapierre, 2000; Liang und Wang,
2004). However, bearing in mind the objective of this study and following the
argument of Ulaga (2003) that value dimensions need not be highly correlated to
each other, a formative approach has been chosen in order to explore CV and
provide a sound concept grounded in managerial practice. Applying a qualitative
methodology, the objective of this step is to attain a solid understanding of rele-
vant value drivers and explore the relevant value dimensions from a customer
perspective. Attention is paid both to benefits and sacrifices. It is essential to
consider that value drivers can be either positive or negative. While it is quite
easy to observe how value can be created, it can easily be destroyed as well, for
example by costs, risks, or negative consequences. It could even be the case that
the contribution of a certain value dimension will be negative in the customer’s
overall value perception.
Step 2. Presumed CV Exploration: A service’s quality and value for a customer is
considered to be critically dependent on the service provider’s customer-contact
employees. They constitute the basis for the assessment of the company’s service
quality. They also take on the important function of supplier and filter of cus-
tomer information and experiences to the company, and in particular with regard
to how often and how well the company succeeds in satisfying customer re-
quirements (Chung and Schneider, 2002). In this context, the employees’ as-
sumptions as to what customers appreciate, like, dislike and value plays a central
6
role. This information is an important resource for a successful CV management.
On the other hand, though, inaccurate information that is, misperceptions and
misinterpretations of what customers value, may steer CV management in a
wrong direction and actually be worse than useless. Therefore, at this step, cus-
tomer-contact employees were asked what they think creates CV for their cus-
tomers. The identification of presumed value drivers is based on these employee
interviews and follows the same approach as in Step 1.
Step 3. Identification of Gaps: The next step is to analyze the gaps between cus-
tomers' value perceptions and advisors' assumptions about CV. These are then
differentiated based on level of abstraction. First, for each value dimension, the
corresponding value drivers of Step 1 are compared with the presumed value
drivers of Step 2. This analysis at the value-driver level refers to the attribute
level - the PCV. Results at this level allow the derivation of concrete sugges-
tions/actions for improving products, services, and, especially, service quality.
Second, analysis at the value dimension level - the DCV - is focused on the rele-
vance and importance of single value dimensions and the relationships between
value dimensions in a general CV context. Of special importance here is that this
analysis pays attention to industry-specific characteristics, aspects such as risk,
uncertainty, trust, and personal relationships.
Step 4. CV Management Implications: Finally, based on the results of Steps 1 and
3, implications for management are derived. In this fourth step, the results from
Steps 1–3 are incorporated into specific management logic so as to obtain appro-
priate managerial response. The objective here is to improve a company’s value
proposition, value delivery, and performance. In that CV analysis is considered
of strategic importance, the focus of this step goes far beyond operational as-
pects. CV management is considered a managerial task, which consists of de-
signing, steering and developing goal-oriented systems (Ulrich and Krieg, 1974).
To this end, the holistic St. Gallen Management Approach (Ulrich and Krieg,
1974; Rüegg-Stürm 2002) is proposed as a framework for identifying managerial
implications and deriving consequences for CV management. In implementing
this approach, management’s focus needs to be directed at the normative, strate-
gic, and operative levels. The normative level is where a company’s general ob-
jectives, norms, and values are set. The strategic level is fundamentally commit-
ted to establishing competitive advantage and thus to the successful continuation
of a company. The goal at the operative level is to do things correctly and as effi-
7
ciently as possible. To achieve this, a company needs employees who are capable
of empathizing with, coping with, and working with customers.
3.3 Research Method
This research was designed to investigate CV’s various dimensions and how CV
can be improved by way of management action within the context of financial
services. A qualitative research approach was adopted in order to explore CV in
the financial services industry and to gain novel understanding of the CV phe-
nomena (cf. Ulaga, 2003; Stern, 1980). For Steps 1 and 2, data were collected
from individual in-depth interviews with customers and financial advisors. Both
groups were associated with one financial services broker operating in the private
segment in Germany. This broker focuses on specific customer segments, such as
medical doctors, lawyers, managers, and engineers and it’s offerings range from
payment, saving, investment, mortgage, and pension services to insurance prod-
ucts and related services. A list of research questions based on the research ob-
jectives was drawn up and used as an interview guide in a series of semi-struc-
tured in-depth interviews. In total, interviews were conducted with 20 customers
and 24 financial advisors. To view a broader picture of what creates CV, the
sample included customers from all over Germany who had different levels of
experience, expectations, and objectives. The interviewed customers came from
different professional backgrounds and had relationships of various durations
with the company (ranging from 1 to 19 years). The 24 financial advisors, who
were selected from different company affiliations, had professional experience
ranging from 1 to more than 14 years and diverse customer group specializations
(doctors, economists, engineers, and lawyers). Interviews began with general
background questions, followed by open-ended questions that allowed partici-
pants to tell whatever they felt was important in the context of CV. The goal was
to allow the participant to tell his or her story from the participant’s own per-
spective.
Each interview lasted approximately 60 to 90 minutes and was audio-taped and
transcribed verbatim. Analysis of the interview transcripts followed traditional
theoretically-based guidelines (see, e.g., Flint et al., 2002; Garver, 2003). Pri-
marily, two analysis techniques, open and axial coding, were employed in order
to identify different CV drivers and their sub-dimensions, and to determine rela-
tionships and/or gaps between different themes or constructs. Furthermore, trian-
8
gulation, informant feedback, and replication techniques were applied in the
analysis process so as to ensure trustworthiness (cf. Miles and Hubermann,
1994). The process proceeded as follows.
1. Two groups of researchers independently analyzed the verbatim transcripts by
developing value drivers and value dimensions using the same materials and pro-
cedures.
2. Results between the two groups of researchers were compared to identify those
areas where inconsistency existed. Both groups consistently identified the five
generic value dimensions. There were differences in the labeling of each dimen-
sion and the attribution of sub-dimensions to value drivers. To resolve these
problems, feedback from independent researchers and participants was gathered
and adjustments were made.
3. Section-by-section interpretations of key thoughts, following the recommen-
dation of Froschauer and Lueger (1992), were performed for both customer and
financial advisor transcripts, identifying which value drivers and dimensions the
participants valued most.
4. The study’s methodology and findings were presented and discussed at a
workshop attended by financial advisors, students, and the financial services bro-
ker management. Only a few changes in the wording of the value drivers were
made after this step.
5. Based on the results generated up to this point, a gap analysis was performed
during a one-day workshop. Two groups of researcher analyzed differences and
similarities between customer and employee value perceptions. Finally, group
results were collectively discussed and management implications derived.
9
4. RESEARCH RESULTS OF THE EMPIRICAL STUDY
In accordance with the proposed CV analysis model, the empirical results are
outlined in this section.
4.1 Desired and Perceived Customer Value
The customer interviews resulted in the derivations of five dimensions of CV
(Figure 1):
(1) Company Value refers to, above all, a company’s brand, image, and reputa-
tion as perceived by customers. Before a customer-company relationship is es-
tablished and customers must make a choice between several providers, a good
image and brand name are of particular importance. In a low-interest market,
good image and brand name can overcome a lack or trust and experience with the
company. Alternatively, a negative company reputation and image creates bur-
dens that must be compensated for. However, the significance of such value
drivers changes during the relationship. The more experience based the relation-
ship between customer and company/advisors becomes, the less relevance cus-
tomers assign to the company’s brand, image, and reputation. Customer C.H.
(customer for 10 years) describes this as follows: “At the moment, Company X’s
image has been somewhat damaged by the media, but if the quality of the prod-
uct and offer continues to satisfy me, I don’t care. I guess I don’t really depend
on that.” A customer’s perception of the company’s business model can also be a
positive (or negative) driver of value if the company focuses for examples on
specific customer groups. A company’s growth and development may also influ-
ence a customer’s value perception. Several customers made comments about
how quickly the company has grown. C.W. (customer for more than 10 years)
stated, “Company X became too big. I now have the impression that turnover is
everything.”
10
FIGURE 1
Customer Value Drivers and Dimensions
(2) Product Value encompasses product quality and performance, product cus-
tomization, the range of offered products, and the price-performance ratio. In
addition to monetary benefits, non-monetary product values were identified, such
as time-saving benefits and benefits created by convenience and supporting
functions of products. Several participants found non-monetary product values to
be of high significance, as illustrated in the following passage: "Not everything is
a question of price. In the long run, what is important is that products are prudent
and of high quality. During the selection process of appropriate products, the as-
pects of time saving and support are important" (C.L., banker, customer for 10
years). Several value drivers were identified, which reduce product value from a
customer perspective, such as, missing innovativeness of products, high advisory
commissions or an imbalance between price and performance. Hereby, price per-
ceptions varied greatly, all the way from “so far I have had only good experience
with their product, the price performance ratio is very good” (C.D., customer for
10 years) to “Company X could offer better prices what indeed they should do.
