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.
Reading time <1 min
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.
Abstract: Service-dominant logic continues its evolution, facilitated by an active community of scholars throughout the world. Along its evolutionary path, there has been increased recognition of the need for a crisper and more precise delineation of the foundational premises and specification of the axioms of S-D logic. It also has become apparent that a limitation of the current foundational premises/axioms is the absence of a clearly articulated specification of the mechanisms of (often massive-scale) coordination and cooperation involved in the cocreation of value through markets and, more broadly, in society. This is especially important because markets are even more about cooperation than about the competition that is more frequently discussed. To alleviate this limitation and facilitate a better understanding of cooperation (and coordination), an eleventh foundational premise (fifth axiom) is introduced, focusing on the role of institutions and institutional arrangements in systems of value cocreation: service ecosystems. Literature on institutions across multiple social disciplines, including marketing, is briefly reviewed and offered as further support for this fifth axiom.
Abstract: As one of its own foundational premises implies, the value of service-dominant (S-D) logic is necessarily in its open, collaborative effort. Thus, the authors invite and welcome both elaborative and critical viewpoints. Five recurring, contentious issues among collaborating scholars, as they attempt to understand the full nature and scope of S-D logic, are identified. These issues are clarified and refined, as is appropriate to this co-creation of a service-centric philosophy by the worldwide marketing community. Key Wordsmarketing theory relationship marketing • resource integration resource theory service-dominant logicS-D logic • service marketing
Abstract: Marketing inherited a model of exchange from economics, which had a dominant logic based on the exchange of “goods,” which usually are manufactured output. The dominant logic focused on tangible resources, embedded value, and transactions. Over the past several decades, new perspectives have emerged that have a revised logic focused on intangible resources, the cocreation of value, and relationships. The authors believe that the new perspectives are converging to form a new dominant logic for marketing, one in which service provision rather than goods is fundamental to economic exchange. The authors explore this evolving logic and the corresponding shift in perspective for marketing scholars, marketing practitioners, and marketing educators.
The first paper that provides a discussion of service-dominant logic and how it has evolved from various discussions within marketing. It defines services as: “the application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself.” And contrasts the traditional view of marketing: “In […]
Reading time <2 mins
Abstract: There is a recognised trend of manufacturing companies offering not only products, but also services and even complete solutions to business problems. Research has highlighted economic, market demand and competitiveness factors as responsible for the reshaping of business strategies that this has involved. This study analyses the extent to which another factor, technology, has been a significant factor in the switch from product oriented to service-oriented strategies. A case study of the aero engine manufacturer Rolls-Royce is used to analyse the impact of technology, which is found to have led manufacturers to reshape their business strategies. The study finds that developments in one technology in particular, namely digital electronics, have been a powerful enabling factor facilitating the implementation of service strategies. This provided original equipment manufacturers like Rolls-Royce with a competitive advantage relative to conventional service providers, by enabling them to acquire new knowledge management capabilities.
An interesting overview of rolls-Royce’s Power by the hour; and how technology allowed RR to reshape it’s business strategy.
Abstract: More and more corporations throughout the world are adding value to their core corporate offerings through services. The trend is pervading almost all industries, is customer demand-driven, and perceived by corporations as sharpening their competitive edges. Modern corporations are increasingly offering fuller market packages or “bundles” of customer-focussed combinations of goods, services, support, self-service, and knowledge. But services are beginning to dominate. This movement is termed the “servitization of business” by authors Sandra Vandermerwe and Juan Rada, and is clearly a powerful new feature of total market strategy being adopted by the best companies. It is leading to new relationships between them and their customers. Giving many real-life examples, the authors assess the main motives driving corporations to servitization, and point out that its cumulative effects are changing the competitive dynamics in which managers will have to operate. The special challenge for top managers is how to blend services into the overall strategies of the company.
Defines the term "servitization" and gives a (non-exhaustive) view of why servitization happens.