A1 Journal article (refereed), original research

Opportunities for value-based selling in an economic crisis: Managerial insights from a firm boundary theory


Open Access publication

LUT Authors / Editors

Publication Details
Authors: Keränen Joona, Salonen Anna, Terho Harri
Publisher: Elsevier
Publication year: 2020
Language: English
Related Journal or Series Information: Industrial Marketing Management
Volume number: 88
Start page: 389
End page: 395
Number of pages: 7
ISSN: 0019-8501
eISSN: 1873-2062
JUFO-Level of this publication: 2
Open Access: Open Access publication

Abstract

When economic
crises disrupt markets and stifle sales, business-to-business (B2B) vendors are
often tempted to respond by offering temporary price reductions to maintain
sales and empathize with the customers’ plight. This, however, may be a
suboptimal strategy in plain sight. In this article, we propose an alternative
approach, and suggest that value-based selling is a particularly suitable and
mutually beneficial, yet often counter-intuitive strategy to selling in an
economic crisis. We draw on the well-established organizational boundary theory
to explain why economic crises should make customers more receptive to boundary
changes that support value-based selling. Subsequently, we develop managerial
insights on how vendors can capitalize on these opportunities by demonstrating how boundary changes can help customers reduce immediate
costs, while
retaining their competitiveness to grow when the economy
recovers.


Last updated on 2020-31-08 at 13:34