Their prices are not justified” (C.H., customer for 15 years).
(3) Service/Employee Value is based on the overall ability and know-how of em-
ployees. This includes the advisor’s ability to provide comprehensible consulta-
tion, to recognize customer needs, and to develop advice and appropriate con-
Company Value Product Value
Social Value
Service/Employee Value Relationship Value
• Company brand, image and reputation
• Company development und performance
• Business model
• Trust and confidence
• Sympathy, friendship
• Personal characteristics
penness, honesty
• Reduced anxiety
• Employee know-how and competence
• Customer orientation of employees
• Quality of service delivery process
• Similar educational, intellectual level
• Similar age and pecuniary circumstances
• Exclusiveness of customer segment
• Product quality and product performace
• Price
• Product selection and customization
• Time savings
Company Value Product Value
Social Value
Service/Employee Value Relationship Value
• Company brand, image and reputation
• Company development und performance
• Business model
• Trust and confidence
• Sympathy, friendship
• Personal characteristicspenness, honesty
• Reduced anxiety
• Employee know-how and competence
• Customer orientation of employees
• Quality of service delivery process
• Similar educational, intellectual level
• Similar age and pecuniary circumstances
• Exclusiveness of customer segment
• Product quality and product performace
• Price
• Product selection and customization
• Time savings
11
sultation for individual customers. A lawyer’s comments illustrate this point
well: “My advisor is really taking care of my financial needs. I don’t think that
he is a brilliant analyst, but he always knows everything, he is well informed and
very active. If I call him and tell him that I have a problem, then he takes care of
everything” (C.J., customer for more than 10 years). Yet, if customers get the
impression that their advisors are purely sales driven and not focused on cus-
tomer needs, the evaluation of the employee value changes significantly. Cus-
tomers want to believe that advisors are concerned with them personally, and not
purely sales driven. Additional drivers of the service/employee value dimension
include aspects of the service delivery process, such as transaction handling, how
information is provided, and access to the advisor/company. One important value
driver in this context is a change in advisor. If expectations regarding this value
driver are not met, a very negative impact can ensue that can also affect other
value dimensions, as the following comment demonstrates. “I was not informed
on time when Company X changed my personal advisor. That is unacceptable.
…My new advisor did not even contact me immediately. That was really disap-
pointing” (C.I., manager, customer for 10 years).
(4) Relationship Value refers to the perceived value of the customer’s personal
relationship with the financial advisor created by emotional aspects such as trust,
sympathy, friendship, reduction of anxiety, and other personal characteristics.
Personal characteristics, for example, the employee’s openness, honesty, or
trustworthiness, have a strong influence on the value of an interaction and have
been explicitly expressed from several participants. This type of CV seems to be
particularly prevalent in financial services where there is a great deal of personal
contact between customers and employees. For customers to feel comfortable
delegating most or even all of their financial matters to an advisor/company,
most customers find it essential to establish a relationship with the advisor built
on trust and, additionally, to “like” the advisor, or even see the advisor as a
friend. Aspects of relationship value may also be significant in reducing cus-
tomer anxiety or fear, as explained by C.M. (customer for three years): “[T]he
personal quality is very important to me … being given the feeling that I am well
cared for. In having such a contact, I don’t feel as that someone is taking advan-
tage of me or in any way skeptical.” If such relationships are spoiled or termi-
nated, for example, due to a change in advisors, negative relationship value is
created and may even be a reason for terminating the customer-company rela-
tionship: “Changing my advisor would destroy the trust I have. As with every
12
new advisor I would have to present all of my financial and personal issues. It is
like taking off your clothes in front of a stranger. I wouldn’t do it. This is what I
wouldn’t do” (C.D., customer for more than 10 years).
(5) Social Value can be described as a value that is derived from association with
positively or negatively stereotyped demographic, socioeconomic, and cultural-
ethnic groups or communities. The great majority of participants reported that
they perceive social benefits from their dealings with Company X in addition to
the core service benefits. If advisors and customers have comparable educational
and intellectual backgrounds, pecuniary circumstances or being similar in age,
these aspects are perceived as positive value drivers. For example, C.G. (student,
customer for one year) stated: “Before, the age and background of an advisor was
not of any significance to me. I didn’t think about it before I became a customer
of Company X. But now I appreciate that my advisor is my age. Because he is
younger, he understands me. Our careers paths are similar. Having many attrib-
utes in common facilitates a better synchronisation and thus relationship.”
Having identified relevant value dimensions, section-by-section interpretations of
key thoughts were made in order to determine the relative importance of the
identified value dimensions from a customer point of view. The results indicate
that the main value dimensions are the product, the service/employee, and the
relationship dimension. Several participants weighted these three dimensions
almost equally. Which of the three dominates depends very much on individual
circumstances and experiences with the company and/or the advisors. Several
customers had bad experiences with the management of the service process. This
decreased the importance of service/employee and relationship value for these
customers, and the product value became their dominant value dimension. How-
ever, some customers value relationship dimension above all (or nearly all) else.
One such customer stated: “If Company X offers me an insurance which costs me
10 or 20 Euros more than somewhere else, I would buy it from Company X be-
cause I am a customer of this company, because I feel as though I am in good
hands, and because my advisor is my friend. But a difference of for example 300
Euros per year would be too much” (C.K., customer for 4 years). Social and
company value drivers were of less importance to the participants. Even so, such
value drivers can serve to differentiate between competitors, particularly before a
customer has decided on which company to patronize. Negatively perceived
company value can be a huge obstacle in attracting new customers. Furthermore,
13
despite their limited significance, both social and company value drivers can be
an important pre-condition or support the creation of other value aspects. For
example, similar backgrounds and ages were relevant enough to the customers to
be mentioned and no doubt play some role in creating relationship value.
4.2 Gap Analysis between Perceived, Desired, and Presumed Customer
Value
Comparing customer and financial advisor perspectives reveals significant dif-
ferences at both the PCV level (attribute level) and at the DCV level (value di-
mension level). At PCV level, customer and employee perspectives were com-
pared for each value dimension:
Company Value: Customers and advisors both believe that company value is a
relevant value driver especially before or at the beginning of a customer-com-
pany relationship. Advisors see company value primarily as an instrument for
marketing as well as for engaging and winning customers. They believe that the
significance of this dimension diminishes with increasing length of the customer-
company relationship. Advisors assume that this dimension becomes almost
completely irrelevant and is replaced by other experience-based value elements,
particularly by the advisors themselves. For customers, the individual value driv-
ers in this dimension lose some of their significance during the course of the
customer-company relationship, but always remain at least somewhat relevant.
Particularly in the case of female customers, the name, brand, and reputation of
the company represent elements of value during the whole customer-company
relationship that can have either a positive or a negative effect on confidence in
the company and its advisors.
Product Value: Both sets of respondents agree that elements of this dimension
are of major importance to overall perceived CV. Opinions diverge, however,
with regard to the ranking of the individual value drivers within the dimension.
Advisors assume that customers consider a comprehensive concept, a good price-
performance ratio, and high-quality products to be the most important value driv-
ers. Furthermore, the advisors assume that these aspects will be considered the
differentiating characteristics among competitors. For the most part, customers
do consider a comprehensive concept and the associated convenience as positive
value driver. However, for some customers these aspects make them feel de-
14
pendent, vulnerable, and not in control of their own financial affairs. Customers
disagree somewhat with advisors on the issue of price. Price in not considered
unimportant by customers, but it is certainly not the most important aspect and is
not usually used to choose between competitors. However, the role of price
should not be discounted: if it is considered too high, it will become an obstacle
that rarely, if ever, can be overcome by any action, offer, or service by the com-
pany.
Service/Employee Value: Advisors assume their knowledge, their competence as
advisors, is the most important value driver of all. Customers do value the
knowledge and education of their advisors, but not to the same extent as the advi-
sors believe to be true. This is especially the case for those customers who con-
sider themselves competent in financial matters. Many advisors stress how ad-
vantageous the transparency they create is, and how well they can translate com-
plex products and circumstances into a comprehensible dialog. Customers do not
perceive this skill to be very important, possibly because they consider adequate
and clear communication as prerequisites of the service offered. Customers con-
sider the independence of advisors and their advice very important. Furthermore,
customers do not divide the consultation service into separate bits; for them, the
personal contact is possibly just as important as the advisor’s financial knowl-
edge.
Relationship Value: Customers and advisors alike regard the personal relation-
ship, advisor trustworthiness and openness as value drivers essential to a success-
ful customer-company relationship. However, when advisors talk about the per-
sonal relationship, they generally are referring to aspects such as well-timed,
regular appointments, constant accessibility, or being the sole company contact
for all financial affairs. In contrast, when customers talk about the personal rela-
tionship, they really do mean personal. Thus, there is a rather large difference
(gap) between what advisors think customers want and what customers actually
want, which is not so much attainability, as the advisors believe, as it is a sin-
cerely expressed interest in and concern for the customer himself or herself.
