Value Based Service

7682 WordsMar 4, 201131 Pages
The current issue and full text archive of this journal is available at MSQ 16,3 SERVICE LEADERS Values-based service brands: narratives from IKEA Bo Edvardsson and Bo Enquist Service Research Center, Karlstad University, Karlstad, Sweden, and 230 Michael Hay IKEA North America Abstract Purpose – The purpose of this paper is to present a model for values-based service brands grounded in values-based service management. In undertaking this task, the paper addresses two research questions: “What is the role of values in creating customer value and corporate identity?” and “How can values and corporate identity be communicated to customers and thus contribute to customer-perceived…show more content…
(2) How can values and corporate identity be communicated to customers and thus contribute to customer-perceived service value? The paper is structured as follows. First, the study presents a literature review and theoretical framework for describing and understanding values-based service brands. Second, the study presents five narratives describing how IKEA communicates company values in creating total customer value. The paper then relates its empirical findings to previous research and suggests a model for values-based service brands, values-based management, and corporate image. Finally, the paper discusses the research contribution, managerial implications, and suggestions for future research. 2. Theoretical framework To attract and retain customers, and thus make a profit, companies are constantly searching for new and better ways of creating value for customers and differentiating their market offerings (Shaw and Ivens, 2002; Bendapudi and Leone, 2003). However, it has been argued that technical and functional qualities are not enough; attractive values also form part of a favourable customer experience (Cronin, 2003; Sherry, 1998). This view is in accordance with Mano and Oliver’s (1993) study of utilitarian consumption judgments and hedonic consumption judgments. In a similar vein, the concept of “value-in-use” (Vargo and
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