Upload
others
View
5
Download
0
Embed Size (px)
Citation preview
IN DEGREE PROJECT INDUSTRIAL ENGINEERING AND MANAGEMENT,SECOND CYCLE, 30 CREDITS
, STOCKHOLM SWEDEN 2019
Creating Value and Identifying Opportunities for Innovation in E-commerce on the B2B Market
- A case study of the distribution and construction industries in Sweden
MATILDA NORDQUIST
OLIVIA NORLIN
KTH ROYAL INSTITUTE OF TECHNOLOGYSCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENT
Creating Value and Identifying Opportunities for
Innovation in E-commerce on the B2B Market - A case study of the distribution and construction industries in Sweden
Matilda Nordquist
Olivia Norlin
Master of Science Thesis TRITA-ITM-EX 2019:503
KTH Industrial Engineering and Management
Machine Design
SE-100 44 STOCKHOLM
Examensarbete TRITA-ITM-EX 2019:503
Att skapa värde och identifiera möjligheter för innovation inom e-
handel på B2B-marknaden
- En fallstudie av distributions- och byggindustrierna i Sverige
Matilda Nordquist
Olivia Norlin
Godkänt
2019-06-26
Examinator
Sofia Ritzén
Handledare
Susanne Nilsson
Uppdragsgivare
Konfidentiellt
Kontaktperson
Konfidentiellt
Sammanfattning Syfte - Syftet med denna studie är att undersöka vilka effekter e-handel har på B2B marknaden.
Fokus har legat på hur kundvärden och de första delarna av innovationsprocessen påverkas
utifrån ett distributionsföretags och byggbranschens synvinkel.
Metod - Resultatet av detta examensarbete bygger på kvalitativa intervjuer med
kompletterande kvantitativa frågor, och kombinerar både en intern och extern syn av ett
fallföretag inom distributionsindustrin samt ett urval av dess kunder. Fyra interna intervjuer
genomfördes med fallföretagets anställda med höga positioner inom olika kompetensområden,
följt av tre kundintervjuer. Genom att tematiskt koda intervjuerna kunde data analyseras och
ge svar på forskningsfrågorna.
Resultat och slutsatser - Studien fokuserar på följande områden inom kundvärden: service,
personal samt tid och energi. Forskningen visade att service blev viktigare eftersom en bra
leverans är en viktig del av att handla online. Vidare visade det sig att personalen blev mindre
värdefull i den digitala handeln, eftersom kunderna accepterar att handel online är mer
oberoende. Det visade sig att värdet av en låg kostnad för tid och energi var hög oavsett
säljkanal. Slutligen så var bristen på kommunikation mellan säljare och kunder ett hinder för
att kunna ta tillvara på kundernas input i innovationsprocessen. Därför behöver kundernas input
samlas in på andra sätt än genom den fysiska interaktionen med säljare, exempelvis genom
kundpaneler eller den stora mängden CX-data (Customer experience data) som kan fås online.
Forskningsbidrag - Forskningsbidraget som kan härledas från detta examensarbete innefattar
en undersökning av hur kundvärden påverkas av e-handel utifrån ett B2B-perspektiv. Utöver
detta har insamlingen av innovativa idéer från kunder över internet granskats och analyserats.
Detta examensarbete har gett klarhet i dessa frågor ur en distributions- och byggbranschs
synvinkel och trots att byggbranschen har legat efter i digitaliseringen så ser vi en trend i att
denna bransch blir mer digitaliserad, vilket innebär att distributionsbolagen behöver hitta andra
sätt att möta de nya krav som ställs från byggföretag av alla storlekar.
Master of Science Thesis TRITA-ITM-EX 2019:503
Creating Value and Identifying Opportunities for Innovation in E-
commerce on the B2B Market
- A case study of the distribution and construction industries in Sweden
Matilda Nordquist
Olivia Norlin
Approved
2019-06-26
Examiner
Sofia Ritzén
Supervisor
Susanne Nilsson
Commissioner
Confidential
Contact person
Confidential
Abstract Purpose - The purpose of this research is to examine the effect of e-commerce in the B2B
market. Focus has been on how customer values and the front end of innovation are affected
from a distribution company’s and construction industry’s point of view.
Method - The results of this research paper are based on qualitative interviews with
supplementary quantitative questions, combining an internal and external view of a case
company within the distribution industry and a selection of its customers. Four internal
interviews were conducted with the case company’s employees of high positions in different
areas of expertise, followed up by three interviews with customers. By a thematic coding of the
interviews, the data could be analyzed and provide answers to the research questions.
Results and conclusions - The study focuses on the following areas within customer value:
service, personnel, and time and energy. The research showed that service becomes more
important as a good delivery is such an important part of buying online. Moreover, personnel
were found to be less valuable in the digital store as the customers are okay with the
independency online. The value of low time and energy cost was found to be high no matter
the sales channel. Finally, the lack of communication between salespeople and customers was
found to disrupt the possibility to use customers’ input in the front end of innovation. Therefore,
input from the customers need to be collected through other means than the physical interaction
with salespeople in the purchase process, such as through customer panels or by using the big
amount of CX data (customer experience data) that can be collected online.
Research contribution - The contribution to literature that can be derived from this master
thesis includes examining how customer values are affected by e-commerce from a B2B
perspective. In addition to this, the use of collecting innovative ideas from customers over the
Internet have been examined and analyzed. This thesis has brought clarity to these aspects from
a distribution and construction industry point of view and even though the construction industry
has been behind on the aspect of digitalization, we can see a trend of this industry becoming
more digitized, meaning that the distribution companies need to find other ways to meet new
demands from construction companies of all sizes.
Foreword This master’s thesis is the final project in the master of Integrated Product Design in the track
Innovation Management and Product Development at KTH Royal Institute of Technology. The
report is a result of many hours of research and hard work and compiles our five years at KTH.
We would like to thank all the people who have helped us on the way and made this thesis
possible. First, we would like to express our deepest gratitude to our supervisor at the case
company that we got the opportunity to work with and who has given us all necessary
information and guided us to different people within and outside of the company. Moreover,
we would like to thank our supervisor at KTH who has been a great support throughout the
process and given valuable feedback, from the start until the final report, which has helped us
constantly improve our research and keep our spirits up.
Matilda Nordquist andOlivia Norlin
Stockholm, June 2019
Nomenclature
List of abbreviations Abbreviation Explanation
B2B Business-to-business
B2C Business-to-consumer
CMO Chief marketing officer
CX Customer experience
E-commerce Electronic commerce
FEI Front End of Innovation
HCD Head of construction division
HEC Head of e-commerce
HI Head of innovation
R&D Research and development
SME Small and medium sized enterprises
Table of contents
1 Introduction ....................................................................................................................................................................... 1
1.1 Background ....................................................................................................................................................................................... 1
1.2 Problem statement ......................................................................................................................................................................... 3
1.3 Disposition ......................................................................................................................................................................................... 4
2 Literature review ............................................................................................................................................................. 5
2.1 Business relationships ................................................................................................................................................................... 5
2.2 Digitalization .................................................................................................................................................................................... 5 2.2.1 Electronic commerce .......................................................................................................................................................... 6 2.2.2 The transformation from analogue to digital ......................................................................................................... 7
2.3 Customer value ................................................................................................................................................................................ 8 2.3.1 Services benefit ..................................................................................................................................................................... 9 2.3.2 Personnel benefit ...............................................................................................................................................................11 2.3.3 Time and energy costs .....................................................................................................................................................13 2.3.4 Digitalization’s impact on customer value .............................................................................................................14
2.4 The innovation process ............................................................................................................................................................... 14 2.4.1 Opportunity identification .............................................................................................................................................16
3 Purpose and research questions ............................................................................................................................. 17
4 Method ............................................................................................................................................................................... 18
4.1 Research approach ....................................................................................................................................................................... 18
4.2 Selection of literature .................................................................................................................................................................. 19
4.3 Data collection ............................................................................................................................................................................... 19 4.3.1 Interviews ..............................................................................................................................................................................19 4.3.2 Conducting the interviews .............................................................................................................................................20 4.3.3 Internal interviews ............................................................................................................................................................21 4.3.4 External interviews ...........................................................................................................................................................21
4.4 Data analysis................................................................................................................................................................................... 22 4.4.1 Coding ......................................................................................................................................................................................23
4.5 Case company ................................................................................................................................................................................. 26
4.6 Reliability and validity ................................................................................................................................................................ 26
4.7 Ethics .................................................................................................................................................................................................. 27
5 Results ................................................................................................................................................................................ 28
5.1 The entrance of e-commerce .................................................................................................................................................... 28 5.1.1 Choosing e-commerce as a sales channel ...............................................................................................................28 5.1.2 Experienced challenges with e-commerce .............................................................................................................29 5.1.3 Digital maturity ...................................................................................................................................................................30
5.2 Important customer values and how they are met ........................................................................................................ 31 5.2.1 Important customer values in service......................................................................................................................31 5.2.2 Personal relations in the physical store and online...........................................................................................32
5.2.3 What is time and energy consuming and how is this addressed ................................................................33 5.2.4 The changed expectations ..............................................................................................................................................35
5.3 Dealing with customer feedback in the innovation process ....................................................................................... 35 5.3.1 Giving and receiving feedback .....................................................................................................................................35 5.3.2 Processing the feedback ..................................................................................................................................................36
6 Discussion and analysis ............................................................................................................................................... 37
6.1 How the value of service is affected by e-commerce ...................................................................................................... 37
6.2 How the value of personnel is affected by e-commerce ................................................................................................ 38
6.3 How the value of time and energy is affected by e-commerce................................................................................... 39
6.4 How e-commerce affects the front end of innovation ................................................................................................... 40
7 Conclusions ...................................................................................................................................................................... 42
7.1 Overall conclusions....................................................................................................................................................................... 42
7.2 Theoretical contribution ............................................................................................................................................................ 42
7.3 Limitations and future research ............................................................................................................................................. 43
8 References ........................................................................................................................................................................ 45
Appendix A - Interview guide case company internal ............................................................................................i
Appendix B - Interview guide customers .................................................................................................................... v
1
1 Introduction
The following chapter starts with a background description which leads into the subject and
the problematization of creating customer value digitally in a business-to-business market.
This is followed by disposition which describes the order and content of the different chapters.
1.1 Background
We are currently living in the beginning of the 21st century, also known as the Information
Age. This implies that digitalization has become a great part of our everyday life since the
phenomenon of the Internet began in the 1990s (Vogelsang, 2010) and is rapidly becoming
more important in both societal and industrial contexts (Downes and Mui, 1998). Technical
developments, as well as globalization, has contributed to an openness for citizens to explore
and take part in addressing societal challenges (Larsson, 2016). This provides both
opportunities and challenges for the society when the power of digitalization and digital
transformation grows. Markets and social structures of today will be impacted in a highly
disruptive manner, which as a result will have a great impact on the current value chains and
business models in different industries (Albach, Meffert, Pinkwart and Reichwald, 2015).
The transformation from an analogue to a digitalized society has led to the need for companies
in all industries to change both the way they sell their products and how they communicate
with their customers (Kannan, 2017). While the technology has improved. the access to the
Internet has grown rapidly and has thus become a big part of the everyday life for most people
in Sweden, and all over the world. This has led to a large electronic marketplace that can be
easily connected from various devices with improved applications, which makes it possible to
share information more easily (HUI Research, 2011). More companies have integrated e-
commerce into their business strategy to be at the same place as their potential customers. This
has changed the market dramatically and the customers can now choose what kind of
information they want, when they want it and how to get it, which has made them better
informed and in more control than ever (Ryan, 2009).
Many can agree about the benefits with e-commerce, such as the opening hours, the
accessibility for the customers, the increased range for the sellers and the pure convenience
perks such as saving time and energy (Turban, King, Lee and Viehland, 2002; HUI Research,
2011, Chaffey, 2004; KPMG, 2017). However, how to use e-commerce as a part of the business
can differ as it sometimes is a substitute for physical stores, but it is also common to use digital
stores as a complementary to physical stores and let the customer either solely find information
or to make some of the purchases from (Chassey and Smith, 2017; Bergström, 2010; HUI
Research, 2011).
Earlier research on the transformation from analogue to digitalized has mainly been focused
on the business-to-consumer (B2C) markets and end-users, while less focus has been towards
the impact on the relationship between buyers and sellers in business-to-business (B2B)
2
markets (Obal and Lancioni, 2013; Reid and Plank, 2000). Even though more focus has been
on B2C companies in earlier research purposes, the digital transformation has reached the B2B
market as well. In 2017, nearly two out of three B2B companies in Sweden were selling their
products and services digitally (Litium, 2017). One year later, a third of the companies that
were not selling digitally, were planning to do so within three years. Furthermore, the
companies within wholesale and distribution are ahead of other B2B companies, such as
manufacturing companies, when it comes to e-commerce (Litium, 2018). Another study
showed that seven out of ten companies are buying products and services online (Collector
Bank, 2019). Companies now have access to a wide range of digital systems to help them
manage interactions with their different customers, so the relationships in B2B markets are
transforming in a rapid pace (Richard and Devinney, 2005). This will change how companies
and their customers interact with each other and companies that do not change their sales
channels risk to fall behind the competition (Svea Ekonomi, 2018).
One industry that is behind many other industries when it comes to digitalization and e-
commerce is the construction industry, one of the largest and most important industries of today
(Gerbert, Rothballer and Renz, 2016). Most buyers in this industry are skeptical towards digital
sales and are still doing their purchases in physical stores as many thinks that the offer online
is limited and that the online stores are impersonal (Collector Bank, 2019; Svea Ekonomi,
2018). However, the digital transformation in this industry has begun and more construction
companies are using digital tools in their everyday work. It is likely that for example real-time
mobile collaborations and advanced project planning tools will be integrated in the construction
industry and it will then have a great impact on how the work is done (Gerbert et al., 2016). A
survey by Welsh, Davis and Dalton (2018) that was conducted on construction companies from
all over the world demonstrated that, between 2016 and 2017, there was an increase in
personnel of all ages that felt comfortable or very comfortable in trying new technology.
Moreover, according to the study by Svea Ekonomi (2018), half of the companies in the
construction industry participating in the study thought that the sales through digital channels
will increase in the near future. This view is shared by the buyers where one third think that it
will increase (Collector Bank, 2019). Thereby, it is becoming more important to transform both
people and business models as well as adopting new technologies, materials and tools.
