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Linking customer management effort to customer profitability in business markets

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Chain-link frameworks such as the Service-Profit Chain (SPC) are much discussed as a means to link customer profits to operational resources under the influence of vendor managers, though empirical testing to date has been limited primarily to consumer services settings. In this paper, the authors adapt the SPC framework to accommodate characteristics of industrial markets, specifically the complex decision-making unit, strategic supplier selection, and resource allocation at the individual customer level. They also extend the SPC framework to allow for a richer description of the complex linkages between vendor effort and account profitability, namely, nonlinear linkages and differential responsiveness occasioned by customer-specific factors such as competitive context. Controlling for such factors illuminates, to some degree, why similar levels of customer management effort and/or performance can yield quite different customer profitability outcomes. An application is presented that demonstrates how adapting and extending the SPC to industrial markets can provide vendors with (1) insights into the process that culminates in individual customer profitability and (2) useful guidelines for adapting their customer management efforts at the individual account level with an eye towards improving account profitability. The results show the importance of accounting for decreasing returns to customer management effort at a given account and reinforce the notion of customer delight..Printed Journal

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Ketersediaan

Call Number	Location	Available
	PSB lt.dasar - Pascasarjana	1

Penerbit	American Marketing Association.,
Edisi	-
Subjek	Profitability Market strategy studies Business to business commerce
ISBN/ISSN	222437
Klasifikasi	-
Deskripsi Fisik	-
Info Detail Spesifik	-
Other Version/Related	Tidak tersedia versi lain
Lampiran Berkas	Tidak Ada Data