Abstract
A firm's relationships with its customers contribute to its organizational capital and represent an important part of its shareholder value, so the nature of the value in these relationships needs to be understood well and managed carefully. Marketing managers therefore require techniques that will assess relationship value comprehensively in order to manage their portfolio of customer relationships effectively and in order to argue for a sufficient share of the firm's resources to develop these market based assets for competitive advantage. At present, there is a well-established technique for assessing customer profitability analysis which assigns revenues, expenses, assets and liabilities to customers and algebraically sums their value to reach a profitability figure for each customer.
However, even in its more sophisticated forms, the primary focus of customer profitability analysis as it is currently used tends to be the management of profitability by way of the management of existing situations, and particularly of cost, rather than the management of the value that is potentially available in the future from the intangible aspects of a relationship. Without knowledge of the dimensions of intangible value in the relationship, the technique is restricted to assessing those relationship aspects that can be easily quantified in dollar terms by the modification of existing accounting information.
This leaves a gap in the available toolbox for managers in assessing relationship value, because much of the value of a relationship may be in its intangible aspects, which at present can not be readily assessed other than by a manager's experience and intuition. In order to develop techniques specifically for intangible value assessment, it is necessary to understand the dimensions of this intangible value. Development of scales to measure the dimensions of this intangible relationship value and development of an understanding of its structure is thus a useful research goal, which is supported by calls in the literature for the quantification of market-based assets and their value Elucidation of the dimensions and structure of intangible relationship value is therefore the goal of this thesis.
Although there are recent reports in the literature of studies that include the intangible aspects of relationship value, most of those that have been conducted in a business-to-business context appear to be primarily concerned with investigating the drivers of value rather than its dimensions, and those that deal with the business-to-consumer context describe techniques to assess the aggregated value of many consumers, rather than an individual buyer as is required for business-to-business applications. The thesis therefore proposes a conceptual framework, synthesised from the intellectual capital literature, which provides a set of six dimensions and a structure of intangible business-to-business buyer-seller value. The six proposed dimensions are unique in that they cover the human aspects of the relationship extensively.
The thesis describes the testing of the proposed conceptual framework. This was achieved primarily by the use of the structural equation modelling technique on survey data that was collected from managers in the New Zealand manufacturing industry, following qualitatively analysed interviews with managers. The tests support the framework and its value dimensions. The thesis therefore concludes that this research provides a contribution to the literature on value assessment and that future research should be conducted to validate its findings.