Developing a customer value-added theory of the firm

Article Abstract:

Bob Woodruff lays out a compelling argument for why customer value must be the focus of business activities and offers several useful prescriptions for businesses may position themselves to understand the nature of customer value, how the customer's value equation may evolve, and what a business might do to create and implement a customer value delivery strategy. The objective of this commentary is to complement Woodruff's arguments by recasting and augmenting them to create a customer value-based theory of the firm. I hesitate to characterize this as a creation, though. Certainly the foundation for a customer value-based theory of the firm was laid decades ago by Alderson (1957) and Drucker (1973), among others. That foundation subsequently has been built on by the contributions of marketing theorists such as Anderson (1982), Day and Wensley (1988), Dickson (1992), Hunt and Morgan (1995), Kohli and Jaworski (1990), Slater and Narver (1995), and Webster (1992). At the same time that this important work has taken place, marketing strategy thought leaders are lamenting marketing's declining influence on the strategy dialogue (e.g., Day 1992; Kerin 1992; Varadarajan 1992; Webster 1992). I propose that an important reason for this situation is that marketing scholars have neglected to organize our theoretical frameworks into a comprehensive theory of the firm, which is the foundation and focal point for our dialogue and research. (Reprinted by permission of the publisher.)

Models, Value (Economics)

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Customer-led and market-oriented: let's not confuse the two

Article Abstract:

A customer-led philosophy is quite different from a market-oriented philosophy. The former is usually reactive, focuses on short term goals and looks at the expressed desires of customers and measures of customer satisfaction. A customer-led approach can be successful in stable environments but is rarely effective in dynamic contexts because it does not stimulate innovation. On the other hand, a market-oriented philosophy aims to understand both the expressed and latent needs of customers. Although it is similar to customer-led orientation because it also pays serious attention to customer needs, a market-oriented organization is aware that different types of information are generated by different types of customers. Also, it uses customer information as only one of the many sources of information on which plans and strategies are based. Innovation and competitive advantage are possible in market-oriented businesses.

Strategic planning (Business)

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On the importance of matching strategic behavior and target market selection of business strategy in high-tech markets

Article Abstract:

The effect of high-tech customer orientation, technology orientation and competitor orientation, on the management of business performance through the strategic selection of target markets is examined.

United States, Forecasts, trends, outlooks, Methods, Economic aspects, Forecasts and trends, Market trend/market analysis, Target marketing, Customer relationship management, Business performance management

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