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The purpose of this conceptual paper is to analyse the implications generated by a service perspective.

A conceptual analysis of two approaches to understanding service perspectives, service logic (SL) and service-dominant logic (SDL), reveals direct and indirect marketing implications.

The SDL is based on a metaphorical view of co-creation and value co-creation, in which the firm, customers and other actors participate in the process that leads to value for customers. The approach is firm-driven; the service provider drives value creation. The managerial implications are not service perspective-based, and co-creation may be imprisoned by its metaphor. In contrast, SL takes an analytical approach, with co-creation concepts that can significantly reinvent marketing from a service perspective. Value gets created in customer processes, and value creation is customer driven. Ten managerial SL principles derived from these analyses offer theoretical and practical conclusions with the potential to reinvent marketing.

The SDL can direct researchers’ and managers’ views towards complex value-generation processes. The SL can analyse this process on a managerial level, to derive customer-centric, service perspective-based opportunities to reinvent marketing.

The analysis and principles help marketing break free from offering only value propositions and become an organisation-wide responsibility. Firms must organise service-influenced marketing and create a customer focus among all employees, beyond conventional marketing.

A service perspective on business has key managerial implications and enables researchers and managers to find new, customer-centric, service-influenced marketing approaches.

The aim of this paper is to argue for an explicit foundation of market exchange on person‐to‐person relationships as an alternative to the foundation on person‐to‐goods relationship underlying the exchange model inherited from neoclassical economics and classical contract law and used in a large significant share of marketing studies.

The paper provides a unifying theoretical framework to the analysis of transactions and relationships that links institutional approaches from economics, sociology, and law.

Relational contract theory provides a common ground for phenomena studied by both traditional exchange‐based and relationship marketing approaches. Relational contract theory conceives all types of market exchange as based on person‐to‐person relationships and provides an anchor for institutional, social and economic approaches in marketing.

The concept of transaction provides a common foundation for the analysis of marketing phenomena that holds in diverse environments, including arms‐length transactions and close‐linked relationships. It provides an interface between marketing theory on the one hand and institutional, social and economic disciplines on the other.

Contracts specify how the parties to a transaction can realize action options opened up by property rights arrangements. Contracting strategy is the vital backbone of an industrial service strategy. Sound design of business models starts with the identification of the optimal owner of a resource, i.e. the actor who is in the best position to manage uncertainties or take on responsibilities associated with resource use.

This is the first investigation of a contractual foundation of marketing theory. It embeds the concept of exchange in an institutional framework and adapts it to the evolving business reality shaped by co‐operating firms and the rising share of services in value creation.

The purpose of this paper is to provide further insight into operations management of the product-service (P-S) transition, known as servitization, and the resulting product service system (PSS) offerings. In exploring the P-S transition, this paper adopts a service-dominant (S-D) logic view of value creation, using it as a lens through which to explore value propositions of the P-S transition and their operations design.

This paper presents an in-depth case study of an original equipment manufacturer of durable capital equipment who, over the last five years, has expanded its offerings to include use- and result-orientated PSS. The research design uses a multi-method approach; employing 28 in-depth qualitative interviews with customers and employees and analysis of texts, documents and secondary data including five years of enterprise resource planning (ERP), call centre and contract data.

The paper identifies ten generic P-S attributes that are abstracted into four nested value propositions: asset value proposition; recovery value proposition; availability value proposition; and outcome value proposition. In examining the operations design for delivery of these value propositions, it is found that the role and importance of contextual variety increases as the organisation moves through the value propositions. Interdependencies amongst the value propositions and differences in operational design for each value proposition are also found.

The paper investigates PSS through a S-D logic mindset. First, the paper considers value propositions of PSS not according to “product” or “service” but in terms of how resources (both material and human) are optimally designed to co-create customer value. Second, a value co-creation system of nested value propositions is illustrated. In so doing, the findings have a number of implications for literature on both PSS and S-D logic. In addition, the research adds to the PSS literature through the identification and consideration of the concept of contextual use variety.

The paper demonstrates the complexity of the transition from product to service. Specifically, service cannot be seen as a bolt-on extra to their product offering; complexity caused by interactions and changes to the core offering require a systems perspective and consideration of both firm and customer skills and resources.

This paper extends existing literature on the P-S transition and its implications for operations management. Notably, it takes an S-D logic perspective of value creation and in so doing highlights the importance and role of contextual use variety in the P-S transition. It also provides further empirical evidence that the P-S transition cannot be treated as discrete stages but is evolutionary and requires a complex systems perspective.

This paper aims to elucidate what concepts of encroachment in business-to-consumer markets explain the market share increase of companies with sustainability value propositions. It documents the encroachment field, analyses the practice of ten companies and proposes and defines the additional concept of transparency encroachment.

Semi-structured interviews were conducted with representatives of companies with an increase in customers and market share due to their sustainability value proposition. These were supplemented with secondary data, like documented interviews, sustainability reports and reports on market development. The interview transcripts and secondary data notes were coded using template analysis.

