Customer value creation through product quality and customer usage of product functions: Managing the industry shift towards smartphones

B. Frank, B. Herbas Torrico, T. Enkawa

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This article investigates how the industry shift from traditional cell phones to smartphones has impacted the process of customer value creation and thus caused the rapid demise of industry leaders and the rise of new global leaders. It explores this mechanism within the chain from quality-induced and customer-co-created product functionality via hedonic, symbolic, and utilitarian customer value to customer loyalty. Based on consumer data from Bolivia and Japan, the study illustrates that the greater market success of smartphones than traditional cell phones can mainly be explained by higher hedonic and symbolic value creation. This additional value creation is caused by higher product quality and greater opportunities for customers to co-create value through active usage of customized product functions.

Original languageEnglish
Title of host publication2012 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2012
PublisherIEEE Computer Society
Pages1507-1511
Number of pages5
ISBN (Print)9781467329453
DOIs
Publication statusPublished - 2012 Jan 1
Event2012 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2012 - Hong Kong, China
Duration: 2012 Dec 102012 Dec 13

Publication series

NameIEEE International Conference on Industrial Engineering and Engineering Management
ISSN (Print)2157-3611
ISSN (Electronic)2157-362X

Conference

Conference2012 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2012
CountryChina
CityHong Kong
Period12/12/1012/12/13

Keywords

  • Customer value creation
  • product functions
  • quality
  • radical change
  • smartphones

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Industrial and Manufacturing Engineering
  • Safety, Risk, Reliability and Quality

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  • Cite this

    Frank, B., Torrico, B. H., & Enkawa, T. (2012). Customer value creation through product quality and customer usage of product functions: Managing the industry shift towards smartphones. In 2012 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2012 (pp. 1507-1511). [6837998] (IEEE International Conference on Industrial Engineering and Engineering Management). IEEE Computer Society. https://doi.org/10.1109/IEEM.2012.6837998