Publication Details

Sumantri, Y. & Lau, S. K. (2010). Desired and received customer value models in logistics service outsourcing. In U. Laptaned & R. Banomyong (Eds.), Proceedings of the 2nd International Conference on Logistics and Transport & The 1st International Conference on Business and Economics (pp. 0329-1-0329-9). Thailand: UP Organizer and Publication Co. Ltd.


The customer value literature offers diverse meanings of customer value concept. The significant differences among these meanings rest on interpretation or understanding of customer value. Generally, there are two major concepts of customer value. The first is desired value and the second is received value. Desired value refers to the value that customer wants to receive from product-vendor-customer interactions. Received value refers to the value that is actually experienced through product-vendor-customer interactions. Majority of research tends to focus on the received value concept. Although these two concepts are complementary, no research investigating both concepts has been conducted. This paper explores customer value in two models, the desired customer value model and received customer value model. The desired customer value model is investigated in mean-ends approach to describe relation path among logistics service attributes, benefits of logistics service outsourcing and goals of customers. The approach of relation path enables LSPs to identify the ultimate goals of customers and to understand which benefits and attributes of logistics service outsourcing can LSPs employed to achieve these goals. This can make a contribution in designing logistics services to ensure the LSPs do not only focus on logistics service attributes but also to consider the root of value by detecting the ultimate and priority goal of customers. The received customer value model is explored in the give-and-get approach that consists of attributes, benefits, sacrifices and risks of logistics service outsourcing. In this model, LSPs can understand how to maximize net received customer value.