The use of Internet as a platform amongst companies has led to an increased globalization and
an increased competition (Salo, 2006). Because of this, companies do not longer solely focus
on the internal processes to gain competitive advantage, but instead more focus has turned to
the market and the customers to find what they value (Woodruff, 1997). Customer value has
thus become a main factor in marketing strategy and a core in the purpose of business
(Anderson, Jain and Chintagunta, 1992; Grant, 2010). Despite the high interest in customer
value, the definition is often vague (Woodruff, 1997). A common trait though is that value is
the trade-off between the customer's perceived benefits and the sacrifices in a seller's offering
(Anderson and Narus, 1998; Zeithaml, 1988). Companies need to create value for the customers
so that this customer value can be turned into value for the firm in terms of profit (Grant, 2010).
3
Using digital technologies have changed how companies create value and how they coordinate
the activities in the value chain (Barua, Konana, Whinston and Yin, 2004; Matt, Hess and
Benlian, 2015). In many ways the digitalization brings opportunities to companies by
improving the interorganizational coordination (Subramaniam and Shaw, 2002), reducing costs
(Patrutiu-Baltes, 2016), enabling for more communication with the customers (Day and
Hubbard, 2003) and improving the service (Litium, 2018). However, going from traditional
sales channels to e-commerce also means challenges with new routines and new business
models, something that makes many companies afraid to go digital (Litium, 2017; Day and
Hubbard, 2003). Earlier research has also found that the efficiency of sales and performance of
the company are affected indirectly by the use of the Internet, and therefore companies do not
always see the direct benefits of it (Avlonitis and Karayanni, 2000). However, with the rise of
digitalization and the need for digital transformation, companies are forced to re-think how
they make their offerings and create value for the customers (Lichtenthal and Eliaz, 2003). This
is where innovations come in, as companies need to be innovative and think in new ways in
order to meet changed demands from customers and stay ahead of competition. New ideas for
innovation can be found through different sources and going from traditional stores to digital
stores means that the process of identifying new opportunities changes.
1.2 Problem statement
The increased interest in digitalization in the construction industry shows that there is a great
potential for growth of B2B customers wanting to make purchases online. The companies
selling to these companies thereby need to be able to offer digital sales channels as companies
that do not make the transition to e-commerce in this digitalized society risk to be overrun by
competitors. As the transition towards e-commerce is already occurring among many B2B
companies, including the construction industry, sellers need to adapt their own business
strategy in the near future. A digital sales channel means different prerequisites with new ways
to find the products, receive the products and other methods to communicate. Hence, the
customers have new demands and preferences of value that need to be considered by the sellers.
Using digital tools has not eliminated the importance to understand the customers and it is still
important to base the offerings on the target customers. If the sellers can identify the changes
with the customer value in e-commerce, the potential for e-commerce can be fulfilled and
customers that prefer buying online can do so without sacrificing a good shopping experience
and maybe even outperform the shopping experience in physical stores with the benefits that
comes with e-commerce. Furthermore, companies that wish to stay ahead of the competition
need to be innovative in what they are offering to their customers and how they choose to offer
it.
4
1.3 Disposition
The report will follow the structure as described below. An overview of this disposition can be
seen in Figure 1.
1. Introduction which increases the understanding of digitalization, e-commerce and
customer value in a B2B context and the problems that exist in the area.
2. Literature review with a theoretical framework where previous studies in the subject of
digitalization, customer value and the innovation process are presented.
3. The purpose with the research is presented which will lead into the research questions.
4. The method is described and motivated in order to give an insight of how the research
has been conducted.
5. Results where findings from interviews are presented which gives an overview of how
a sales company approaches e-commerce, what customers value when companies
undergo a digital transformation towards e-commerce, and how the company manages
the inputs that can be used for innovation.
6. Analysis and discussion of the results and where the research questions are answered.
7. Conclusion of the research and how it contributes to the current literature is presented,
as well as the limitations and suggestions for future research.
Figure 1. The disposition of the report
5
2 Literature review
The following chapter will present current existing literature and research on business
relationships, digitalization focused on e-commerce, customer value, and the innovation
process, which is focused on the front end of innovation. The literature presented has the
intention to provide a deeper understanding of the subjects and lead into the research
questions.
2.1 Business relationships
B2B refers to a business selling to other businesses, in comparison to B2C where the buyers
are the end consumers. Cohn (2015) differentiates B2B to B2C in a few different ways. B2B
sales often include a number of stakeholders within the company that have to accept a B2B
partnership, so the suppliers must convince several “buyers” at the same time. It would be very
costly for a company to change suppliers often and therefore the relationship between
businesses are often long-term. Furthermore, B2B includes a decision-making process that is
longer than in B2C. This is because of the many stakeholders involved and the smaller number
of prospective partners (there are only a limited number of buyers) whereas in B2C anyone can
be a prospective buyer. Lastly, B2B sales often require more product knowledge. It is not
enough to only explain why one product is better than the competitor’s product, the sales
representative will need to have enough knowledge of the product to explain everything about
the product that the buyer needs to know.
It is clear that the two markets are different in several ways. According to Jobber and Lancaster
(2009), B2C customers purchase products or services for their own personal use and their
purchases are therefore more personal in nature compared to B2B markets where there are often
fewer buyers that are more complex in their buying behavior. This view is not shared by Litium
(2017) because, even though B2B sales may seem more driven by rational thinking, it is not
always the case. Buyers in B2B are still also B2C consumers and so the buying behavior in
both is interrelated. Consumers in B2C are now used to buying products one way, so there is
no reason to believe that professionals will not behave the same when buying professionally as
they do as consumers.
2.2 Digitalization
The entire society have changed and is still transforming into a more digital world while
companies are seeking new ways to explore the digital technologies available. Digitalization
itself can be described as “the networking of people and things and the convergence of the real
and virtual worlds that is enabled by information and communication technology (ICT)”
(Albach et al., 2015) while digital transformation is more focused on companies and are defined
by Matt et al. (2015) as “... strategies [that] take on a different perspective and pursue different
goals. Coming from a business-centric perspective, these strategies focus on the transformation
of products, processes, and organizational aspects owing to new technologies”. Thus, the
6
digital transformation refers to businesses’ adoption of technologies with the aim to create
value in a new way and increase the productivity.
The digitalization has made businesses redesign their business models by enabling them to
change product and service offerings, business processes, sales channels and supply chains
(Matt et al., 2015). The access to the Internet is growing and we are going into a more online
world where the businesses is highly influenced by the digitalization.
2.2.1 Electronic commerce
The digitalization has led the marketplace into an electronic marketplace with the development
of electronic commerce, also called e-commerce. The concept of e-commerce is quite new,
hence, there are several definitions of what e-commerce is. Some definitions of e-commerce
are:
“...the sale or purchase of goods or services, conducted over computer networks by methods
specifically designed for the purpose of receiving or placing of orders.” (OECD, 2013)
“...the process of buying, selling, or exchanging products, services, and information via
computer networks, including the Internet” (Turban et al., 2002)
“All electronically mediated information exchanges between an organization and its external
stakeholders” (Chaffey, 2004).
What most definitions have in common is that the buying or selling process is made digitally
and by electronic means (Gangopadhyay, 2002). While some definitions of e-commerce focus
on the transaction of goods and services, other include all business and economic activities
(Qin, Chang, Li and Li, 2014). For this reason, the term e-business is preferred by some people
as a broader definition to include all activities such as servicing customers, and not only the
buying and selling of goods (Turban et al., 2002). However, we will use the term e-commerce
to describe all activities, including pre-sale and post-sale, conducted by using electronic means
and the focus in this thesis is on webshops.
Since the e-commerce was first established it has, in a quite short amount of time, changed the
market and the buying and selling behavior. The interest in e-commerce has become big, and
it is still the fastest growing form of commerce (Laudon and Traver, 2016). The opportunities
that e-commerce bring also applies to B2B businesses, including lower costs, a faster and more
efficient supply chain, and new business opportunities (Qin et al., 2014). Hence, the interest in
e-commerce is big among B2B companies, both from the sellers’ and from the buyers’
perspective. As the fraction of consumers making purchases online is increasing, it comes
naturally that this kind of buying behavior is reflected on the B2B market as well. Many B2B
companies have already adopted e-commerce as a part of their business strategy. However, for
many B2B companies, e-commerce is only seen as a supplement to the physical store as few,
compared to the consumer market, are limited to only online stores (Collector Bank, 2019).
7
In B2B markets, the buying process can be costly and time consuming, and information
technology is something that the businesses have adopted to make the process more efficient.
Businesses tend to be early adopters of technology when compared to consumers, not the least
when it comes to expensive technology (Hanson and Kalyanam, 2007). However, there has
also been some resistance towards e-commerce within B2B markets. The difference is big
between the different industries, but many B2B companies have found it challenging to
encourage their customers to use online services (Collector Bank, 2019; Chaffey, 2004). Some
hinders might be that the customers mean that the buying process online is too impersonal, that
they want to be able to look at the products in person, or that buying online is technically
complicated (Collector Bank, 2019).
Many companies want to learn from other companies’ experiences and identify the success
factor before adopting e-commerce themselves and by that avoid the costly mistakes (Chaffey,
2004). The companies that have made the transformation of going online is mostly large
companies that do not lack the competence and resources as smaller companies often do. For
this reason, small companies risk being overrun by large companies when the customers are
going more digital (Collector Bank, 2019).
2.2.2 The transformation from analogue to digital
Going from a physical store to a digital one means several changes in the purchasing process,
including the pre-purchase phase and the post-purchase phase. Hsiao (2009) mean that the
elements in the purchasing process that is influenced the most when going from a physical store
to a digital one is the information gathering, transaction/purchase and delivery. They will be
described further below.
Information gathering. When shopping in physical stores, the information gathering is mainly
done by going to the store and collect information there. In the store, personnel are available
to provide information in the shape of face-to-face communication. When going digital, this
information is instead provided on the website, and if the customers need more information
from the personnel, the communication is digital as well with several different tools, including
e-mail and chat. Gathering information online versus in stores both have their advantages and
disadvantages. Online, customers can easily access information from all over the world, so
much information that it can actually become an overload of information. However, when
visiting a physical store information can be obtained from direct experience of multisensory
stimulation, for example seeing and feeling the products in real life (Hsiao, 2009).
Transaction/purchase. First of all, buying online means that the customer can make an order
at all hours and they do not have to adapt to opening hours. Once again, the customers do not
have to go to a store to make the purchase, but instead the order can be done from the
customer’s preferences. However, making transactions online also means other ways to make
the payments. According to Collector Bank (2019), most companies want to pay with an
invoice whereas other prefer paying with a credit card. What can become a concern for many
customers when making online purchases is the security. According to Hsiao (2009), the lack
8
of trust for secure payments lowers the willingness to make purchases online. Another concern
is the simplicity to make the payments. The study by Collector Bank (2019) showed that several
companies have discontinued the purchase process because it was technically complicated to
go further.
Delivery. The fact that the customers no longer go to the store to purchase the products also
mean that the customers do not receive the product right away. Hence, the customers are
dependent on the quality of the delivery of the products. Furthermore, Hsiao (2009) states that
the delay of receiving of the products means that it is more difficult to predict the quality of the
products. Therefore, the customers are also dependent on the option to return the product if it
does not fulfill the expectation.
2.3 Customer value
Companies are constantly searching for new ways to seek competitive advantage and many
sellers are focusing on what the customers values in the aim to gain advantage on the
marketplace (Woodruff, 1997; Anderson and Narus, 1998). The opportunities to change the
creation of value comes from new technologies and other innovative developments related to
what is offered to the customers (Amit and Zott, 2001; Schilling, 2010). Špaček and Vacík
(2016) agree on this and state that innovation can be considered a powerful value driver. To
stay ahead of competitors, companies seek new ways to further the process of innovation and
by that generate more customer value. Customer value considers what the organization’s
customers want and need when buying and using a product or service (Woodruff, 1997). This
is a central task of management as companies that fail to deliver what the customers need and
value will lose the customers to someone else as customers are seeking to maximize the value
in decision making (Doyle, 2002; Kotler, Keller, Brady, Goodman and Hansen, 2012).
Zeithaml (1988) defines customer value as “the consumer's overall assessment of the utility of
a product based on perceptions of what is received and what is given”. Thus, customer value
refers to the difference of what the customer gets and what the customer has to give up to
receive it. According to Anderson, Narus and Narayandas (2009), customers in a business
market are focusing on functionality or performance. Based on this, value in business markets
can be defined as “the worth in monetary terms of the economic, technical, service, and social
benefits a customer firm receives in exchange for the price it pays for a market offering”
(Anderson et al., 2009). Thus, customer value can be divided into different kinds of benefits
and sacrifices or costs. Kotler et al. (2012) have identified total customer benefit as the bundle
of benefits which involves benefits from the product, services, personnel and image aspects.
The total customer cost in turn involves the monetary, time, energy and psychological costs
that is required to obtain, evaluate and use the product. This is depicted in Figure 2.
9
Figure 2. Determinants of customer value (Kotler et al., 2012)
The customer value needs to be integrated into the business processes so that what the
customers are expecting and what the company is offering are in line. What is important for
businesses to remember is that what is considered valuable is individual and is thus different
between different customer segments (Zeithaml, 1988). It is therefore crucial for companies
that want to deliver customer value and make it a competitive advantage to understand their
customers and being able to identify what their customers need and value.
Below, a description of types of customer values that could be impacted by the transition to
digital sales channels are presented. The further analysis will thereby be on service benefit,
personnel benefit, time cost and energy cost.
2.3.1 Services benefit
Kotler et al. (2012) defines service as “any act or performance that one party can offer to
another that is essentially intangible and is a process rather than a unit of output, focusing on
dynamic resources such as skill or knowledge and an understanding of value as a collaborative
process between providers and customers”. According to Rust and Lemon (2014), service is a
key profit and revenue driver and is thus important for the growth of companies. Voss (2000)
differentiates between three levels of service:
1. Foundation of service. The service that is essential and expected from the customers.
2. Customer-centered services. The service that differentiates.
3. Value-added services. The extra services that excites and add value for the customers.
10
Service is multifaceted and consists of many different customer-perceived dimensions, but
reliability and customization are often considered to be the most important (Zeithaml, 2000).
Reliability refers to the consistency of performance and dependability and that the service is
accurate and fulfills what have been promised (Parasuraman, Zeithaml and Berry, 1985). Kotler
et al. (2012) agree that reliability has been found to be the most important to customers and
further mean that customers are often willing to pay premium prices for more reliable products.
Customization is when the customers have an input and can customize the product or service
to fit themselves. Companies need to be able to provide the individual customers what they
want. Kotler et al. (2012) mean that customization is a service which increases the customer
value. To be able to customize, it is of highest importance to understand the customers’ needs
and preferences, and as the companies’ ability to gather information about their customers
increase, it is now possible for them to customize more.
