Do customer profitability analyses pay? A survey of large Norwegian companies

Helgesen, Øyvind; Sandanger, Helge Mykkeltveit; Sandbekk, Joakim

doi:10.1504/ijmfa.2018.095970

Cited by 7 publications

(6 citation statements)

References 51 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The results of this study support the hypothesis that enterprises using more customer accounting information will have higher operational efficiency. This result is consistent with the study of Al-Mawali et al (2012), andHelgesen et al (2018) when it is suggested that customer accounting information with detailed analysis of profit by customer, customer group Customer service, or customer life cycle assessment, considering customer as an asset of an enterprise will bring useful information to managers in making business decisions, thereby contributing to improving the operational efficiency of enterprises. For Vietnamese enterprises, although customer accounting is still a new category, it has made certain contributions to improving operational efficiency.…”

Section: Effect Of Competitive Intensity (Com) On Customer Accounting...supporting

confidence: 88%

“…Research has found a relationship between the intensity of competition and the perceived value of customer accounting (Guilding and McManus, 2002), customer accounting has an impact on the level of competition and market orientation of enterprises (Lord et al, 2007), the benefits of client accounting on performance (Tanima and Bates, 2015;Al-Mawali et al, 2012;McManus, 2013;Helgesen et al, 2018, Prakoso et al, 2023. In addition, some studies show the opposite results, depending on the context, customer accounting can hurt operational performance (Baines and Langfield-Smith, 2003;Cadez and Guilding, 2008); O'Connor and Cheung, 2007).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Customers Accounting Usage and Organizational Performance: The Mediating Role of Customers Accounting

Nguyen¹,

Le²

2023

J. Professional Business Review

View full text Add to dashboard Cite

Purpose: The study aims to examine the mediating role of customer accounting information used in the relationship between the intensity of competition, marketing orientation, customer accounting, and operational performance in the case of Vietnamese enterprises. Theoretical framework: The research model is inherited from Guilding and McManus (2002), Gupta and Lehmann (2003), and Pfeifer et al. (2005) about the usefulness of customer accounting information to business operational performance. Design/methodology/approach: The data were collected by using a questionnaire sent to Vietnamese accountants and business managers by email. 324 valid questionnaires were analyzed in this study. The data were analyzed using the structural equation model (SEM). Findings: The results have shown a positive impact between market orientation and the competitive intensity of enterprises on the use of customer accounting information. The research also indicates that customer accounting information and the perceived benefits of using customer accounting information can support the development of business strategies to help enterprises achieve outstanding efficiency. Research, Practical & Social Implications: The research evaluated the impact of the use of customer accounting on the performance of companies with the intermediary role of customer accountants with the intensity of competition, market orientation, and the performance of enterprises. Based on the results, some solutions are proposed to apply customer accounting in Vietnamese enterprises to improve operational performance. Originality/value: The originality of this research is the role model of customer accounting information used as a mediator of the influence of customer accounting information usage on organizational performance. These findings can be helpful for Vietnamese enterprises to use customer accounting information to improve their business performance.

show abstract

Section: Effect Of Competitive Intensity (Com) On Customer Accounting...supporting

confidence: 88%

Section: Introductionmentioning

confidence: 99%

Customers Accounting Usage and Organizational Performance: The Mediating Role of Customers Accounting

Nguyen¹,

Le²

2023

J. Professional Business Review

View full text Add to dashboard Cite

show abstract

“…Utgangspunktet for et økonomisk styringssystem er at det skal vaere kostnadseffektivt (Cooper & Kaplan, 1999;Helgesen, Sandanger & Sandbekk, 2018;Sahlin & Angelis, 2019). Artikkelens formål er å analysere sammenhengen mellom foretaks bruk av «balansert målstyring» og foretaksprestasjoner.…”

Section: Innledningunclassified

9. Lønner det seg å bruke «balansert målstyring»(BMS)?

Engeskar¹,

Helgesen²,

Wennersberg³

2020

Digital Samhandling

Self Cite

View full text Add to dashboard Cite

SAMMENDRAG I artikkelen analyserer vi sammenhengen mellom foretaks bruk av «BMS» og foretaksprestasjoner. Tre hypoteser testes; H1: Brukere av BMS oppnår bedre foretaksprestasjon enn ikke-brukere; H2: Foretaksstørrelsen av BMS-brukere er større enn for ikke-brukere; og H3: Bruksgrad av BMS og foretaksprestasjon er positivt korrelert. Data fra foretak i Møre og Romsdal gir støtte til alle hypotesene. Det pekes på ledelsesmessige implikasjoner, begrensninger, temaer for videre forskning, og det tilbys en konklusjon.