Social Value: Advisors consider social aspects such as similar levels of educa-
tion, age, intellectual capacity, and exclusivity as useful in marketing or in en-
gaging and winning customers. In contrast, customers consider these value driv-
ers as important characteristics to differentiate between competitors and as im-
15
portant cornerstones for establishing and developing relationship value. The sig-
nificance of individual social value drivers seems coupled less with the duration
of the customer relationship and more with the significance of the relationship
value of individual customers.
In summary, the analysis of value drivers shows that customers think in terms of
both positive and negative CV drivers, whereas financial services advisors be-
lieve that customers take only positive value drivers into account when evaluat-
ing a service. Furthermore, the analysis indicates that customers and advisors do
not always speak the same language. Advisors often speak of concepts and use
specialized, technical, or job-specific jargon; customers use everyday language.
The gap analysis at the value dimension level - DCV - focuses on the relevance
and importance of single value dimensions and the relationships between the
value dimensions in a general CV context. Although customers give almost the
same weight to the three core value dimensions - product, service/employee, and
relationship values - advisors do not. Advisors see themselves, and thus the ser-
vice/employee value, as the most significant dimension. The dimensions relation-
ship and product value are next in the advisors’ ranking, but they are clearly less
relevant. Regarding the company and social value, advisors in their understand-
ing assume that the relevance of these two dimensions, is very small or they are
not related to the other value dimensions. Only the service/employee value and
the relationship value dimensions are assumed to be closely linked, from the ad-
visors’ point of view. However, such is not the case for the customers, as the in-
terviews with them revealed many interdependencies between the individual
value dimensions. Moreover, the advisors’ evaluations, with their strong focus on
themselves, incorporate very little of the experiences customers have had with
other or former advisors. Particularly with respect to customers who have been
with the company for many years, and who have had experience with several
advisors, the positive as well as negative past experiences play an important role
in the overall evaluation and weighting of individual value dimensions. The re-
sults show that the PCV and DCV of customers have essentially the same struc-
ture as that assumed by the advisors. However, the perspectives are considerably
different with regard to complexity due to the various interdependencies that
customers see between individual elements as well as because customers have an
obviously more dynamic viewpoint.
16
4.3 Managerial Implications
Based on the results of Step 1 and 3, it was possible to derive a multitude of im-
plications for managing company CV at the different levels of management, for
example:
Normative management level - where a company’s general objectives, norms,
and values are set: The analysis of the value drivers and gaps demonstrates that
although the company image and brand name are not of primary importance to
customers, they can play a crucial role, especially in attracting new customers.
However in this pre-customer phase, it is important that the communicated val-
ues and messages are consistent with the overall (company) image; contradictory
signals will instill confidence and can even destroy formerly positive expecta-
tions. Every experience a customer has with a company is a test. Does the com-
pany keep its promises? Is confidence in this company justified? If the answers to
these questions are affirmative, then the cornerstone of a trustworthy relationship
has been laid and an indication of value presented to the customer. This requires
a purposeful value management of the brand name and image: management must
exemplify the associated and communicated values to employees and customers
through its own behavior, employees must live up to these values, and customers
must experience these values at each "moment of truth".
Strategic management level - building a lasting competitive advantage: The re-
sults show that for many customers the dimensions of service/employee and re-
lationship value dominate while traditionally, in the financial services industry,
customers were charged only for the products and not for the consultation. This
implies that the traditional coupling of product and consultation should be ques-
tioned and alternatives sought for a value oriented and not purely product ori-
ented pricing model. Furthermore, the analysis of the customer interviews reveals
that a clear focus on specific customer segments or on creating exclusivity not
only helps attract and keep customers, but also extends the basis of the customer
value assessment by adding positive social and relationship value aspects. The
more company and social value that is generated, the easier it is to offset deficits
in other value dimensions. A further aspect of strategic relevance is the manage-
ment of role conflicts. Advisors often find themselves in a state of conflict be-
tween requirement oriented and commissions oriented consultation. This is par-
ticularly the case when commissions oriented consulting has little or nothing to
17
do with the customer’s actual needs. However if the business model is based on
satisfied customers and long-term relationships, then commissions oriented con-
sulting may be advantageous to the advisor but be counterproductive for both the
customer and company. Management is challenged here to find a system of em-
ployee incentives that secures the support of both the employees and the custom-
ers.
Operational management level - doing things right: Customers consider the rela-
tionship value very important and advisors are expected not only to possess a
very high level of technical knowledge but also to be highly socially competent.
This requires a stronger focus on emotional and communicative aspects when
selecting and training advisors. Additional, customers interviews brought out the
fact that having to change advisors is one of the easiest ways for a customer to
lose all confidence and value in a company. Granted, in the real world, a change
in advisor will sometimes be unavoidable, but it should be possible to minimize
the negative consequences of doing so. The transfer process should be managed
as seamless as possible from the customer’s perspective, which means that care
must be taken that all information related to the customer (history, experience,
expectations, etc.) is transferred to the new advisor.
5. CONCLUSION AND IMPLICATIONS FOR PRACTICE AND RESEARCH
This qualitative study has shown that comparing the difference between customer
and advisor perspectives can result in valuable information for a company’s CV
management. Additionally, the relevance and importance of value dimensions
and specific drivers in the area of financial services were explored and analyzed.
The analysis provided a general picture of what creates and destroys value from a
customer perspective and, what is more, did so in the customer’s language, in-
stead of being couched in and perhaps obscured by the language and jargon of
researchers and employees. The results provide practical stepping stones toward
improving the design, creation, and delivery of customer value. The qualitative
approach used here facilitated identifying novel value drivers, interdependencies
between value elements, and gave some clear indications of how a company can
create CV for its customers, for example, by reducing the gaps between customer
and employee perceptions. While the results are not representative, they are in-
dicative of actual and potential areas for management actions. These specific ar-
eas could be investigated in more detail by using quantitative methods in order to
18
provide a reliable database for making and communicating management deci-
sions. From a CV management perspective, it would be interesting and helpful to
further develop the presented approach by devising measurement scales to ex-
amine qualitative results.
As for a research perspective, the results of this study support Ulaga’s (2003)
view that from a methodological standpoint, a formative measurement approach,
rather than a reflective one, should be used when modelling CV. The findings
show that value dimensions need not be highly correlated with each other. For
example, social value may be highly correlated with relationship value but little
or no correlation with other dimensions. For example, many participants, par-
ticularly the men, describe their perception of company value as having no or
very little effect on the other value dimensions. The empirical results further in-
dicate that taking into consideration industry-specific characteristics influences
the components that comprise the bundle of value dimensions. It was found in
this study that the unique characteristics of financial services influence the im-
portance of single value dimensions or drivers, for example, the personal char-
acteristics of honesty and openness in the current study, which also affects the
interdependencies between the single value dimensions. It would be interesting to
extend the current approach by including an analysis of how the CV construct is
related to other marketing constructs, such as customer satisfaction, loyalty, and
commitment. Such a study would allow researchers to understand how CV af-
fects customer behavior in the services sector, especially in financial services.
As with any empirical study, this one has its limitations. First, the study was con-
ducted for specific customer segments in only a sub-range of financial services,
and the sample size was small. Therefore, the study is not representative of the
financial services industry or other service industries. Only quantitative ap-
proaches with large sample sizes could provide these generalizations. Second,
despite interviewing customers and advisors with different levels of experience,
the result present a static view, capturing just a snapshot of desired and perceived
CV of customers and of the assumptions employees make about that CV.
19
REFERENCES
Ball, D., Coelho, P. S., and Machas A. (2004), “The role of communication and
trust in explaining customer loyalty - An extension to the ECSI model,”
European Journal of Marketing, 38 (9/10), 1272-1293.
Beloucif, A., Donaldson, B., and Kazanci, U. (2004), “Insurance broker-client
relationship: An assessment of quality and duration,” Journal of Financial
Services Marketing, 8 (4), 327-342.
Chung, B. G. and Schneider, B. (2002), “Serving multiple masters: role conflict
experienced by service employees,” Journal of Services Marketing, 16 (1),
70-87.
Day, E. and Crask, M.R. (2000), “Value Assessment: The Antecedent of
Customer Satisfaction,” Journal of Consumer Satisfaction, Dissatisfaction
and Complaining Behavior, 13, 52-60.
Day, G. (1994), “The Capabilities of Market-Driven Organizations,” Journal of
Marketing, 58 (October), 37-52.
Diamanttpoulos, A. and Winklhofer, H.M. (2001), “Index construction with
formative indicators: an alternative to scale development,” Journal of
Marketing Research, 38, 269-277.