Service has traditionally been delivered by people, but as the stores are going digital this has
changed and services can now be provided without any human interactions. The Internet can,
according to Rust and Lemon (2014), be seen as a network for interchange of information.
Interactive information service, i.e. interactive interchange of information, has thus become an
important characteristic of service provided on the Internet and the e-economy.
When it comes to the three levels of service presented by Voss (2000), i.e. the foundation of
service, customer-centered services and value-added services, Voss (2000) has identified
different factors that gives a different level of service on the web when compared to traditional
physical stores. Among the foundation of service is delivery and Ulaga (2003) has identified it
as an important value-driver for customers in B2B markets. A number of factors influencing
the value creation by delivery have been identified. These are:
● Accuracy of delivery
● On-time delivery
● Lead time of delivery
● Flexibility of delivery
Accuracy of delivery. It is crucial for companies to receive the products that they have ordered
(Ulaga, 2003). This includes the type of products as well as the number of products.
On-time delivery. The products need to be delivered on time and the ability to meet more
exacting time standards (Ulaga, 2003; Iyer, Germain and Frankwick, 2004). Not having on-
time delivery can lead to severe consequences for the companies ordering the products, such
as delays in the work schedule and increased costs (Ulaga, 2003).
Lead time of delivery. According to Hua, Wang and Cheng (2010), the lead time of delivery
can be defined as the time it takes from when a customer is placing an order to the time when
the customer receives it. The delivery lead time is considered to be an important factor for
service quality and has a great impact on customer loyalty. Even though on-time delivery is
11
sometimes more important than speedier order cycles for the customers (Iyer et al., 2004), a
shorter lead time can often increase the customer loyalty (Hua et al., 2010).
Flexibility of delivery. Customers requires that the suppliers can adjust the orders if changes
that affects the circumstances occur, such as the need to change the products or the number of
products ordered, even on a short notice (Ulaga, 2003).
Among the customer-centered services, Voss (2000) has identified trust, i.e. secure to make
financial transactions and leave personal information, configuration and customization, and
information and status as important factors. When it comes to customization, Ansari and Mela
(2003) state that e-commerce allows for mass customization for a low cost and short amount
of time. Rust and Lemon (2014) agree with this and mean that the digitalization has made it
possible to customize the communication, the product offerings and the delivery options. This
can be done by using past purchases as an indicator of the needs of the customers and collect
information from the traces that customers leave while navigating on the Internet (Ansari and
Mela, 2003). The expectations of personalized solutions have risen as firms expect to not only
base the customized information on past purchases, but there is also a need to identify needs in
different situations (Rust and Lemon, 2014). However, customers can be hesitant for
companies to use personal information as they are afraid that companies will sell that
information to other organizations (Lee and Lin, 2005). Thereby, trust and personalization can
go against each other. Corbitt, Thanasankit and Yi (2003) argue that trust is a vital influence
on e-commerce success. The trust is reflected on the general reputation of e-commerce, the
customers’ experiences and the quality of the web site. Lack of trust of managing transactions
of money and information is a factor which is highly influencing the adoption rate of e-
commerce among customers (HUI Research, 2011).
Finally, Voss (2000) mean that factors that can be included as value-added services is for
example proactive service where the customer information is stored so that the customers know
when products they are interested in are available. The Internet has provided many
opportunities to deliver qualitative service that can add value if there is an understanding of the
needs of the customers.
2.3.2 Personnel benefit
Good communication in B2B relationships have for a long time been seen as an important
factor of customer value. A lot of the industrial support services revolves around keeping the
customers at an efficient operating level (Vandermerwe and Rada, 1988). If the relationship
between the firms, where the customers expects help with resolving problems in order to avoid
delays, are ignored, the result can be severe financial losses (Bone, Fombelle, Ray and Lemon,
2014). Correlations have been found between communication and commitment that indicate
that effective communication between partners strengthens the level of commitment (Theron,
Terblanche and Boshoff, 2008). A study by Edvardsson (1988) demonstrated that when a
company solves critical situations for their customers, as in meeting the demands of the
customer in the form of for example adaptation of hardware or short delivery time, the
12
relationship between the two strengthens if the situation is perceived by the customer to be
handled in a correct way. On the other hand, if customers have been forgotten or ignored, they
are unwilling to return again. So, solving, or not solving, a critical incident for the buyer could
remain a reason to return, or not return, to that specific supplier for a long time.
Several industries have seen an increased demand for consultation and guidance when their
customers are buying new products, and the customers now demand help when making their
purchase decisions (Piccoli, Brohman, Watson and Parasuraman, 2004). Guidance is
something that has been strongly associated with a personal interaction, and it has been a one-
to-one interaction between the firm and the customer (Wiertz and de Ruyter, 2007; Piccoli et
al., 2004). When going digital, the first contact is often initiated by the customers who needs
to get more information (Chaffey and Smith, 2017). On the Internet, communication is often
one-way at first as it is an interaction between a website and the customer and not between the
seller and buyer directly. It only becomes a direct contact with the company when the customer
interacts with a representative of the company. Therefore, it is impossible for a customer to
know beforehand if the personnel of the company have the required competence and skills to
provide help, unless there is already an existing relationship between both parties (Cox and
Dale, 2001). It has been demonstrated that the credibility and quality of information that can
be found on a website are relevant and have a great impact on how B2B customers perceive
their online shopping experience. Should they be in need of help from the supplier but are
unable to get it, they will go to a different supplier. This indicates that there is a need for
available service representatives on B2B websites (McLean, 2017). Research from 2013
showed that in 2012, help services accessed through the Internet was growing. The rise in self-
service usage on the web was 12% and chat usage grew 24% (Legett, 2013). This trend was
also seen in 2016 where customers were moving from obtaining help over the phone to using
more self-service options such as virtual agents and chatbots (Legett, 2017).
The Internet is a tool that has changed not only how companies present messages and
information to their customers, but also the way they sell their products (Hofacker, 2018).
Customers that find a strong relationship between both parties as something important often
mention an enhanced communication that is more understanding, leading to an effective and
efficient relationship where problems are addressed more easily (Ulaga, 2003). Though, for
suppliers it is important to remember that not all customers are the same. Some customers want
no support at all, some are content with FAQs if they have a problem, and others are dependent
on personal support by phone, e-mail or in person when they want to buy a product (Chaffey
and Smith, 2017; Piccoli et al., 2004). Sales companies state that e-commerce gives customers
anonymity and makes the selling process impersonal, making it hard to build long-term
relationships (HUI, 2011). Though, it has also been found that e-commerce in the B2B
environment are expected to increase coordination and relationships between business partners
(Subramaniam and Shaw, 2002).
13
2.3.3 Time and energy costs
Monetary costs are not always the most important costs for customers. Many states that non-
monetary costs such as time and energy are just as important, if not more (Carothers and
Adams, 1991; Ganesh, Reynolds, Luckett and Pomirleanu, 2010). The time and energy aspects
of buying are described below.
Time. Most people today are extremely careful with what they choose to do with their time.
Time has become something that people feel they need to spend carefully. Therefore, it is
relevant for businesses to include offers that can help their customers lower the time costs they
are experiencing. For physical stores, time related costs can for example be the time it takes to
travel to the store or the time it takes to find information on what products to buy. E-commerce
has addressed some of these costs, but there are also traps within this area that sellers need to
watch out for. Buyers nowadays want to spend their time carefully by for example avoiding
wasting it on websites that are slow or confusing and information should therefore be easily
accessed. A good designed website that works properly is important as buyers are prepared to
spend more time on and return to sites they like (Chaffey and Smith, 2017). Saving time has
been found to be important for higher-income consumers that are more inclined than lower-
income consumers to buy online because of the time it saves, though it had an impact on lower-
income consumers as well (Punj, 2012).
Energy. As stated earlier, customers are not only driven by monetary and time related resources
but also by emotional and cognitive resources where the buying behavior of customers are
trade-offs between these. Depending on what a customer wants, there are different motivations
to why they want it and how they will require it. Searching, comparing, selecting and acquiring
a specific product requires not only time and money, but is also consuming energy and
cognitive resources (Ianole, 2017). Costs related to energy can for example be waiting in lines,
adjusting working schedules to go to stores or finding the correct products (Kim, Lee and Park,
2014).
Buyers have to go through social and mental aspects in the buying process and use energy when
thinking, feeling and deciding on what to buy and where. The increased availability of e-
commerce has made it possible for more convenient shopping for customers that can now make
their purchases online. A buyer that has decided to buy products over the Internet can save their
own time and energy by buying everything he or she needs while remaining stationary (Ianole,
2017; Kim et al., 2014). There are no physical constraints where for example the buyer has to
go to a store, the customer can instead access it any time he or she chooses (Awais and Samin,
2012; Escobar-Rodríguez and Bonsón-Fernández, 2017). Furthermore, it is possible to identify
the stock status of the products needed and buy everything directly instead of going to a store,
risking that the products needed are out of stock (Rotondaro, 2002).
The ability for customers to buy products without having to go to a physical store has been
found to be the most positive benefit of e-commerce because it is convenient. Hence, the
literature focuses on the positive aspects of time and energy in e-commerce and do not discuss
14
the downsides. Buying through the Internet creates value for customers as it can be used
anywhere at any time. In order to meet what customers value with online shopping, retailers
must re-evaluate their offers in order to minimize the amount of money, time and energy the
customers have to use (Kim et al., 2014).
2.3.4 Digitalization’s impact on customer value
The digitalization and the use of Internet have changed how the customers perceive value and
how value is delivered. Chaffey and Smith (2017) state that the new conditions that e-
commerce have given have raised the expectations of the customers with higher demands on
the service, the speed of the service and delivery, prices and convenience. The Internet has
shifted the control towards the customers and the customers expect convenience throughout
the whole process of purchase, consumption and post-purchase support (Rust and Lemon,
2014). This means that more is required from the selling companies to fulfil the expectations
of the customers and avoid damaging the brand.
Based on the customer values presented earlier, the impacts of digitalization seen in Table 1
have been identified.
Table 1. Buyer benefits and sacrifices in e-commerce
Benefits Sacrifices
Personnel Personnel
Many communication alternatives
Improve coordination between partners
Impersonal communication
Service Service
More customization
Easily accessed information
Uncertainty about the security regarding
payments and leaving personal information
Dependency of good delivery
Inability to see the physical product
beforehand
Time and energy Time and energy
Can buy products anytime
Can buy products from anywhere/The store
is wherever the customer is
2.4 The innovation process
Innovation is often considered a driver for success in the highly competitive global market
where it is important to constantly differentiate the products and services from the competitors
(Schilling, 2010). In broad terms, innovation can be defined as using knowledge to do
something in a new way, which can include products, services and processes, and applicating
it in practice (Schilling, 2010; Lund et al., 2011). Because innovation involves the creation of
something new, the process to innovate can be highly uncertain (Kline and Rosenberg, 2010).
There are however some steps that most innovation processes go through. The whole
15
innovation process can, according to Koen et al. (2001), be divided into three parts: the Front
End of Innovation (FEI), New Product and Process Development (NPPD), and the
Commercialization. This is depicted in Figure 3.
Figure 3. The process of innovation
As can be seen in Figure 3, the first phase in the innovation process is the FEI. This phase is
known to be a bit chaotic and unstructured compared to the next phase, NPPD. The stages that
are included in the FEI and hence are the first stages in the innovation process are depicted in
Figure 4.
Figure 4. The Front End of Innovation process (Koen et al., 2001)
Hence, the stages are:
1. Opportunity identification
2. Opportunity analysis
3. Idea genesis
4. Idea selection
5. Concept and technology development
These five elements in the process of FEI do not necessarily happen in this particular sequel,
and they can, as stated by Koen et al. (2001), occur randomly. Since this research is focused
on the customer value, which includes how they change and how to, as a company, capture the
changes and create value for the customers, the focus will be on opportunity identification
rather than how to generate new concepts. Moreover, this is the phase that we find the most
interesting in the transition to e-commerce. NPPD and Commercialization are focusing more
16
on developing an actual product, building a strategy and launching it on the market. As this is
not within the scope of this thesis either, it will not be explained further.
2.4.1 Opportunity identification
Opportunity identification is a company’s chance to recognize a new opportunity by for
example observing trends or new demands from customers. As stated by Koen et al. (2001),
the opportunity can be everything from a minor upgrade of an existing product or service or
something completely new, leading the company into a new direction. From here, the innovator
needs to find the specific “pain points” of the opportunity and define these. The pain point
describes the emotional pain, which can be either real or subconscious, of the customer that
could benefit from this new opportunity. For companies, it is beneficial if groups of customers
with similar pain points can be identified in order to create an accurate market segmentation
and positioning of the opportunity (De Bonte and Fletcher, 2014).
For a company to be successful in developing new ideas, it is of vital importance that new
information related to new ideas can be gathered. In companies, a lot of these ideas come from
the customers. Many innovations fail economically because they do not fulfill the requirement
that the customers have (Schilling, 2010). An important part of the process of identifying
opportunities is therefore to collect information from the customers and analyze it to identify
requirements. The salesforce play an important role in collecting new ideas and information
related to new ideas from customers and they are often seen as the “voice of the customer” as
they are in a position where they are in a daily contact with the customers and can get access
to important information about their problems and requirements. Though, as most of these ideas
are related to problems with the current offering, it can be seen as more short-term and can only
give a competitive advantage that is temporary. Therefore, it is dangerous to rely solely on the
customers for new ideas and innovations. For the best effect, both customers and an internal
R&D-division are needed as sources for new innovations (Gordon, Schoenbachler, Kaminski
and Brouchous, 1997).
17
3 Purpose and research questions
From previous literature, it is clear that digitalization could well be the next revolution, such
as mechanization and electricity were in the past. The new technology of digitalization means
new opportunities to change the value proposition through new innovation processes. Many
companies see the need to digitalize their business, and there has been an increased interest in
e-commerce among customers as well. However, a new sales channel means new ways to
create and deliver value to the customers, meaning that sales companies need to adapt to new
demands and challenges. The impact of digitalization on B2C markets have been the subject
of more research than the impact on B2B markets. Hence, some of the literature presented is
based on a B2C context but because of the special characteristics of B2B markets it is of highest
interest to examine that market separately.
