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Contextualizing Value Propositions: Examining how Consumers Experience Value Propositions in Their Practices

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Abstract

As a value proposition connects firms and customers, it becomes one of the central marketing concepts. Currently it has remained de-contextualized. Drawing on service-dominant logic, practice theory and consumer culture theory, this study aims at contextualizing value propositions by investigating theoretically how consumers experience and evaluate value propositions in practices. It pinpoints what their essence is in customers’ lives: the ability of offerings to help customers to enact desirable cultural discourses into experience in practices. Hence the study constructs value propositions as firms’ proposals which integrate sign value (the meanings of value propositions addressing desirable cultural discourses), experience value (sign value materialized into experience in a practice), exchange value (financial and non-financial sacrifices), and resources needed to address and materialize sign value. In general this study extends understanding on the socio-cultural and situational character of value propositions, value creation and value co-creation.

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... 'Weak process sees the world as made of things and views process as a change in entities, while strong process views the world as a process in which things are reifications of processes and in a constant state of becoming' (Halinen, Medlin, & Törnroos, 2012). According to the latter view, business networks 'exist' in the sense of multiple intersecting practices (Holttinen, 2014). The network of relationships is '… continually changing without equilibrium and so there is a constant need to build and re-build managerial understanding of the network' (Andersen & Medlin, 2016: 11). ...
... This triggers knowledge processes to develop, make and market the product. Likewise, consumers need to understand what the product is about, how they could use it, and what new affordances the product entails (Holttinen, 2014;Yoo et al., 2012). A third and final foundational element concerns the composite and relational nature of content. ...
... Content evolves in changing patterns within and across organizations (Håkansson & Snehota, 1989;Lewin et al., 2011). While ordering of content is necessary for value, 'value in use' changes in a context-dependent manner (Chandler & Vargo, 2011;Holttinen, 2014), and hence the role of order as well. This applies especially to business networks consisting of multiple organizations, with less opportunity to settle on for instance a particular content narrative (Lowe, Rod, & Hwang, 2016;Uiterwijk, Soeters, & van Fenema, 2013). ...
Article
A strong process view on business networks takes ‘becoming’ as a starting point for understanding business networks and innovation. This view tends to leave the role of strategic content implicit and underdeveloped. Yet, embracing content from a process angle is important to obtain insight in the role of strategic intent and value transformation. A philosophical architecture for addressing this gap is currently lacking. In the context of business network innovation, this paper seeks to explore how content can remain theoretically relevant and how it can be inserted in a strong process view underpinning industrial marketing research. This conceptual paper makes a distinction between content-centric, process-content co-evolution, and process-centric philosophies. These are mutually exclusive and fail to cater to the gap introduced. A fourth strategy is introduced that adopts the process-centric view as a foundation but uses pragmatism and encapsulation to reach out to content research. The paper offers methodological considerations for empirical research and applies the resulting approach to industrial marketing. It concludes with implications for research in industrial marketing.
... It is necessary to know what points of difference can be offered as well as knowing what a target may consider worthwhile (Walker, 2008). A well-defined value proposition can improve the efficiency and effectiveness of the product or service provided by the company, which would then result in positive beliefs for the brand, consumer loyalty and increases in market share (Holttinen, 2014). As products become more complex and the marketplace more crowded, consumers rely more on products attributes than on its actual functions in making purchase decision (Blankson & Kalafatis, 2004). ...
... One reason of difficulty in understanding customer value is that the term "value" has different meanings for different people, and it is not easy to define and quantify. Some customers seek quality, others prefer a high level of service, and some prefer price as significant attribute while making choice (Holttinen, 2014). Buying behaviours and motivations are extremely different between segments of customers. ...
Article
With enormous economic growth in emerging markets, many business leaders want to identify the consumer insights. This study in automobile industry is an attempt to design the value proposition based on customers’ preferred attributes. By understanding the preferences of customer attributes for passenger cars, new product can be designed which are more suitable towards respective markets. In this study mainly rural and semi urban customers preferences were examined, through mix method approach. Depth interviews and focus groups were conducted followed by structured questionnaires. List of attributes was scientifically prepared and 879 responses were analyzed using univariate method. Five main constructs were studied, namely basic attributes, added attributes, dealer and network, pricing and finance, and brand related attributes. Within these main constructs 31 items were listed which were rated on a five point scale by customers. Finally value proposition has been deliberated reflecting customer’s preferences of these attributes in passenger cars. Customized strategies have been developed in the paper keeping in mind various demographic factors. This work shall fulfil the void in the literature regarding studies related to crafting value proposition. It would also benefit automobile managers by giving them more insights about consumer’s preferences and developing vehicles based on customers’ expectations and needs.
... 5. Market shaping device and customer contextualization strategy (Kumar et al., 2000;Holttinen, 2014;Kindström et al., 2018;Spinuzzi et al., 2018;Nenonen et al., 2019;Nenonen et al., 2020). ...
... 9. Access, combine, and deploy resources required to create value and scale, by providing all external resource owners with returns they cannot gain on their own (Melancon et al., 2010;Girotra & Netessine, 2013;2014;Bussgang & Stern, 2015). ...
Article
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One of the most valuable resources a company owns is the "portfolio of value propositions" to its diverse external stakeholders, such as customers, investors, and resource owners. In this article, we fill a gap in the value proposition literature by identifying features that make the value propositions of new companies different from other resources, along with factors that make them valuable. A value proposition is conceived as being what enables and improves business transactions between a new company and external stakeholders. We reason that two features in particular make value propositions of new companies distinct: (1) business transactions between a new company and one or more external stakeholders, and (2) investments to create and improve a new company's value propositions that enable business transactions. We provide a definition of "value proposition" and postulate that a value proposition will benefit a new company when it: (1) strengthens the new company's capabilities to scale; (2) increases demand for the new company's products and services; and (3) increases the number, diversity, and rapidity of external investments in the new company's value proposition portfolio.
... Even though this "trade-off" philosophye.g. between benefits and sacrifices, products for payment and benefits and costshas its roots in earlier economic theory, it has provided the basis for much of the later marketing research on value (Payne and Holt, 1999). In business-toconsumer research, the work of Zeithaml (1988) and Holbrook (1999) has provided seminal contributions also influencing studies in business-to-business research. The servicedominant logic perspective (Vargo and Lusch, 2004;Lusch, 2008a, 2008b) also proves valuable for this field of research. ...
... The second contribution, emanating from the first two case findings, relates to how difficulties in acting on specific relational value drivers enhance the partners' focus on clear utilitarian value drivers (cost, deliveries, etc.) on the one hand, while, on the other hand, they initiate actions based on relational value and more teleological reasoning (Holttinen, 2014;Schatzki, 1996). Schatzki (1996:p. ...
Article
Purpose The form and content of relationship value dominates the literature. This paper contributes by studying companies’ actions based on their value perceptions, a field which has attracted less attention. Scholars advocate more studies on how companies’ value perceptions shape actions in relationships and how this leads to outcomes. Design/methodology/approach A longitudinal critical case study of a customer/supplier relationship constitutes the empirical basis of the paper. Interviews and observation studies were conducted over a period of three years, giving access to special insight into the actors’ value perceptions and related actions. Findings Value perceptions shape actions performed individually, jointly or in the wider network. Moreover, misperceptions of the counterparty’s value perceptions may result in a maelstrom of interactions with no specific value outcome. Acting based on value perceptions is a complex matter due to its evolving nature, which leads to development becoming a value driver. Research limitations/implications The interdependencies between different value perceptions and their relational value drivers have special effects on actions and outcomes, also, value in actions needs to be studied. Practical implications Management needs to explore value from different perspectives to understand the counterparty’s value perceptions and communicate own perceptions. It is not sufficient to create value based on one value driver. Instead, it is vital to be able to connect value drivers to balance and prioritise relevant actions. Originality/value This paper stands out as one of the first contributions to relationship value literature that addresses and analyses value from both a customer perspective and a supplier perspective in a dyadic business relationship.
... Therefore, value is accumulated throughout time, from experiences during the usage of said product and/or service. However, value, as value usage, cannot exist before being created or emerge from the usage process, when value accumulation takes place and, therefore, cannot be assessed before its use (Corvellec & Hultman, 2014;Grönroos & Voima, 2013;Holttinen, 2014). ...
... Another theoretical contribution that results from establishing the hypothesis that Value in use has a significant and positive impact in Customer retention (H9) was the proposal of Value in use as a determining construct of Customer retention. Such hypothesis has been formulated by the realization that Value in use creation is the most important concept for the service providers (Corvellec & Hultman, 2014;Grönroos, 2008;Holttinen, 2014). Value in use is the real value for the service user. ...
Article
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Customer retention is an imperative for competitiveness within organizations, with important reflexes in their profitability and income. Although studies of customer retention determinants have been conducted for at least three decades, the constructs employed in the elaboration of the models have gone through few changes throughout this time. In this sense, a new Theoretical Model has been developed and tested. Such model contemplates the constructs of Value Proposition, Operand Resources, Operant Resources, Value Facilitation, Value Co-creation and Value in use as determinants in the Customer Retention. The study was conducted via a survey, with a pooling of 273 clients of a banking institution. The result analysis used the Modeling of Structural Equation to analyze and understand the relations which make up the proposed Theoretical Model. The results show that the proposed Theoretical Model has shown satisfactory adjustment indexes, taking into account their originality. Keywords: Proposition; Resources; Value; Co-creation; Retention
... Indeed, it is known for long that consumers buy meanings in (or through) offerings (Levy, 1959). Meaning is the perception or interpretation of an object, which arises from the interaction among the object, the interpreter (actor) and the context (Holttinen, 2013). Thus, what consumers perceive as more or less desirable and acceptable (and, so, frame their behavior accordingly) depends on cultural discourses which represent informal norms and tacit understanding (Holt and Thomson, 2004). ...
... However, the CCT does not examine how the practical material and temporal context of everyday life impacts consumer choices. The latter can be complemented by using the practice theory, which ties consumer behavior in specific socio-cultural, spatio-temporal and material settings (Holttinen, 2013). This is because the practice theory explains the people's behavior by emphasizing on the practices and not the individuals (Schatzki, 1996;Shove and Pantzar, 2005). ...
... As pointed out by Dhar (2015) and Teck-Hong and Yong-Kean (2012), when employees perceive their organization encouraging career planning and the development of their skills, they devote a higher level of commitment to the company. Employees who are committed to an organization and perform volunteer efforts during their activities tend to exceed the expected quality in customer service (Holttinen, 2014). ...
... Functionality involves the power and quality of a business"s equipment to enhance performance (Yiadom, 2019;Simpeh et al., 2011). The corporate branding of businesses involves signs, symbols and artefacts that contribute to the atmospherics of a business (Yiadom & Madele, 2021;Holttinen, 2014). Based on the aforementioned, the hypotheses are as follows: ...
Article
Experiential marketing is being considered by researchers and marketers as an alternative solution to traditional marketing for achieving the best results for organisational lifetime value. However, network operators are preoccupied with traditional marketing programmes and strategies, which have produced limited results (value). This study sought to utilise experiential marketing as a tool to create value for mobile network operators, as well as provide recommendations to avoid future gaps. This study utilised a positivistic paradigm and a quantitative approach through a self-administered, structured hard copy questionnaire for data collection. Stratification and convenience sampling techniques were used to select participants from each of the regional offices of the network operators in Ghana. The database of the national communication authority (NCA) of Ghana was accessed to identify the number of registered operators and the associated subscribed customers in the country. A total of 415 customers responded to the survey. The study concluded that experiential marketing had a positive and sustainable influence on value (business value). It is envisaged that this study could assist network operators and other businesses to create value by understanding the factors influencing experiential marketing, thereby assisting in the formulation of effective and efficient strategies and decisions. Furthermore, this study offers practical recommendations that could strengthen businesses when establishing experiential marketing programmes. Additionally, this study enhances the body of knowledge regarding experiential marketing and value creation in the context of mobile network operators.
