The theme of this issue is DX and Dynamic Pricing. One of the reasons we chose this theme is that there have not been many opportunities for discussion of the digitalization of pricing in a manner that is open to non-experts of the area. In the past, this magazine has featured a number of special topics on digital marketing, but has never focused on digital pricing. For this reason, we decided to pick dynamic pricing in this issue. The second reason is, now that we have covered digitalization in various aspects of marketing, we believe that the next important theme to be discussed is the digitalization of the entire business, or DX. For these two reasons, we have chosen DX and dynamic pricing as the special topic. This issue contains four papers. For dynamic pricing, the two papers in this issue include a review paper and an empirical study, and for DX, the two papers include a theoretical study and a case study, with the latter verifying the framework proposed in the former.

The marketing environment encompassing companies has changed significantly since the late 1990s owing to the rapid progress of information technology. This especially includes the popularization of the Internet, increase in digital commodities and collectable information, and development of artificial intelligence technology. Pricing strategies adopted by companies have also changed against the background of these changes in the marketing environment. As a result, dynamic pricing and subscription have become two major pricing strategies in recent years. This study summarizes the major pricing strategies that have been adopted since the late 1990s when information technology began to progress and shows the genealogy of pricing starting from the pricing strategies presented by Tellis (1986). We predict the future of pricing strategies based on the background of pricing strategies adopted in recent years and the genealogy of pricing.

This paper is an exploratory study of the characteristics of customer satisfaction with subscription services. In the subscription market, there is a phenomenon where people continue to sign up for subscriptions despite low usage. In this paper, the author explored the relationship between service usage and customer satisfaction based on the data from Oricon’s customer satisfaction survey. The findings showed that there are thresholds at which satisfaction fluctuates with habitual use, i.e., daily and weekly, and that satisfaction is greatly affected when it falls below a specific line, e.g. once a week. The findings also showed that there is a threshold for ideal service usage depending on the service type, that long-term continuity does not strongly affect satisfaction, and that unit price is not related to satisfaction.

This paper proposes a dynamic process model for digital transformation (DX). First, we set the scope of current research by defining DX as a process through which digital technologies are used, new customer value is pursued as its goal, and corporate transformation is implemented. Based on a systematic literature review on DX, we then point out the dearth of knowledge on the dynamic processes inherent in DX. Then, we propose a dynamic process model by integrating the insights accumulated in dynamic capability research in the fields of strategy and organizational behavior with extant knowledge on resource integration for value co-creation among various resource integrators developed in service-dominant logic research in the marketing area. By employing a two-dimensional matrix based on “platform” and “stakeholder”, the proposed model attempts to delineate four “stages” and explain two stepwise “paths”, both of which help capture the dynamic nature of DX.

This paper takes a case-based approach to describe the dynamic processes inherent in digital transformation (DX). Using a theoretical modeling approach, Fujikawa, Kondo, and Imai (2022) proposed a dynamic process model in the form of a two-dimensional matrix with two axes (platform and stakeholder), four quadrants (stages) and two transitions (paths). Based on a theoretical sampling approach, the current study identifies four cases (Askul, Pioneer, Komatsu, and Nihon Kotsu) as “DX cases that went through different stages and paths” and analyzes these examples as revelatory and longitudinal cases. The paper explores the possibility of integrating new insights and logic detected in the case analyses back into the conceptual model.

As an important psychological state, the sense of power has a widespread impact on consumers’ cognition, emotion, and behavior. In recent years, there has been a gradual increase in research on the impact of consumer sense of power. However, despite this growing literature, there has been no systematic review of work in this field. Therefore, there is a need for organization of previous research findings and clarification of future research topics. This paper reviews previous research based on the following five streams: (1) sense of power and compensatory consumption, (2) sense of power and communication effects of advertising, (3) sense of power and traveling, (4) sense of power and sustainable development goals (SDGs), and (5) sense of power and social crowding. The paper proposes that future research should (a) examine compensatory word of mouth (WOM), (b) focus on the location and visual elements of advertisements, and (c) consider the diversity of crowded environment settings.