With this, the purpose with the research is to cover the gap in the current literature regarding
the impact that digitalization and e-commerce has on customer values in B2B sales, specifically
from the point of view of the Swedish construction industry. This because it is an industry
where the customers have been slow to adopt e-commerce. The focus will be on the types of
values that are affected the most by digitalization. In this case we refer the term digitalization
to the process of making information, offerings and the communication with the customers
digital. Furthermore, we aim to investigate how the front end of innovation, specifically the
identification of innovation, is affected by the increased interest in making purchases online in
a B2B context. This because, even though the existing literature discusses the front end of
innovation, it does not discuss how it is affected by the use of a digital marketplace where there
is a physical distance between the company and customers.
To fulfill this purpose, the following research questions will be answered and analyzed:
Q1. In what ways are critical customer values affected when B2B firms within the construction
industry move towards e-commerce?
Q2. How does the transition to e-commerce affect the front end of innovation?
18
4 Method
The following chapter presents the methods used in the research and the motivations behind
them. This includes defining the research approach and how information and data have been
collected. Furthermore, the chapter presents the case company as well as a discussion about
validity, reliability and the ethical aspects.
4.1 Research approach
Research methods can be divided into two different categories, qualitative and quantitative
methods. Qualitative research can be described as being subjective where the researcher has an
inside-out perspective and where the research is built on successively, with data based on
descriptions from the informants (Olsson and Sörensen, 2011). Quantitative research on the
other hand is more objective and have an outside perspective, with the distance between the
researcher and the informant being stressed.
During the thesis project we have used a qualitative approach, but also supplemented it with
quantitative data. By combining them we could make use of the different advantages and
possibilities that the different methods bring. According to Holme and Solvang (1997), the
qualitative data and methods show an overall picture and a deeper understanding of the actors’
perspective. Hence, the qualitative methods were useful when we wanted to have a deep
understanding of the situation and the mindset of the different actors when it comes to their
experience of buying or selling online. However, as stated by Holme and Solvang (1997), using
quantitative data and methods can be used when more univocal variables and answers that can
be comparable with each other are wanted as a result. The quantitative data was therefore used
to indicate what is important when shopping and communicating online in a straightforward
way and to rank different options against each other. Though, the informants that have been
used in the qualitative part have also conducted the quantitative one, so the quantitative part
did not include more informants.
The research process can, according to Olsson and Sörensen (2011), follow three different
lines: deductive, inductive or abductive. A deductive approach means that a hypothesis is
developed and tested based on already existing theory, whereas an inductive approach is using
findings from the research to find patterns and develop theory. An abductive approach is a mix
between a deductive and an inductive approach where theories can be both tested and built on
using observations. We used an abductive approach as we wanted to use the existing theory on
customer value in a B2B context and the impact digital solutions has, but at the same time
combine these areas by collecting data to get a better understanding of how they relate to each
other, and so new theories could be built. The thesis project started with the gathering of theory
that later on was applied in real situations. Thereby, the theory was used as a foundation for the
interviews. The interviews were the base for the inductive part of the research as we could build
new knowledge from that. After gathering empirical data, the result could be further
complemented with more theory to make an analysis that gives a good overview of the areas.
To test theory and to make observations and build new theory was thus an iterative process.
19
Using an abductive approach allowed us to combine the existing theory and empirical data in
an appropriate way so that we could fulfil the purpose of the research.
4.2 Selection of literature
The theory that has been used in the research concerns literature on digitalization and value
creation in B2B relationships. To get both an in-depth analysis as well as broader insights about
the subjects, both books and articles have been used during the research. Trustworthy sources
have been of importance, which is why we have considered both why the articles chosen have
been published in different academic journals and the number of times the article has been used
as a reference. The articles have, as with the books, been found in a variety of databases,
including Google Scholar, Scopus and DiVa, or in the library at KTH. When searching for
literature, different keywords related to the subject have been used. To broaden the results,
synonyms and different spellings have been used in the search. The most important keywords
used in the search for literature are the following: B2B, business-to-business, digitalization,
value creation, business relationship, e-commerce, Internet, customer value, innovation. In
many cases the articles led to new appropriate articles and books that were useful for the
research, as well as new keywords that could be used to find new literature. The process of
selecting literature has therefore been a process of making use of new information and moving
on from that, and replace the literature used in the end based on relevance to our purpose.
4.3 Data collection
To answer the research questions empirical data has been collected. This empirical data has
been collected from interviews with customers and internal representatives at the case
company.
4.3.1 Interviews
There are different types of interviews and all of them have both advantages and disadvantages.
Here, both qualitative and quantitative methods have been used and the interview methods used
were both structured and semi-structured. The semi-structured part of the interviews had open-
ended questions where the interviewees were forced to elaborate their answers rather than just
answer yes or no or choose between a number of options. The structured part of the interviews
was of a more quantitative character where the interviewees were asked to rate fixed answers
rather than elaborate on their own experiences. According to Patel and Davidson (2003), a
common way to start an interview is to begin with open-ended questions and successively go
more into detail as it helps the interviewee to become more comfortable which makes the
interview flow more naturally. Therefore, if the interviewee had enough time, the interviews
started with open-ended questions before focusing on specific details. Furthermore, Patel and
Davidson (2003) states that an explanation of how the answers of the interviewee will be used
and if they are confidential or not and anonymous or not will need to be clarified to make sure
the interviewee can answer as openly as he or she wants. This was taken into consideration
when conducting the interviews for this research.
20
We were able to perform some interviews in person while some have been conducted over
phone or through Skype. Both of these methods have advantages and disadvantages. By
performing interviews in person, we were able to not only get the information needed for the
research, but we could also make observations of the reactions of the respondent. Tone of voice,
facial expressions and pauses can give information that is not mediated through an answer
written in a survey (Bell, 2000). The disadvantage is that the conversation may be subject to
negative factors such as misunderstandings of body language or gestures (Patel and Davidson,
2003). The respondent could also be biased by the characteristics of the interviewer, such as
accent or gender, and his or her perception of the interviewer (Sapsford and Jupp, 1996). The
advantage of interviewing over the phone is that misunderstandings of body language or
gestures are non-existent.
In order to minimize biases and make all interviews as similar as possible, Sapsford and Jupp
(1996) states that the ideal structured interview schedule should consist of these four elements:
1. Questions asked should be the same for all respondents. The method of asking questions
should also be standardized, with the interviewer first stating the purpose of the research
and using the same interview format.
2. If the respondent does not understand a question and asks for clarification, the
supplementary information should be non-directory.
3. The respondent should feel motivated to continue the interview, which is affected by
the context, length of interview and motivation from the interviewer to go on.
4. The responses from interviewees should be able to be categorized.
In this research, we have tried to keep true to these four elements as much as possible. Two
interview guides, which can be found in Appendix A and Appendix B, have been used. One
guide was used for internal interviews with the case company (Appendix A) and one guide was
used for external interviews with their customers (Appendix B). These are mostly the same
with some minor corrections in order to direct the questions to the specific interviewee
depending on if it was an internal or external interview. Though, it is also important to state
that flexibility from our side have been vital as a few interviewees have not been able to answer
some questions due to limited experience in a specific area. Furthermore, it was not possible to
use the same setting in all interviews as some interviewees requested interviews over the phone
or Skype while some could meet in person.
4.3.2 Conducting the interviews
In total, seven interviews were conducted, which included four interviews internally with
representants from the case company and three interviews externally with customers of the case
company. Before the interviews took place, the interview guides were sent to the interviewees
so that they could decide if they wanted to be a part of the research or not and could prepare
for the interview if needed. The interviewees had the opportunity to choose time and place for
the interview, including if they preferred to conduct the interview in person or over the phone.
21
In the case with the internal interviews, the survey was done during the interview, while the
survey for the customers were dispatched to the three interviewed customers through the case
company’s internal survey system. Whether how or where the interviews were held, both of us
took part of the interview where one of us were focusing on asking the questions while the
other one was taking notes. Except taking notes to save the answers, the interviews were also
recorded, something that was always approved by the interviewees beforehand. Since both we
and the interviewees use Swedish as native language, the interviews were held in Swedish. This
means that the data collected from the interviews has been translated to English after the
interviews which could affect how some answers are perceived.
4.3.3 Internal interviews
The interviewees from the case company were chosen based on their insight on the topic of the
research. The ones that participated in the study has different roles in the company and are
working in different parts of the organization, which enabled us to get different perspectives
on the topic. Due to the fact that the interviewees had more insight into some areas of the
company, and less in other areas, there were some questions that could be answered by one
interviewee but not another. However, this gave us a complete description of the company from
different point of views. This way, we were presented with a fair view of how the company is
working with digitalization and e-commerce in particular, and how the innovation process is
impacted by this.
Table 2. Conducted internal interviews
Company Interview Position in the company Data collection
A HCD Head of Construction
Division
Personal interview; audio recorded
and transcribed, duration 49 min
A HI Head of Innovation Skype interview; audio recorded and
transcribed, duration 41 min
A HEC Head of E-Commerce Skype interview; audio recorded and
transcribed, duration 47 min
A CMO Chief Marketing Officer Personal interview; audio recorded
and transcribed, duration 51 min
4.3.4 External interviews
The customers that were interviewed were a part of the case company's customer panel. The
incentives offered to the customers for participating in the study was a check for 250 SEK to
be used at the case company. Initially there were four external interviews planned, though one
interviewee did not have enough time to participate and had to be cut out of the research. All
interviewees have a high position with good insight of the purchase process in different
companies within the construction industry. This was made sure so that the answers would be
reliable and would be in line with how their company is actually making purchases and what
they value. To get a broader perspective, the customers were from companies with different
sizes, but still in the SME area. Information about larger companies were instead provided by
22
the case company, which made it possible to compare if companies with different sizes have
different views on e-commerce and core values in the purchase process.
Table 3. Conducted external interviews
Company Interview Position in the company Data collection
B Customer 1 Electrician and facility
manager
Telephone interview; audio
recorded and transcribed, duration
15 min
C Customer 2 Firm owner, installation of
Building Management
Systems
Telephone interview; audio
recorded and transcribed, duration
25 min
D Customer 3 Service technician Telephone interview; audio
recorded and transcribed, duration
29 min
4.4 Data analysis
The data collected from the interviews had to be compiled and analyzed before comparing it
with the literature. As both a qualitative and a quantitative approach were used, different kinds
of data needed to be analyzed. The quantitative data were more organized from before the
interview and could thereby be analyzed right away. However, the data from the qualitative
part needed the be structured and organized after the interviews took place. Therefore, it was
analyzed using the concept of thematic analysis presented by Braun and Clarke (2006). The
concept consists of six phases, which can be seen in Figure 5.
Figure 5. The process of analyzing the qualitative data
The six phases can be described as followed:
1. Transcript. The interviews were first transcribed to get familiar with the collected data
by listening to the recordings from the interviews and re-reading notes. In this phase,
everything from the interviews were documented so that nothing important could be
left out and so that no information would be taken out of context before analyzing it.
2. Coding. Different features of the data were coded systematically by going through the
transcript and highlighting interesting aspects. Hence, important information was
collected to narrow down the data to the focused area.
3. Searching themes. The next step was to collate the collected codes into different themes.
This mean that all data relevant to potential themes was gathered in the first step of
creating themes. These themes are areas that for different reasons came up while going
23
through the data, e.g. areas that were brought up a lot or that it needed to be compared
with the collected theory.
4. Reviewing themes. The collection of themes was reviewed by confirming that the data
within the themes followed a coherent pattern and that the different themes were clearly
distinct from each other.
5. Defining themes. This step was about analyzing the themes and defining what the
themes were about.
6. Finalizing. The last phase in the data analysis was to do a final analysis of the themes
and to finalize it as results.
The data collected from the interviews were then compared with the theory from the literature
review to see if there was a connection there and also to investigate if there were any relevant
theory that had not been covered in the literature review yet.
When it comes to the quantitative data and how it can be combined with the qualitative data
there are, according to Sandelowski (2000), different approaches. Either the quantitative data
can be converted to become qualitative or vice versa, or the two datasets can be held separate.
In this case, the later alternative has been used, where the quantitative data has stayed
quantitative and has instead been used to supplement and clarify the qualitative data by
identifying patterns in the answers. Hence, the purpose with the quantitative part was not to
use it as statistics, but rather to get a better understanding of the answers from the open-ended
questions. This because of the low amount of answers that would not have given any statistical
value.
4.4.1 Coding
The findings from the interviews have been collected and analyzed, which is presented in the
thematic maps in Figure 6 and Figure 7, the internal and external interviews respectively.
24
Figure 6. Map with coding of the internal interviews, sub-themes and themes.
25
Figure 7. Map with coding of the external interviews, sub-themes and themes.
26
4.5 Case company
In the research, a case company has been used to analyze their customers and how they work
with e-commerce. The case company is a leading distributor of installation products in Sweden
within a wide range of industries, including construction. This results in a wide product range
with over 1,000,000 articles that are offered to the customers. Their customers are strictly
within the B2B market and of a variety of business sizes. Other than Sweden, the company is
also operative in Scandinavia and a few other countries in Europe. Their aim is to make an
efficient commerce of products for professional users while having a close and personal
connection with the customers. The stores are described as a meeting point where you can ask
for help, meet other people within your industry and be presented with new products. As of
today, the company has over 100 stores spread out in Sweden and also a webshop which
according to their annual report from 2018 represented more than a fourth of the total revenue.
They were among the first in their industry to see the need for a webshop which they
implemented nearly 20 years ago when e-commerce was still new. With the alternatives of
sales channels, the customers can choose the channel that suits them the best.
4.6 Reliability and validity
It is of highest importance that the research has a high reliability and validity. Lundahl and
Skärvad (1999) defines validity as the absence of systematic errors in measurements and have
divided it into two different types of validity, internal and external validity. Internal validity
refers to the correspondence between the theoretical and the operational definition, thus
meaning that it ensures that what is measured is the same as what is intended to be measured.
To ensure that the research has achieved a high internal validity, the interview guides were
based on relevant literature found in the subject and were also reviewed by senior researchers
before conducting the real interviews. It has also been important to make sure that the literature
related to digitalization that has been used is up to date since the technology has rapidly
developed. Therefore, we have tried not to use literature from before the year of 2000 while
data describing the current status of digitalization has only been taken from recent years.
External validity is, according to Lundahl and Skärvad (1999), instead focusing on the
correspondence between the measured value from the operational definition, in this case from
the interviews, and the reality. A high external validity has been achieved by ensuring that the
interviewees have the right knowledge in the field of area of customer value and e-commerce
as well as the right position in their firm to be able to answer the questions as trustworthy as
possible.