... Vol.14 No.2 May-August 2018 identity-uniqueness as a thrust for commitment and business model design, destination personality can stimulate tourists' cognitive learning and satisfaction. In a CBT context, tourists play a role in co-creating value with the community through tour guides (Tan, 2017) with the help of the value proposition (Holttinen, 2014) derived from both the functional and experiential values. In other words, three hypotheses are assumed: ...
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Although community-based tourism (CBT) is an established topic in research and practice, the literature on it in the context of social entrepreneurship still lacks theoretical foundations and empirically tested models to help relevant stakeholders develop effective strategies. Therefore, the purpose of this study is to develop and empirically test models suitable for developing both the supply-side and the demand-side aspects of CBT. This study examines the roles of various critical success factors in the CBT initiatives and the use of socio-psychological cybernetics theories of behaviors that can capture the behavioral dynamics of the supply-side and the tourist behavioral domains of CBT management. Data was collected from community members and tourists visiting the communities of Doi Chang and Huay Nam Kuen villages in Chiang Rai province to experience CBT. Using a structural equation modeling (SEM) analysis, a deductively proposed socio-cybernetics CBT management model on the supply side and a Stimulus-Organism-Response (S-OR) model on the demand side were validated. Both models fulfill the absolute and incrementally fit statistics requirements of SEM. As a result, the study contributes both theoretically and practically. The most important practical implication is to guide communities in the design and successful implementation of CBT projects by addressing the structural strengths and weaknesses and stressing the socio-psychological domains. In addition, deontological, virtue-and utilitarian aspects of implications were established. The socio-cybernetics CBT model hence illuminates the dynamics of social emergence of a typical community in its evolution.
... The value proposition is associated with the values an entrepreneurial setup delivers to customers in order to satisfy their (customer) needs with an intention for best serving the customers. However, the value propositions relate to specific users and use situations (Holttinen 2014) and vary according to the types of entrepreneurial setup (See: Kaplan and Norton 2008). Value is specific to a particular instances because time, convenience, perceived risks, among others, are factors that vary from company to company and from individual to individual (Barnes et al. 2009 as in Lindič and da Silva 2011). ...
Chapter
Social enterprise is an entity that leverages economic activity to pursue a social objective. It interacts with various institutions, in its ecosystem, as it tries to solve the social problem. These institutions could positively or negatively influence the performance and growth of the social enterprise. Ecosystem framework is important for social entrepreneurs as they depend on external institutions for several resources. This support may be financial, access to expertise and information, training and education programmes, organisations and personal development, and networking opportunities. In this paper, we explore the role of corporate as an institution in supporting social enterprises. Through a qualitative exploratory study of six social enterprises operating in India, we identified four primary modes through which corporate directly supports social enterprises, at its different life cycle stages—incubation, grants, investment (debt or equity) and market linkage. The study also reveals that the mode of support varies with life cycle stage and also level of engagements of corporate varies across these different modes. This paper contributes to the field of social enterprises and its institutional support framework. The study is useful for practitioners to navigate potential collaboration between corporate and social enterprises The study also provides an initiation point for future research possibilities on the topic of collaboration of corporate and social enterprise from perspectives of a corporate, and the end beneficiary.
... The value proposition is associated with the values an entrepreneurial setup delivers to customers in order to satisfy their (customer) needs with an intention for best serving the customers. However, the value propositions relate to specific users and use situations (Holttinen 2014) and vary according to the types of entrepreneurial setup (See: Kaplan and Norton 2008). Value is specific to a particular instances because time, convenience, perceived risks, among others, are factors that vary from company to company and from individual to individual (Barnes et al. 2009 as in Lindič and da Silva 2011). ...
Chapter
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This chapter is an empirical contribution to the field of the business model and value proposition research domain that locates the central focal point of the business model through a blend of indigenous entrepreneurship. This chapter gives a lens to visualise the central logic of business model from cultural aspect of the indigenous community. Through employing an ethnographic research approach, the research visualised a journey of tracing the pottery product, its business model and value proposition. This chapter revealed that the ‘time and coincidental instances’ are the prime factor of bringing innovation in the business model, as well as a new way of value proposition. This study asserts that business model innovation can be the consequences of ‘the intersections of coincidence events/efforts that lead to the creation of new opportunities, a new marketplace, a new business model and a new value proposition together at a given time.’ Further, the research argues that entrepreneurs’ mindfulness on the opportunities and the changing trend in the market bring changes in the way of doing business and brought a new design to the products that ultimately contribute to an innovative business model.
... The problem with these evaluation tools, as well as with academic research on customer value propositions, is that they are de-contextualized [43]. Although we are aware that value propositions relate to specific users, we approach them as generally valid promises. ...
Article
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Value proposition can be an important source of competitive advantage for small and medium sized enterprises (SMEs). Unlike large companies which follow a rational and sequential process, developing a value proposition in an SME is instead a trial and error process. Therefore, those companies are experimenting with various options. The purpose of this paper was to identify the value strategies used by SMEs based on value dimensions and attributes and to find specific groups of SMEs with a similar market approach. We present a theoretical framework on customer value creation and customer value communication, followed by a quantitative research on 399 Romanian SMEs. We used a principal component analysis to reduce the number of choices and afterwards we ran a cluster analysis to identify the distinct groups of SMEs using specific value propositions. We found that there are three major strategic options based on customer experience, affordability and customization, and four distinct clusters: customer delight (A), multiple sources of differentiation (B), one-to-one marketing (C) and cost—effectiveness (D). Three groups use distinct value propositions—A focuses on customer experience, C on customization, D on affordability—while B mixes all of them.
