The concept of performance-based contracting (PBC) has received an increasing attention in both academic research and business practice over the last decade. Typically, in a PBC an industrial supplier is paid based on the outcome created with an investment good. This payment covers the actual usage as well as all related maintenance and repair efforts for the resource (Böhm, Backhaus, Eggert, & Cummins, 2016). Although the concept of PBC is not new, research on this topic is still on a preliminary level (Essig, Glas, Selviaridis & Roehrich 2016). As the customer orientation in service-oriented sales processes is crucial (Haas, Snehota, & Corsaro 2012; Terho, Haas, Eggert, & Ulaga 2012), our study explores customers’ requirements and motivational patterns within a PBC sales process. We report on data obtained in laddering interviews with 31 PBC-experienced customers in Europe from three industries (industrial air supply industry, gas supply industry, filling and packaging industry). Results from a means-end-chain analysis indicate that PBC customers have a higher sense of duty (e.g., by analyzing suppliers’ competence for operating a PBC), a distinct need for security (e.g., by requiring positive emotions for purchase decision), a comprehensive sense of responsibility (e.g., in terms of the long-term contractual obligation) and perfectionist values for purchase decisions (e.g., by striving for an optimal technical and contractual PBC design). Since these aspects address the PBC sales process, our study contributes by generating empirical evidences for value-based selling techniques and by generating management implications for a customer-oriented selling of PBC.

Purpose - This study attempted to identify the value promotion clues that may operate as a consumer’s motive, by shedding new light on consumer value and by reconstructing each variable analyzed through the means–end chain (MEC) theory. Research design, data, and methodology - In this study, 202 copies of effective questionnaires using the data of Yang and Ju (2012) were subjected to correlation, regression, and SEM. Results - All store selection attributes were verified as having a positive influence on the relationship quality. Although the store selection attributes were verified as exerting a positive influence on the relationship quality, according to the verification result of the mediating effect, consumer value was verified to be influenced only by the relationship quality instead of by the store selection attributes. Conclusion - As a result of path analysis on the proposed model after modification, it was verified that only product factor had a statistically significant positive influence and that social value was completely mediating between relationship quality and emotional value. It may be highlighted that the MEC theory concept would be applicable to the cause-and-effect relationship model.