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Assessing Customer Value-in-Use
of Products and Services
Dr. Veronica Martinez
Cambridge Service Alliance
Cambridge University
United Kingdom
Presentation for ISSIP
22nd Jan 2014
Agenda
• Objective
• How we did it
• Findings & Lessons learnt
• Novelty and Impact from this research
To develop a method to assess customer value-in-use of
product- service systems.
Research Objective
Is the value that the Customer gets through the experience,
consumption and use of a product-service offering.
Value-in-Use
Repertory Grid
• Is a mathematical method for mapping personal constructs
“concepts”, extensively applied in psychology [Kelly, 1955].
• My team and I adapted it to assess Customer Value in-Use of
Product- Service Offerings. New application into services. [Martinez et al, 2011; Goffin et al, 2012; Raja et al, 2013; Toossi et al 2013]
Benefits
• Richness of value data by comparing and contrasting three
Providers of P+S Offerings.
• Get inside customers heads, explore experiences and
feelings
5
6
Martinez et al, (2011)
Which & What
1). Could you think of any ways in WHICH two of these
suppliers are similar to each other and different from the
third in terms of the outcomes you get?
2). WHAT do the two have in common, as opposed to the
third one?
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Example
Cards
8
WHICH question
Ranking scale: 1 to 6 ; 6 highest
1 “SNICKERS”
5 “TWIX”
6 “MARS”
WHAT question: pole & counter pole
SUPPLIERS
Pole
1
Snickers
2 3 4 5
Twix
6
Mars Counter Pole
Soft * 5 *1 * 6 Crunchy
* * *
Industrial Engagement
Asset
Management Repair your assets through
optimization of inventory &
simplification of
transactions through a
single point of contact for
all repairs.
ENGINES
INSULATORS
MEDICAL EQUIP.
COINS PHARMACEUTICAL
Industrial Engagement
Customer End-users Decision AMP Total
Engines 4 4 1 9
Insulators 4 3 1 8
Medical Equip. 4 5 9
Coins 5 2 1 8
Pharmaceutical M. 6 4 1 11
Total 45
Data Analysis
Inter-code reliability • Cross analysis between 2 people and then other two different researchers
to reach higher levels of reliability on the codes identified
Basic • Frequency Analysis
• Average Normalised Variability- ANV
Advanced
• Honey technique
[Martinez et al, 2011; Goffin et al, 2012; Raja et al, 2013; Toossi et al 2013]
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Data analysis method
12
Data analysis results:
Frequency & ANV
Categories of constructs from Repertory Grid data collection
Data analysis results:
Frequency, High Index-Honey
Honey content analysis for the key attributes of customer value-in-use
Data analysis results:
High Index-Honey
Example of a construct category with High index-honey- bipolar construct.
Before outsourcing asset maintenance
The picture prior to outsourcing is one of reactive maintenance:
– Maintenance was “challenging”, “awful” and “dreadful”. This had become the norm overtime.
– Breakdowns were common and some machine lines were achieving 35% overall equipment effectiveness (OEE) - “and that’s just outrageous”.
– Maintenance was “in excess of 90% reactive”.
After outsourcing service provision
Successes to date:
• “to date there’s been a saving of £200,000, so there is good work there to show that they can save money on paper”.
• “they have stood up to them and said we want a discount, they’ve shaved hundreds of thousands of pounds off the cost”
• ‘”good on getting the money side of it down and being good for the Company from a customer perspective”
Overall picture
• Very good at process improvement.
• Getting rid of obsolescence and tidying up stores.
• Repairs are good.
• Ordering becomes smoother as move along the learning curve.
• It has impressed the management team of all these companies with its potential to make a big impact in their businesses.
• Paradox between the convenience and perceived loss of control
A Conceptual Model
End-User and Decision-Maker Needs
Lessons learnt & novelty
• Frequency, ANV and Honey Index results bring different results
• To assess the customer satisfaction the Honey index yield more accurate results
• Customers have difficulty in articulating their feelings and experiences in customer satisfaction.
• Our new method supports the elicitation of constructs that customers perceived and experience as the most important to them.
• In value-in-use, is context specific, evolves overtime, in a B2B environment varies from End-user to Decision-makers
• Novelty – Methodological + Operationalization of the value-in-use
conept
References
– Goffin K., Raja J. Z., Claes B., Szwejczewski M. and Martinez V. (2012); “Rigour and relevance in
qualitative supply chain research- lessons from applying repertory grid technique”; International
Journal of Physical Distribution and Logistics Management; Vol. 42 (8/9)
– Kelly, G. A. (1955). The psychology of personal constructs . New York: Norton. Reprinted by
Rutledge (London).
– Macdonald E. K., Wilson H., Martinez V. and Toossi A. (2011); “Assessing value-in-use: a
conceptual framework and exploratory study”; Industrial Marketing Management; Vol. 40 (5):
671-682
– Martinez V., Lockett H. and Toossi A. (2011); “Assessing the value-in-use of product-service
systems: a step by step guide”, ISBN 978-0-9571374-0-0
– Raja J. Z., Bourne D. J., Goffin K., Cakkol M. and Martinez V. (2013);”Achieving customer
satisfaction through integrated products and services: An exploratory study”; Journal of Product
Innovation Management; Vol. 30, (6):1128-1144
– Toossi A., Lockett H. Martinez V. and Raja J. Z. (2013); “Assessing the Value Dimensions of
Outsourced Maintenance Services”; Journal of Quality in Maintenance Engineering; Vol. 19(4)
21
Thank you
Veronica Martinez
Cambridge Service Alliance
http://www.cambridgeservicealliance.org/
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