1. bookVolume 16 (2021): Issue 2 (August 2021)
Journal Details
First Published
06 Mar 2015
Publication timeframe
3 times per year
access type Open Access

Competitive Advantages and Values Created and Attained Out of Well-Crafted Customer Value Propositions

Published Online: 27 Sep 2021
Page range: 53 - 73
Journal Details
First Published
06 Mar 2015
Publication timeframe
3 times per year

To help facilitate the development of a theoretically rigorous and practically useful theory of customer value propositions (CVP), as called for repeatedly by the extant literature, this paper establishes a game-theoretic theorem regarding the dynamics of market competition and potential market entry. On top of this result and by employing logical rigor and analytical reasoning, eight generally true facts are developed without suffering from the constraints of data- and anecdote- based approaches, as widely used in the literature. In particular, these established results reveal how a newly adopted CVP is associated with the three essential processes underlying a company’s operation, how it will be pivotal for the company to attain competitive advantages, how the value added by adopted CVPs can be determined, etc. At the end, recommendations for decision-making managers and entrepreneurs and potential questions for future research are provided.


Acemoglu, D., Restrepo, R (2016), The race between man and machine: Implications of technology for growth, factor shares, and employment. NBER Working Papers No.22252.10.3386/w22252 Search in Google Scholar

Adner, R. (2017), Ecosystem as Structure: An Actionable Construct for Strategy. Journal of Management, Vol. 43, no. 1, pp. 39-58.10.1177/0149206316678451 Search in Google Scholar

Adner, R., Oxley, J.E., Silverman, B.S. (eds.) (2013): Collaboration and Competition in Business Ecosystems. Emerald: Bingley, UK.10.1108/S0742-3322(2013)0000030018 Search in Google Scholar

Anderson, J.C., Narus, J.A. (1998), Business marketing: Understand what customers value. Harvard Business Review, Vol. 76, no. 6, pp. 53-65. Search in Google Scholar

Ballantyne, D., Frow, P., Varey, J.R., Payne, A. (2011), Value propositions as communication practice: Taking a wider view. Industrial Marketing Management, Vol. 40, no. 2, pp. 202-210.10.1016/j.indmarman.2010.06.032 Search in Google Scholar

Bernanke, B.S., Gertler, M. (1999), Monetary policy and asset price volatility. Economic Review, Federal Reserve Bank of Kansas City, fourth quarter, pp. 17-51. Search in Google Scholar

Bernheim, B.D., Whinston, M.D. (1990), Multimarket contact and collusive behavior. RAND Journal of Economics, Vol. 21, no. 1, pp. 1-26.10.2307/2555490 Search in Google Scholar

Blocker, C.P. (2011), Modeling customer value perceptions in cross-cultural business markets. Journal of Business Research, Vol. 64, no. 5, pp. 533-540.10.1016/j.jbusres.2010.05.001 Search in Google Scholar

Carlson, C., Polizzotto, L., Gaudette, G.R. (2019), The “NABC's” of value propositions. IEEE Engineering Management Review, Vol. 47, no. 3, pp. 15-20.10.1109/EMR.2019.2932321 Search in Google Scholar

Clarke, I., III. (2001), Emerging value propositions for M-commerce. Journal of Business Strategies, Vol. 18, no. 2, pp. 133-148. Search in Google Scholar

Day, G.S. (1994), The capabilities of market-driven organizations. Journal of marketing, Vol. 58, no. 4, pp. 37-52.10.1177/002224299405800404 Search in Google Scholar

Duan, Y.Q., Edwards, J.S., Dwivedi, Y.K. (2019), Artificial intelligence for decision making in the era of Big Data - evolution, challenges and research agenda. International Journal of Information Management, Vol. 48, no. October, pp. 63-71.10.1016/j.ijinfomgt.2019.01.021 Search in Google Scholar

Fernando, C.S., Sharfman, M.P., Uysal, V.B. (2017), Corporate Environmental Policy and Shareholder Value: Following the Smart Money. Journal of Financial and Quantitative Analysis, Vol. 52, no. 5, pp. 2023-2051.10.1017/S0022109017000680 Search in Google Scholar

