Selective demarketing: When customers destroy value. (June 2017)

• Record Type: Journal Article
• Authors: Farquhar, Jillian Dawes; Robson, Julie
• Is Part Of: Marketing theory. Volume 17:Number 2(2017)
• Page Start: 165
• Page End: 182
• Publication Date: 2017-06
• Subjects: Operant resources -- resource integration -- selective demarketing -- service systems -- value destruction; Marketing -- Social aspects -- Periodicals; Marketing research -- Periodicals; Marketing research -- Methodology -- Periodicals; Marketing -- Periodicals; 381.01
• DOI: 10.1177/1470593116679872
• Languages: English
• ISSNs: 1470-5931

Abstract

Selective demarketing is a strategic option for a firm 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 conceptualization 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 should develop and deploy higher order operant resources to disengage with or discourage these customers. This study develops a conceptualization of selective demarketing through adopting a firm and systems perspective derived from value destruction.