Journal article
The effects of an articulated customer value proposition (CVP) on promotional expense, brand investment and firm performance in B2B markets: A text based analysis
Industrial marketing management, Vol.87, pp.264-275
05/2020
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Source: InCites
Abstract
Using text-based analysis, we search for evidence of articulated customer value propositions (CVP), in annual reports of US B2B firms, and then demonstrate that B2B firms that explicitly emphasize a CVP invest more in their brands, have higher future sales and sales per customer. We also find that CVP has a negative effect on the size of their customer base, perhaps because firms who care about a CVP appear to attract more long-term, loyal customers. Firms that pay more attention to CVP also tend to spend less on advertising and promotion. Future performance, particularly among small to mid-size firms, is positively affected when these firms emphasize CVP, and this also holds especially in less competitive markets. Our findings are based on a large dataset of around 12,000 firm year observations for a 14-year period from 2004 to 2017.
Details
- Title
- The effects of an articulated customer value proposition (CVP) on promotional expense, brand investment and firm performance in B2B markets: A text based analysis
- Creators
- Sagarika Mishra - Deakin UniversityMichael T. Ewing - Deakin UniversityLeyland F. Pitt - Simon Fraser University
- Publication Details
- Industrial marketing management, Vol.87, pp.264-275
- Publisher
- Elsevier
- Number of pages
- 12
- Identifiers
- 991013124211402368
- Copyright
- © 2019 Elsevier Inc. All rights reserved.
- Academic Unit
- Faculty of Business, Law and Arts
- Language
- English
- Resource Type
- Journal article