In a goods-dominant logic, we define services in contrast to goods. And the definition leads to negative interpretation of service. Goods are good, services are inconsistent, inseparable, can't create an inventory etc
But is this tarring of service justified and correct? Not really. And we'll summarise two papers in this article to highlight this:
- Lovelock & Gummerson show that not all goods-dominant logic attributes for services are applicable to all services.
- Lush & Vargo show that these negative attributes should be looked at as benefits.
Intangibility powers scalability, inconsistency is really customisation. Lack of inventory reduces costs and focusses value creation at the point of consumption. And inseparability/involvement leads to the benefit of co-creation of value.