Eggert, A. and Ulaga, W. (2002), “Customer perceived value: a substitute for
satisfaction in business markets?,” Journal of Business & Industrial
Marketing, 17 (2/3), 107-118.
Flint, D. J., Woodruff, R. B., and Gardial, S. F. (2002), “Exploring the Pheno-
menon of Customers’ Desired Value Change in a Business-to-Business
Context,” Journal of Marketing, 66 (October), 102-117.
Flint, D. J., Woodruff, R. B., and Gardial, S. F. (1997), “Customer Value Change
in Industrial Marketing Relationships: A Call for New Strategies and
Research,” Industrial Marketing Management, 26, 163-175.
Froschauer, U. and Lueger, M. (1992), Das qualitative Interview zur Analyse
sozialer Systeme. Wien: WUV-Universitätsverlag.
Gale, B.T. (1994), Managing Customer Value: Creating quality and service that
customer can see. New York: Free Press.
Garver, M.S. (2002), “Best practices in identifying customer-driven improve-
ment opportunities,” Industrial Marketing Management, 32: 455-466.
20
Hamel, G. and Prahalad, C.K. (1994), Competing for the Future. Boston: Har-
vard Business School Press.
Holbrook, M. B. (1994), “The Nature of Customer Value,” in Service Quality:
New directions in theory and practice, R. T. Rust and R. Oliver, eds.
Thousand Oaks, CA: Sage Publications, pp. 21-71.
Jarvis, C.B., MacKenzie, S.B., and Podsakoff, P.M. (2003), “A critical review of
construct indicators and measurement model misspecification in marketing
and consumer research,” Journal of Consumer Research, 30, 199-218.
Khalifa, A.S. (2004), “Customer value: a review of recent literature and an
integrative configuration,” Management Decision, 42 (5), 645-666.
Kumar, V., Lemon, K. N., and Parasuraman, A. (2006), “Managing Customers
for Value - An Overview and Research Agenda,” Journal of Service
Research, 9 (2), 87-94.
Lai, A. W. (1995), “Consumer Value, Product Benefits and Customer Value: A
Consumption Behaviour Approach,” Advances in Consumer Research, 22,
381-388.
Lapierre, J. (2000), “Customer-perceived value in industrial contexts,” Journal of
Business & Industrial Marketing, 15 (2/3), 122-140.
Liang, C.-J. and Wang, W. H. (2004), “Attributes, benefits, customer satisfaction
and behavioural loyalty - an integrative research of financial services
industry in Taiwan,” Journal of Services Research, 4 (1), 57-91.
Miles, R. and Huberman, A.M. (1994), Qualitative data analysis: An expanded
sourcebook, 2nd ed. Thousand Oaks, CA: Sage Publications.
Parasuraman, A. (1997), “Reflections on Gaining Competitive Advantage
Through Customer Value,” Journal of Academy of Marketing Science, 25
(2), 154-161.
Peter, J. P. and Olson, J. C. (1990), Consumer Behavior and Marketing Strategy,
2nd ed. Homewood, IL: Irvin.
Rüegg-Stürm, J. (2002), Das neue St. Galler Management-Modell, Grundkate-
gorien einer integrierten Managementlehre, der HSG-Ansatz. Bern: Haupt.
Stern, P. N. (1980), “Grounded theory methodology: Its uses and processes,”
Image: Journal of Nursing Scholarship, 20-23.
Ulaga, W. (2003), “Capturing value creation in business relationships: A
customer perspective,” Industrial Marketing Management, 32, 677-693.
21
Ulaga, W. and Chacour, S. (2001), “Measuring Customer-Perceived Value in
Business Markets – A Prerequisite for Marketing Strategy Development and
Implementation,” Industrial Marketing Management, 30, 525-540.
Ulrich, H. and Krieg, W. (1974), St. Galler Management-Modell, 3
rd
ed. Bern:
Haupt.
Van der Haar, J. W., Kemp, R., and Omta, O. (2001), “Creating Value that
Cannot Be Copied,” Industrial Marketing Management, 30, 627-636.
Varki, S. and Colgate, M. (2001), “The Role of Price Perceptions in an Integrated
Model of Behavioral Intentions,” Journal of Service Research, 3 (3), 232-
240.
Woodruff, R. B. (1997), “Customer Value: The Next Source of Competitive
Advantage,” Journal of the Academy of Marketing Science, 25 (2), 139-153.
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.
doc_542920934.pdf
This study investigates what creates value for customers and how providers can improve value for their customers.
CUSTOMER VALUE ANALYSIS IN FINANCIAL SERVICES
PETER MAAS
ALBERT GRAF
WORKING PAPERS ON RISK MANAGEMENT AND INSURANCE NO. 36
EDITED BY HATO SCHMEISER
CHAIR FOR RISK MANAGEMENT AND INSURANCE
FEBRUARY 2007
CUSTOMER VALUE ANALYSIS IN FINANCIAL SERVICES
Peter Maas
Albert Graf
*
JEL-Classification: M10, M20
ABSTRACT
This study investigates what creates value for customers and how providers can
improve value for their customers. A comprehensive analytical model with a four-
step approach is presented and applied in the field of financial services. In a first
step, the main customer value drivers are identified and five value dimensions are
derived, based on qualitative interviews with customers. These results are then
compared to value assumptions made by customer-contact employees, and the gaps
between customer and employee perceptions are analyzed. Subsequently, implica-
tions for CV management are derived and finally implications of findings for ser-
vice marketing practice and research are discussed.
1. INTRODUCTION
In recent years, firm strategy and marketing research have focused on the identi-
fication, creation, and delivery of value to customers. The customer value con-
cept has become one of the most popular approaches among business managers
and marketing researchers. Delivery of customer value (CV) is considered the
fundamental basis of marketing activities and an effective source of competitive
advantage in promoting profit growth and ensuring long-term success (Gale,
1994; Hamel and Prahalad, 1994; Woodruff, 1997; Flint et al., 2002). Despite
this emphasis and importance, the literature suggests that the study of CV is still
in its infancy (Day and Crask, 2000; Flint et al., 2002).
A great deal of research has been devoted to answering the first question: “What
creates value for customers?” resulting in a wide variety of different and partially
competing CV models and approaches. The empirical evidence to date is quite
*
The authors are with the University of St. Gallen, Institute of Insurance Economics, Kirchlistrasse 2,
9010 St. Gallen, Switzerland, E-Mail: [email protected], [email protected].
2
limited and sometimes ambiguous. However, a sound understanding of the con-
cept is a prerequisite for developing reliable and valid assessment tools (Eggert
and Ulaga, 2002). Furthermore, there is still a great need to provide managers
with effective CV analysis tools which enable them to assess their firm’s CV and
then either create or improve it (Ulaga, 2003; Kumar, Lemon, & Parasuraman,
2006). Most existing approaches consider CV analysis to be a research method or
a pricing tool. We argue that CV analysis is much more. It is a strategic market-
ing tool for identifying and measuring customers’ needs, gaps between customer
and company perceptions of value and competitive positioning (Ulaga and
Chacour, 2001).
In the present article, we focus on CV drivers, CV dimensions, and gaps between
customer and company perceptions of value within the financial services field.
Its main objective is: to provide and test a managerial tool for identifying what is
creating value and analyzing the gaps between customer and company value per-
ceptions in order to improve a company’s value proposition and value delivery.
In working toward these goals, the article is structured as follows. First, we out-
line the underlying CV understanding. Next, we describe the CV analysis model
and research methodology, taking into consideration the specific industry char-
acteristics of financial services, followed by presentation and discussion of our
empirical results. We initially conducted 20 in-depth interviews with customers
of a financial services broker in the retail market. After analyzing and interpret-
ing the results, we were able to identify five CV dimensions. These results are
compared to the results of 24 in-depth interviews conducted with advisors of the
financial services broker. Finally, implications are derived for CV management
as well as for research.
2. CUSTOMER VALUE UNDERSTANDING
Typically, customers will value many aspects of an exchange, which may involve
a service, a product, a store, a brand, or personal interaction with a salesperson
(e.g., Zeithaml, 1988; Holbrook, 1994; Lai, 1995; Flint et al., 2002). Ideas about
how to conceptualize and model CV vary widely and a multitude of different
models, concepts, and definitions can be found in the literature. Most researchers
consider CV as a theoretical, subjective, and multidimensional construct that is
dynamic in nature and commonly perceived relative to competition. Basically,
CV can be distinguished by its various levels of abstraction (Parasuraman, 1997;
3
Van der Haar, Kemp, and Omta, 2001). At the first-order level, perceived cus-
tomer value (PCV) focuses on the concrete attributes of products and services.
