Hannu Kuusela

Decomposing the value of department store shopping into utilitarian, hedonic and social dimensions: Evidence from Finland

– The purpose of this paper is to decompose total customer value as perceived by department store shoppers into utilitarian, hedonic and social dimensions, and empirically test this conceptualization in a Finnish department store shopping context., – Data were collected by a questionnaire administered over three days at a department store that generates the second largest turnover in Finland. A total of 364 shoppers completed the questionnaire., – Empirical evidence supports our tripartite conceptualization of total customer value. In particular, social value is an independent construct. Further, social value varies by day‐of‐week, with a significant increase on Saturday (versus weekdays) when the store is more crowded, whereas no such differences in utilitarian and hedonic values were detected., – The principal contribution is a tripartite conceptualization of total customer value that incorporates utilitarian, social and hedonic value dimensions in a department store shopping context. Individually these dimensions are all well rooted in streams of consumer behavior literature, albeit mostly at the product or brand, not the store, level. Increasing our understanding of these softer aspects of shopping, particularly the social dimension, is important because they represent possible differentiating factors in the highly competitive and often commoditized retail markets.

A comparison of concurrent and retrospective verbal protocol analysis

In verbal protocol analysis, verbalization can occur either during decision making (concurrent data) or after (retrospective data). Although both methods have advantages and disadvantages, no empirical research has focused on a direct comparison. This study compared the effectiveness of concurrent and retrospective data for revealing the human decision making process. In general, the concurrent protocol analysis method outperformed the retrospective method. Not only was the number of concurrent protocol segments elicited higher than that of retrospective protocol segments, but concurrent data provided more insights into the decision-making steps occurring between stimulus introduction and the final choice outcome. However, retrospective protocols offer an interesting advantage: More statements about the final choice are provided in retrospective protocols than in concurrent protocols.

Value co‐creation: theoretical approaches and practical implications

Purpose – Existing research suggests a multitude of approaches to value co‐creation that bring with them a range of different ideas on what constitutes the concept. The purpose of this paper is to identify the sources of the differing approaches, and so reduce the complexity of the concept and develop a business‐oriented analytical framework for assessing the opportunities presented by value co‐creation.Design/methodology/approach – Through exploration of the different theoretical approaches to value co‐creation the sources of friction are identified. Addressing the conceptual complexity provides a sound basis for the development of a business‐oriented analytical framework.Findings – The multifaceted nature of value co‐creation arises owing to the differing approaches to what determines the value, the co‐, and the creation elements of the concept. The study concludes that both scholars and practitioners should focus more on identifying and understanding what kind of value is co‐created for whom, using wha...

Expertise effects on prechoice decision processes and final outcomes

The purpose of this study was to determine the effect of expertise on prechoice decision processes and final outcomes. By decomposing verbal protocols collected from 90 individuals who made one complex, mortgage loan decision, we could compare the frequency and type of elementary information processes evoked. We found that experts, relative to less knowledgeable decision makers, made a greater number of problem framing statements; made more references to why an option was being retained for further consideration; and used more compensatory decision rules. In addition, we found that misunderstanding externally provided information mediates the expertise‐choice relationship. Novices were significantly more likely to misunderstand information than were more knowledgeable decision makers. As a result, there was greater variance in novices’ final choices than was the case with experts’. The deleterious effect of mis‐understandings is disconcerting because consumers frequently miscomprehend print communications.

Reverse use of customer data: implications for service-based business models

Purpose – The purpose of this study is to explore and analyze the implications of reverse use of customer data for service-based business models. In their quest for competitive advantage, firms traditionally use customer data as resources to redesign and develop new products and services or identify the most profitable customers. However, in the shift from a goods-dominant logic toward customer value creation, the potential of customer data for the benefit of the customer, not just the firm, is an emerging, underexplored area of research. Design/methodology/approach – Business model criteria and three service examples combine to uncover the implications of reverse use of customer data for service-based business models. Findings – Implications of reverse use of customer data for service-based business models are identified and explored. Through reverse use of customer data, a firm can provide customers with additional resources and support customers’ value-creating processes. Accordingly, the firm can move...