... The principle that value propositions are a communicative practice (Ballantyne et al., 2006(Ballantyne et al., , 2011) and a -value-supporting process‖ ( Grönroos, 2008), shifts the discussion to the sub-discipline of marketing communications (Du Plessis, 2015), in which a proposition is designed to become -a communication tool that firms use to position themselves vis-à-vis competitors‖ (Skålén et al., 2015). This therefore means that value offerings are an objective persuader in the relationship with stakeholders, a basis for selection of one brand over another and a marketing mechanism within the customer's process of information integration (Korkman et al., 2010;Holttinen, 2014). Because of the S-D paradigm, no longer are value propositions limited to tangible units of goods and services, but also inclusive of strategically designed information (Porter & Millar, 1985;Eaton & Bawden, 1991;Freiden et al., 1998). ...
Thesis
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Social media presents one of the richest forums to investigate publicly explicit brand value propositions and its corresponding customer engagement. Seldom have researchers investigated the nature of value propositions available on social media and the insights that can be unearthed from available data. This work bridges this gap by studying the value propositions available on the Twitter platform. This thesis presents six different studies conducted to examine the nature of value propositions. The first study presents a value taxonomy comprising 15 value propositions that are identified in brand tweets. This taxonomy is tested for construct validity using a Delphi panel of 10 experts-5 from information science and 5 from marketing. The second study demonstrates the utility of the taxonomy developed by identifying the 15 value propositions from brand tweets (n b =658) of the top-10 coffee brands using content analysis. The third study investigates the feedback provided by customers (n c =12077) for values propositioned by the top-10 coffee brands (for the 658 brand tweets). Also, it investigates which value propositions embedded in brand tweets attract ‗shallow' vs. ‗deep' engagement from customers. The fourth study is a replication of studies 2 and 3 for a different time-period. The data considered for studies 2 and 3 was for a 3-month period in 2015. In the fourth study, Twitter data for the same brands was analysed for a different (n b =290, n c = 8811) 3-month period in 2018. This study thus examines the nature of change in value propositions across brands over time. The fifth study was on generalizability and replicates the investigation of brand and customer tweets (n b =635, n c =7035) in the market domain of the top-10 car brands in 2018. Lastly, study six conducted an evaluation of a software system called Value Analysis Toolkit (VAT) that was constructed based on the research findings in studies 1-5. This tool is targeted at researchers and practitioners who can use the tool to obtain value proposition-based insights from social media data (brand value propositions and the corresponding feedback from customers). The developed tool is evaluated for external validity using 35 students and 5 industry participants in three dimensions (tool's analytics features, usability and usefulness). Overall, the contributions of this thesis are: a) a taxonomy to identify value propositions in Twitter (study 1) b) an approach to extract value proposition-based insights in brand tweets and the corresponding feedback from customers in the process of value co-creation (studies 2-5) for the top-10 coffee and car brands, and c) an operational tool (study 6) that can be used to analyse value propositions of various brands (e.g., compare value propositions of different brands), and identify which value propositions attract positive electronic word of mouth (eWOM). These value proposition-based insights can be used by social media managers to devise social-media strategies that are likely to stimulate positive discussions about a brand in social media. 3
... Edvardsson et al. (2012) affirm that structuration and action processes can be considered the groundwork for actors' resource integration. This is in line with Holttinen (2014), who contends that practices contextualise customers' value creation and resource integration. In other words, practice theory asserts that value is generated during normal activities that actors perform in their everyday lives. ...
... No setor terciário da economia, isto é, setor que abarca as atividades de comércio e serviço, observa-se que a sua dinâmica competitiva está voltada à geração de valor para o cliente. No mercado de produtos, visa-se a constante inovação e até mesmo a busca pela previsão dos desejos dos clientes (HOLTTINEN, 2014). Identificase, no ramo dos serviços, o contínuo investimento na melhoria de processos de execução dos seus serviços, como também na manutenção da relação com sua clientela (BOON-ITT;WONG;WONG, 2017). ...
... The integration of the Internet under the background of Internet and traditional manufacturing enterprises through the depth to the intermediary, the user directly tracking survey, and constantly improve the products / services offered by the user to contact the user, users to establish a good relationship with optimization the. Heli factors of the Internet users to become "business model innovation (2014) [18] that the products to provide experience for the users of the service, to meet the individual needs of users, under the new economic environment, the user has" guilt "psychological experience for free service, this kind of psychological urges the user purchase behavior; Wang Xiaoyu (2014) [19] that the social platform user generated content (UGC) will have a direct impact on the credibility of the brand focus of enterprise brand attitude positive effects and negative effects, because The adoption UGC extent of the customer's purchasing decision behavior; Wisner (2008) [20] that user integration refers to information exchange and cooperation between business processes and enterprise user focus, user integration of the production activities and services, with related information and decision flow, based on user community interaction the expression of sharing, cooperative production, word-of-mouth behavior; Wang Qiaoyu (2015) [21] that users provide suggestions to enterprises reflects the identity of enterprise customers, enterprises to adopt feedback information can stimulate user feedback behavior, and enhance the enterprise trust and loyalty; Li Yao (2014) [22] that customer production is self motivation, opportunity and ability of interaction results, the production results below user expectations, the users of the enterprise evaluation, has a significant effect on purchase intention and word-of-mouth publicity will follow User impact factors are shown in Table 6. Table 6. ...
... Value propositions are interactively shaped (Ballantyne et al. 2011;Martinez and Bititci 2006). Organizations engage with their customers through intricately related processes over time (Minkiewicz et al. 2016); business models of firms and their practices are interactively connected (Heikkilä et al. 2014;Holttinen 2014) and (re)designed (Frow et al. 2015;Nenonen and Storbacka 2010). Relationships among firms in a network are believed to promote interaction, mutual orientation and thereby value (Grönroos 2015;Kothandaraman and Wilson 2001). ...