This level is characterized by the trade-off between the benefits and costs of a
product and/or service, which the customer perceives during the purchasing deci-
sion and usage phase. At the second-order level, desired customer value (DCV)
comes into play. DCV consists of the benefits customers are looking for in order
to fulfill their needs (Flint et al., 1997). At this level, customers choose actions
that maximize desired effects and minimize undesired effects (Peter and Olson,
1990). There are two basic DCV approaches. One is based on a means-end
model; the other conceptualizes DCV as a bundle of benefit/value dimensions.
In the present study, we focus on DCV conceptualized as a bundle of dimensions,
for several reasons. First, from a customer perspective, products are viewed as a
bundle of benefits/value dimensions, not as sum of single attributes (Day, 1994;
Peter and Olson, 1990; Lai, 1995). Second, DCV is of high strategic relevance
for companies. By focusing on the central DCV question, “What do customers
want to happen?” (Flint et al., 1997: 168), empirical data generates the informa-
tion necessary for creating a differentiated product offering for target customers
(Van der Haar et al., 2001). This capability is especially important if a com-
pany’s objective is to develop new products and services. In this study and in line
with Woodruff (1997), we posit that CV is derived from a customer’s perception
and evaluation of those product and service attributes, attribute performances,
and consequences that facilitate (or block) achieving the customer’s desired pur-
poses or goals.
In the literature some limitations of the conceptualization of CV as a bundle of
value dimensions can be found. DCV approaches fail to pay sufficient attention
to the sacrifices a customer is likely to make in acquiring, using, or disposing of
the product/service and neither do they elaborate on the tradeoffs customers are
expected to make between benefits and sacrifices (Khalifa, 2004). Furthermore,
although the discussion of whether higher-order constructs, such as CV, should
be conceptualized as formative or reflective, has attracted considerable attention
in other fields (see, e.g., Diamatopoulos and Winklhofer, 2001; Jarvis,
MacKenzie, and Podsakoff, 2003), it has yet to be addressed by CV research.
From the reflective perspective, higher-order constructs are assumed to cause
their dimensions, which consequently are considered strongly correlated (e.g.,
Lapierre, 2000). In contrast, the formative perspective assumes that higher-order
4
constructs are caused and defined by their dimensions, which need not necessar-
ily be highly correlated with one another (e.g., Ulaga, 2003). Furthermore, sev-
eral authors stress the importance of taking into consideration specific industry
characteristics, e.g. by Liang and Wang (2004), Varki and Colgate (2001), Ball,
Coelho, and Machas (2004) in the field of financial services. However, to our
knowledge, no study has yet investigated CV in financial services in an industry-
specific context. We aim to fill this gap in literature and to address the above
outlined limitations in this study.
3. ANALYSIS MODEL AND METHODOLOGY
Applying the concept of CV to the financial services industry requires the inclu-
sion of industry-specific characteristics, which are discussed in the following
section before a CV analysis model is developed and the applied research meth-
odology is described.
3.1 Characteristics of Financial Services
Certain service-specific characteristics, such as intangibility, customer involve-
ment, and confidentiality, are inherent to the products or services of most finan-
cial service providers, including insurers, banks, brokers, and investment advi-
sors. Compared to other industries, aspects such as risk, uncertainty, trust, and
personal relationships play an important role in the financial services industry.
For example, if customers buy insurance coverage for housing or health, they do
not know if they will ever need it. Furthermore, in the case of certain diseases or
damages (e.g., catastrophes), it is doubtful whether they will ever receive any
coverage. With regard to investments, when customers buy certain shares or life
insurance, for example, they are rarely guaranteed what they will receive at the
end. Therefore, contracts in financial services often have a promising character
with limited customer guarantees. This implies also that the real outcome only
unfolds over time and performance cannot really be assessed in the short term
(Beloucif, et al. 2004). In the early stages of the relationship between customer
and financial service provider, trust is particularly significant and appears to be
especially important when uncertainty and risk are present and warranties absent,
as is the case for many professional services (Beloucif et al., 2004). Furthermore,
relationships in this industry are usually long term in nature and come to possess
5
important attributes for all involved (e.g., reliability, security, confidence, and
trust), which are critical to success.
3.2 Conceptual and Analytical Framework
Identifying and measuring customer expectations, value perceptions, and experi-
ences in the domain of personal services is an enormous challenge for service
providers. Therefore, one objective of the present article is to provide a manage-
rial tool that will (1) identify the relevant value dimensions and their corre-
sponding value drivers; and (2) analyze the gaps between customer and company
value perceptions in order to improve a company’s value proposition, value de-
livery, and performance. An analytical model with a four-step approach is pre-
sented here and applied to the field of financial services.
Step 1. Desired and Perceived CV Exploration: Several studies investigate CV
based on dimensions derived from theory (e.g., Lapierre, 2000; Liang und Wang,
2004). However, bearing in mind the objective of this study and following the
argument of Ulaga (2003) that value dimensions need not be highly correlated to
each other, a formative approach has been chosen in order to explore CV and
provide a sound concept grounded in managerial practice. Applying a qualitative
methodology, the objective of this step is to attain a solid understanding of rele-
vant value drivers and explore the relevant value dimensions from a customer
perspective. Attention is paid both to benefits and sacrifices. It is essential to
consider that value drivers can be either positive or negative. While it is quite
easy to observe how value can be created, it can easily be destroyed as well, for
example by costs, risks, or negative consequences. It could even be the case that
the contribution of a certain value dimension will be negative in the customer’s
overall value perception.
Step 2. Presumed CV Exploration: A service’s quality and value for a customer is
considered to be critically dependent on the service provider’s customer-contact
employees. They constitute the basis for the assessment of the company’s service
quality. They also take on the important function of supplier and filter of cus-
tomer information and experiences to the company, and in particular with regard
to how often and how well the company succeeds in satisfying customer re-
quirements (Chung and Schneider, 2002). In this context, the employees’ as-
sumptions as to what customers appreciate, like, dislike and value plays a central
6
role. This information is an important resource for a successful CV management.
On the other hand, though, inaccurate information that is, misperceptions and
misinterpretations of what customers value, may steer CV management in a
wrong direction and actually be worse than useless. Therefore, at this step, cus-
tomer-contact employees were asked what they think creates CV for their cus-
tomers. The identification of presumed value drivers is based on these employee
interviews and follows the same approach as in Step 1.
Step 3. Identification of Gaps: The next step is to analyze the gaps between cus-
tomers' value perceptions and advisors' assumptions about CV. These are then
differentiated based on level of abstraction. First, for each value dimension, the
corresponding value drivers of Step 1 are compared with the presumed value
drivers of Step 2. This analysis at the value-driver level refers to the attribute
level - the PCV. Results at this level allow the derivation of concrete sugges-
tions/actions for improving products, services, and, especially, service quality.
Second, analysis at the value dimension level - the DCV - is focused on the rele-
vance and importance of single value dimensions and the relationships between
value dimensions in a general CV context. Of special importance here is that this
analysis pays attention to industry-specific characteristics, aspects such as risk,
uncertainty, trust, and personal relationships.
Step 4. CV Management Implications: Finally, based on the results of Steps 1 and
3, implications for management are derived. In this fourth step, the results from
Steps 1–3 are incorporated into specific management logic so as to obtain appro-
priate managerial response. The objective here is to improve a company’s value
proposition, value delivery, and performance. In that CV analysis is considered
of strategic importance, the focus of this step goes far beyond operational as-
pects. CV management is considered a managerial task, which consists of de-
signing, steering and developing goal-oriented systems (Ulrich and Krieg, 1974).
To this end, the holistic St. Gallen Management Approach (Ulrich and Krieg,
1974; Rüegg-Stürm 2002) is proposed as a framework for identifying managerial
implications and deriving consequences for CV management. In implementing
this approach, management’s focus needs to be directed at the normative, strate-
gic, and operative levels. The normative level is where a company’s general ob-
jectives, norms, and values are set. The strategic level is fundamentally commit-
ted to establishing competitive advantage and thus to the successful continuation
of a company. The goal at the operative level is to do things correctly and as effi-
7
ciently as possible. To achieve this, a company needs employees who are capable
of empathizing with, coping with, and working with customers.
3.3 Research Method
This research was designed to investigate CV’s various dimensions and how CV
can be improved by way of management action within the context of financial
services. A qualitative research approach was adopted in order to explore CV in
the financial services industry and to gain novel understanding of the CV phe-
nomena (cf. Ulaga, 2003; Stern, 1980). For Steps 1 and 2, data were collected
from individual in-depth interviews with customers and financial advisors. Both
groups were associated with one financial services broker operating in the private
segment in Germany. This broker focuses on specific customer segments, such as
medical doctors, lawyers, managers, and engineers and it’s offerings range from
payment, saving, investment, mortgage, and pension services to insurance prod-
ucts and related services. A list of research questions based on the research ob-
jectives was drawn up and used as an interview guide in a series of semi-struc-
tured in-depth interviews. In total, interviews were conducted with 20 customers
and 24 financial advisors. To view a broader picture of what creates CV, the
sample included customers from all over Germany who had different levels of
experience, expectations, and objectives. The interviewed customers came from
different professional backgrounds and had relationships of various durations
with the company (ranging from 1 to 19 years). The 24 financial advisors, who
were selected from different company affiliations, had professional experience
ranging from 1 to more than 14 years and diverse customer group specializations
(doctors, economists, engineers, and lawyers). Interviews began with general
background questions, followed by open-ended questions that allowed partici-
pants to tell whatever they felt was important in the context of CV. The goal was
to allow the participant to tell his or her story from the participant’s own per-
spective.
