Working Papers, Hanken School of Economics
Päivi Voima, kristina Heinonen
Exploring Customer Value Formation: A Customer Dominant Logic Perspective
() and Tore Strandvik
Abstract: This paper extends current discussions about value
creation and proposes a customer dominant value perspective. A
customer-dominant marketing logic positions the customer in the center,
rather than the service provider/producer or the interaction or the system.
The focus is shifted from the company´s service processes involving the
customer, to the customer´s multi-contextual value formation, involving the
company. It is argued that value is not always an active process of
creation; instead value is embedded and formed in the highly dynamic and
multi-contextual reality and life of the customer. This leads to a need to
look beyond the current line of visibility where visible customer-company
interactions are focused to the invisible and mental life of the customer.
From this follows a need to extend the temporal scope, from exchange and
use even further to accumulated experiences in the customer´s life. The aim
of this paper is to explore value formation from a customer dominant logic
perspective. This is done in three steps: first, value formation is
contrasted to earlier views on the company’s role in value creation by
using a broad ontologically driven framework discussing what, how, when,
where and who. Next, implications of the proposed characteristics of value
formation compared to earlier approaches are put forward. Finally, some
tentative suggestions of how this perspective would affect marketing in
service companies are presented. As value formation in a CDL perspective
has a different focus and scope than earlier views on value it leads to
posing questions about the customer that reveals earlier hidden aspects of
the role of a service for the customer. This insight might be used in
service development and innovation.
Keywords: customer value; value creation; value formation; service dominant logic; customer dominant logic; (follow links to similar papers)
17 pages, September 6, 2010
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Questions (including download problems) about the papers in this series should be directed to Staffan Dellringer ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom