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Encyclopedia of Sustainable Management pp 1–3Cite as

Customer Value Creation

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Definition

The concept customer value has many meanings (Woodall 2003), but, from a marketing theory, two dominate: customer value refers to customers’ perceptions of what they receive and in return for what they sacrifice (Zeithaml 1988). The creation of customer value has long been recognized as a central concept in marketing (Woodruff 1997) and the fundamental basis for all marketing activity (Holbrook 1994). There are two aspects to customer value: desired value and perceived value (Woodruff 1997). Desired value refers to what a customer desires in a product or service. Perceived value is the benefit a customer believes he or she received from a product after it was purchased.

Anderson et al. (1997) define three kinds of customer value propositions: all benefits, favorable points of difference, and resonating focus. “All benefits” value propositions are based simply on listing the positive features and outcomes of buying and using the product or service.

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References

  • Anderson, E. W., Fornell, C., & Rust, R. T. (1997). Customer satisfaction, productivity, and profitability: Differences between goods and services. Marketing Science, 16(2), 97. Published online: 1 May 1997.

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  • Holbrook, M. B. (1994). The nature of customer value: An axiology of services in the consumption experience. In R. T. Rust & R. L. Oliver (Eds.), Service quality: New directions in theory and practice (pp. 21–71). Thousand Oaks: SAGE.

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  • O’Cass, A., & Ngo, L. V. (2011). Examining the firm’s value creation process: A managerial perspective of the firm’s value offering strategy and performance. British Journal of Management Banner, 22(4), 646–671. https://doi.org/10.1111/j.1467-8551.2010.00694.x.

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  • Shanker, A. (2012). A customer value creation framework for businesses that generate revenue with open source software, Technology innovation management review. March, pp. 18–20.

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  • Shastry, K. (2018). The 7 key principles of customer value creation, posted on conversion optimization, January 26, 2018.

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  • Woodall, T. (2003). Conceptualization ‘value for the customer’: An attributional, structural and dispositional analysis. Academy of Marketing Science Review, 12. Available at www.amsreview.org/articles/woodall12-2003.pdf.

  • Woodruff, R. (1997). Customer value: The next source for competitive advantage. Journal of the Academy of Marketing Science, 25, 139.

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  • Zeithaml, V. A. (1988). Consumer perceptions of Price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2–22.

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Author information

Authors and Affiliations

  1. Department of Management, University of Bologne, Bologne, Italy

    Stefania Vignini

Authors
  1. Stefania Vignini
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Correspondence to Stefania Vignini .

Editor information

Editors and Affiliations

  1. London Metropolitan University, Guildhall Faculty of Business and Law London Metropolitan University, London, UK

    Samuel Idowu

  2. Cologne Business School, Ingolstadt, Germany

    René Schmidpeter

  3. College of Business, Loyola University New Orleans, New Orleans, LA, USA

    Nicholas Capaldi

  4. International Training Centre of the IL, International Labor Organization, Turin, Italy

    Liangrong Zu

  5. Department of Economics, Society and Politics, University of Urbino Carlo Bo, Urbino, Italy

    Mara Del Baldo

  6. Instituto Politécnico da Guarda, Guarda, Portugal

    Rute Abreu

Section Editor information

  1. No affiliation provided

    Kristijan Krač

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Vignini, S. (2020). Customer Value Creation. In: Idowu, S., Schmidpeter, R., Capaldi, N., Zu, L., Del Baldo, M., Abreu, R. (eds) Encyclopedia of Sustainable Management. Springer, Cham. https://doi.org/10.1007/978-3-030-02006-4_885-1

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  • DOI: https://doi.org/10.1007/978-3-030-02006-4_885-1

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-02006-4

  • Online ISBN: 978-3-030-02006-4

  • eBook Packages: Springer Reference Business and ManagementReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

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