Reliability is defined by Lundahl and Skärvad (1999) as the absence of random errors in
measurements. The research should thereby not be affected by coincidences of whom is
performing the interview or circumstances related to where the interview is conducted. To
ensure a high reliability the interviews were standardized with the same questions and around
the same length of time so that the interviews were as identical as possible. However, as not all
interviewees were able to meet in person some interviews were instead conducted over phone
which may have affected the answers and the reliability.
27
4.7 Ethics
A good research practice has been emphasized where the fundamental principles of research
integrity presented by All European Academies (2017) have been central. These principles are
reliability, honesty, respect and accountability. Having a good ethics has been of high
importance throughout the research, including factors such as integrity, confidentiality,
anonymity and the real purpose of the research which are factors that Bell (2000) emphasizes.
All respondents have been informed of the purpose of the research and what the information
they have provided will be used for. Before starting the research, a confidentiality agreement
was signed with the case company and all possible confidential information from all
participants have been clarified and left out from the report or spread in any other way so that
no vulnerable information would come out. Except that the case company is held anonymous
to avoid spreading of information, every informant is anonymous to avoid any information
being linked to one person. During the interviews, the informants have always had the
opportunity to leave whenever they wanted to, and any kind of recordings were always
approved by the informants beforehand.
28
5 Results
This chapter aims to present the results of the study by analyzing the data collected from the
interviews. The results are thus based on the data analysis which can be found in Figure 6 and
Figure 7 in Chapter 4.4.1.
5.1 The entrance of e-commerce
How e-commerce has emerged at the case company and among their customers within the
construction industry has been of interest during the interviews. Both the customers and the
case company have witnessed a transition of how purchases can be made. However, the drive
to make this transition of selection of sales channels may look different between different
customers and the transition comes with challenges, both from the customers’ perspective and
from the case company’s perspective. This section will present some of the quotes that led to
the codes from the themes Selection of sales channel, Implementation of e-commerce and
Effects on segments in Figure 6 and Selection of sales channel in Figure 7.
5.1.1 Choosing e-commerce as a sales channel
The e-commerce has become an important sales channel for many, something that the case
company were early to anticipate when introducing the e-commerce:
“We were early to understand that commerce did not just occur in physical stores or via
salespeople making the order, but that there was also an incipient need to make an order by
yourself.”
It thus became obvious that the customers’ will to buy online increased when e-commerce was
introduced on the market, and the case company wanted to follow the trend and be where the
customers are and with that also offer multiple sales channels:
“It’s about offering this multichannels’ thinking, meaning that we should be where the
customers are.”
Both the customers and the internal interviewees agreed that there are advantages with buying
online compared with going to the physical stores. For the case company, the e-commerce
enables, except serving the customers’ needs, being able to make their internal processes more
efficient. In the meanwhile, e-commerce is from the customers’ perspective seen as an
alternative when the physical stores are closed or being a offered a bigger range of products:
“If the physical stores are closed and I need it the next day, I buy it online instead.”
“Most of the time you know what you want, and those products are not always available in
the physical stores.”
29
When to choose to make the purchases online or in the physical stores are thus sometimes
decided based on where the products can be found. In many cases though, the decision of sales
channel is based on when the products are needed. E-commerce is mentioned by the customers
to be a good alternative when the purchases are planned in advance and you need it the next
day or later than that. In these cases, the purchases can, by using the digital store, be made from
anywhere, meaning that the customers do not have to go to a store during its opening hours:
“In most of the cases I choose e-commerce when the purchases are planned, while I take
physical stores on the way back home.”
“E-commerce is a good supplement to receive the goods the next day.”
“If I can lay in my sofa and make the orders, I would only have to move a finger. Then I do
not have to run around confused among the shelves.”
5.1.2 Experienced challenges with e-commerce
Using e-commerce does come with challenges though. There are hinders that the case company
has to deal with and hinders which makes customers choose physical stores instead. In the case
of the customers, it is for some customers sometimes considered easier to go to a physical store.
This because the interviewed customers had stores nearby:
“I have not felt the need [to buy online]. I have a store close to where I live, so it is close in
that way.”
As mentioned, the purchases made online are often the purchases that are planned. On the
contrary, purchases where the products are needed straight away after the need has been
discovered are instead done in the physical stores. The time delay that comes with ordering
online and waiting on the delivery is thereby a hinder which highly influence the choice of
sales channel. Technical difficulties have also been seen as a hinder to an interviewee who
otherwise was interested to buy online but has failed to understand how to access the digital
store.
When it comes to the case company, introducing e-commerce as a part of the business strategy
means having to reorganize for a lot of different products and also work in a new way where it
is more agile and cross-functional. This new way of working and thinking also has to be
transferred to the employees, which according to the interviewees is a challenge, as there is
always challenges when making changes in the organization. In the case of introducing e-
commerce, the challenge is to make the employees understand that e-commerce is a supplement
and not a threat:
“It is not that the seller is not needed or is not doing a good job, but what it is about is that
what he or she is doing is also needed to be done online.”
30
To make this happen, the interviewees emphasize communication as an important tool to get
everyone in the organization to understand the changes.
For the case company, one drawback with digital stores over physical stores is that it is,
according to one of the internal interviewees beliefs, easier to generate additional sales in the
physical stores when salespeople are around and can help to recommend more products and
the customers have to go through the store:
“The advantage with the physical stores is that it is easier to generate additional sales as the
customers buy with the eyes in a different way and there is a good salesperson who can sell
more. In digital store it can easily become that the customers only buy what they need unless
you don’t succeed with the offerings and ‘have you thought about this?’.”
Another challenge is that both the technology and the requirements of the customers are
changing in a faster rate, something that the case company needs to have in mind and adapt to.
5.1.3 Digital maturity
How far different customers have come with the digitalization and how they choose between
digital stores and the traditional physical differs a lot. The case company reaches out to a wide
range of customer segments within different areas and different sizes, which have been seen to
affect the overall needs:
“The customers have different sizes and they belong to very different kinds of areas, which
mean that they can have very different kinds of needs.”
The size of the company and the area that it is within are factors which has also been seen to
affect the digital maturity according to the interviewees. Large companies often prefer buying
online and even have their purchasing systems directly connected to the system of the case
company in order to make the purchases more efficient. In some companies the employees are
even prohibited to go to physical stores because of the extra time that it takes:
“Large customers prefer buying online via direct integration with purchasing systems for
efficiency. The integration between us and them saves them time and makes it easier for
them.”
“The large customers have begun to control their indirect purchases. They don’t allow their
employees to go to physical stores anymore since it takes too much time.”
This difference between small and large companies when it comes to the integration between
business systems partly has to do with resources but buying online or in a physical store also
depends on the need. According to the internal interviewees, smaller companies often have fast
needs where they do not know what they need until the same day after a visit at the place of
31
work. A visit at a physical store thereby means that they can get the needed products right
away:
“Smaller customers may have fast needs which can be easily solved by going to the store.”
Moreover, as mentioned in Chapter 5.1.2, the relatively small customers that were interviewed
did not fully see the need of buying online, but the ones that did saw it is a supplement to the
physical stores. In the meanwhile, internal interviewees witnessed a prohibition of going to the
physical stores among large companies, which shows that there is a difference in the maturity
of e-commerce. As the case company wants to serve all customers, this is something that they
have in mind and is working with. However, an internal interviewee meant that the trend is
showing that the differences between the customer segments decrease:
“I think that the differences between different customer segments are erased now. Some
different demands, but the trend is quite clear. In a few years we will probably not have big
differences between segments.”
As of now, the interviewed customers meant that they were satisfied with how they were using
the sales channels now and did not think that this would change. However, the customers had
also witnessed a change since before when e-commerce was not an option and all purchases
were done in physical stores. Furthermore, the survey demonstrated that customers preferred
using phone or e-mail, as they had done previously, when contacting the case company while
the case company were moving towards options such as the chat, suggesting a change in
communication options is underway.
5.2 Important customer values and how they are met
Throughout the interviews, questions about customer values and interviewees’ perception of
different customer values regarding both the physical store and the digital store have been
brought up. For the most part, the case company and the customers share the view of what is
important and less important in the different aspects of service, personnel and time and energy
within the area of online shopping versus shopping in physical stores. Chapter 5.2 is treating
the theme Customer values and includes quotes from both an internal (case company) and
external (customer) perspective which can be found in Figure 6 and Figure 7.
5.2.1 Important customer values in service
From the interviews, it is clear that both the customers and the interviewees from the case
company stresses the importance of the delivery when ordering products online. The delivery
is a central part when ordering online, which was obvious in both the qualitative study and the
quantitative one where it was seen as one of the most important customer values. The customers
trust and demand that the products they have ordered should arrive when and where they want
it to arrive, and if any problems should occur, it needs to be communicated:
“It is important that the products come to the right place at the right time and to the right
32
person.”
“The communication and feedback on the order must be good [...] so that I have everything
under control.”
The customers that was interviewed understand that problems and delays can occur, and they
do not have a big problem with that as long as they are informed and are allowed to reschedule.
This is also something that the case company agrees with and holds in high regard:
“Good communication when something deviates in the order so that the customer gets an
opportunity to reschedule.”
Furthermore, both the customers and the internal interviewees find it very important that there
is enough product data online as the customers can not feel and see the products in real life.
The customers need sufficient data in the form of for example text and pictures in order to buy
the correct products. Without the correct product data, it is hard for the customer to know if he
or she will get the product they need and would they get the wrong product with for example
the wrong dimensions, there will most likely be delays in their work. This is seen as a challenge
at the case company as they themselves are only distributors and are dependent on the data they
get from their suppliers. Every supplier has their own way of presenting their product:
“That puts a demand on us that we should be able to store that product data, but also to
present it […] we have thousands of suppliers, and everyone may do it their own way. Some
take pictures and post them one after another, someone makes a movie and a third do an
animation that the customer can drag and turn around in a 360 view. How should we present
all that? There are different technical solutions, with new demands. But product data is the
common denominator.”
Looking at the physical stores, customers find it vital that the products they need are available.
All of the internal customers that were interviewed had this on top of their most important
customer values in the physical store according to the quantitative survey. Most interviewees
go to the store when they need products immediately and do not have the time to wait for a
delivery.
5.2.2 Personal relations in the physical store and online
All of the customers we interviewed stated that the personal relation with the case company
was one of the reasons that they chose to do their purchases there. They valued the hospitality
and nice atmosphere of the personnel in the physical stores, one interviewee even stated that
he would turn around and go out from the store if he did not see any familiar faces in the staff
because he did not trust that they could help him then. The knowledge of the staff and
willingness to help was seen as important for the other interviewees as well. This personal
relationship is something that the interviewees within the case company agrees with, as the HI
stated that their goal is to get the customers to feel that the case company is a good partner
33
rather than only a place to shop for products. HI also stated that they would even try to meet
requests from customers about products that they did not have available in the product range:
“Let’s say that a large customer wants to buy something that is not in our warehouse or not
even in our product range, then we will help them get the products that they want.”
Contrary to the physical store, customers do not value the personal contact in as high regards
in the online store. They have come to terms with the fact that online shopping is more
independent, though should they be in need of help, they think that it is important that it is
easily accessible. One thing that customers found important in the digital store was that they
could find the relevant information to be able to buy the correct products. Furthermore,
customers did not want to feel that the website was intrusive or excessive in trying to help:
“... then they can say that ‘you were interested in this’ or ‘you were looking at this, is there
something else I can help you with?’. That can be a little intrusive and I feel is a bit
exaggerated. It is an excessive request to help, that I have not asked for.”
Here the case company stated that it was a fine line to walk as some customers sometimes
found it extremely helpful to get reminders of what they might need to buy while other times
the help was more based on what other customers had usually bought, which was not helpful
at all.
The view of online shopping as more independent is shared by both the HI and the CMO of the
case company. The CMO further believes that customers will continue to think that they have
a good relationship with the company even though the customers receive help digitally, for
example through a robot concerning simpler questions such as help with a password or finding
out where the customer’s order is at the moment.
5.2.3 What is time and energy consuming and how is this addressed
The customers we interviewed saw the physical stores as a supplement to the online store as
they valued the availability of the physical store and that it was nationwide. That way, they
always had the option to go to a store if they would find that they were missing a product that
they needed immediately. This saved them time and energy as they know that the case company
is reliable and offer a wide range of products, making it likely that they have the products the
customer need in stock. On the downside, the customers stated that it could be exhausting and
time consuming to go the physical store because sometimes it was hard to find the specific
product they needed and they had to run around confused, trying to find what they were looking
for.
That the products actually are in stock in the physical store was seen as one of the most
important values according to the survey, but the customers also understood that some products
could be out of order. Though, in the online store, one customer stated that he expected the
products to always be in stock:
34
“Actually, the e-commerce should be better than the physical store, regarding the number of
goods on the shelf. In the online store, I really expect an unlimited amount of goods. So,
whatever I want, I can get in the online store. In the physical store, I understand that they
may run out of a specific product. But in the online store, of course they can run out of
products there as well, but not really.”
Both in the online store and in the physical store, customers valued the fact that the case
company offered a wide range of products so that they could find everything they needed in
one place. The case company stated that it was very important for them as well. They wanted
to make it as easy as possible for the customers, helping them save time and energy by offering
an all-in-one package:
“The customers can order so much from the same place. They get it in one order, on one
invoice and they can get it linked to their own chart of accounts.”
“I think that the better we can help the customers, not just to buy single products, but to do
the whole job [would make it easier for the customers].”
Customers mostly ordered online when doing planned purchases. If they knew what they
needed and could wait a day or two before receiving the products, they preferred ordering
online. That way, they could continue on with other work that needed to be done, saving time
and energy on not having to go to the store and instead being efficient in other ways. An
interviewee at the case company also stated that bigger construction companies do not want
their employees to go to the physical stores at all:
“The big companies think that we can close the physical stores because they do not want
their employees to go there. Above all because there are so many visits to our store and two
employees may be gone from the workplace for two hours to get a pipe part and they will get
some coffee and a sandwich as well when they are here.”
According to the customers, the downside with the large range of products were that they
sometimes found it hard to find the correct products online. They did not want to see any
products from other segments than their own because that made them annoyed and it took time.
Having to spend time searching for products, either in the physical store or in the digital store,
are together with long lines and having to wait for help considered to be the most time-
consuming factors according to the survey. However, the case company was aware of this and
also found it important that it was quick and easy for the customers to navigate and find
products on the website.
Overall, the survey points toward simplicity being seen as a crucial factor for creating value
for the customers. It must be easy for the customers to go through the purchase process,
everything from finding the products to making the payments. This is important no matter the
sales channel but was seen to increase of importance online.