Each interview lasted approximately 60 to 90 minutes and was audio-taped and
transcribed verbatim. Analysis of the interview transcripts followed traditional
theoretically-based guidelines (see, e.g., Flint et al., 2002; Garver, 2003). Pri-
marily, two analysis techniques, open and axial coding, were employed in order
to identify different CV drivers and their sub-dimensions, and to determine rela-
tionships and/or gaps between different themes or constructs. Furthermore, trian-
8
gulation, informant feedback, and replication techniques were applied in the
analysis process so as to ensure trustworthiness (cf. Miles and Hubermann,
1994). The process proceeded as follows.
1. Two groups of researchers independently analyzed the verbatim transcripts by
developing value drivers and value dimensions using the same materials and pro-
cedures.
2. Results between the two groups of researchers were compared to identify those
areas where inconsistency existed. Both groups consistently identified the five
generic value dimensions. There were differences in the labeling of each dimen-
sion and the attribution of sub-dimensions to value drivers. To resolve these
problems, feedback from independent researchers and participants was gathered
and adjustments were made.
3. Section-by-section interpretations of key thoughts, following the recommen-
dation of Froschauer and Lueger (1992), were performed for both customer and
financial advisor transcripts, identifying which value drivers and dimensions the
participants valued most.
4. The study’s methodology and findings were presented and discussed at a
workshop attended by financial advisors, students, and the financial services bro-
ker management. Only a few changes in the wording of the value drivers were
made after this step.
5. Based on the results generated up to this point, a gap analysis was performed
during a one-day workshop. Two groups of researcher analyzed differences and
similarities between customer and employee value perceptions. Finally, group
results were collectively discussed and management implications derived.
9
4. RESEARCH RESULTS OF THE EMPIRICAL STUDY
In accordance with the proposed CV analysis model, the empirical results are
outlined in this section.
4.1 Desired and Perceived Customer Value
The customer interviews resulted in the derivations of five dimensions of CV
(Figure 1):
(1) Company Value refers to, above all, a company’s brand, image, and reputa-
tion as perceived by customers. Before a customer-company relationship is es-
tablished and customers must make a choice between several providers, a good
image and brand name are of particular importance. In a low-interest market,
good image and brand name can overcome a lack or trust and experience with the
company. Alternatively, a negative company reputation and image creates bur-
dens that must be compensated for. However, the significance of such value
drivers changes during the relationship. The more experience based the relation-
ship between customer and company/advisors becomes, the less relevance cus-
tomers assign to the company’s brand, image, and reputation. Customer C.H.
(customer for 10 years) describes this as follows: “At the moment, Company X’s
image has been somewhat damaged by the media, but if the quality of the prod-
uct and offer continues to satisfy me, I don’t care. I guess I don’t really depend
on that.” A customer’s perception of the company’s business model can also be a
positive (or negative) driver of value if the company focuses for examples on
specific customer groups. A company’s growth and development may also influ-
ence a customer’s value perception. Several customers made comments about
how quickly the company has grown. C.W. (customer for more than 10 years)
stated, “Company X became too big. I now have the impression that turnover is
everything.”
10
FIGURE 1
Customer Value Drivers and Dimensions
(2) Product Value encompasses product quality and performance, product cus-
tomization, the range of offered products, and the price-performance ratio. In
addition to monetary benefits, non-monetary product values were identified, such
as time-saving benefits and benefits created by convenience and supporting
functions of products. Several participants found non-monetary product values to
be of high significance, as illustrated in the following passage: "Not everything is
a question of price. In the long run, what is important is that products are prudent
and of high quality. During the selection process of appropriate products, the as-
pects of time saving and support are important" (C.L., banker, customer for 10
years). Several value drivers were identified, which reduce product value from a
customer perspective, such as, missing innovativeness of products, high advisory
commissions or an imbalance between price and performance. Hereby, price per-
ceptions varied greatly, all the way from “so far I have had only good experience
with their product, the price performance ratio is very good” (C.D., customer for
10 years) to “Company X could offer better prices what indeed they should do.
Their prices are not justified” (C.H., customer for 15 years).
(3) Service/Employee Value is based on the overall ability and know-how of em-
ployees. This includes the advisor’s ability to provide comprehensible consulta-
tion, to recognize customer needs, and to develop advice and appropriate con-
Company Value Product Value
Social Value
Service/Employee Value Relationship Value
• Company brand, image and reputation
• Company development und performance
• Business model
• Trust and confidence
• Sympathy, friendship
• Personal characteristics
penness, honesty• Reduced anxiety
• Employee know-how and competence
• Customer orientation of employees
• Quality of service delivery process
• Similar educational, intellectual level
• Similar age and pecuniary circumstances
• Exclusiveness of customer segment
• Product quality and product performace
• Price
• Product selection and customization
• Time savings
Company Value Product Value
Social Value
Service/Employee Value Relationship Value
• Company brand, image and reputation
• Company development und performance
• Business model
• Trust and confidence
• Sympathy, friendship
• Personal characteristics
penness, honesty• Reduced anxiety
• Employee know-how and competence
• Customer orientation of employees
• Quality of service delivery process
• Similar educational, intellectual level
• Similar age and pecuniary circumstances
• Exclusiveness of customer segment
• Product quality and product performace
• Price
• Product selection and customization
• Time savings
11
sultation for individual customers. A lawyer’s comments illustrate this point
well: “My advisor is really taking care of my financial needs. I don’t think that
he is a brilliant analyst, but he always knows everything, he is well informed and
very active. If I call him and tell him that I have a problem, then he takes care of
everything” (C.J., customer for more than 10 years). Yet, if customers get the
impression that their advisors are purely sales driven and not focused on cus-
tomer needs, the evaluation of the employee value changes significantly. Cus-
tomers want to believe that advisors are concerned with them personally, and not
purely sales driven. Additional drivers of the service/employee value dimension
include aspects of the service delivery process, such as transaction handling, how
information is provided, and access to the advisor/company. One important value
driver in this context is a change in advisor. If expectations regarding this value
driver are not met, a very negative impact can ensue that can also affect other
value dimensions, as the following comment demonstrates. “I was not informed
on time when Company X changed my personal advisor. That is unacceptable.
…My new advisor did not even contact me immediately. That was really disap-
pointing” (C.I., manager, customer for 10 years).
(4) Relationship Value refers to the perceived value of the customer’s personal
relationship with the financial advisor created by emotional aspects such as trust,
sympathy, friendship, reduction of anxiety, and other personal characteristics.
Personal characteristics, for example, the employee’s openness, honesty, or
trustworthiness, have a strong influence on the value of an interaction and have
been explicitly expressed from several participants. This type of CV seems to be
particularly prevalent in financial services where there is a great deal of personal
contact between customers and employees. For customers to feel comfortable
delegating most or even all of their financial matters to an advisor/company,
most customers find it essential to establish a relationship with the advisor built
on trust and, additionally, to “like” the advisor, or even see the advisor as a
friend. Aspects of relationship value may also be significant in reducing cus-
tomer anxiety or fear, as explained by C.M. (customer for three years): “[T]he
personal quality is very important to me … being given the feeling that I am well
cared for. In having such a contact, I don’t feel as that someone is taking advan-
tage of me or in any way skeptical.” If such relationships are spoiled or termi-
nated, for example, due to a change in advisors, negative relationship value is
created and may even be a reason for terminating the customer-company rela-
tionship: “Changing my advisor would destroy the trust I have. As with every
12
new advisor I would have to present all of my financial and personal issues. It is
like taking off your clothes in front of a stranger. I wouldn’t do it. This is what I
wouldn’t do” (C.D., customer for more than 10 years).
(5) Social Value can be described as a value that is derived from association with
positively or negatively stereotyped demographic, socioeconomic, and cultural-
ethnic groups or communities. The great majority of participants reported that
they perceive social benefits from their dealings with Company X in addition to
the core service benefits. If advisors and customers have comparable educational
and intellectual backgrounds, pecuniary circumstances or being similar in age,
these aspects are perceived as positive value drivers. For example, C.G. (student,
customer for one year) stated: “Before, the age and background of an advisor was
not of any significance to me. I didn’t think about it before I became a customer
of Company X. But now I appreciate that my advisor is my age. Because he is
younger, he understands me. Our careers paths are similar. Having many attrib-
utes in common facilitates a better synchronisation and thus relationship.”
