Logistics excellence has become a powerful source of competitive differentiation within diverse marketing offerings of world-class firms. Although researchers have suggested that logistics competencies complement marketing efforts, empirical evidence is lacking on what logistics service quality means to customers and whether it has different meanings for separate customer segments. The authors present empirical support for nine related logistics service quality constructs; demonstrate their unidimensionality, validity, and reliability across four customer segments of a large logistics organization; and provide empirical support for a logistics service quality process. Although structural equation modeling offers support for the logistics service quality process across customer segments, the authors find that the relative parameter estimates differ for each segment, which suggests that firms ought to customize their logistics services by customer segments.

Increasingly, organizations are pushed to adopt customer value strategies in order to grow profits and ensure long-term survival. Yet little is known about the dynamic nature of how customers perceive value from suppliers. The authors present findings from a grounded theory study conducted in a business-to-business context that sheds light on the nature of customers' desired value change and related contextual conditions. The authors discover that the phenomenon of customers' desired value change typically occurs in an emotional context, as managers try to cope with feelings of tension. The phenomenon extends well past the change itself into strategies customers use to motivate suppliers to meet their changed needs. Customers' value change provides a reason for customers to seek, maintain, or move away from relationships with suppliers.

This paper reports on a qualitative, grounded theory research project conducted in the United States, Sweden, and The United Kingdom designed to explore logistics innovation as perceived by leaders of logistics service provider firms and logistics business functions within product focused firms. Analysis of 33 depth interviews conducted within seven organizations revealed activities that reflect multiple aspects of being innovative, including: (1) setting a stage for innovation; (2) identifying clues to shifts in what customers value; (3) negotiating, clarifying, and reflecting upon insights; and (4) managing inter‐organizational learning.

Strategy identifies two primary sets of processes through which the firm creates value for its customers by moving goods and information through marketing channels: demand-focused and supply-focused processes. Historically, firms have invested resources to develop a core differential advantage in one or other of these areas-but rarely in both-often resulting in mismatches between demand (what customers want) and supply (what is available in the marketplace). This paper suggests that successfully managing the supply chain to create customer value requires extensive integration between demandfocused processes and supply-focused processes that is based on a foundation of value creation through intraorganizational knowledge management. Integrating demand and supply processes helps firms prioritize and ensure fulfillment based upon the shared generation, dissemination, interpretation and application of real-time customer demand as well as ongoing supply capacity constraints. We draw upon literature in marketing, logistics, supply chain management and strategy to introduce a conceptual framework of demand and supply integration (DSI). We also offer insights for managerial practice and an agenda for future research in the relatively under-researched, but strategically important, area of demand and supply integration.

Today's business customers expect sellers not only to respond effectively to their expressed needs but also to understand their business sufficiently well to proactively address their latent and future needs. Yet, research shows that many firms underestimate, misunderstand, or overlook these customer expectations. To draw clarity to this discrepancy, this study explores the notion of proactive customer orientation and examines the degree to which this capability offers an opportunity for competitive advantage. While research in recent years has explored the role of proactive customer orientation in new product performance, empirical investigation in this stream of market orientation literature is significantly underdeveloped. We assess the impact of the proactive customer orientation construct on value creation by taking a novel approach that examines the proactive customer orientation → value → satisfaction → loyalty chain using data from 800 business customers in India, Singapore, Sweden, the United Kingdom, and the United States. We find that, relative to other firm capabilities, proactive customer orientation is the most consistent driver of customer value across our multinational data set. Results also show robust effects for the interaction of proactive and responsive customer orientation to create superior value. Several moderating conditions further frame the impact of this capability: intense levels of customer value change, a global relationship scope, and a transnational relationship structure. Overall, findings significantly advance the understanding of the proactive dimension within market orientation and provide marketers with insights for voice of the customer processes.