show abstract

“…Business performance may be described, defined and measured in various ways (Eccles 1991;Neely et al 1995;Kaplan and Norton 2004;Richard et al 2009). With respect to the analyses of relationships between managerial accounting tools (such as CPA) and business performance, former studies have applied different performance measures such as (perceived) usefulness (e.g., Mia and Chenhall 1994;Lev et al 2010;Belso-Martínez et al 2013;Costantini and Zanin 2017), (perceived) managerial merit (e.g., Guilding and McManus 2002;Lord et al 2007;Havelin et al 2013;Tanima and Bates 2015), multiple performance measures (Govindarajan 1984;Gupta and Govindarajan 1984;Neely and Adams 2002;Bjørnenak 2013), or organizational performance as an all-embracing measure (Varadarajan and and Ramanujam 1990;Richard et al 2009;Al-Mawali et al 2012;Helgesen et al 2018). This paper uses perceived managerial merit as a proxy (measure) of performance.…”

Section: Perceived Managerial Merit (Performance)mentioning

confidence: 99%

“…Most attention has been directed to customer profitability accounting and analyses, cf. scientific articles, management accounting textbooks, and teaching cases (e.g., Anandarajan and Christopher 1987;Howell and Soucy 1990;Storbacka 1995;McManus and Guilding 2008;Atkinson et al 2012;Horngren et al 2015;Fang et al 2016;Helgesen et al 2018). The extent of managerial use of customer profitability analyses (CPA) has been addressed in a number of studies, however, usually at an overall level (an all-embracing approach), (e.g., Ratnatunga et al 1988;Abdel-Kader and Luther 2006;Helgesen and Voldsund 2009;Bjørnenak 2013).…”

Section: Introductionmentioning

confidence: 99%

5. The use and perceived managerial merit of customer profitability models in Norway

Helgesen¹,

Sandanger²,

Sandbekk³

2019

Modeller

Self Cite

View full text Add to dashboard Cite

HELGE MYKKELTVEIT SANDANGERDekkmann AS JOAKIM SANDBEKK PricewaterhouseCoopers (PwC)SAMMENDRAG Formålet med dette kapitlet er å studere bruksgrader, nyttenivåer og sammenhenger mellom bruk og oppfattet nytte av kundelønnsomhetsmodeller. En litteraturgjennomgang avdekker fem modeller: lønnsomhetsanalyser av enkeltkunder, kundesegmentmodeller, livsløpsmodeller, verdsettingsmodeller og modeller der kunder sees på som investeringsobjekter. I tillegg studeres kundelønnsomhetsanalyser som et overordnet eller helhetlig begrep. På dette overordnede nivået er potensiell nytte tatt med i tillegg til bruk og oppfattet nytte. Konteksten er store norske selskap. Totalt ble 437 foretak invitert til å delta i en markedsundersøkelse. Det var 171 som svarte på spørreskjemaet, en responsrate på 39 %. Det avdekkes interaksjonseffekter mellom bruk, nytte og potensiell nytte, dvs. jo større bruk, desto større nytte og vice versa. For alle fem modellene finnes positive sammenhenger mellom bruk og oppfattet nytte, men to modeller peker seg ut: (1) kundesegmentmodeller og (2) kundelønnsomhetsanalyser av enkeltkunder. Imidlertid har kundelønnsomhetsanalyser av enkeltkunder sterkere relasjon til oppfattet og potensiell nytte på overordnet nivå enn det kundesegmentmodeller har. Et annet funn er at respondentene ikke sondrer mellom følgende modeller: livsløpsmodeller, verdsettingsmodeller og modeller der kunder sees på som investeringsobjekter. Artikkelen drøfter funnene, deres ledelsesmessige implikasjoner, peker på områder for videre forskning og tilbyr en konklusjon.ABSTRACT The purpose of this paper is to study the extent of use, the level of perceived managerial merit and the relationships between use and perceived managerial merit of CPA-models. A literature review identifies five CPA-models: profitability models ØYVIND HELGESEN, HELGE MYKKELTVEIT SANDANGER AND JOAKIM SANDBEKK | MODELLER. FJORDANTOLOGIEN 2019 114 of individual customers, customer segment models, customer lifetime models, customer valuation models, and models of customers as investments. In addition, CPA at an overall level (holistic notion) is analysed. At this level, perceived potential managerial merit is included in addition to use and perceived managerial merit. The context is large Norwegian companies. A total of 437 companies were invited to answer a questionnaire, of which 171 participated -a response rate of about 39%. There seems to be interaction effects between use and perceived merit, the higher the use, the higher the perceived merit and vice versa. Regarding all the five CAP-models, positive relationships are found between use and perceived merit, however, the strengths of the relationships are highest for customer segment models and profitability models of individual customers. However, the findings indicate that profitability models of individual customers have the strongest relationship with perceived managerial merit and perceived potential merit at the overall level. Another result indicates that managers have problems distinguishing between the foll...

show abstract

Do customer profitability analyses pay? A survey of large Norwegian companies

Cited by 7 publications

References 51 publications

Customers Accounting Usage and Organizational Performance: The Mediating Role of Customers Accounting

Customers Accounting Usage and Organizational Performance: The Mediating Role of Customers Accounting

9. Lønner det seg å bruke «balansert målstyring»(BMS)?

5. The use and perceived managerial merit of customer profitability models in Norway

Contact Info

Product

Resources

About