A Value Proposition Development Framework for Industrial Service

Abstract

Value proposition is a key concept in the research on service and in the practice of service management. Value propositions are described as tools to communicate and motivate a joint value creation opportunity among involved organizations and stakeholders. The future orientation and intangibility of service places value proposition as the key element of competitive service business. However, the concept of value proposition if often vaguely defined, the underlying theoretical concepts missing, and the managerial practices to create value propositions unexplored. This study investigates how value-focused industrial companies build value propositions by conducting customer value research. Building on our findings, we suggest theoretical and managerial frameworks for value proposition development.