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How customer requests may lead firms astray: conceptual issues and an empirical illustration

How customer requests may lead firms astray: conceptual issues and an empirical illustration Purpose – The purpose of this paper is to explore how responding positively to requests from customers may lead firms astray, a neglected topic in past research. Design/methodology/approach – The paper utilizes a single case, describing how a business enterprise responded positively to a request from a customer, leading to a substantial, yet, from an economic point of view, unsuccessful investment in new technology. Based on this case, relevant questions regarding the reasons for the failure are posed and analysed. Findings – Findings indicate that responding to customer requests is inherently difficult which can be explained partly by cognitive bias, misperceptions regarding the nature of adopting new technology, and inappropriate planning practices. Both theoretical and practical implications are discussed. Originality/value – This paper aims to improve the understanding of why responding to customer requests may lead to failure. In addition, advice is offered regarding how firms can reduce the probability of the type of failures discussed here. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Marketing Intelligence & Planning Emerald Publishing

How customer requests may lead firms astray: conceptual issues and an empirical illustration

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Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
0263-4503
DOI
10.1108/02634500810894334
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to explore how responding positively to requests from customers may lead firms astray, a neglected topic in past research. Design/methodology/approach – The paper utilizes a single case, describing how a business enterprise responded positively to a request from a customer, leading to a substantial, yet, from an economic point of view, unsuccessful investment in new technology. Based on this case, relevant questions regarding the reasons for the failure are posed and analysed. Findings – Findings indicate that responding to customer requests is inherently difficult which can be explained partly by cognitive bias, misperceptions regarding the nature of adopting new technology, and inappropriate planning practices. Both theoretical and practical implications are discussed. Originality/value – This paper aims to improve the understanding of why responding to customer requests may lead to failure. In addition, advice is offered regarding how firms can reduce the probability of the type of failures discussed here.

Journal

Marketing Intelligence & Planning – Emerald Publishing

Published: Aug 1, 2008

Keywords: Market forces; Direct response; Customer relations; Strategic manufacturing

References

  • Knowledge calibration: what consumers know and what they think they know
    Alba, J.W.; Hutchinson, J.W.
  • Fools rush in? The institutional context of industry creation
    Aldrich, H.; Fiol, M.C.
  • Adapting to unfamiliar environmental events: a look at the evolution of interpretation and its role in strategic change
    Barr, P.S.