Customer Value Management— a Sequential Process of Creating, Quantifying, and Capturing Value

Srishti 2We all talk about value. It is something that is mentioned on every website, on every company brochure and on every booth at trade shows. For some of us, value is financial or economic, while for others it is relationship-based or perceptual. Marketing and sales practitioners discuss value in the context of buyer–seller interactions. Strategy scholars focus on the extraction of value from the firm’s value resources (Bowman & Ambrosini, 2000). The bottom line is that we all define and understand value differently. This is why value is so difficult to comprehend, to operationalize and to improve.

One question that is still debated in various literature streams and widely discussed in firms’ practitioner circles is that ‘Is value created, captured, exchanged or appropriated?’ Scholars might be aware of these differences, but in the field of practice, it is another reality. Of course, the answer to the question is not that simple. Two critical factors influence it: How do you define value, and value for whom?

An article from the Journal of Creating Value aims to repeat, reinforce and rationalize the concept of customer value and to propose a process for managing customer value holistically and sustainably. It highlights the need for practitioners to manage customer value formally through the institutionalization. This article intends to clarify the difference between the three steps of customer value management. It posits that customer value management needs to be a formal process in organizations and that this process needs to be formally managed as well. In order to do so, organizations need to focus on the development of customer value management capabilities across the three stages of the Customer Value Management process: creation, quantification, and capture. The article concludes by stating that it cannot be just created, it is something that needs to be managed.

Register here to read full article!

Click here to read Customer Value Is Not Just Created, It Is Formally Managed for free from Journal of Creating Value

Make sure to sign up for e-alerts

This entry was posted in Uncategorized by Cynthia Nalevanko, Editor, SAGE Publishing. Bookmark the permalink.

About Cynthia Nalevanko, Editor, SAGE Publishing

Founded in 1965, SAGE is the world’s leading independent academic and professional publisher. Known for our commitment to quality and innovation, SAGE has helped inform and educate a global community of scholars, practitioners, researchers, and students across a broad range of subject areas. With over 1500 employees globally from principal offices in Los Angeles, London, New Delhi, Singapore, Washington DC, and Melburne, our publishing program includes more than 1000 journals and over 900 books, reference works and databases a year in business, humanities, social sciences, science, technology and medicine. Believing passionately that engaged scholarship lies at the heart of any healthy society and that education is intrinsically valuable, SAGE aims to be the world’s leading independent academic and professional publisher. This means playing a creative role in society by disseminating teaching and research on a global scale, the cornerstones of which are good, long-term relationships, a focus on our markets, and an ability to combine quality and innovation. Leading authors, editors and societies should feel that SAGE is their natural home: we believe in meeting the range of their needs, and in publishing the best of their work. We are a growing company, and our financial success comes from thinking creatively about our markets and actively responding to the needs of our customers.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s