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Extending relationship value: observations from a case study of the Canadian structural wood products industry

Extending relationship value: observations from a case study of the Canadian structural wood... Purpose – The purpose of this paper is to present how the construct of relationship value (RV) has the potential to help suppliers understand how to create superior value in their customer relationships and ultimately improve their competitiveness. Nowhere is this truer than in the Canadian wood products industry, where sales to its most important market, the USA, have recently been dwindling. The paper seeks to present how RV was adapted in this research context and extended over elements of scope, range of potential applications, scale of measurement, and computational techniques. Design/methodology/approach – A multiple‐case study was undertaken and consisted of the evaluation of 58 customer relationships for three wood products manufacturers. Findings – Findings highlight the necessary distinction between “value for” and “value of” customers when measuring relationship value from a supply perspective. Based on the value and orientation of exchange, a new segmentation of customer relationships emerges which differentiates “questionable”, “supportive”, “promising”, and “strategic” relationships. Originality/value – The case study will serve in the development of value‐driven relationship management approaches, which are likely to become a major source of competitive advantage, not only in the wood products industry, but in business in general. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business & Industrial Marketing Emerald Publishing

Extending relationship value: observations from a case study of the Canadian structural wood products industry

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Publisher
Emerald Publishing
Copyright
Copyright © 2009 Emerald Group Publishing Limited. All rights reserved.
ISSN
0885-8624
DOI
10.1108/08858620910966273
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to present how the construct of relationship value (RV) has the potential to help suppliers understand how to create superior value in their customer relationships and ultimately improve their competitiveness. Nowhere is this truer than in the Canadian wood products industry, where sales to its most important market, the USA, have recently been dwindling. The paper seeks to present how RV was adapted in this research context and extended over elements of scope, range of potential applications, scale of measurement, and computational techniques. Design/methodology/approach – A multiple‐case study was undertaken and consisted of the evaluation of 58 customer relationships for three wood products manufacturers. Findings – Findings highlight the necessary distinction between “value for” and “value of” customers when measuring relationship value from a supply perspective. Based on the value and orientation of exchange, a new segmentation of customer relationships emerges which differentiates “questionable”, “supportive”, “promising”, and “strategic” relationships. Originality/value – The case study will serve in the development of value‐driven relationship management approaches, which are likely to become a major source of competitive advantage, not only in the wood products industry, but in business in general.

Journal

Journal of Business & Industrial MarketingEmerald Publishing

Published: Jun 12, 2009

Keywords: Value analysis; Customer relations; Supplier relations; Competitive strategy

References