35
5.2.4 The changed expectations
The customers are setting new demands and have different expectations. This is not only seen
in the transition between physical to digital stores, but this is something that is changing on the
market overall. The internal interviewees mean that the difference between the B2B market
and the B2C market is decreasing in the way that the customers in B2B have the same mindset
and the same expectations as they have as a private consumer:
“We believe that the boundaries between B2B and B2C will disappear, especially when it
comes to expectations, ‘what I expect in service, how to be treated and speed’. My
expectations will be based on other purchases.”
“You expect to be able to order in the same way and get as much information at work as you
do as a consumer.”
This is something that is considered by the case company, and instead of focusing on B2C, the
CMO means that they like to see it as business-to-humans instead. There is a need to not only
look at the B2B market, but also the B2C market.
5.3 Dealing with customer feedback in the innovation process
As the interaction between the customers and the case company change when the purchase
process is online, so does the process of transferring the customers’ experience of the purchase
to the salespeople. This section presents how the feedback from customers and employees are
received and dealt with at the case company, which comes from the themes Identifying ideas
for innovation in Figure 6 and Ideas for innovation in Figure 7.
5.3.1 Giving and receiving feedback
Since it is the customers that should feel satisfied with the purchase it is important that they get
the opportunity to, and feel free to speak their mind. This is an opportunity for the selling
company to analyze what is good and what needs to be improved. According to the interviewed
customers, they are happy to give feedback as long as it is easy to do so and there is a possibility
to do it right away when encountering something that they have an opinion about:
“I am happy to tell if something is missing or if it is the wrong picture or something. You
know, I cannot write it on a paper and remember it before telling an in-house salesman. They
should have a ‘report error’-button so it is simple to report errors.”
All the internal interviewees mentioned that the salesforce play a vital role in receiving
feedback from the customers and understand the customers’ needs and requirements. They
have a large salesforce that operates in the physical stores where the feedback is received. The
physical stores are described as a meeting point where relations are a central part of the
purchase process as the salespeople and the customers get close to each other and can see
reactions more clearly:
36
“We try to encourage [the sellers] to ‘stay close to the customers, understand what the
customers need, and tell us when you notice that several customers are talking about
something we do not provide today’, and we will work with business development to try to
meet it”.
“For the customers in the physical stores, it is still very much about relationships and local
business. From there, we often receive feedback that is good and bad straight in our faces
about changes, range of products, the behavior in the stores etc.”
The internal interviewees perceive that it is more difficult to capture the customers’ needs and
feedback in the digital stores and that there is a risk that a lot is missed out. As digital stores in
many ways become more anonymous, there is a risk that customers will not tell when they are
dissatisfied and leaves without any notice:
“The risk of digital sales is that the customers go elsewhere to buy their products without us
noticing it.”
In order to capture feedback from the customers in all sales channels, the case company has
decided to do surveys about the entire buying process, which online includes making an order
and receiving the goods. However, one of our interviewees perceived that the answers from the
surveys are usually overly positive and thought that the answers did not correspond to the real
experience of the customers. Moreover, according to the HEC, there is possible to give
feedback on the website today.
5.3.2 Processing the feedback
All ideas for innovation come from within the organization, sometimes from the central
functions, but most often from the salespeople. The case company finds it important to receive
feedback from the customers as a lot of the suggestions for improvements and ideas for
development indirectly comes from the customers via the salespeople who are in direct contact
with the customers and can spot trends:
“We also collect improvement proposals, which often comes from the salespeople who are
actually out meeting the customers.”
All the feedback that is collected is analyzed for further actions. First, the feedback is divided
based on if it is short-term or long-term. Suggestions that are short-term goes to the market
function where they are validated and prioritized, while the long-term suggestions are brought
to the innovation lab. All suggestions that come in are screened on a number of criteria, such
as how big the need is and if it can be found among several customer segments, if there is a
clear customer benefit and not only a benefit for the case company, etc. When the ideas have
been screened, they are further researched and tested with prototypes which may eventually be
tested on the customers.
37
6 Discussion and analysis
This chapter aims to answer the research questions by discussing and analyzing the result
found in the interviews and link it to the literature found in the subject. The research questions
that will be answered are:
Q1. In what ways are critical customer values affected when B2B firms within the construction
industry move towards e-commerce?
Q2. How does the transition to e-commerce affect the front end of innovation?
6.1 How the value of service is affected by e-commerce
What can be seen in the study is that when going from a traditional physical store to a digital
store, the customers become more dependent that the service provided by the case company is
good. When it comes to purchases in the physical store, it is up to the customers to go to the
store and get the products while the most important factor for the selling company is that the
products that the customers need are available when the customers get there. In the digital store,
there is no possibility for the customers to see and feel the products, which makes the customers
more dependable on the case company. Also, the customers rely on the selling company to
deliver the products to them when they need it. Not receiving the products when expected can
have huge consequences for customers within B2B as they schedule their work and need to
have the products there in time. The delivery thereby seems to become the most crucial factor
of value for the customers, which goes along with what the Voss (2000) states about delivery
being a foundation of service, and Ulaga (2003) who sees delivery as an important value-driver.
The value of delivery primarily involves accuracy of the products and delivery on time, but to
some extent also, as the literature states, lead time and flexibility. As the customers become
more dependent on what the selling company is doing, communication also becomes more
crucial so that the customers can be updated on the status of the products and the delivery.
What is interesting in the results is that the reliability of fulfilling the expectations and the
feeling of security when making payments and leaving personal information did not seem to
be of more value in the digital stores than in the physical stores. This even though more of the
purchase process is left to the case company. The fact that trust and security was not seen as
very important do not go in line with what the literature states about trust becoming important
in e-commerce and that it even can be a hinder for people adopting e-commerce. This might be
because of the long and strong relationship that the customers have with the case company so
that the lack of security is not something that is considered that much. Moreover, with the
introduction of GDPR, there is a possibility that the customers now feel more secure of leaving
information online, not the least when it is information about the customers’ company and not
personal information. Neither was the reliability seen as one of the most important factors for
customer value, something that do not go along with the what has been stated by Zeithaml
(2000) and Kotler et al. (2012). However, reliability is something that is perceived as an
important part of for example on time delivery, accuracy of delivery and that the products are
in stock as reliability is about getting what is expected, which could have affected the result.
38
Overall, when customers go online, they often feel more anonymous, but they also leave trails
of every move they make, something that can be useful when customizing the service as
mentioned by Rust and Lemon (2014). As Rust and Lemon (2014) further explains, the
expectations of personalized solutions have risen. What can be seen in this study is that the
customers want simplicity when searching for products. Using further recommendations based
on previous search results can make it easier for the customers when there is a wide range of
products to go through. At the same time, the customers do not like to feel imposed upon and
when the service is exaggerated. There is thereby a thin line between offering customized
service and being too intrusive.
6.2 How the value of personnel is affected by e-commerce
Before the e-commerce, when customers bought their products from physical stores, the
personal interaction was very important. Theron et al. (2008) states that effective
communication between sellers and buyers would strengthen the level of commitment between
partners and both Edvardsson (1988) and McLean (2017) demonstrates that if the customers
felt that they were ignored, they would not come back, so building lasting relationships where
the customer could trust and rely on the company they were buying from has been seen as vital.
This could also be seen in this research where one of the reasons that the interviewed customers
were buying from the case company was because they had a relation where reliability and trust
were high; they knew that they could find what they needed there, when they needed it.
Furthermore, as the case company goes to such great lengths to help their customers and have
such a close relationship with their customers, the customers are willing to forgive minor
inconveniences and help the case company fix these errors rather than leaving for another
distributor. Though, customers state that it should also be easy to report problems if they occur
as they often want to help but will not do so if it is too complicated.
According to Subramaniam and Shaw (2002), relationships and coordination between partners
are increased when going online. Our research agrees with this and we think it might be because
of the increased need for good communication between partners when the sales go online. We
found that communication is needed for both help and advisement but also when customers are
making purchases online, as more trust is put on the case company to present and deliver the
goods to the customer. When customers go online, they are not met by a physical person,
therefore the customers that we interviewed stated that it was important that the information
communicated on the webshop was easy to understand so that they could buy their products
without problems. Furthermore, research by Legett (2013; 2017) demonstrates that trends in
the B2C market points toward chat and chatbots becoming more common when contact occurs
between buyers and sellers, and our research indicate that the case company is introducing and
in some ways prefer this, but the customers have not yet reached that stage and rather prefer
communicating through phone or e-mail.
Nowadays, there is an increased demand for consultation and guidance and the customers
expect help fast and in a way that is customized to their specific needs according to Piccoli et
39
al. (2004). The case company is no exception which put a pressure on them to have knowledge
within many different areas, to be able to help all customers if they should need it. Though, the
customers that we interviewed stated that they thought they had more knowledge within their
areas than representatives from the company and therefore saw consultation as less important.
They rather thought that the help offered online could sometimes be too intrusive and stated
that help should always be available, but they wanted to be the ones to initiate the help.
6.3 How the value of time and energy is affected by e-commerce
From the interviews it was clear that time is something that customers on the B2B market value,
no matter sales channel. What takes time and energy are quite straightforward from the
literature review, where going to the store (if going to the physical store), finding information
about the product to buy and finding the products are some examples mentioned by Kim et al.
(2014), and these are factors which can be seen in the case company as well. When going to
the physical stores, the time and energy spent highly depends on the distance to the store, the
amount of other people in the store, and how easy it is to find the products in the store. When
it comes to finding the products in the store and finding information about the products though,
the personnel can help. On the contrary, the digital store relies more on the customer to find all
necessary information and find the products to buy. It thereby becomes crucial for the selling
company to have a website that is well structured, provide necessary product data and is fast.
The literature focuses on how e-commerce enables time savings and is more convenient when
compared to physical stores as the customers can, as mentioned by Ianole (2017) and Escobar-
Rodríguez and Bonsón-Fernández (2017), make the purchase from anywhere at any time. What
has been seen in this case study is that the time is affected in different ways depending on the
purpose with the purchase and the circumstances. Both physical stores and e-commerce can
mean time savings for the customers. This leads back to the question of whether the purchase
is planned or not. If the need is right away, e-commerce is not considered more convenient for
the customers, while it might be if the customers do not need the products the same day and
buying online then mean that the customer can make the purchase from anywhere without
having to go to a store. For this reason, it is mostly the larger companies that seem to find the
most value of making the purchases digitally in a question of saving time and has matured the
most in the area, so much that some are even forbidden to buy in physical stores. This also goes
along with what Punj (2012) says about the willingness to buy online in the B2C market, where
it is the higher income customers who are more inclined to buy online due to the time it saves.
In the case of B2B market, it partly seems to depend on the kind of project, but also resources
and digital maturity. However, important to highlight is that the case study has been done in
the construction industry, and the need to go to the store after visiting the workplace of the day
to know what is needed might be limited to the construction industry and not something that is
general for the B2B market.
So, the value of time and energy is important among B2B customers as they are working
towards a schedule. No matter the sales channel, among the most important factors for value
creation among customers are simplicity, i.e. easy to find the products and to go through the
40
whole purchase process. How the time and energy are affected by the change of sales channel
though can be considered to be both positive and negative depending on when the products are
to be used.
6.4 How e-commerce affects the front end of innovation
Since the customer values change when going from traditional physical stores to digital stores
there is a need to meet these new requirements through innovative solutions. The transition of
going from physical stores to digital stores also means changes that can affect the innovation
process. In this case, the salespeople and their close connection to the customers are an
important part of identifying new opportunities for innovations as they, by talking to the
customers, can identify common problems and trends. As the e-commerce mean that face-to-
face interaction is no longer possible, new ways to interact with the customers are needed. The
presented literature is highlighting the importance of using salespeople and their information
about the customer for innovation, as they according to Gordon et al. (1997) can be seen as the
voice of the customers and identify their problems and needs. However, the literature does not
include how the customers can be included when the store is online and there is no physical
contact with them on a daily basis.
Online, a lot of information can be gathered by analyzing the customers data and the traces
they leave when navigating on the website, which can be used to recognize patterns and trends.
Furthermore, it is rather easy to perform simple customer surveys at web sites and that way
combine customer behavior data with their own experience of the site. This CX data (customer
experience data) is, compared to the information gained in physical stores, very concrete and
all customers can be traced. CX data combined with sales data can for instance be used to
improve the customer experience with the target to increase online sales. It is also quite easy
to test new ideas by making changes and test that on real customers and how their behavior is
affected by the new ideas. However, managing and analyzing this kind of big data most
certainly requires resources which smaller companies might not have in their own organization
but that can be bought as services from specialist companies. Even though a lot of data can be
captured online, some information can only be captured with qualitative meetings with the
customers face-to-face which involves seeing and talking to the them. As mentioned by some
of the interviewees, some important information can thus be lost online.
Traditionally, B2B has, to a large extent, revolved around long and close contacts between
buyers and sellers. To some extent, salespeople need to be available online through for example
phone or chat and the customers can thereby be reached in this way. However, it has been stated
by the case company that the customers’ behavior is moving more towards the ones in the B2C
market as the customers have the same expectations as they have in their personal buying
situations as consumers. Moreover, as the customers are going online, they do not have the
same expectation of a personal interaction with any personnel, but rather they are satisfied with
being more independent. With this transition of having less contact with the customers, it is
harder to collect the customers’ feedback and use it as a way to identify new opportunities for
innovation. One alternative is to have a function where the customers can easily give feedback
41
directly. This needs to be simple and intuitive so that the customers are willing to use the
function. However, as a lot of information can be lost online, a customer panel can be used to
get a deeper understanding of the customers and use customer co-creation. This way, the
customers can actively provide insights and create solutions that they find valuable. By using
the customer information that exists, asking the customers questions in surveys and interviews,
involving them in the development, and involving them in evaluation of ideas, the customers
can be involved in a big part of the innovation process.
However, as seen in this research, all customers we interviewed had a more short-term view of
innovations. They looked at what they currently had and based new ideas on what already
existed. This goes in line with what is stated by Gordon et al. (1997) that most ideas presented
by the customers are related to problems with the current offering. While this may be helpful
for the company, it will likely not put them on the front of innovation and ahead of their
competitors. Based on this, the use of customers’ feedback can give good inputs for incremental
innovation but using other sources for innovation is necessary as well, especially if the contact
with the customers decreases.
For inspiration to more radical ideas, we suggest looking at social trends and get inspiration
and input from how other industries or companies targeting the B2C market solve their
problems. Other industries could have a different view on how to solve a problem because of
their different knowledge and backgrounds. This information can be transferred and combined
with what is already known and find novel opportunities and ideas.
