Influence of Client Sophistication in Asset Valuation Practice - a Theoretical and Conceptual Framework

Purpose: The study is aimed at creating a testable model to serve as guide in the study of the influence of client sophistication in tangible asset valuation practice, especially for developing economies, which can be used to establish and document positive and/or negative impacts of such client involvement. Subjecting the model to practical application may eventually contribute significantly to the emerging discourse about sustainable asset valuation practice.Design/Methodology/Approach: With particular reference to asset valuers in developing economies (case study of Nigeria), the study assessed and evaluated previous related studies and literature on the subject in diverse fields, both in developed and developing economies. Relevant theories, borrowed from the discipline of market research on customer satisfaction, have also been evaluated in the paper. These theories suggest how clients/customers/consumers react to product/service offerings, which reflects the level of their sophistication. Thereafter, the paper identified testable indicators and concepts from extant studies to model the influence of client sophistication in asset valuation practice. Findings: Clients' service delivery preferences are dynamic and becoming sophisticated. Advances in ICT (via the internet), increasing globalisation and internationalisation facilitate the capability of valuation clients in obtaining sophisticated knowledge and stay up to date with trending standards observed in other, more developed countries and older professions. Clients bring to fore their level of sophistication in the asset valuation requirements. Working knowledge of the dimensions, levels, and implications of client sophistication in asset valuation practice could be a significant step toward developing sustainable asset valuation practice.Research Limitation/Implication: This is a general review paper. Eventually, empirical results of the ongoing doctoral research on the matter may afford areas for more discourses.Originality/Value: The study tends to be a deeper insight and a dynamic dimension of the behavioural study of client influence in asset valuation practice in developing economies.