Customer relationship management: the evolving role of customer data

Purpose – Customer relationship management (CRM) developed a separate identity as a result of companies utilising customer data in managing customer relationships. In this evolution, CRM became a heavily company-oriented construct: customer data were used instrumentally to serve companies’ purposes. However, as companies increasingly shift attention from selling products to serving customers, traditional CRM activities, such as segmentation and cross-selling, may prove inappropriate owing to their inherent orientation towards selling more products to customers. The perspective on customer data usage needs to better address the strategic goal of serving customers. Consequently, the purpose of the paper is to reconfigure the role of customer data within the CRM framework. Design/methodology/approach – CRM literature is briefly reviewed and a case study is conducted to empirically illustrate how customer data can be used also for the benefit of the customer. Findings – As a result, four CRM waves are identif...

Reinventing marketing strategy by recasting supplier/customer roles

Purpose - The purpose of this paper is to propose that the recasting of supplier and customer roles reconfigures the role of marketing. Design/methodology/approach - A conceptual paper that suggests the need to rethink the role of marketing in the strategic decision making of companies. The study accesses recent theories of marketing, service and value and provides illustrative case examples. Findings - Consumers are progressively more active and the traditional supplier role of controlling consumers is less viable. The case examples show the variety of ways in which companies may adopt a new role in relation to customers and the market. The paper argues that adapting to this role change needs to take place at the highest level in the company and is the way to reinvent marketing strategy. This also necessitates marketing employing unconventional methodologies and relevant theory to address the complexity and ambiguity of current markets. Research limitations/implications - The paper is a conceptual paper restricted to supplier and customer roles, albeit set in a broader context of stakeholders. Practical implications - The marketing-oriented supplier of the future can design service systems and exert a certain control at the same time adapting to and supporting consumer initiatives through interaction in networks of stakeholder relationships. Originality/value - Stressing the new roles of consumers and suppliers; reinventing the role of marketing, breaking with conventional marketing research methodology.

Extending customer relationship management: from empowering firms to empowering customers

Purpose – The focus of customer relationship management (CRM) literature has been predominantly on the firm perspective and on IT, not on customer or service orientation and value co‐creation. This paper seeks to explore and analyse contemporary CRM frameworks and suggests future research directions. To achieve this, a thorough literature review on CRM is conducted focusing on recent advances within CRM. This provides a good basis for critically analysing the current status of both CRM theory and practice.Design/methodology/approach – The paper reviews CRM literature published 2003‐2011. Based on the literature review, it introduces a conceptual framework of the changing role of customer data in the CRM framework.Findings – Literature has not adequately addressed the role of the emerging service orientation, value co‐creation and the opportunities provided by new technology and communication channels. Drawing on a thorough CRM literature review, we argue that a fundamental change in CRM thinking is needed...

Disentangling customer orientation – executive perspective

Purpose – Despite the fact that customer orientation is increasingly used as a strategic guideline to ensure companies’ long-term success, it is too often left at conceptual level without any managerial or executive translation. To address this practical gap, the purpose of the paper is to build an executive perspective on customer orientation through the mechanism of customer value dimensions. Design/methodology/approach – An intensive case study from a successful retail service business is used to illustrate how customer orientation is applied in actual strategic decision making at the executive level. The case business is a multi-sector service business that took a strategic turn toward customer orientation in the 2000s. As a result, the company has been able to increase their market share to become the market leader as well as stay ahead of the competition and increase customer loyalty. Findings – The study provides a practical tool of disentangling customer orientation into four customer value dimens...

The collective consumption network

Purpose – The purpose of this paper is to introduce a network perspective to the study of collective consumption. The authors examine the characteristics of heterogeneous consumption collectives formed around a Finnish footwear brand. The case is both theoretically and practically relevant. It differs from previous research by featuring consumer grassroot activities, face-to-face interaction and strong pre-existing social relationships. Design/methodology/approach – Qualitative case study research was conducted with different methods of data generation including interviews, participant observation and cultural materials such as newspaper articles and photos. Findings – A new concept of collective consumption network is introduced. Five kinds of consumption collectives are identified, including place focussed, brand focussed, activity focussed, idea focussed and social relations focussed consumption collectives. The strength of ties as well as the role of the brand varies within the collectives. Practical ...