42
7 Conclusions
This chapter will present the final conclusions from the research and how the research has
contributed to the area. Furthermore, limitations that has affected the study and suggestions
for further research will be presented.
7.1 Overall conclusions
The study shows that the different factors in customer value are affected in different ways when
the customers are moving from physical stores to digital stores. The value of the service
provided becomes more vital online in the way that service in the physical stores are, except
for having the wanted products available, more about being met by a good customer treatment
and being offered problem solving, while service online becomes crucial for even receiving the
products due to the delivery that needs to be good. In the meanwhile, the research indicates that
the personal contact between sellers and buyers have been seen as very important in physical
stores, but that this importance is diminishing online. Customers value the personal contact and
find it pleasant when buying in physical stores but at the same time they would not miss the
personal interactions when buying online. Customers going online have accepted that e-
commerce is more independent and do not find personal interactions as valuable. They only
state that it is important when they need help or recommendations and when that is the case,
they want it fast and easy. The case company has tried to personalize the help online, but at the
moment, customers think it is sometimes too intrusive which means that the help needs to be
more subtle yet personalized. Finally, no matter the sales channel, not wasting time and energy
is important and simplicity is among the most valuable factors. Hence, the value of minimizing
the time and energy costs do not decrease nor increase when going from physical stores to
digital stores.
The study has also showed that the front end of innovation is affected by the transition to e-
commerce in the way that identifying opportunities by using the customers’ feedback is limited
when there is less interaction with the customers. However, a lot of data about the customers
and their behavior can be extracted online by how they behave on the website which can be
used to better understand the customers and possible opportunities for improvements for the
customers. If information that only can be captured by talking to the customers is needed in the
innovation process, it could be useful to include them under other circumstances than solely
their purchase process, for instance by a customer panel. However, the study highlighted that
the customer often focuses on short-term and incremental opportunities for improvements.
7.2 Theoretical contribution
Our research has contributed to the existing literature by examining how the customer values
service, personnel and time and energy are affected by the e-commerce in a B2B context in a
collected context. Earlier research is mainly connected to a B2C context while we have focused
on B2B, bringing more clarity to how customer values are affected within a distributing
company, as well as from a construction industry point of view. Neither the distributor nor
43
construction point of views regarding digitalization and e-commerce has been a largely
researched topic in the literature. Moreover, the study did show some interesting results when
compared to the literature. One of them was how e-commerce is highlighted as convenient and
with this, saving time and energy, which was only true for certain types of customers in this
case where the construction industry was investigated. Another interesting conflict with the
literature is the increased importance of security online as our results shows that the value of
security did not change when purchasing online.
Furthermore, the literature has been scarce on how distributors work with innovation and the
innovation process within B2B, and how the e-commerce affects the front end of innovation.
We have seen that the salespeople and, through them, the customers, has been vital for the case
company in collecting ideas for innovation, but that there is a challenge in using this asset when
going digital.
Moreover, our research suggests that it is not enough to use only ideas from customers if a
company wishes to stay ahead of competition in the long run as the customers ideas are mainly
short-term. Therefore, a company that strives to stay ahead of competition needs to have other
inlets of innovative ideas, though the importance of the customers in the later stages of the
innovation process is not to be disregarded.
7.3 Limitations and future research
Even though the case company is active in several countries, a decision was made to only
include the Swedish market due to the fact that Stockholm, Sweden, has been the base for the
research, making it easier to interview customers and internal employees. Moreover, the thesis
was made during a limited time of a few months, constricting the time to prepare, conduct and
analyze the interviews. For this reason, only seven interviewees took part of the study, and
therefore more data needs to be collected for a more valid result. Therefore, we feel that the
results of this study should be seen as indications rather than definitive answers.
Another limitation was that it was decided to focus only on the construction industry due to the
lack of research made within this area. Furthermore, the fact that the construction industry is
an industry that is behind when it comes to digitalization but is just now beginning to show an
interest in becoming more digitized, made it even more interesting for us to analyze deeper.
The last limitation is that only SME (small and medium sized enterprise) customers have been
interviewed while information about larger customers have been provided by the case
company. Therefore, this thesis only includes the case company’s view on how larger
customers reasons, decides on and makes decisions.
A future topic for research could investigate how larger companies have been affected by the
digitalization and e-commerce as they are different from the SME companies in several ways.
Literature stated that customers want to feel that the purchases online is secure, but our study
did not comply with this. However, this might be a result of the long and trustful relationships
44
between the case company and the interviewed customers. Therefore, a study on how security
is affected by relationships between buyers and sellers could be of interest. It would also be
interesting to investigate how the rest of the innovation process is affected by digitalization
within the distribution and construction industries. Lastly, as seen in this research, the
salesforce is seen as a vital part in collecting new ideas for innovation. Therefore, a study on
how to make use of the salesforce in the best way when a company goes digital would be
interesting.
45
8 References
Albach, H., Meffert, H., Pinkwart, A., & Reichwald, R. (Eds.). (2015). Management of
Permanent Change. Springer Fachmedien Wiesbaden.
All European Academies. (2017). The European Code of Conduct for Research
Integrity. Retrieved from:
https://www.allea.org/wp-content/uploads/2017/05/ALLEA-European-Code-of-Conduct-for-
Research-Integrity-2017.pdf (Accessed 2019-03-15).
Amit, R., & Zott, C. (2001). Value creation in e‐business. Strategic management
journal, 22(6‐7), 493-520.
Anderson, J. C., Jain, D. C., & Chintagunta, P. K. (1992). Customer value assessment
in business markets: A state-of-practice study. Journal of Business-to-Business Marketing,
1(1), 3-29.
Anderson, J. C., & Narus, J. A. (1998). Business marketing: understand what
customers value. Harvard business review, 76, 53–67.
Anderson, J. C., Narus, J. A., & Narayandas, D. (2009). Business market management:
Understanding, creating, and delivering value. 3rd ed. London: Pearson Prentice Hall.
Ansari, A., & Mela, C. F. (2003). E-customization. Journal of marketing research,
40(2), 131-145.
Avlonitis, G. J., & Karayanni, D. A. (2000). The impact of internet use on
business-to-business marketing: examples from American and European companies.
Industrial Marketing Management, 29(5), 441-459.
Awais, M., & Samin, T. (2012). Advanced SWOT Analysis of E-commerce.
International Journal of Computer Science Issues (IJCSI), 9(2), 569.
Barua, A., Konana, P., Whinston, A. B., & Yin, F. (2004). An empirical investigation
of net-enabled business value. MIS quarterly, 28(4), 585–620.
Bell, J. (2000). Introduktion till forskningsmetodik. 3rd ed. Lund: Studentlitteratur.
Bergström, F. (2010). Framtidens handel. Retrieved from:
http://www.lantm.lth.se/fileadmin/fastighetsvetenskap/utbildning/Fastighetsvaerderingssyste
m/Framtidens_handel_Slutlig_version_pdf_format.pdf (Accessed 2019-03-25).
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative
research in psychology, 3(2), 77-101.
Bone, S. A., Fombelle, P. W., Ray, K. R., & Lemon, K. N. (2015). How customer
participation in B2B peer-to-peer problem-solving communities influences the need for
traditional customer service. Journal of Service Research, 18(1), 23-38.
Carothers, G. H., & Adams, M. (1991). Competitive advantage through customer value:
The role of value-based strategies. In M. Stahl, & G. M. Bounds (Eds.), Competing globally
through customer value. Westport, CT: Quorum Books.
Chaffey, D. (2004). E-business and e-commerce management. 2nd ed. Harlow: Pearson
Education.
Chaffey, D., & Smith, P. R. (2017). Digital marketing excellence: planning, optimizing
and integrating online marketing. 5th ed. London: Routledge.
46
Cohn, C. (2015). Differences in Selling B2B Vs. B2C. Forbes. Retrieved from:
https://www.forbes.com/sites/chuckcohn/2015/06/16/differences-in-selling-b2b-vs-
b2c/#7aa471524fb2 (Accessed 2019-03-04).
Collector Bank. (2019). Collector Convert. Retrieved from:
https://www.collector.se/convert/2019/.
Corbitt, B. J., Thanasankit, T., & Yi, H. (2003). Trust and e-commerce: a study of
consumer perceptions. Electronic commerce research and applications, 2(3), 203-215.
Cox, J., & Dale, B. G. (2001). Service quality and e-commerce: an exploratory analysis.
Managing Service Quality: An International Journal, 11(2), 121-131.
Day, G. S., & Hubbard, K. J. (2003). Customer relationships go digital. Business
Strategy Review, 14(1), 17-26.
De Bonte, A., & Fletcher, D. (2014). Scenario-Focused Engineering: A toolbox for
innovation and customer-centricity. Microsoft Press.
Downes, L., & Mui, C. (1998). Unleashing the killer app: digital strategies for market
dominance. Harvard Business School Press, Cambridge, MA.
Escobar-Rodríguez, T., & Bonsón-Fernández, R. (2017). Analysing online purchase
intention in Spain: fashion e-commerce. Information Systems and e-Business Management,
15(3), 599-622.
Ganesh, J., Reynolds, K. E., Luckett, M., & Pomirleanu, N. (2010). Online shopper
motivations, and e-store attributes: an examination of online patronage behavior and shopper
typologies. Journal of retailing, 86(1), 106-115.
Gangopadhyay, A. (2002). Managing Business with Electronic Commerce: Issues &
Trends. London: Idea Group Publishing.
Doyle, P. (2002). Marketing Management and Strategy. 3rd ed. Harlow: Pearson
Education.
Edvardsson, B. (1988). Service Quality in Customer Relationships. The Service
Industries Journal, 8(4), 427-445.
Gerbert, P., Rothballer, S. C. C., & Renz, A. (2016). Shaping the Future of Construction
a Breakthrough in Mindset and Technology. World Economic Forum (WEF).
Gordon, G. L., Schoenbachler, D. D., Kaminski, P. F., & Brouchous, K. A. (1997). New
product development: using the salesforce to identify opportunities. Journal of Business &
Industrial Marketing, 12(1), 33-50.
Grant, R. M. (2010). Contemporary strategy analysis. Chichester, England: John Wiley
& Sons.
Hanson, W. A., & Kalyanam, K. (2007). Internet marketing & e-commerce. Mason,
OH: Thomson/South-Western.
Hofacker, C. F. (2018). Digital Marketing: Communicating, Selling and Connecting.
England: Edward Elgar Publishing.
Holme, I. M., & Solvang, B. K. (1997). Forskningsmetodik: om kvalitativa och
kvantitativa metoder. 2nd ed. Lund: Studentlitteratur.
Hua, G., Wang, S., & Cheng, T. E. (2010). Price and lead time decisions in dual-channel
supply chains. European journal of operational research, 205(1), 113–126.
HUI Research. (2011). Kampen om köpkraften - handeln i framtiden. Received from:
http://handelsradet.se/wp-content/uploads/2014/11/2011-Kampen-om-kopkraften.pdf.
47
Hsiao, M. H. (2009). Shopping mode choice: Physical store shopping versus e-
shopping. Transportation Research Part E: Logistics and Transportation Review, 45(1), 86-
95.
Ianole, R. (2017). Applied Behavioral Economics Research Trends. Hershey: IGI
Global.
Iyer, K. N., Germain, R., & Frankwick, G. L. (2004). Supply chain B2B e-commerce
and time-based delivery performance. International Journal of Physical Distribution &
Logistics Management, 34(8), 645-661.
Jobber, D., & Lancaster, G. (2009). Selling and Sales Management. 8th ed. Harlow:
Pearson education.
Kannan, P. K. (2017). Digital marketing: A framework, review and research agenda.
International Journal of Research in Marketing, 34(1), 22-45.
Kim, Y. K., Lee, M. Y., & Park, S. H. (2014). Shopping value orientation:
Conceptualization and measurement. Journal of Business Research, 67(1), 2884-2890.
Kline, S. J., & Rosenberg, N. (2010). An overview of innovation. In Studies on Science
And The Innovation Process: Selected Works of Nathan Rosenberg (pp. 173-203).
Koen, P., Ajamian, G., Burkart, R., Clamen, A., Davidson, J., D'Amore, R., ... & Karol,
R. (2001). Providing clarity and a common language to the “fuzzy front end”. Research-
Technology Management, 44(2), 46-55.
Kotler, P., Keller, K. L., Brady, M., Goodman, M., & Hansen, T. (2012). Marketing
Management. 2nd ed. Harlow: Pearson Education.
KPMG. (2017). The truth about online consumers. Retrieved from:
https://assets.kpmg/content/dam/kpmg/xx/pdf/2017/01/the-truth-about-online-consumers.pdf.
Larsson, P. (2016). The Digitalization of Society. University of Gothenburg. Retrieved
from: https://ait.gu.se/english/informatics/Digitalization+of+Society (Accessed 2019-02-12).
Laudon, K. C., & Traver, C. G. (2016). E-commerce: business, technology, society.
12th ed. Harlow: Pearson education.
Lee, G. G., & Lin, H. F. (2005). Customer perceptions of e-service quality in online
shopping. International Journal of Retail & Distribution Management, 33(2), 161-176.
Legett, K. (2013), Forrester’s Top 15 Trends for Customer Service in 2013. Forrester
Report. (Accessed February 26, 2019). Retrieved from: https://go.forrester.com/blogs/13-01-
14-forresters_top_15_trends_for_customer_service_in_2013/ (Accessed 2019-02-26).
Legett, K. (2017), Top Trends for Customer Service in 2017: Operations Become
Smarter And More Strategic. Forrester Report. (Accessed February 26, 2019). Retrieved from:
https://go.forrester.com/blogs/17-01-30-
top_trends_for_customer_service_in_2017_operations_become_smarter_and_more_strategic/
(Accessed 2019-02-26).
Lichtenthal, J. D., & Eliaz, S. (2003). Internet integration in business marketing tactics.
Industrial Marketing Management, 32(1), 3-13.
Litium. (2017). Svensk B2B-handel 2017. Retrieved from:
https://www.svenskb2bhandel.se/ladda-ner-2017.
Litium. (2018). Svensk B2B-handel 2018. Retrieved from:
https://www.svenskb2bhandel.se/ladda-ner-2018.
48
Lund, B., Lindfors, E., Dal, M., Sjøvoll, J., Svedberg, G., Borup Jensen, J., Ovesen, S.,
Rotefoss, B., & Thordardottir, T. (2011). Kreativitet, innovasjon og entreprenørskap i
utdanningssystemene i Norden: Bakgrunn og begrepsinnhold basert på politisk initiering og
strategivalg.