Implicit theories refer to beliefs that individuals hold regarding the malleabilities of human traits or abilities. There are two types of implicit theories: “incremental theory” (the belief that traits or abilities can substantially change through effort and time) and “entity theory” (the belief that traits or abilities are relatively unchanging). Outside the field of marketing, it has been argued that individuals who believe in incremental theory show different tendencies in thinking and behavior compared to those who believe in entity theory. In recent years, there has been a gradual increase in research exploring the influences of implicit theories on consumer behavior. There are three main streams in consumer research: (1) influences of implicit theories on self-perception, (2) influences of implicit theories on product evaluation, and (3) influences of implicit theories on product choice. This paper reviews the representative literature in these research streams and presents future research topics in the final chapter.

This study had two research questions. First, under what conditions does the creativity of frontline employees (FLEs) have a negative effect on customer satisfaction? Second, what factors mitigate the negative impact of the creativity of FLEs on customer satisfaction? To explore these questions, we conducted an online experiment using a questionnaire in the context of a hypothetical hair salon. Potential respondents were recruited by a research company from their research pool. The study was limited to the context of first-time contact. We investigated whether perceived similarity mitigates a negative relationship between creativity of FLEs and customer satisfaction, using a 2 (creativity: high vs. low) × 2 (perceived similarity: high vs. low) between-participants design. The results indicated that the creativity of FLEs negatively influence customer satisfaction for a first-time customer. However, contrary to our expectations, a hypothesis that perceived similarity mitigate the negative relationship between creativity of FLEs and customer satisfaction was not supported. Finally, based on these findings, we discuss the managerial implications and directions for future research.

In recent years, more companies are using crowdsourcing for development of new products, but they often fail due to reasons such as an insufficient number of ideas. Under these circumstances, “Min100,” a crowdsourcing platform for mobiles specializing in hundred-yen uniform products has had a continuous increase in the number of idea submissions, despite a lack of awareness of the platform. In this paper, we review the evolution of the system, development process, and examples of hit products of “Min100” to understand how the platform has evolved based on customer orientation. Then, we discuss three outstanding points of the “Min100” mobile crowdsourcing platform: (1) mobile first, (2) common understanding, and (3) process management.

A case study was performed to examine the new digital service developed by Oyanagi Construction in collaboration with Microsoft Corporation using Mixed Reality technology. With this technology, the contractor, buyer, engineer and other related parties can meet remotely and safely “walk around” and communicate with each other within full-scale (human-scale) models of construction projects, from the beginnings of the design process through to the completed construction. Digital servitization is normally used in response to customer needs, in order to better adapt and survive in a competitive marketplace. However, in this case, digital servitization was a natural outgrowth of the management philosophy of the company through its internal customer orientation (i.e., attempts to maximize employees’ satisfaction and safety). The president came across the DX technology by accident and became convinced that it was perfect for the company’s internal customer needs. The decision was then made to introduce the technology immediately, despite the potential economic risks involved. Thereafter, the company was also able to overcome the paradox of service digitalization thanks to their organizational structure, which was sufficiently sensitive to customer resistance, and flexibly adapt its strategic priorities within the context of customer communication. The management team has positioned DX as one of the means to realize its management philosophy. The team is taking on the challenge of improving the customer experience and the long working hours that have been the norm in the industry, thereby erasing the “3D” (Dirty, Dangerous and Demanding; Japanese: “3K”) image.

This study considers the development of Albergo Diffuso (hereinafter referred to as AD) in Yakage, Oda District, Okayama Prefecture. AD is an attempt to revitalize an entire area by utilizing vacant houses scattered throughout a town as an integrated hotel. This approach has attracted attention as a method of regional revitalization in an era of population decline. In Japan, Yakage is the first town to be certified as an AD town. This study shows that activities were not initially performed with AD in mind; on the contrary, these activities created the opportunity for AD. A practitioner initially created persons involved in this business under the name of “the whole town as a hotel” while unraveling traditional relationships in the area. Subsequently, practices accumulated by each person managing resources created the conditions for AD. The redefinition of the business as “AD” created a major change in the perceptions of attractions of the area and of the area itself, and is priming further possibilities. This study traces the process leading to AD certification in Yakage and considers some implications of this process.