Assessing Customer-Perceived Value in Industrial Service Systems

The creation and provision of value is an integral part of competitive service business. Yet, customer-perceived value remains imprecisely understood. In addition, previous research does not provide a conceptualization of value that supports its assessment in the industrial service context. To address these limitations, this study explores how customer-perceived value can be defined and operationalized for use in value assessment within industrial service systems. Our review of the literature shows that value is a complex and multifaceted concept. Therefore the present study proposes a new conceptualization of customer-perceived value, focusing on the perceived difference between the benefits and sacrifices experienced by the customer in relation to a service. Then, through an empirical inquiry of industrial organizations that have taken steps to assess the value perceived by their customers, we identify the constituents of value quantification processes. In addition, we analyze the key challenges pertaining to value assessment in industrial service systems. We conclude that these challenges involve understanding what customers perceive as valuable, acquiring the necessary knowledge of customers’ perceptions, and weighing and quantifying the experienced value. Our analysis of these challenges paves the way for improved practices and tools of value assessment in industrial service.