Article
Making interorganizational cooperation successful proves a daunting task. While current approaches to interorganizational performance management (PM) highlight why interorganizational cooperation matters and which phases are required, it remains silent on the dynamics of interorganizational PM. That is, how can PM evolve with and contribute to interorganizational cooperation. The purpose of this paper is to increase understanding of interorganizational PM. To this end, it develops a structure and process foundation of interorganizational value creation, and it provides a model that shows how processes of organizational and interorganizational PM co‐evolve. The study starts by providing insight into differences between organizational and interorganizational PM. It then presents five approaches pertaining to performance in interorganizational cooperation. The paper distinguishes strategic–economic, PM, supply‐chain management, organizational and marketing approaches. These approaches are related from a structure and process angle and are used to develop a co‐evolutionary model of interorganizational PM. The resulting conceptualization has implications for research on new modes of complex and heterogeneous interorganizational value creation. The paper elaborates on these implications, pointing to new directions for future PM research.
... Extant research undertaken within tourism, leisure, events and hospitality servicescapes 13 highlights the positive effect of collaborative C2C encounters on hospitality patrons' well-14 being (Rosenbaum, 2006), on vacationing families' relationships (Lehto,Choi,Lin,& 15 MacDermid, 2009), and conference attendees' personal business relationships (Gruen,16 Osmonbekov logic in marketing (Vargo & Lusch, 2008). The C-D logic considers the importance of value 4 formed within experiences and practices situated in and influenced by customers' own social 5 contexts, rather than emphasising business-to-customer co-creation of service-related value 6 from the firm's perspective (Heinonen & Strandvik, 2015;Holttinen, 2014). Interestingly, the 7 C-D perspective has yet to be adopted in empirical tourism studies to explore the co-creation 8 concept. ...
Article
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This study aims to explore specific customer-to-customer (C2C) co-creation practices and related value outcomes in tourism. The importance of C2C co-creation is first discussed in the context of the Service-Dominant logic, then a new approach to the study of tourists' social practices and related value-outcomes is proposed, drawing on the recently emerged Customer-Dominant logic in marketing. A pragmatic philosophy is adopted to best address the research questions in a purposively selected sample of five UK-based festivals. Qualitative interview- and observation-based methods are adopted to identify 18 C2C co-creation practices, placing these on a continuum of autotelic-instrumental and private-public practices. Four value-outcome categories are discussed: affective, social, functional and network value. The conclusions highlight the importance of value formed when tourists co-create with each other in tourism settings and the authors identify specific opportunities for facilitating this process. Possible applications for future research are discussed, highlighting the merits of pragmatism.
... Here there is no shortage of extant commentary on the relationship between value and practice (e.g., Ellway and Dean 2016;Helkkula, Kelleher and Pihlström 2012;Holttinen 2010Holttinen , 2014 but this most frequently applies again, in the aggregate, thus neglecting structure and constitution. However, the broader consumer behavior literature represents value not as a single unifying concept, but as a multicompositional domain premised on associated but differing ideas. ...
Article
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Smart homes are fast becoming a reality, with smart TVs, smart meters and other such “smart” devices/systems already representing a substantial household presence. These, which we collectively term “smart domestic products” (SDPs), will need to be promoted, adopted, and normalized into daily routines. Despite this, the marketing canon lacks a substantive discourse on pertinent research. We look to help correct this by melding ideas from organizational sociology, innovation diffusion and appropriation studies, and service dominant logic. Consequently, we suggest a framework for research that responds directly to the specific characteristics of SDPs. Using the SDP eco-system as a context, our framework emphasizes the interplay of embeddedness, practice, value and engagement. It comprises a four-stage horizontal/longitudinal axis we describe as proposal, project, practice and pause. Cross-sectionally we focus on value, and combine aspects of existing thought to suggest how this impacts each stage of our engagement continuum. We subsequently identify perceived personal advantage as the resultant of these two axes and propose this as the key for understanding consumer and SDP sociomaterial engagement. This article also advances a definition of SDPs and ends with an agenda for further research.
... There were not enough articles to conduct a meta-analysis. Future research can Cova and Salle (2008), Payne et al. (2008), Peloza and Shang (2011), Kowalkowski et al. (2012), Mason and Simmons (2014), Truong et al. (2012), Maglio and Spohrer (2013), Frow et al. (2014), Holttinen (2014), Nilsson and Ballantyne (2014), Payne and Frow (2014a, b), Turner and Shockley (2014), Chandler and Lusch (2014), Pires et al. (2015), Skålén et al. (2015) System theory Breur (2006) Equity theory Lacey and Sneath (2006) Customer value-based theory of the firm Ling-yee (2011) Social exchange theory Lacey and Sneath (2006), Mason and Simmons (2014). ...
Article
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This study examines the state of communicating the brand value proposition via a systematic literature review from research published in marketing journals from 1996 to 2015. A sample of 56 articles from high-quality marketing journals examines the components of the brand value proposition statement, applicable theories, and descriptive findings. There has been an increased interest in the research on brand value propositions as value creation becomes more customer-focused and value-based selling becomes more pervasive. This exploratory study suggests an ongoing need for examining the effectiveness of types of brand value propositions in terms of both the managerial process in which they are constructed as well as the precision of such brand promises on customer understanding. The paper concludes with a suggestion for more robust empirical research on the construction and deconstruction of brand value propositions, a need for more managerially focused research, and a future research that examines the under-researched area of how value propositions are effectively communicated on branded websites.
... The concept of value propositions is borrowed from the field of marketing management where it has been defined as the promises a seller makes to his/her customers in terms of value-in-exchange and value-inuse (Lusch et al. 2007). It is also said in the consumer studies that an organisation may offer value propositions, but it is the customers or other beneficiaries who decide its acceptability (Holttinen 2014). This indicates that effective relationships between customers and organisation may exist if value propositions are aligned with customers needs for values. ...
