Uncovering Executive Prioritization: Evaluating Customer Value Propositions with the Pairwise Comparison Method


Creating customer value is a managerial priority. The role of executives is to choose what type(s) of customer value to propose to customers in the form of a customer value proposition (CVP). The decision is a complex one, because executives have to compare and weigh concrete, measurable elements alongside abstract, subjective ones. The purpose of this paper is to identify themes relating to the use of the pairwise comparison method (PCM) as a tool for prioritizing customer value dimensions from the perspective of retail executives. As a result, this paper first highlights examples of PCM outputs, and second, identifies four themes that capture executive views of the PCM.

Share and Cite:

Yrjölä, M. (2015) Uncovering Executive Prioritization: Evaluating Customer Value Propositions with the Pairwise Comparison Method. Journal of Service Science and Management, 8, 1-13. doi: 10.4236/jssm.2015.81001.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] Balasubramanian, S., Raghunathan, R. and Mahajan, V. (2005) Consumers in a Multichannel Environment: Product Utility, Process Utility, and Channel Choice. Journal of Interactive Marketing, 19, 12-30. http://dx.doi.org/10.1002/dir.20032
[2] Gallarza, M.G., Gil-Saura, I. and Holbrook, M.B. (2011) The Value of Value: Further Excursions on the Meaning and Role of Customer Value. Journal of Consumer Behaviour, 10, 179-191.
[3] Vaidya, O.S. and Kumar, S. (2006) Analytic Hierarchy Process: An Overview of Applications. European Journal of Operational Research, 169, 1-29. http://dx.doi.org/10.1016/j.ejor.2004.04.028
[4] Anderson, P.M. (1985) Association of Shopping Center Anchors with Performance of a Nonanchor Specialty Chain’s Performance. Journal of Retailing, 61, 61-67.
[5] Finn, A. and Louviere, J.J. (1996) Shopping Center Image, Consideration, and Choice: Anchor Store Contribution. Journal of Business Research, 35, 241-251.
[6] Rintamäki, T., Kuusela, H. and Mitronen, L. (2007) Identifying Competitive Customer Value Propositions in Retailing. Managing Service Quality, 17, 621-634. http://dx.doi.org/10.1108/09604520710834975
[7] Webster Jr., F.E. (1994) Market-Driven Management. Using the New Marketing Concept to Create a Customer-Oriented Company. John Wiley and Sons, New York.
[8] Anderson, J.C., Narus, J.A. and Van Rossum, W. (2006) Customer Value Propositions in Business Markets. Harvard Business Review, 84, 91-99.
[9] Selden, L. and MacMillan, I.C. (2006) Manage Customer-centric Innovation—Systemically. Harvard Business Review, 84, 108-116.
[10] Johnson, M.W., Christensen, C.M. and Kagermann, H. (2008) Reinventing Your Business Model. Harvard Business Review, 50-59.
[11] Saarijärvi, H., Mitronen, L. and Yrjölä, M. (2014) From Selling To Supporting—Leveraging Mobile Services in the Context of Food Retailing. Journal of Retailing and Consumer Services, 21, 26-36.
[12] Carmone, F.J., Kara, A. and Zanakis, S.H. (1997) A Monte Carlo Investigation of Incomplete Pairwise Comparison Matrices in AHP. European Journal of Operational Research, 102, 538-553.
[13] Saaty, T.L. (1994) The Analytic Hierarchy Process, Series VI. RWS Publication, Pittsburgh.
[14] Sheth, J.N., Newman, B.I. and Gross, B.L. (1991) Why We Buy What We Buy: A Theory of Consumption Values. Journal of Business Research, 22, 159-170. http://dx.doi.org/10.1016/0148-2963(91)90050-8
[15] Woodruff, R.B. (1997) Customer Value: The Next Source for Competitive Advantage. Journal of the Academy of Marketing Science, 25, 139-153. http://dx.doi.org/10.1007/BF02894350
[16] Gale, B.T. (1994) Managing Customer Value: Creating Quality and Service That Customers Can See. The Free Press, New York.
[17] Zeithaml, V. (1988) Consumer Perceptions of Price, Quality and Value: A Means-End Model and Synthesis of Evidence. Journal of Marketing, 52, 2-22. http://dx.doi.org/10.2307/1251446
[18] Holbrook, M.B. (1999) Consumer Value: A Framework for Analysis and Research. Routledge, London. http://dx.doi.org/10.4324/9780203010679
[19] Babin, B.J., Darden, W.R. and Griffin, M. (1994) Work and/or Fun: Measuring Hedonic and Utilitarian Shopping Value. Journal of Consumer Research, 20, 644-656. http://dx.doi.org/10.1086/209376
[20] Holbrook, M.B. and Hirschman, E.C. (1982) The Experiential Aspects of Consumption: Fantasies, Feelings, and Fun. Journal of Consumer Research, 9, 132-140. http://dx.doi.org/10.1086/208906
[21] Khalifa, A.S. (2004) Customer Value: A Review of Recent Literature and an Integrative Configuration. Management Decision, 42, 645-666. http://dx.doi.org/10.1108/00251740410538497
[22] Smith, J.B. and Colgate, M. (2007) Customer Value Creation: A Practical Framework. Journal of Marketing Theory and Practice, 15, 7-23. http://dx.doi.org/10.2753/MTP1069-6679150101
