Defining customer value in disruptive business models

Abstract: Customer value is a relatively complex concept and is very dependent on the perspective that is taken as well as on the context of the value offer. The aim of this thesis is to identify how customer value is defined in more dynamic environments, specifically in the context of disruptive business models. The case company in the thesis is Lynk & Co. They offer hybrid-electric cars in connection with subscription-based car ownership and are therefore considered to have a potentially disruptive business model. The research was conducted through seven semi-structured interviews with employees in different roles at the company. The collected data was analysed with a thematic analysis in order to identify different dimensions to value as well as factors that might impact it in this context. The findings indicate that functional, cost and experiential values are important to the customers of the case company. Moreover, the results indicate that the social values that the innovation can offer are important. This means that the social context created through for example the customer’s network would have a strong impact on what the customer perceives to be of value in a disruptive context. Furthermore, the value perception is subjected to a high degree of uncertainty and lack of context, such as few competitors, with disruptive innovations, which makes it difficult for customers to evaluate value and might mean that other more familiar factors such as the customer’s network become more important.