Lundahl, U., & Skärvad, P. H. (1999). Utredningsmetodik för samhällsvetare och
ekonomer. 3rd ed. Lund: Studentlitteratur.
Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business &
Information Systems Engineering, 57(5), 339-343.
McLean, G. J. (2017). Investigating the online customer experience – a B2B
perspective, Marketing Intelligence & Planning, 35(5), 657-672.
Obal, M., & Lancioni, R. A. (2013). Maximizing buyer–supplier relationships in the
Digital Era: Concept and research agenda. Industrial Marketing Management, 42(6), 851-854.
OECD. (2013). Electronic commerce. Retrieved from:
https://stats.oecd.org/glossary/detail.asp?ID=4721 (Accessed 2019-04-02).
Olsson, H., & Sörensen, S. (2011). Forskningsprocessen: kvalitativa och kvantitativa
perspektiv. 3rd ed. Stockholm: Liber.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service
quality and its implications for future research. Journal of marketing, 49(4), 41–50.
Patel, R., & Davidson, B. (2003). Forskningsmetodikens grunder. Att planera,
genomföra och rapportera en undersökning. 3rd ed. Lund: Studentlitteratur.
Patrutiu-Baltes, L. (2016). The impact of digitalization on business communication.
SEA: Practical Application of Science, 4(2).
Piccoli, G., Brohman, M. K., Watson, R. T., & Parasuraman, A. (2004). Net‐based
customer service systems: evolution and revolution in web site functionalities. Decision
Sciences, 35(3), 423-455.
Punj, G. (2012). Income effects on relative importance of two online purchase goals:
Saving time versus saving money?. Journal of Business Research, 65(5), 634-640.
Qin, Z., Chang, Y., Li, S., & Li, F. (2014). E-commerce strategy. Boston: Springer.
Reid, D. A., & Plank, R. E. (2000). Business marketing comes of age: A comprehensive
review of the literature. Journal of Business-to-Business Marketing, 7(2-3), 9-186.
Richard, P. J., & Devinney, T. M. (2005). Modular Strategies: B2B Technology and
Architectural Knowledge. California Management Review, 47(4), 86-113.
Rotondaro, R. G. (2002). Defining the customer’s expectations in e‐business, Industrial
Management & Data Systems, 102(9), 476-482.
Rust, R. T., & Lemon, K. N. (2001). E-service and the consumer. International journal
of electronic commerce, 5(3), 85-101.
Ryan, D. (2009). Understanding digital marketing: marketing strategies for engaging
the digital generation. London: Kogan Page Publishers.
Salo, J. (2006). Business relationship digitalization: A case study from the steel
processing industry. (Academic dissertation, University of Oulu, Oulo). Retrieved from:
http://jultika.oulu.fi/files/isbn9514282396.pdf.
Sandelowski, M. (2000). Combining qualitative and quantitative sampling, data
collection, and analysis techniques in mixed‐method studies. Research in nursing & health,
23(3), 246-255.
49
Sapsford, R., & Jupp, V. (Eds.). (1996). Data collection and analysis. London: Sage.
Schilling, M.A. (2010). Strategic management of technological innovation. New York,
United States of America: Tata McGraw-Hill Education.
Špaček, M., & Vacík, E. (2016). Company value creation through effective innovation
process management. Journal of Innovation Management, 4(3), 65-78.
Subramaniam, C., & Shaw, M.J. (2002). A study of the value and impact of B2B e-
commerce: the case of web-based procurement. International Journal of Electronic Commerce,
6(4), 19–40.
Svea Ekonomi. (2018). B2B och e-handel 2018 - en rapport från Svea Ekonomi.
Retrieved from: https://www.svea.com/globalassets/sweden/foretag/betallosningar/e-
handel/b2b-rapport/svea-ekonomi-b2b-rapport-2018.pdf.
Theron, E., Terblanche, N. S., & Boshoff, C. (2008). The antecedents of relationship
commitment in the management of relationships in business-to-business (B2B) financial
services. Journal of Marketing Management, 24(9-10), 997-1010.
Turban, E., King, D., Lee, J., & Viehland, D. (2002). Electronic commerce: A
managerial perspective 2002. 2nd ed. Upper Saddle River: Pearson Education.
Ulaga, W. (2003). Capturing value creation in business relationships: A customer
perspective. Industrial marketing management, 32(8), 677-693.
Vandermerwe, S., & Rada, J. (1988). Servitization of business: adding value by adding
services. European management journal, 6(4), 314-324.
Vogelsang, M. (2010). Digitalization in Open Economies: Theory and Policy
Implications. Springer Science & Business Media.
Voss, C. (2000). Developing an eService strategy. Business Strategy Review, 11(1), 21-
34.
Welsh, L., Davies, A., & Dalton, K. (2018). The 6th annual construction technology
report. JBKnowledge. Retrieved from: https://jbknowledge.com/wp-
content/uploads/2018/10/2017-JBKnowledge-Construction-Technology-Report.pdf.
Wiertz, C., & de Ruyter, K. (2007). Beyond the Call of Duty: Why Customers
Contribute to Firm-Hosted Commercial Online Communities, Organization Studies, 28(3),
347-376.
Woodruff, R. B. (1997). Customer value: the next source for competitive advantage.
Journal of the academy of marketing science, 25(2), 139.
Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means –
end model and synthesis of evidence. Journal of Marketing, 52, 2-22.
Zeithaml, V. A. (2000). Service quality, profitability, and the economic worth of
customers: what we know and what we need to learn. Journal of the academy of marketing
science, 28(1), 67-85.
i
Appendix A - Interview guide case company internal
Introduction
- We describe our thesis and what we do. Mention approximately how long the
interview will take.
- State that the answers will be anonymous, ask if there is something that cannot
be included in the thesis.
- Ask if it is okay if we record the interview.
- What role do you have in the company? What does it include?
- How long have you been working at this position? At the same company?
Digitalization/e-commerce at the case company
- How has the company adapted to the digitalization that has taken place,
especially e-commerce?
- Why did you complement your physical stores with a digital store?
- What is your strategy regarding the e-commerce?
- Have you noticed any difficulties from your side when implementing the e-
commerce strategy?
- Are there any differences in customer type between those who make digital
purchases and those who do not? (size, year in the industry etc.)
- Do the customers have other expectations now? Have they changed overall
(regardless of sales channel) or do you notice differences between sales channels?
Customer values
- How do you get to know your customers and their needs/requirements? Is there
a difference between digital sales and sales in a physical store? What works well
and what works less well, that you would like to change?
- How do you make use of the new needs or improvement suggestions that come
up? Is there a difference in physical store and digital sales?
- Do you think that the customers have relatively similar needs and requirements?
It not, how do you relate to these differences?
- How do you think your customers make decisions? What factors are those
decisions based on?
- What customer values do you think your customers prioritize?
- Have you noticed any differences in prioritized customer values then purchasing
in a physical store vs online? How have you noticed it? How do you handle these
differences?
- What does good service mean to you?
- What kind of service do you offer in physical store and what do you offer online?
ii
- What do your customer usually want help with? How does this differ in the
physical store vs online?
- How do you help your customers save time and energy?
- How do you want your customers to perceive you?
Closed questions
I believe that our business is digitalized:
1 2 3 4 5 6 7
Do not
agree at all
Totally
agree
Comment:....................................................................................................................................
......................................................................................................................................................
I think our customers want continuous contact with sellers/company representative
when purchasing:
1 2 3 4 5 6 7
Do not
agree at all
Totally
agree
Comment:....................................................................................................................................
......................................................................................................................................................
What do you think your customers usually need help with?
❏ Consultation on a product
❏ Help to place an order
❏ Received the wrong products
❏ Bought the wrong products
❏ Questions about delivery
❏ Other
Comment:....................................................................................................................................
......................................................................................................................................................
Which communication tools do you prefer? Rank, where 1 is the most preferred option.
❏ Chat
❏ Phone
❏ Video call
❏ Other
iii
Comment:....................................................................................................................................
......................................................................................................................................................
What do you think takes energy when shopping in a physical store? Rank, where 1 is
the most energy-intensive.
❏ Exhausting to get to the store
❏ Long queues to pay
❏ A lot of people/long time to get help
❏ Difficult to find products
❏ Difficult to find information about products
❏ Have to customize the work schedule to the store’s opening hours
❏ Other
Comment:....................................................................................................................................
......................................................................................................................................................
What do you think takes energy when shopping online? Rank, where 1 is the most
energy-intensive.
❏ Slow website
❏ Difficult to navigate the website
❏ Few payment options/complicated to pay
❏ Difficult to receive help/information
❏ Uncertainty when the delivery will arrive
❏ Other
Comment:....................................................................................................................................
......................................................................................................................................................
Which customer values do you think are the most important for customers when buying
in a physical store? Rank, where 1 is most important.
❏ Good delivery options (delivery time, ability to choose when and where the goods
should be delivered, ability to track delivery, price of delivery)
❏ Products are available in the closest store
❏ Advice (access to help, quick responses, adaptation to language and personal
needs)
❏ Simplicity (easy to find in store, easy to pay)
❏ Security (privacy, different payment options)
❏ Reliability (meets expectations)
❏ Relevant information (product descriptions, prices, stock status)
❏ Access to the latest products
❏ Other…………………………………………………………………………………....
Comment:....................................................................................................................................
......................................................................................................................................................
iv
Which customer values do you think are the most important for customers when buying
online? Rank, where 1 is most important.
❏ Good delivery options (delivery time, ability to choose when and where the goods
should be delivered, ability to track delivery, price of delivery)
❏ Ability to change placed orders
❏ Advice (access to help, quick responses, adaptation to language and personal
needs)
❏ Simplicity (easy to find in store, easy to pay)
❏ Security (privacy, different payment options)
❏ Reliability (meets expectations)
❏ Relevant information (product descriptions, prices, stock status)
❏ Access to the latest products
❏ Other…………………………………………………………………………………....
Comment:....................................................................................................................................
......................................................................................................................................................
v
Appendix B - Interview guide customers
Introduction
- We describe our thesis and what we do. Mention approximately how long the
interview will take.
- State that the answers will be anonymous, ask if there is something that can not
be included in the thesis.
- Ask if it is okay if we record the interview.
- Please describe your company, size and so on?
- What role do you have in the company?
- How long have you been working at this position? At the same company?
- Why do you shop at the case company?
- What is your relation with the case company? Long-lasting, close contact?
Shopping online vs in a physical store
- Describe your purchasing process, from you noticing a need for a product to
when you receive the product?
- When do you shop in a physical store and when do you shop online? Why?
- If you do not shop online, what is it that prevents you from doing so? What
would make you do it?
- How have your buying habits in terms of sales channels changed in recent years?
- Have you noticed any changes when purchasing online vs in physical store?
Communication (better/worse)/Time spent (more/less)/ Energy (more/less)
- Has the e-commerce changed your view of the case company? How?- What do
you think of the future? Do you think you will make more of the purchases
online in the future?
Expectations and customer value
- What do you expect from a good supplier? What is most important to you when
shopping?
- What does good service mean to you?
- How personal do you want the service to be? How do you think the case
company can be more personal to you? How do you think you can get the
personal interaction you want online?
- How do you think the e-commerce has affected the service?
- When buying in a physical store, what do you think works well?
- When buying in a physical store, what do you think works less well/what can be
better?
- When buying in a online, what do you think works well?
- When buying in a online, what do you think works less well/what can be better?
- How has the e-commerce affected the time you spend on purchasing?
- What do you think takes up a lot of energy when purchasing in a physical store?
- What do you think takes up a lot of energy when purchasing online?
vi
- What has surprised you when buying online?
Closed questions
I believe that our business is digitalized:
1 2 3 4 5 6 7
Do not
agree at all
Totally
agree
Comment:....................................................................................................................................
......................................................................................................................................................
I want continuous contact with sellers/company representative when purchasing:
1 2 3 4 5 6 7
Do not
agree at all
Totally
agree
Comment:....................................................................................................................................
......................................................................................................................................................
Have you ever needed to contact a seller/support regarding:
❏ Consultation on a product
❏ Help to place an order
❏ Received the wrong products
❏ Bought the wrong products
❏ Questions about delivery
❏ Other
Comment:....................................................................................................................................
......................................................................................................................................................
Does the contact with the case company differentiate depending on what kind of
purchases/products you want to buy?
Comment:....................................................................................................................................
......................................................................................................................................................
......................................................................................................................................................
Which communication tools do you prefer? Rank, where 1 is the most preferred option.
❏ Chat
❏ Phone
❏ Video call
vii
❏ Other
Comment:....................................................................................................................................
......................................................................................................................................................
What do you think takes energy when shopping in a physical store? Rank, where 1 is
the most energy-intensive.
❏ Exhausting to get to the store
❏ Long queues to pay
❏ A lot of people/long time to get help
❏ Difficult to find products
❏ Difficult to find information about products
❏ Have to customize the work schedule to the store’s opening hours
❏ Other
Comment:....................................................................................................................................
......................................................................................................................................................
What do you think takes energy when shopping online? Rank, where 1 is the most
energy-intensive.
❏ Slow website
❏ Difficult to navigate the website
❏ Few payment options/complicated to pay
❏ Difficult to receive help/information
❏ Uncertainty when the delivery will arrive
❏ Other
Comment:....................................................................................................................................
......................................................................................................................................................
Which customer values do you think are the most important when buying in a physical
store? Rank, where 1 is most important.
❏ Good delivery options (delivery time, ability to choose when and where the goods
should be delivered, ability to track delivery, price of delivery)
❏ Products are available in the closest store
❏ Advice (access to help, quick responses, adaptation to language and personal
needs)
❏ Simplicity (easy to find in store, easy to pay)
❏ Security (privacy, different payment options)
❏ Reliability (meets expectations)
❏ Relevant information (product descriptions, prices, stock status)
❏ Access to the latest products
❏ Other…………………………………………………………………………………....
viii
Comment:....................................................................................................................................
......................................................................................................................................................
Which customer values do you think are the most important when buying online? Rank,
where 1 is most important.
❏ Good delivery options (delivery time, ability to choose when and where the goods
should be delivered, ability to track delivery, price of delivery)
❏ Ability to change placed orders
❏ Advice (access to help, quick responses, adaptation to language and personal
needs)
❏ Simplicity (easy to find in store, easy to pay)
❏ Security (privacy, different payment options)
❏ Reliability (meets expectations)
❏ Relevant information (product descriptions, prices, stock status)
❏ Access to the latest products
❏ Other…………………………………………………………………………………....
Comment:....................................................................................................................................
......................................................................................................................................................
TRITA -ITM-EX 2019:503
www.kth.se