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Influence of the Internet on Value to Customer

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Internet-Based Customer Value Management

Part of the book series: Management for Professionals ((MANAGPROF))

Abstract

The purpose of this chapter is to discuss the influence of the Internet on the value to customer. In the first part the notion of value to customer and its determinants will be presented. These determiners include: value offered to customers by companies, price levels, and non-financial customer costs. As a part of relationship with customers, companies provide them with the value proposition in exchange for the stream of customer-generated values. Classification of the both types of values will be presented in this chapter.

The focus of the subsequent part of the chapter will be on factors which influence Internet-based value proposition, that is: product virtualisation, value co-creation, perception of experience as a value to customer, and network effects. As the summary of the chapter, five strategies of Internet-based competition through value to customers will be discussed.

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Notes

  1. 1.

    As already mentioned, there is an alternative approach which relates to the concept called service dominant logic. According to it, companies do not create “value to customer”, but only “value proposition”, which can be accepted or rejected by customers. The value is then created by customers themselves during the consumption act.

  2. 2.

    For simplification, other financial costs associated with value acquisition will not be taken into account.

  3. 3.

    Information provided by Fotka.pl on 2012.04.18.

  4. 4.

    In some kinds of services, such as hotels, airlines, or cruises, fixed cost prevail.

  5. 5.

    The classification of capabilities and their exemplification was taken from de Holan et al. (2009).

  6. 6.

    Official program site: Seti@home, http://setiathome.ssl.berkeley.edu.

  7. 7.

    Official program site: Folding@home, http://folding.stanford.edu.

  8. 8.

    Official platform site: World Community Grid, http://www.worldcommunitygrid.org.

  9. 9.

    State as of 2009.07.14, according to InnoCentive at a Glance, http://www.innocentive.com/about-innocentive/facts-stats, viewed 01.12.2010. More current data have the same structure, nevertheless they lack in certain financial information.

  10. 10.

    A website dedicated to app development for Facebook http://developers.facebook.com/, viewed 01.12.2010.

  11. 11.

    The sub-site of Goldenline.pl dedicated to the GoldenFinger program: http://www.goldenline.pl/goldenfinger/info, viewed 2012.03.15.

  12. 12.

    Experience goods are frequently contrasted with search goods, the utility of which may be evaluated based on product features and characteristic; and with credence goods, the quality of which may be ascertained only based on opinions provided by a third party (e.g. a physician).

  13. 13.

    A conclusion shown in a presentation on Google strategies prepared by Faber Novel, which is available at: http://www.fabernovel.com/sites/default/files/Google_14Q_en.pdf, viewed 2012.03.15.

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    Tymoteusz Doligalski

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Doligalski, T. (2015). Influence of the Internet on Value to Customer. In: Internet-Based Customer Value Management. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-319-09855-5_2

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