Selective demarketing: When customers destroy value.

Farquhar, J. and Robson, J., 2017. Selective demarketing: When customers destroy value. Marketing Theory, 17 (2), pp. 165-182.

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DOI: 10.1177/1470593116679872

Abstract

Selective demarketing is a strategic option for firms to manage customers who are or are likely to be a poor fit with its offering. Research has investigated related areas such as customer profitability and relationship dissolution but, as yet, studies have not offered a robust conceptualisation of selective demarketing. Based on research into value co-destruction, this study argues that these customers effectively destroy value by misusing or misunderstanding how to integrate their operant resources with those of the firm. As firms exist within a wider service system, this failure to integrate resonates throughout the system. To demarket selectively, firms use higher order operant resources to disengage and discourage these customers. This study offers a novel conceptualisation of selective demarketing and extends research on value destruction through adopting a firm and systems perspective.

Item Type:Article
ISSN:1470-5931
Uncontrolled Keywords:operant resources; resource integration; selective demarketing; service systems; value destruction
Group:Faculty of Management
ID Code:28723
Deposited By: Unnamed user with email symplectic@symplectic
Deposited On:28 Apr 2017 14:31
Last Modified:19 Jul 2017 10:55

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