Forrest, J.Y-L., Buttermore, J., Wajda, T. (2017), At Nash equilibrium when new market competitions appear? Kybernetes: The International Journal of Cybernetics, Systems and Management Sciences, Vol. 46, no. 2, pp. 256-271. Search in Google Scholar

Forrest, J.Y-L., Hopkins, Z., Liu, S. F. (2013), Currency wars and a possible self-defense (I): How currency wars take place. Advances in Systems Science and Application, Vol. 13, pp. 198-217. Search in Google Scholar

Forrest, J.Y-L., Orvis, B. (2016), Principles of management efficiency and organizational inefficiency. Kybernetes: The International Journal of Cybernetics, Systems and Management Sciences, Vol. 45, no. 8, pp. 1308-1322. Search in Google Scholar

Forrest, J.Y-L., Tucker, R., Lin, C.C., Mondal, S. (2018), Impacts of manufacturing firms’ culture, structure and leadership on innovation: A systemic approach. Proceedings of the 2018 Annual Conference of NABET, pp. 95-120. Search in Google Scholar

Frow, P., Payne, A. (2011) A stakeholder perspective of the value proposition concept. European Journal of Marketing, Vol. 45no. 1-2, pp. 223-240.10.1108/03090561111095676 Search in Google Scholar

Fuentelsaz, L., Gomez, J. (2006), Multipoint competition, strategic similarity and entry into geographic markets. Strategic Management Journal, Vol. 27, no. 5, pp. 477-499.10.1002/smj.529 Search in Google Scholar

Grant, J.l. (2003): Foundations of Economic Value Added. Wiley, New York. Search in Google Scholar

Hendrikse, G., Hippmann, P., Windsperger, J. (2015), Trust, transaction costs and contractual incompleteness in franchising. Small Business Economics, Vol. 44, no. 4, pp. 867-888.10.1007/s11187-014-9626-9 Search in Google Scholar

Holttinen, H. (2014), Contextualizing value propositions: Examining how consumers experience value propositions in their practices. Australian Marketing Journal, Vol. 22, no. 2, pp. 103-110.10.1016/j.ausmj.2013.10.001 Search in Google Scholar

Hsieh, K.Y., Vermeulen, F. (2014), The structure of competition: How competition between one’s rivals influences imitative market entry. Organization Science, Vol. 25, no. 1, pp. 299-319.10.1287/orsc.2013.0832 Search in Google Scholar

Khantimirov, D. (2017), Market share as a measure of performance: Conceptual issues and financial accountability for marketing activities within a firm. Journal of Research in Marketing, Vol. 7, no. 3, pp. 587-592. Search in Google Scholar

Kotler, P. (1977), From sales obsession to marketing effectiveness. Harvard Business Review, Vol. 55, no. 6, pp. 67-75. Search in Google Scholar

Kowalkowski, C. (2011), Dynamics of value propositions: Insights from service-dominant logic. European Journal of Marketing, Vol. 45, no.1/2, p. 277-294.10.1108/03090561111095702 Search in Google Scholar

Lanning, M., Michaels, E. (1988), A business is a value delivery system. McKinsey Staff Paper No. 41, July. Search in Google Scholar

Li, T., Ma, J.H. (2015), Complexity analysis of dual-channel game model with different managers’ business objectives. Communications in Nonlinear Science and Numerical Simulation, Vol. 20, pp. 199-208.10.1016/j.cnsns.2014.05.012 Search in Google Scholar

Lin, Y., OuYang, S.C. (2010): Irregularities and Prediction of Major Disasters. CRC Press, New York.10.1201/9781420087468 Search in Google Scholar

McGrath, R.G. (2013): The end of competitive advantage: How to keep your strategy moving as fast as your business. Harvard Business Review Press, Boston. Search in Google Scholar

Nohria, N., Garcia-Pont, C. (1991), Global strategic linkages and industry structure. Strategic Management Journal, Vol.12, Summer Special Issue, pp.105-124.10.1002/smj.4250120909 Search in Google Scholar