Having identified relevant value dimensions, section-by-section interpretations of
key thoughts were made in order to determine the relative importance of the
identified value dimensions from a customer point of view. The results indicate
that the main value dimensions are the product, the service/employee, and the
relationship dimension. Several participants weighted these three dimensions
almost equally. Which of the three dominates depends very much on individual
circumstances and experiences with the company and/or the advisors. Several
customers had bad experiences with the management of the service process. This
decreased the importance of service/employee and relationship value for these
customers, and the product value became their dominant value dimension. How-
ever, some customers value relationship dimension above all (or nearly all) else.
One such customer stated: “If Company X offers me an insurance which costs me
10 or 20 Euros more than somewhere else, I would buy it from Company X be-
cause I am a customer of this company, because I feel as though I am in good
hands, and because my advisor is my friend. But a difference of for example 300
Euros per year would be too much” (C.K., customer for 4 years). Social and
company value drivers were of less importance to the participants. Even so, such
value drivers can serve to differentiate between competitors, particularly before a
customer has decided on which company to patronize. Negatively perceived
company value can be a huge obstacle in attracting new customers. Furthermore,
13
despite their limited significance, both social and company value drivers can be
an important pre-condition or support the creation of other value aspects. For
example, similar backgrounds and ages were relevant enough to the customers to
be mentioned and no doubt play some role in creating relationship value.
4.2 Gap Analysis between Perceived, Desired, and Presumed Customer
Value
Comparing customer and financial advisor perspectives reveals significant dif-
ferences at both the PCV level (attribute level) and at the DCV level (value di-
mension level). At PCV level, customer and employee perspectives were com-
pared for each value dimension:
Company Value: Customers and advisors both believe that company value is a
relevant value driver especially before or at the beginning of a customer-com-
pany relationship. Advisors see company value primarily as an instrument for
marketing as well as for engaging and winning customers. They believe that the
significance of this dimension diminishes with increasing length of the customer-
company relationship. Advisors assume that this dimension becomes almost
completely irrelevant and is replaced by other experience-based value elements,
particularly by the advisors themselves. For customers, the individual value driv-
ers in this dimension lose some of their significance during the course of the
customer-company relationship, but always remain at least somewhat relevant.
Particularly in the case of female customers, the name, brand, and reputation of
the company represent elements of value during the whole customer-company
relationship that can have either a positive or a negative effect on confidence in
the company and its advisors.
Product Value: Both sets of respondents agree that elements of this dimension
are of major importance to overall perceived CV. Opinions diverge, however,
with regard to the ranking of the individual value drivers within the dimension.
Advisors assume that customers consider a comprehensive concept, a good price-
performance ratio, and high-quality products to be the most important value driv-
ers. Furthermore, the advisors assume that these aspects will be considered the
differentiating characteristics among competitors. For the most part, customers
do consider a comprehensive concept and the associated convenience as positive
value driver. However, for some customers these aspects make them feel de-
14
pendent, vulnerable, and not in control of their own financial affairs. Customers
disagree somewhat with advisors on the issue of price. Price in not considered
unimportant by customers, but it is certainly not the most important aspect and is
not usually used to choose between competitors. However, the role of price
should not be discounted: if it is considered too high, it will become an obstacle
that rarely, if ever, can be overcome by any action, offer, or service by the com-
pany.
Service/Employee Value: Advisors assume their knowledge, their competence as
advisors, is the most important value driver of all. Customers do value the
knowledge and education of their advisors, but not to the same extent as the advi-
sors believe to be true. This is especially the case for those customers who con-
sider themselves competent in financial matters. Many advisors stress how ad-
vantageous the transparency they create is, and how well they can translate com-
plex products and circumstances into a comprehensible dialog. Customers do not
perceive this skill to be very important, possibly because they consider adequate
and clear communication as prerequisites of the service offered. Customers con-
sider the independence of advisors and their advice very important. Furthermore,
customers do not divide the consultation service into separate bits; for them, the
personal contact is possibly just as important as the advisor’s financial knowl-
edge.
Relationship Value: Customers and advisors alike regard the personal relation-
ship, advisor trustworthiness and openness as value drivers essential to a success-
ful customer-company relationship. However, when advisors talk about the per-
sonal relationship, they generally are referring to aspects such as well-timed,
regular appointments, constant accessibility, or being the sole company contact
for all financial affairs. In contrast, when customers talk about the personal rela-
tionship, they really do mean personal. Thus, there is a rather large difference
(gap) between what advisors think customers want and what customers actually
want, which is not so much attainability, as the advisors believe, as it is a sin-
cerely expressed interest in and concern for the customer himself or herself.
Social Value: Advisors consider social aspects such as similar levels of educa-
tion, age, intellectual capacity, and exclusivity as useful in marketing or in en-
gaging and winning customers. In contrast, customers consider these value driv-
ers as important characteristics to differentiate between competitors and as im-
15
portant cornerstones for establishing and developing relationship value. The sig-
nificance of individual social value drivers seems coupled less with the duration
of the customer relationship and more with the significance of the relationship
value of individual customers.
In summary, the analysis of value drivers shows that customers think in terms of
both positive and negative CV drivers, whereas financial services advisors be-
lieve that customers take only positive value drivers into account when evaluat-
ing a service. Furthermore, the analysis indicates that customers and advisors do
not always speak the same language. Advisors often speak of concepts and use
specialized, technical, or job-specific jargon; customers use everyday language.
The gap analysis at the value dimension level - DCV - focuses on the relevance
and importance of single value dimensions and the relationships between the
value dimensions in a general CV context. Although customers give almost the
same weight to the three core value dimensions - product, service/employee, and
relationship values - advisors do not. Advisors see themselves, and thus the ser-
vice/employee value, as the most significant dimension. The dimensions relation-
ship and product value are next in the advisors’ ranking, but they are clearly less
relevant. Regarding the company and social value, advisors in their understand-
ing assume that the relevance of these two dimensions, is very small or they are
not related to the other value dimensions. Only the service/employee value and
the relationship value dimensions are assumed to be closely linked, from the ad-
visors’ point of view. However, such is not the case for the customers, as the in-
terviews with them revealed many interdependencies between the individual
value dimensions. Moreover, the advisors’ evaluations, with their strong focus on
themselves, incorporate very little of the experiences customers have had with
other or former advisors. Particularly with respect to customers who have been
with the company for many years, and who have had experience with several
advisors, the positive as well as negative past experiences play an important role
in the overall evaluation and weighting of individual value dimensions. The re-
sults show that the PCV and DCV of customers have essentially the same struc-
ture as that assumed by the advisors. However, the perspectives are considerably
different with regard to complexity due to the various interdependencies that
customers see between individual elements as well as because customers have an
obviously more dynamic viewpoint.
16
4.3 Managerial Implications
Based on the results of Step 1 and 3, it was possible to derive a multitude of im-
plications for managing company CV at the different levels of management, for
example:
Normative management level - where a company’s general objectives, norms,
and values are set: The analysis of the value drivers and gaps demonstrates that
although the company image and brand name are not of primary importance to
customers, they can play a crucial role, especially in attracting new customers.
However in this pre-customer phase, it is important that the communicated val-
ues and messages are consistent with the overall (company) image; contradictory
signals will instill confidence and can even destroy formerly positive expecta-
tions. Every experience a customer has with a company is a test. Does the com-
pany keep its promises? Is confidence in this company justified? If the answers to
these questions are affirmative, then the cornerstone of a trustworthy relationship
has been laid and an indication of value presented to the customer. This requires
a purposeful value management of the brand name and image: management must
exemplify the associated and communicated values to employees and customers
through its own behavior, employees must live up to these values, and customers
must experience these values at each "moment of truth".
Strategic management level - building a lasting competitive advantage: The re-
sults show that for many customers the dimensions of service/employee and re-
lationship value dominate while traditionally, in the financial services industry,
customers were charged only for the products and not for the consultation. This
implies that the traditional coupling of product and consultation should be ques-
tioned and alternatives sought for a value oriented and not purely product ori-
ented pricing model. Furthermore, the analysis of the customer interviews reveals
that a clear focus on specific customer segments or on creating exclusivity not
only helps attract and keep customers, but also extends the basis of the customer
value assessment by adding positive social and relationship value aspects. The
more company and social value that is generated, the easier it is to offset deficits
in other value dimensions. A further aspect of strategic relevance is the manage-
ment of role conflicts. Advisors often find themselves in a state of conflict be-
tween requirement oriented and commissions oriented consultation. This is par-
ticularly the case when commissions oriented consulting has little or nothing to
17
do with the customer’s actual needs. However if the business model is based on
satisfied customers and long-term relationships, then commissions oriented con-
sulting may be advantageous to the advisor but be counterproductive for both the
customer and company. Management is challenged here to find a system of em-
ployee incentives that secures the support of both the employees and the custom-
ers.
Operational management level - doing things right: Customers consider the rela-
tionship value very important and advisors are expected not only to possess a
very high level of technical knowledge but also to be highly socially competent.
This requires a stronger focus on emotional and communicative aspects when
selecting and training advisors. Additional, customers interviews brought out the
fact that having to change advisors is one of the easiest ways for a customer to
lose all confidence and value in a company. Granted, in the real world, a change
in advisor will sometimes be unavoidable, but it should be possible to minimize
the negative consequences of doing so. The transfer process should be managed
as seamless as possible from the customer’s perspective, which means that care
must be taken that all information related to the customer (history, experience,
expectations, etc.) is transferred to the new advisor.
5. CONCLUSION AND IMPLICATIONS FOR PRACTICE AND RESEARCH
This qualitative study has shown that comparing the difference between customer
and advisor perspectives can result in valuable information for a company’s CV
management. Additionally, the relevance and importance of value dimensions
and specific drivers in the area of financial services were explored and analyzed.
The analysis provided a general picture of what creates and destroys value from a
customer perspective and, what is more, did so in the customer’s language, in-
stead of being couched in and perhaps obscured by the language and jargon of
researchers and employees. The results provide practical stepping stones toward
improving the design, creation, and delivery of customer value. The qualitative
approach used here facilitated identifying novel value drivers, interdependencies
between value elements, and gave some clear indications of how a company can
create CV for its customers, for example, by reducing the gaps between customer
and employee perceptions. While the results are not representative, they are in-
dicative of actual and potential areas for management actions. These specific ar-
eas could be investigated in more detail by using quantitative methods in order to
18
provide a reliable database for making and communicating management deci-
sions. From a CV management perspective, it would be interesting and helpful to
further develop the presented approach by devising measurement scales to ex-
amine qualitative results.
As for a research perspective, the results of this study support Ulaga’s (2003)
view that from a methodological standpoint, a formative measurement approach,
rather than a reflective one, should be used when modelling CV. The findings
show that value dimensions need not be highly correlated with each other. For
example, social value may be highly correlated with relationship value but little
or no correlation with other dimensions. For example, many participants, par-
ticularly the men, describe their perception of company value as having no or
very little effect on the other value dimensions. The empirical results further in-
dicate that taking into consideration industry-specific characteristics influences
the components that comprise the bundle of value dimensions. It was found in
this study that the unique characteristics of financial services influence the im-
portance of single value dimensions or drivers, for example, the personal char-
acteristics of honesty and openness in the current study, which also affects the
interdependencies between the single value dimensions. It would be interesting to
extend the current approach by including an analysis of how the CV construct is
related to other marketing constructs, such as customer satisfaction, loyalty, and
commitment. Such a study would allow researchers to understand how CV af-
fects customer behavior in the services sector, especially in financial services.
As with any empirical study, this one has its limitations. First, the study was con-
ducted for specific customer segments in only a sub-range of financial services,
and the sample size was small. Therefore, the study is not representative of the
financial services industry or other service industries. Only quantitative ap-
proaches with large sample sizes could provide these generalizations. Second,
despite interviewing customers and advisors with different levels of experience,
the result present a static view, capturing just a snapshot of desired and perceived
CV of customers and of the assumptions employees make about that CV.
19
REFERENCES
Ball, D., Coelho, P. S., and Machas A. (2004), “The role of communication and
trust in explaining customer loyalty - An extension to the ECSI model,”
European Journal of Marketing, 38 (9/10), 1272-1293.
Beloucif, A., Donaldson, B., and Kazanci, U. (2004), “Insurance broker-client
relationship: An assessment of quality and duration,” Journal of Financial
Services Marketing, 8 (4), 327-342.
Chung, B. G. and Schneider, B. (2002), “Serving multiple masters: role conflict
experienced by service employees,” Journal of Services Marketing, 16 (1),
70-87.
Day, E. and Crask, M.R. (2000), “Value Assessment: The Antecedent of
Customer Satisfaction,” Journal of Consumer Satisfaction, Dissatisfaction
and Complaining Behavior, 13, 52-60.
Day, G. (1994), “The Capabilities of Market-Driven Organizations,” Journal of
Marketing, 58 (October), 37-52.
Diamanttpoulos, A. and Winklhofer, H.M. (2001), “Index construction with
formative indicators: an alternative to scale development,” Journal of
Marketing Research, 38, 269-277.
Eggert, A. and Ulaga, W. (2002), “Customer perceived value: a substitute for
satisfaction in business markets?,” Journal of Business & Industrial
Marketing, 17 (2/3), 107-118.
Flint, D. J., Woodruff, R. B., and Gardial, S. F. (2002), “Exploring the Pheno-
menon of Customers’ Desired Value Change in a Business-to-Business
Context,” Journal of Marketing, 66 (October), 102-117.
Flint, D. J., Woodruff, R. B., and Gardial, S. F. (1997), “Customer Value Change
in Industrial Marketing Relationships: A Call for New Strategies and
Research,” Industrial Marketing Management, 26, 163-175.
Froschauer, U. and Lueger, M. (1992), Das qualitative Interview zur Analyse
sozialer Systeme. Wien: WUV-Universitätsverlag.
Gale, B.T. (1994), Managing Customer Value: Creating quality and service that
customer can see. New York: Free Press.
Garver, M.S. (2002), “Best practices in identifying customer-driven improve-
ment opportunities,” Industrial Marketing Management, 32: 455-466.
20
Hamel, G. and Prahalad, C.K. (1994), Competing for the Future. Boston: Har-
vard Business School Press.
Holbrook, M. B. (1994), “The Nature of Customer Value,” in Service Quality:
New directions in theory and practice, R. T. Rust and R. Oliver, eds.
Thousand Oaks, CA: Sage Publications, pp. 21-71.
Jarvis, C.B., MacKenzie, S.B., and Podsakoff, P.M. (2003), “A critical review of
construct indicators and measurement model misspecification in marketing
and consumer research,” Journal of Consumer Research, 30, 199-218.
Khalifa, A.S. (2004), “Customer value: a review of recent literature and an
integrative configuration,” Management Decision, 42 (5), 645-666.
Kumar, V., Lemon, K. N., and Parasuraman, A. (2006), “Managing Customers
for Value - An Overview and Research Agenda,” Journal of Service
Research, 9 (2), 87-94.
Lai, A. W. (1995), “Consumer Value, Product Benefits and Customer Value: A
Consumption Behaviour Approach,” Advances in Consumer Research, 22,
381-388.
Lapierre, J. (2000), “Customer-perceived value in industrial contexts,” Journal of
Business & Industrial Marketing, 15 (2/3), 122-140.
Liang, C.-J. and Wang, W. H. (2004), “Attributes, benefits, customer satisfaction
and behavioural loyalty - an integrative research of financial services
industry in Taiwan,” Journal of Services Research, 4 (1), 57-91.
Miles, R. and Huberman, A.M. (1994), Qualitative data analysis: An expanded
sourcebook, 2nd ed. Thousand Oaks, CA: Sage Publications.
Parasuraman, A. (1997), “Reflections on Gaining Competitive Advantage
Through Customer Value,” Journal of Academy of Marketing Science, 25
(2), 154-161.
Peter, J. P. and Olson, J. C. (1990), Consumer Behavior and Marketing Strategy,
2nd ed. Homewood, IL: Irvin.
Rüegg-Stürm, J. (2002), Das neue St. Galler Management-Modell, Grundkate-
gorien einer integrierten Managementlehre, der HSG-Ansatz. Bern: Haupt.
Stern, P. N. (1980), “Grounded theory methodology: Its uses and processes,”
Image: Journal of Nursing Scholarship, 20-23.
Ulaga, W. (2003), “Capturing value creation in business relationships: A
customer perspective,” Industrial Marketing Management, 32, 677-693.
21
Ulaga, W. and Chacour, S. (2001), “Measuring Customer-Perceived Value in
Business Markets – A Prerequisite for Marketing Strategy Development and
Implementation,” Industrial Marketing Management, 30, 525-540.
Ulrich, H. and Krieg, W. (1974), St. Galler Management-Modell, 3
rd
ed. Bern:
Haupt.
Van der Haar, J. W., Kemp, R., and Omta, O. (2001), “Creating Value that
Cannot Be Copied,” Industrial Marketing Management, 30, 627-636.
Varki, S. and Colgate, M. (2001), “The Role of Price Perceptions in an Integrated
Model of Behavioral Intentions,” Journal of Service Research, 3 (3), 232-
240.
Woodruff, R. B. (1997), “Customer Value: The Next Source of Competitive
Advantage,” Journal of the Academy of Marketing Science, 25 (2), 139-153.
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.
doc_542920934.pdf