Selling Advanced Service: The Case of an Agricultural Machinery Company in Japan

Abstract

Recently, many manufacturers have been working diligently to develop advanced services but have struggled to market them. Advanced services are services that support products and customers while leveraging information and communications technology. This paper focuses on the concept of value-based selling as a way to sell advanced services and the capabilities needed to practice value-based selling. Therefore, the purpose of this paper is to examine the effectiveness of value-based selling as a selling activity to facilitate the sale of advanced services and to explore the capabilities associated with value-based selling. This paper is a qualitative case study. Data was collected through in-depth interviews with a director and a senior manager of one Japanese agricultural machinery manufacturer that successfully sold advanced services. The analysis results showed that the manufacturer that successfully sold advanced services practiced value-based selling. In addition, the study found that the manufacturer utilized five capabilities in value-based selling. This paper suggests that manufacturers aiming to sell advanced services should practice value-based selling, and that the five capabilities are important elements for this practice.