Parasuraman, A. (1997), Reflections on gaining competitive advantage through customer value. Journal of the Academy of Marketing Science, Vol. 25,154. https://doi.ora/10.1007/BF0289435110.1007/BF02894351 Search in Google Scholar

Payne, A., Frow, P., Eggert, A. (2017), The customer value proposition: evolution, development, and application in marketing. Journal of the Academy of Marketing Science, Vol. 45, pp. 467-489.10.1007/s11747-017-0523-z Search in Google Scholar

Pyper, K., Doherty, A.M., Gounaris, S., Wilson, A. (2019), Investigating international strategic brand management and export performance outcomes in the B2B context. International Marketing Review, Vol. 37, no. 1, pp. 98-129.10.1108/IMR-02-2019-0087 Search in Google Scholar

Randall, W.S., Defee, C.C., Brady, S.P. (2010), Value Propositions of the U.S. Trucking Industry. Transportation Journal, Vol. 49, no. 3, pp. 5-23. Search in Google Scholar

Rintamäki, T., Kirves, K. (2017), From perceptions to propositions: Profiling customer value across retail contexts. Journal of Retailing and Consumer Services, Vol. 37, no. July, pp. 159-167.10.1016/j.jretconser.2016.07.016 Search in Google Scholar

Rintamaki, T., Kuusela, H., Mitronen, L. (2007), Identifying competitive customer value propositions in retailing. Managing Service Quality, Vol. 17, no. 6, pp. 621-634.10.1108/09604520710834975 Search in Google Scholar

Robins, J.A. (1992), Organizational considerations in the evaluation of capital assets: Toward a resource-based view of strategic investment by firms. Organization Science, Vol. 3, no. 4, pp. 442-562.10.1287/orsc.3.4.522 Search in Google Scholar

Sheehan, N.T., Bruni-Bossio, V. (2015), Strategic value curve analysis: Diagnosing and improving customer value propositions. Business Horizons, Vol. 58, no. 3, pp. 317-324.10.1016/j.bushor.2015.01.005 Search in Google Scholar

Smith, A.M. (2013), The value co-destruction process: a customer resource perspective. European Journal of Marketing, Vol. 47, no. 11/12, pp. 1889-1909.10.1108/EJM-08-2011-0420 Search in Google Scholar

Srivastava, R.K., Shervani, T.A., Fahey, L. (1999), Marketing, business processes, and shareholder value: An organizationally embedded view of marketing activities and the discipline of marketing. Journal of Marketing, Vol. 63, no. 4, pp. 168-179.10.1177/00222429990634s116 Search in Google Scholar

Williams, P. Naumann, E. (2011), Customer satisfaction and business performance: a firm-level analysis. Journal of Services Marketing, Vol. 25, no. 1, pp. 20-32.10.1108/08876041111107032 Search in Google Scholar

Wouters, M. (2010), Customer value propositions in the context of technology commercialization. International Journal of Innovation Management, Vol. 14, no. 6, pp. 2099-1127. Search in Google Scholar

Wouters, M., Kirchberger, M.A. (2015), Customer value propositions as interorganizational management accounting to support customer collaboration. Industrial Marketing Management, Vol. 46, no. April, pp. 54-67.10.1016/j.indmarman.2015.01.005 Search in Google Scholar

Yrjölä, M. (2015), Uncovering executive prioritization: Evaluating customer value propositions with the pairwise comparison method. Journal of Service Science and Management, Vol. 8, no. 1. 10.4236/issm.2015.81001.10.4236/jssm.2015.81001 Search in Google Scholar

Zhang, T.C., Gu, H.M., Jahromi, M.F. (2019), What makes the sharing economy successful? An empirical examination of competitive customer value propositions. Computers in Human Behavior, Vol. 95, no. June, pp. 275-283.10.1016/j.chb.2018.03.019 Search in Google Scholar

Zheng, C.D., Yu, X.F., Jin, Q.M. (2017), How user relationships affect user perceived value propositions of enterprises on social commerce platforms. Information Systems Frontiers, Vol. 19, pp. 1261-1271.10.1007/s10796-017-9766-y Search in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo