Abstract: Since the introductory article for what has become known as the “service-dominant (S-D) logic of marketing,” “Evolving to a New Dominant Logic for Marketing,” was published in the Journal of Marketing (Vargo, S. L., & Lusch, R. F. (2004a)), there has been considerable discussion and elaboration of its specifics. This article highlights and clarifies the salient issues associated with S-D logic and updates the original foundational premises (FPs) and adds an FP. Directions for future work are also discussed. KeywordsService-dominant logic-New-dominant logic-Service
Reading time <1 min
Gives an introduction to jobs to be done theory. “The great Harvard marketing professor Theodore Levitt used to tell his students, “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!” Every marketer we know agrees with Levitt’s insight. Yet these same people segment their markets by type of drill and by […]
Abstract: Marketing was originally built on a goods-centered, manufacturing-based model of economic exchange developed during the Industrial Revolution. Since its beginning, marketing has been broadening its perspective to include the exchange of more than manufactured goods. The subdiscipline of service marketing has emerged to address much of this broadened perspective, but it is built on the same goods and manufacturing-based model. The influence of this model is evident in the prototypical characteristics that have been identified as distinguishing services from goods—intangibility, inseparability, heterogeneity, and perishability. The authors argue that these characteristics (a) do not distinguish services from goods, (b) only have meaning from a manufacturing perspective, and (c) imply inappropriate normative strategies. They suggest that advances made by service scholars can provide a foundation for a more service-dominant view of all exchange from which more appropriate normative strategies can be developed for all of marketing.
A discussion on why intangible, heterogeneous, inseperable, and perishability of services is not a bad thing.
Abstract: Purpose – The purpose of this paper is to offer a reflective account of the emergence of new marketing theory as seen through the lens of the Nordic School of Service. Design/methodology/approach – The paper is based on documents and the authors' self-lived history and current involvement (“management action research”). Findings – Northern European scholars, especially from Finland and Sweden, have felt free to design their own theory, at the same time collaborating internationally. Contributions include an early alert to services and business-to-business (B2B) marketing being neglected; dissatisfaction with service quality; that the service economy is more than the service sector; and the insight that relationship marketing and many-to-many network marketing better represent service reality. A novel service logic abandoning the divisive goods/services, B2B/B2C (business-to-consumer), and supplier/customer categories, based on commonalities and interdependencies is arriving. Nordic School methodology is characterised by induction, case study research, and theory generation, to better address complexity and ambiguity in favour of validity and relevance. In the 2000s, the synthesis provided by service-dominant (S-D) logic, IBM's service science, and network and systems theory have inspired a lively international dialogue. Research limitations/implications – The hegemony of the marketing management of mass-manufactured consumer goods was challenged when services entered the marketing agenda in the 1970s. During the 1980s and 1990s the differences been goods marketing and service marketing were explored and the understanding for relationships, networks and interaction developed. It gradually laid the ground for the integrated goods/services approach that is now the major challenge for service researchers and practitioners alike. Originality/value – It is unfortunate if developments of marketing in the USA are perceived as a universal standard for marketing. By studying contributions from many cultures and nations in other countries the paper enhances the understanding of the diversity of marketing. This article presents such a case from Northern Europe.
Abstract: In the contemporary marketing theoretical discussion there has been a widely established effort to revitalize the concept of service. In this endeavour, conceptual friction between two well-established marketing theoretical logics, namely Service-Dominant logic (S-D logic) and service logic has emerged. Although these perspectives have been widely debated, there have not been systematic efforts to analyse their conceptual differences. Analysing these differences will aid the further development toward more consistent marketing theory. Thus, this study identifies areas of contradiction and complementarity between S-D logic and service logic.
great overview of similarities and differences between Service-Dominant Logic and Service Logic Useufl diagram on the historical developments; plus table on complimentary/conflicts between the two logics for various definitions.
Abstract: Purpose – The purpose of this paper is to present a visualisation of the firm's offering from a service‐dominant logic (S‐DLogic) perspective. The case of Rolls‐Royce is presented as an avenue through which to explore an alternative view of the firm's value proposition, a visualisation informed by S‐DLogic that could aid organisations in their transition from goods‐dominant logic (G‐DLogic) to S‐DLogic. Design/methodology/approach – Through integration of an operations management approach in process mapping and design and simulation with choice modelling in business‐to‐business marketing, this paper operationalises some of the key aspects of S‐DLogic, most notably focusing on the constructs of value and resources. This is explored through a single case; Rolls‐Royce which provides access to a rich source of internal and customer data. Findings – The study finds that the S‐DLogic visualisation of the firm's value proposition in equipment‐based service consists of its contribution to 11 value‐creating activities towards value‐in‐use. The visualisation depicts both the highest possible bundle of benefits for the customer along with the resources and their costs associated with delivering those bundles. When brought together these enable the identification of the optimal bundle of value‐creating activities from both customer and firms' perspective. Originality/value – This paper provides empirical evidence of the difference between a G‐DLogic and S‐DLogic view of the firm's value proposition. In doing so, extending existing literature on S‐DLogic by contributing to a methodological and empirical gap. Notably, it makes abstract concepts of S‐DLogic concrete, providing a pathway for future empirical work and begins the process of systematising a methodology in S‐DLogic.
Abstract: In 2004, Robert F. Lusch and Stephen L. Vargo published their groundbreaking article on the evolution of marketing theory and practice toward "service-dominant (S-D) logic", describing the shift from a product-centred view of markets to a service-led model. Now, in this keenly anticipated book, the authors present a thorough primer on the principles and applications of S-D logic. They describe a clear alternative to the dominant worldview of the heavily planned, production-oriented, profit-maximizing firm, presenting a coherent, organizing framework based on ten foundational premises. The foundational premises of S-D logic have much wider implications beyond marketing for the future of the firm, transcending different industries and contexts, and will provide readers with a deeper sense of why the exchange of service is the fundamental basis of all social and economic exchange. This accessible book will appeal to students, as well as to researchers and practitioners.