Article
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Employer branding has drawn the maximum attention of researchers and industry practitioners in recent days. Retaining and attracting current and potential employees essentially require the employers to understand the work value preferences of employees which vary across time and culture. This paper has twin objectives (a) to identify the value proposition frameworks for internal and external employer branding from work value preferences of Indian workforce; and (b) to analyse the effects of demographic variables and their interactional effects on work value preferences of employees. Data were collected from 302 Indian employees from different Indian organisations. Findings suggested six-factor model for internal employer branding and five-factor model for external employer branding. Further analyses (MANOVA) for demographic variables and their interactional effects on work value preferences also revealed significant findings. Value proposition framework and their policy implications in Indian context are discussed in detail.
... The ideologies and cultural ideals that drive consumption choices vary in different socio-cultural contexts; in this sense, culturally situated understandings influence service consumption (Arnould, 2007;Arnould and Thompson, 2005;Venkatesh et al., 2006, Holttinen, 2014. Scholars stressed that consumers buy meaning and experience more than products. ...
Conference Paper
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The purpose of our study is to analyse individual service culture and value experiences of everyday services. Specifically, we understand service culture as the collective cultural dimension of individual service experiences. We focus on regional service cultures in Northern and Southern Europe and draw on Consumer Culture Theory (CCT) in order to understand how individuals make sense of their service experiences, meaning of resources and resulting value experiences within a collective cultural frame that affects their value experiences. We argue that service culture creates a foundation for current service and value experiences, expected service and value experiences, and imaginary ideal service and value experiences. We therefore contribute to service research in experiential value by extending service researchers' focus beyond individual service experiences to collective service experiences of service culture that creates a foundation for current and expected service and value experiences.
Chapter
Continuing the effort of the previous chapter to develop a theoretically rigorous and practically useful theory of customer value propositions (CVP), as called for repeatedly by the extant literature, this chapter, mainly based on (Forrest et al., 2021, Studies in Business and Economics Journal, 16(2)), establishes eight generally true facts that do not suffer from the constraints of data-based and anecdote-based approaches, as widely used in the relevant literature.KeywordsAmbitionCash flowMarket invitationMissionOperating processValue added
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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.
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This research reveals how organizations define, propose and capture value in the collaborative economy, a multidimensional movement that favors access over ownership, redefines business ecosystems and personal relations. It proposes a framework to analyze value co-creation processes articulating managerial and operational actor-centric approaches based on the Service-Dominant Logic mindset. Qualitative interviews and participant observations support the framework´s analysis applied to Airbnb, a collaborative economy champion that connects travelers to places to stay worldwide through an internet-based platform. The framework successfully bridges theory with practice, showing how Airbnb creates relevant and effective value propositions, engaging and allowing its actors to design their ideal service solutions, minimizing objections and maximizing well-being through the platform´s mediation. Actors are empowered, turned into entrepreneurs with collaboration embedded into the ecosystem´s culture. It leads to a continuous and contagious effect that benefits organizations and its collaborative ecosystems, which grow fueled by rewarding service experiences.
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The concepts of a service guarantee, customer satisfaction and perceived value of a service being offered in education are being applied to Alumni satisfaction at Higher Education Institutions (HEIs). Businesses offer service guarantees, however HEIs rarely guarantee the service they offer to students. Literature indicates that offering a service guarantee will increase consumer satisfaction. Service Guarantees in Education have increasingly being introduced by various departments, specifically at postgraduate level when signing service level agreements and learning agreement/contracts. In the academic environment, customer/student satisfaction and perceived value further positively influence graduate/Alumni satisfaction. The purpose of this research study is to measure the perception and satisfaction of the Alumni of the Department of Computing Sciences at the Nelson Mandela University (NMU) and identify areas for improvement by performing a systematic analysis of the determinants of satisfaction. This research is an exploratory, quantitative study consisting of literature-and case-study components used to test proposed hypotheses. The key concepts related to the topics of Service/Teaching Guarantee, Customer satisfaction and Perceived Value were investigated. The empirical study consisted of a survey completed by the Alumni of the Department of Computing Sciences. A model identified the following factors as having an influence on Alumni Satisfaction with the NMU Department of Computing Sciences: Service/Teaching Guarantee, Customer Satisfaction and Perceived Value. The importance of each factor was identified to understand how to improve the Alumni perceptions and satisfaction with the Department of Computing Sciences.
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Evidence from past research and insights from an exploratory investigation are combined in a conceptual model that defines and relates price, perceived quality, and perceived value. Propositions about the concepts and their relationships are presented, then supported with evidence from the literature. Discussion centers on directions for research and implications for managing price, quality, and value.
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While drawing from general cultural myths, marketplace mythologies are tailored to the competitive characteristics and exigencies of specific market structures, providing meanings and metaphors that serve multiple ideological agendas. I illustrate this conceptualization by analyzing mythic narratives that circulate in the natural health marketplace. I propose that a nexus of institutional, competitive, and sociocultural conditions that engender different ideological uses of this marketplace mythology by two types of stakeholders: advertisers of herbal remedies and consumers seeking alternatives to their medical identities. I discuss the implications of this theorization for future analyses of consumer mythologies and for theoretical debates over whether consumers can become emancipated from the ideological influences exerted by the capitalist marketplace.
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This commentary addresses recent debates in marketing research on the elusiveness of the notion of value, with the aim of starting a dialogue on the possibility of developing a comprehensive and culturally informed understanding of value and value creation processes. First, we provide an overview of the predominant uses of value in marketing and consumer research literature and discuss them in relation to three abstract conceptions of value. We show the interconnectedness of these value types in market and consumption contexts. Next, we suggest possible avenues that have their foundations in the notion of field, practice theory, and markets as networks approaches, in order to conceptualize complexity in value and value creation processes.
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This article elaborates and extends the Vargo and Lusch (2004a) service-dominant (S-D) logic thesis. Three linked exchange-enablers and their potential for improving value-in-use are discussed: first, relationships to give structural support for the creation and application of knowledge resources (relating); second, communicative interaction to develop these relationships (communicating); and third, the knowledge needed to improve the customer's service experience (knowing). These activities are integrated within an augmented S-D exchange model, and the implications for co-creating value are discussed. Finally, the argument is put that a customer's value-in-use begins with the enactment of value propositions, and the development of reciprocal value propositions is discussed in the context of the notion of sustainable betterment.
