The effects of an articulated customer value proposition (CVP) on promotional expense, brand investment and firm performance in B2B markets: A text based analysis

Sagarika Mishra, Michael T. Ewing, Leyland Pitt

Research output: Contribution to journalArticleScientificpeer-review

3 Citations (Scopus)

Abstract

Using text-based analysis, we search for evidence of articulated customer value propositions (CVP), in annual reports of US B2B firms, and then demonstrate that B2B firms that explicitly emphasize a CVP invest more in their brands, have higher future sales and sales per customer. We also find that CVP has a negative effect on the size of their customer base, perhaps because firms who care about a CVP appear to attract more long-term, loyal customers. Firms that pay more attention to CVP also tend to spend less on advertising and promotion. Future performance, particularly among small to mid-size firms, is positively affected when these firms emphasize CVP, and this also holds especially in less competitive markets. Our findings are based on a large dataset of around 12,000 firm year observations for a 14-year period from 2004 to 2017.
Original languageEnglish
Peer-reviewed scientific journalIndustrial Marketing Management
Pages (from-to)264-275
ISSN0019-8501
DOIs
Publication statusPublished - 2020
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management

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