[23] Bettman, J.R. (1979) An Information Processing Theory of Consumer Choice. Addison Wesley, Boston.
[24] Carpenter, J.M. (2008) Consumer Shopping Value, Satisfaction and Loyalty in Discount Retailing. Journal of Retailing and Consumer Services, 15, 358-363. http://dx.doi.org/10.1016/j.jretconser.2007.08.003
[25] Seiders, K., Berry, L.L. and Gresham, L.G. (2000) Attention, Retailers! How Convenient Is Your Convenience Strategy? Sloan Management Review, 41, 79-90.
[26] Turley, L.W. and Milliman, R.E. (2000) Atmospheric Effects on Shopping Behavior: A Review of the Experimental Evidence. Journal of Business Research, 49, 193-211.
[27] Carbone, L.P. (2004) Clued In: How to Keep Customers Coming Back Again and Again. Prentice-Hall, Upper Saddle River.
[28] Flint, D.J. (2006) Innovation, Symbolic Interaction and Customer Valuing: Thoughts Stemming from a Service-Dominant Logic of Marketing. Marketing Theory, 6, 349-362.
[29] Zahedi, F. (1986) The Analytic Hierarchy Process—A Survey of the Method and Its Applications. Interfaces, 16, 96-108. http://dx.doi.org/10.1287/inte.16.4.96
[30] Christiansen, T., Berry, W.L., Bruun, P. and Ward, P. (2003) A Mapping of Competitive Priorities, Manufacturing Practices, and Operational Performance in Groups of Danish Manufacturing Companies. International Journal of Operations and Production Management, 23, 1163-1183.
[31] Kim, Y.P., Yoon, C.H. and Yun, D.K. (2005) Determining Customer-Oriented Technical Importance Ratings: An Evaluative Study. International Journal of Quality and Reliability Management, 22, 393-409.
[32] Carmone, F.J., Kara, A. and Zanakis, S.H. (1997) A Monte Carlo Investigation of Incomplete Pairwise Comparison Matrices in AHP. European Journal of Operational Research, 102, 538-553.
[33] Saaty, T.L. (1977) A Scaling Method for Priorities in Hierarchical Structures. Journal of Mathematical Psychology, 15, 234-281. http://dx.doi.org/10.1016/0022-2496(77)90033-5
[34] Saaty, T.L. (1980) The Analytic Hierarchy Process. McGraw-Hill, New York.
[35] Saarijärvi, H., Kuusela, H. and Spence, M.T. (2012) Using the Pairwise Comparison Method to Assess Competitive Priorities within a Supply Chain. Industrial Marketing Management, 41, 631-638.
[36] Saaty, T.L. and Vargas, L.G. (2001) Models, Methods, Concepts and Applications of the Analytic Hierarchy Process. Kluwer Academic Publishers, Norwell. http://dx.doi.org/10.1007/978-1-4615-1665-1
[37] Dyer, R.F., Forman, E.H. and Mustafa, M.A. (1992) Decision Support for Media Selection Using the Analytic Hierarchy Process. Journal of Advertising, 21, 59-72.
[38] Wind, Y. (1987) An Analytic Hierarchy Process Based Approach to the Design and Evaluation of a Marketing Driven Business and Corporate Strategy. Mathematical Modelling, 9, 285-291.
[39] Wind, Y. and Saaty, T.L. (1980) Marketing Applications of the Analytic Hierarchy Process. Management Science, 26, 641-658. http://dx.doi.org/10.1287/mnsc.26.7.641
[40] Harker, P.T. and Vargas, L.G. (1987) The Theory of Ratio Scale Estimation: Saaty’s Analytic Hierarchy Process. Management Science, 33, 1383-1403. http://dx.doi.org/10.1287/mnsc.33.11.1383
[41] Searcy, D.L. (2004) Aligning the Balanced Scorecard and a Firm’s Strategy Using the Analytic Hierarchy Process. Management Accounting Quarterly, 5, 1-10.
[42] Saaty, T.L. (2003) Decision-Making with the AHP: Why Is the Principal Eigenvector Necessary. European Journal of Operational Research, 145, 431-446. http://dx.doi.org/10.1016/S0377-2217(02)00227-8
[43] Miller, C.C., Burke, L.M. and Glick, W.H. (1998) Cognitive Diversity among Upper-Echelon Executives: Implications for Strategic Decision Processes. Strategic Management Journal, 19, 39-58.
[44] Bantel, K.A. and Jackson, S.E. (1989) Top Management and Innovations in Banking: Does the Composition of the Top Team Make a Difference? Strategic Management Journal, 10, 107-124.
[45] Lant, T.K., Milliken, F.J. and Batra, B. (1992) The Role of Managerial Learning and Interpretation in Strategic Persistence and Reorientation: An Empirical Exploration. Strategic Management Journal, 13, 585-608. http://dx.doi.org/10.1002/smj.4250130803
[46] Wiersema, M.F. and Bantel, K.A. (1992) Top Management Team Demography and Corporate Strategic Change. Academy of Management Journal, 35, 91-121. http://dx.doi.org/10.2307/256474
[47] Raghubir, P., Roberts, J., Lemon, K.N. and Winer, R.S. (2010) Why, When, and How Should the Effect of Marketing Be Measured? A Stakeholder Perspective for Corporate Social Responsibility Metrics. Journal of Public Policy and Marketing, 29, 66-77. http://dx.doi.org/10.1509/jppm.29.1.66

Copyright © 2023 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.