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Marketing inherited a model of exchange from economics, which had a dominant logic based on the exchange of “goods,” which usually are manufactured output. The dominant logic focused on tangible resources, embedded value, and transactions. Over the past several decades, new perspectives have emerged that have a revised logic focused on intangible resources, the cocreation of value, and relationships. The authors believe that the new per- spectives are converging to form a new dominant logic for marketing, one in which service provision rather than goods is fundamental to economic exchange. The authors explore this evolving logic and the corresponding shift in perspective for marketing scholars, marketing practitioners, and marketing educators.
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Since the introductory article for what has become known as the “service-dominant (S-D) logic of marketing,” “Evolving to a New Dominant Logic for Marketing,” was published in the Journal of Marketing (Vargo, S. L., & Lusch, R. F. (2004a)), there has been considerable discussion and elaboration of its specifics. This article highlights and clarifies the salient issues associated with S-D logic and updates the original foundational premises (FPs) and adds an FP. Directions for future work are also discussed. KeywordsService-dominant logic-New-dominant logic-Service
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We develop a model describing how certain American men, those men who have been described as emasculated by recent socioeconomic changes, construct themselves as masculine through their everyday consumption. We find that American mass culture idealizes the man-of-action hero - an idealized model of manhood that resolves the inherent weaknesses in two other prominent models ( the breadwinner and the rebel). The men we studied drew from this three-part discourse - what we call the ideology of heroic masculinity - to construct themselves in dramatic fashion as man-of-action heroes. In addition, we show that these men pursue heroic masculinity in very different ways, depending on their social class positions.
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It is widely accepted that customers derive value through resource integration, by integrating their own resources with those provided by organization and other network actors. This perspective implies that customers must acquire the necessary skills and knowledge to be effective resource integrators as they engage in activities that facilitate or create value. Supporting customer learning, then, is a pressing new challenge for firms that recognize customers engage in resource integration in the course of their value-creating processes. This article builds on an interactive model of self-directed learning to develop a model of customer learning for resource integration that identifies the characteristics of learning contexts, interactive elements of the learning process and links learning to customers' effectiveness in resource integration activities. A future research agenda is set out, organized around the elements of our conceptualization that can generate much required managerial insights into the interactive process-based nature of customer learning and customers' effectiveness as resource integrators. For practitioners who recognize the resource integration roles customers play, the authors raise a set of questions that will assist in developing marketing programs that support customer learning.
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In critical realism, language is understood as constructing our social realities. However, these constructions are theorized as being shaped by the possibilities and constraints inherent in the material world. For critical realists, material practices are given an ontological status that is independent of, but in relation with, discursive practices. The advantage in taking a critical realist, rather than relativist, approach is that analysis can include relationships between people's material conditions and discursive practices. Despite calls to develop a critical realist discourse analysis there has been little empirical critical realist work, possibly because few have addressed the critique that critical realists have no systematic method of distinguishing between discursive and non-discursive. In this article we outline a three-stage procedure that enables a systematic critical realist discourse analysis using women's talk of motherhood, childcare and female employment as an example.
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Although studies of organization certainly need to include analysis of discourse, one prominent tendency within current research on organizational discourse limits its value for organizational studies through a commitment to postmodernism and extreme versions of social constructivism. I argue that a version of critical discourse analysis based on a critical realist social ontology is potentially of greater value to organization studies, and I refer in particular to the contribution it can make to research on organizational change.
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This feminist re‐examination of an ethnography of Harley‐Davidson motorcycle owners uncovers a world of motivations, behaviors, and experiences undiscovered in the original work. The structure and ethos of subculture are understood differently when examined through the lens of feminist theory. Through the voices of women riders in a hyper‐masculine consumption context we discover perspectives that cannot easily be explained by extant theory of gender and consumer behavior. We find women engaging, resisting, and co‐opting hyper‐masculinity as part of identity projects wherein they expand and redefine their own personal femininities. This study reveals invisible assumptions limiting the original ethnography and thus reiterates the problems of hegemonic masculinity in the social science project.
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Purpose The purpose of this paper is to examine the development, extension and use of the “six markets” model and to outline a framework for analysing stakeholder relationships and planning stakeholder strategy. Design/methodology/approach The “six markets” stakeholder model is examined. Refinement of the model and improved understanding as a result of field‐based research is described. A stakeholder relationship planning framework is proposed. Findings The paper examines the use of the “six markets” model in a wide range of organisational contexts utilizing a range of research approaches. A stakeholder relationship planning model is developed consisting of four inter‐related elements, i.e. stakeholder value propositions, value delivery design, stakeholder relationship marketing plans, and measurement and feedback. Research limitations/implications The article suggests a number of areas for future research, including the development of planning approaches for different classes of stakeholders and more detailed testing of the stakeholder model and planning framework in specific market sectors. Practical implications The research suggests that managers find that the development and implementation of relationship plans for the key stakeholder markets generates valuable new knowledge and insights into stakeholder conditions, constraints and opportunities. Originality/value This article contributes to knowledge in the relationship marketing and stakeholder theory areas through the development, refinement and use of a planning model that addresses the complexity of stakeholder relationships and networks. The stakeholder planning approach that is developed represents a means by which managers can achieve greater transparency of stakeholders' interests and improved rigour in planning relationships with stakeholders.
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Organization studies has recently been captured by a cultural, linguistic, poststructural or postmodern turn, the impetus for which has come from the ontological turn from a (naive) realist ontology to a socially constructed ontology. Much of the current ontological discussion is, however, characterized by ambiguity, which makes it difficult to get to the bottom of ontological claims and, of course, to locate the source of any ontological errors. This paper uses a critical realist perspective to highlight the ambiguity and error encouraged by postmodernism’s commitment to a socially constructed ontology. Critical realism’s ontology is offered as a more fruitful alternative. Labour process theory, specifically agency and structure, is used to demonstrate (i) that critical realism is not damaged by many common postmodern criticisms of agency and structure, and (ii) that, once interpreted through the prism of critical realism, there is no need to abandon this powerful analytical device.
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The abstract for this document is available on CSA Illumina.To view the Abstract, click the Abstract button above the document title.
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This book addresses key topics in social theory such as the basic structures of social life, the character of human activity, and the nature of individuality. Drawing on the work of Wittgenstein, the author develops an account of social existence that argues that social practices are the fundamental phenomenon in social life. This approach offers insight into the social formation of individuals, surpassing and critiquing the existing practice theories of Bourdieu, Giddens, Lyotard and Oakeshott. In bringing Wittgenstein's work to bear on issues of social theory the book shows the relevance of his work to a body of thought to which it has never been applied. The book will be of particular interest to philosophers of the social sciences, a wide range of social theorists in political science and sociology, as well as some literary theorists.
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This essay introduces a new form of social ontology and sketches its bearings on the analysis of organizations. The essay begins by contrasting the two social ontological camps — individualism and societism — into which social theory has been divided since its inception. It then describes the new approach, called site ontology, according to which social life is tied to a context (site) of which it is inherently a part. Examples of such ontologies are presented, as is my own thesis that the site of social life is composed of a nexus of human practices and material arrangements. The bearing of the latter ontology on the character, origin, and perpetuation of organizations is then considered, using an academic department as an example. Contrasts are also drawn with various approaches in organizations theory, including rational organizations, neoinstitutionalism, systems theories, and selection theories. A final section considers the complex psychological structure of organizations, working off Karl Weick and Karlene Robert’s notion of collective mind in organizations.
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Purpose – The purpose of this paper is to develop a framework for identifying competitive customer value propositions in retailing. Design/methodology/approach – The paper draws on existing literature on customer value and competitive advantage in order to form an understanding of the key dimensions of customer value, developing a hierarchical model of value propositions and establishing a link between customer value and competitive advantage. Findings – The work suggests a framework for identifying competitive customer value propositions (CVPs) where four hierarchical key dimensions of customer value – economic, functional, emotional, and symbolic – are first identified. In the second stage, a CVP is developed on the basis of these value dimensions. In the third stage, the CVP is evaluated for competitive advantage. It is proposed that economic and also functional CVPs are more likely to represent points of parity, whereas emotional and social CVPs represent points of difference for retail companies seeking differentiation from their competition and gaining of competitive advantage. Originality/value – Identifying competitive CVPs, the paper combines a hierarchical perspective on customer value and the concept of competitive advantage in a manner that offers managers a strategic positioning tool that links the customer's value needs to company resources and capabilities.
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As shoppers, what factors influence our decision to purchase an object or service? Why do we chose one product over another? How do we attribute value as part of the shopping experience? The theme of 'serving' the customer and customer satisfaction is central to every formulation of the marketing concept, yet few books attenpt to define and analyse exactly what it is that consumers want. In this provocative collection of essays, Morris Holbrook brings together a team of the top US and European scholars to discuss an issue of great importance to the study of marketing and consumer behaviour. This ground-breaking, interdisciplinary book provides an innovative framework for the study of consumer value which is used to critically examine the nature and type of value that consumers derive from the consumption experience - effiency, excellence, status, esteem, play, aesthetics, ethics, spirituality. Guaranteed to provoke debate and controversy, this is a courageous, individualistic and idiosyncratic book which should appeal to students of marketing, consumer behaviour, cultural studies and consumption studies.
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The aim of this paper is to suggest some potential linkages between Consumer Culture Theory (CCT hereafter) and the evolving Service-Dominant logic (S-D hereafter) propounded by Vargo and Lusch in a series of publications (Vargo & Lusch, 2004, 2006a, 2006b). I begin by discussing why this alliance makes sense. To do this, I review the CCT roots of several foundational propositions for the S-D logic Vargo and Lusch (2004) offer. Then I offer a suggestion for rethinking the notion of consumer itself. And finally, I discuss some potential changes in preferred constructs that I believe are necessary to fulfill the theoretical promise of the CCT perspective, and follow on from embracing a CCT/S-D perspective.
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The concept of customer value is becoming increasingly used in strategy and marketing literature in recent years. Customer value is considered central to competitive advantage and long-term success of business organizations. Consequently, a great importance attached to this concept. This paper attempts to build an integrative configuration of the concept of customer value that reflects its richness and complexity. It reviews, synthesizes and extends the literature on the subject. The configuration includes three complementary models, namely: customer value in exchange, customer value buildup, and customer value dynamics. Thinking about customer value in this way is helpful in the designing of and studying service offerings.
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Purpose – The purpose of this paper is to conceptually examine how value is created in (social) practices in which consumers use offerings as operand resources. Design/methodology/approach – Drawing on service‐dominant logic, practice and consumer culture theories, this paper conceptualizes the operational logic of value creation in practices and draws implications to marketing theory and practice. The approach to markets is “markets as practices” in value networks. Findings – Value is tied to practices, not to offerings. Therefore, a key research unit for examining value creation is a practice. Value creation is socially constructed because a practice‐specific meaning structure, influenced by the context and consumer resources, configures consumers' activities. Guided by it, consumers do what makes best sense to do in the practice in the specific moment. As the context and consumer resources are unfixed, fragmented consumers emerge. Therefore, segmentation of value‐creating practices offers a valid description of value creation. Originality/value – The paper extends the examination of value creation from use to practices. Drawing on marketing and other social sciences, it conceptualizes the operational logic of value creation in a practice: it defines practice elements, their roles and interdependencies in the value‐creation process. The operational logic introduces meaning structures as value‐creation mediators: influenced by the context and consumer resources, they steer consumer participation in the practice (including the use of offerings) and experienced value. Understanding meaning structures helps firms to identify value improvement opportunities which can be transferred to improved or new value propositions. Finally, the paper proposes segmentation of practices in the presence of fragmented consumers.