Introduced the four-step customer development model. The first edition (2003) started the “lean startup” approach; with the Business Model Canvas and eventually the Lean Canvas Model flowing from the ideas contained in the customer development model. The book starts with a chapter entitled “The Path to Disaster: The Product Development Model”
Abstract: There are two logics or mindsets from which to consider and motivate a transition from goods to service(s). The first, “goods-dominant (G-D) logic”, views services in terms of a type of (e.g., intangible) good and implies that goods production and distribution practices should be modified to deal with the differences between tangible goods and services. The second logic, “service-dominant (S-D) logic”, considers service – a process of using ones resources for the benefit of and in conjunction with another party – as the fundamental purpose of economic exchange and implies the need for a revised, service-driven framework for all of marketing. This transition to a service-centered logic is consistent with and partially derived from a similar transition found in the business-marketing literature — for example, its shift to understanding exchange in terms value rather than products and networks rather than dyads. It also parallels transitions in other sub-disciplines, such as service marketing. These parallels and the implications for marketing theory and practice of a full transition to a service-logic are explored.
Table 1 Transition for practitioners Goods logic Service logic Making something (goods or services) => Assisting customers in their own value-creation processes Value as produced >=Value as co-created Customers as isolated entities =>Customers in context of their own networks Firm resources primarily as operand => Firm resources primarily as operant Customers as targets =>Customers as […]