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In this study, we propose value based selling (VBS) as an alternative approach for sellers to alleviate customer risk related to Product-Service Systems (PSS) and to ensure the PSS provider’s profitability under these conditions. VBS is a selling approach that seeks to co-create customer value-in-use by demonstrating the provider’s contribution to the customer’s business outcomes in clear monetary terms (Terho et al. 2017). Consistent with this, we suggest that VBS should act as a fair information practice from the PSS provider’s point of view and as a fairness heuristic from the customer’s vantage point of view (Crosno and Dahlstrom 2011). By focusing customers’ attention on the value-in-use of the PSS, it may reduce customer price sensitivity and make customers appreciate the deal more, that is, seeing it as a win-win rather than a win-lose game. Empirical results of 25o firms collected from an American panel largely support the hypotheses developed.
13 feb 2020 → 14 feb 2020
American Marketing Association, Verenigde Staten van Amerika