Service dominant logic

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The service dominant logic ( SD Logic ) is a reformulated approach to economic exchanges and provides services in the focus of attention.

Emergence

The SD Logic was designed by Stephen Vargo and Robert Lusch and was first published in 2004 in the Journal of Marketing under the title "Evolving to a New Dominant Logic for Marketing" . An international group of academics led by David Ballantyne met at the 2005 Otago Forum to discuss the effects of SD Logic, which resulted in some special editions appearing in marketing journals. Lusch and Vargo subsequently opened the Forum on Markets and Marketing (FMM for short), which was held for the first time in 2008 at the University of New South Wales , 2010 at Cambridge University , 2012 at the University of Auckland and most recently in 2014 at the Service Research Center of Swedish University of Karlstad took place. The FMM is now a biennial event that deals with the further development and effects of SD Logic on marketing and markets.

Assumptions of SD Logic

SD Logic promotes a perspective from which services represent the fundamental basis of economic trade and postulates a goods-dominant logic (GD Logic for short) as a counter-image. According to GD Logic, companies produce units of goods in which the value is tied up and after sale is destroyed by consumption on the part of the buyer. From the point of view of SD Logic, however, goods only serve as a vehicle for the transport of services, which are provided by the customer using the goods and thus develop their value. In this respect, a distinction is made between the exchange value (value in exchange) and the use value (value in use), which is determined by the beneficiary (the customer). The added value no longer takes place on the part of the company, but always takes place together with the customer (co-creation of value).

Fundamental premises

The SD logic is based on ten fundamental premises , eight of which appeared in the original article by Vargo and Lusch in 2004 in the Journal of Marketing. Since then, two additional premises have been added, which first appeared in 2008 in an article in the Journal of the Academy of Marketing Science .

Fundamental premise Explanation
FP1 Services are the fundamental basis of exchange The application of operative resources (knowledge and skills) creates services that are the basis of all exchanges. Services are exchanged for services.
FP2 Indirect exchange masks the basic basis of exchange Because services are provided through a complex combination of goods, money and institutions, services as the basis of exchange are not directly apparent.
FP3 Goods are distribution mechanisms for services Goods (both permanent and impermanent) develop their value through use - the service they render.
FP4 Operant resources are the fundamental source of competitive advantage The different abilities to bring about a desired change drive the competition.
FP5 All economies are service economies Services become more evident with increasing specialization and outsourcing.
FP6 The customer is always a contributor to value creation Implies value creation as a two-way process.
FP7 A company cannot deliver any benefit; it can only make a value proposition Companies can bring their resources to good use and collaborate with customers who accept the value proposition to extract the resulting value. Companies cannot create value on their own.
FP8 A service-centered perspective is inherently always customer-related and relational Since services are defined in terms of customer benefit and are created jointly, they are inherently customer-related and relational.
FP9 All social and economic actors are integrators of resources Implies the context of value creation via networks as a resource vehicle.
FP10 Benefit is determined exclusively and phenomenologically by the beneficiary Use is peculiar, based on subjective experience, dependent on context and laden with meaning.

example

As a product, a refrigerator is not valuable on its own, but rather serves as a vehicle for providing the service of refrigerating food, the real value of which unfolds for the customer. In the sense of SD Logic, the manufacturer of the refrigerator does not sell a product, but rather provides a service via the product, which the customer pays for as a service in return by providing monetary resources (i.e. money).

research

The original article by Vargo and Lusch has been cited over 10,000 times and discussed and taken up in numerous publications. Today, SD Logic is the subject of academic discourse in a wide variety of disciplines such as marketing, management, service research, economics, business informatics, business research or tourism.

literature

  • Aitken, R. et al. (2006) Special Issue on Service-Dominant Logic of Marketing: Insights from The Otago Forum , Marketing Theory 6 (3): 275-392.
  • Lusch, R. and S. Vargo (2006), Service Dominant Logic: Reactions, Reflections, and Refinements , Marketing Theory 6 (3), 281-288.
  • Lusch, Robert F., Vargo, Stephen L. and O'Brien, Matthew (2007), Competing Through Service: Insights from Service-Dominant Logic, Journal of Retailing 83 (1), pp. 5-18.
  • Lusch, Robert F., Vargo, Stephen L. and Wessels, Gunter (2008), Toward a Conceptual Foundation for Service Science: Contributions from Service-Dominant Logic, IBM Systems Journal 47 (January – March), 5–14.
  • Lusch, Robert F .; Vargo, Stephen L. and Tanniru, M. (2010) Service, value networks and learning . Journal of the Academy of Marketing Science 38 (1): 19-31.
  • Lusch, Robert F. (2011), Reframing Supply Chain Management: A Service-Dominant Logic Perspective, Journal of Supply Chain Management, 47, 14-18.
  • Shostack, G. Lynn (1977) Breaking Free from Product Marketing , Journal of Marketing 41 (April): 73-80.
  • Vargo, Stephen L. and Lusch, Robert F. (2004a) Evolving to a New Dominant Logic for Marketing , Journal of Marketing 68 (January): 1–17.
  • Vargo, Stephen L. and Lusch, Robert F. (2004b) The Four Service Marketing Myths: Remnants of a Goods-based Manufacturing Model , Journal of Service Research 6 (4): 324-335.
  • Vargo, Stephen F. and Robert F. Lusch, It's all B2B ... and beyond: Toward a systems perspective of the market, Industrial Marketing Management 40 (February 2011), 181–187.
  • Vargo, Stephen L. and Lusch, Robert F., From Goods to Service (s): Divergences and Convergences of Logics, Industrial Marketing Management 37 (2008), 254-259.
  • Vargo, Stephen L. and Lusch, Robert F., Why Service? Journal of the Academy of Marketing Science 36 (Spring 2008a), 25-38.
  • Vargo, Stephen L. and Lusch, Robert F., Service-Dominant Logic: Continuing the Evolution, Journal of the Academy of Marketing Science 36 (Spring 2008b), 1-10.
  • Selected publications on Service-Dominant Logic
  • Gronroos, C. (2006), Adopting a Service Logic for Marketing , Marketing Theory, 6 (3), 317-333.
  • Gronroos, C. (2011), Value co-creation in service logic: A critical analysis , Marketing Theory, 11 (3), 279-301.

Web links

Individual evidence

  1. ^ Otago Forum
  2. Google Scholar, March 2017