As the literature on encroachment assumes that new value propositions take away market share from incumbents due to advantages for customers, it is questionable whether it can explain how value propositions with advantages for society as a whole can encroach markets. The results of this study show that the dominant forms of encroachment in the current literature – high-end encroachment, low-end encroachment and business model encroachment – can only partly explain encroachment through sustainability value propositions. An additional encroachment form is identified: transparency encroachment.

This research adds greater clarity to what companies do when they encroach markets with sustainability value propositions. Furthermore, the pattern of transparency encroachment is discussed to define the common aspects of this concept and to argue why these aspects are needed for encroachment. It implies that marketing activities should start from the perception that customers are allies – and not kings – in the development toward higher levels of sustainability.

The paper offers practical implications insofar as it deconstructs three aspects of transparency encroachment that are enacted by companies. Customer awareness, unique experience and customer contribution are all needed to enact transparency encroachment. It is argued that other companies introducing sustainability value propositions to encroach markets should find their own application of these three aspects to create the potential for successful encroachment.

Because of the focus on sustainability aspects of value propositions, this study generates knowledge about the marketing and encroachment of products with a relatively positive impact on society. Adoption of the identified concept of transparency encroachment contributes to sustainable development.

To date, there has been very little marketing research that explores the role of sustainability value propositions in the encroachment of markets. Nonetheless, nowadays customers seem to look beyond their own benefits and are increasingly demanding a new approach that builds upon the sustainability aspects of products. This research adds greater clarity to encroachment through sustainability value propositions.

The purpose of this study is to investigate how the internet of things (IoT) contributes to manufacturers' advanced services development and delivery. To better understand the creation of these IoT contributions, the study adopts a socio-technical research perspective, which expands the scope of the investigation and integrates the technological, information and social factors that enable these IoT contributions.

A multiple-case research method was employed to investigate the IoT contribution scenarios of 15 manufacturers who offer advanced services and to examine their dependence on other non-IoT factors, using thematic analysis.

The analysis identified five advanced services value propositions, which are enabled by nine “IoT-enabled information systems (IS) artefacts” that specify the distinct interactions between the technological, information and social subsystems supporting the manufacturers' advanced services value propositions.

The study advances the servitisation research by demonstrating that IoT technology on its own is insufficient for the creation of the IoT contributions. It shows, instead, the need for close interactions with a diverse range of other factors, which are often not considered when developing an IoT strategy. The study also introduces the IS artefact notion as a unit of analysis that constitutes an alternative to the commonly adopted techno-centric perspective used to conceptualise IoT contributions. The study and its findings add to the development of a socio-technical perspective on the IoT in advanced services and thereby suggests a number of theoretical and practical implications.

The primary objective of this paper is to formulate a research agenda in the area of consumer evaluation and competitive advantage in retail financial services markets. In order to achieve this objective, a brief exposition of the market‐led view of competitive advantage is provided, which emphasises the importance of the provision of “customer value” in the relevant market. The process of consumer evaluation of financial services offerings is then reviewed and potential problems in consumer understanding of some types of financial services offerings are highlighted. The implications of such problems for the formulation of value adding strategies are explored with reference to the conceptualisation of the financial service offering and in particular which elements of the offering may be particularly important in adding value in the eyes of consumers. Finally, propositions for research are developed and explored, with the aim of informing both academics and practitioners.

The purpose of this paper is to conceptually examine how value is created in (social) practices in which consumers use offerings as operand resources.

Drawing on service‐dominant logic, practice and consumer culture theories, this paper conceptualizes the operational logic of value creation in practices and draws implications to marketing theory and practice. The approach to markets is “markets as practices” in value networks.

Value is tied to practices, not to offerings. Therefore, a key research unit for examining value creation is a practice. Value creation is socially constructed because a practice‐specific meaning structure, influenced by the context and consumer resources, configures consumers' activities. Guided by it, consumers do what makes best sense to do in the practice in the specific moment. As the context and consumer resources are unfixed, fragmented consumers emerge. Therefore, segmentation of value‐creating practices offers a valid description of value creation.

The paper extends the examination of value creation from use to practices. Drawing on marketing and other social sciences, it conceptualizes the operational logic of value creation in a practice: it defines practice elements, their roles and interdependencies in the value‐creation process. The operational logic introduces meaning structures as value‐creation mediators: influenced by the context and consumer resources, they steer consumer participation in the practice (including the use of offerings) and experienced value. Understanding meaning structures helps firms to identify value improvement opportunities which can be transferred to improved or new value propositions. Finally, the paper proposes segmentation of practices in the presence of fragmented consumers.

Purpose – The purpose of this essay is to explore further the concept of value cocreation from a service-ecosystems view, by considering the importance of networks and the configuration of relationships and resources in markets.

Methodology/approach – We use a conceptual approach to extend a service-dominant (S-D) logic, ecosystems view of value cocreation by drawing on the literature regarding networks in marketing and related research.

Findings – A service-ecosystems approach to cocreating value-in-context is proposed, which points toward networks as mediating factors in value cocreation because they influence the ability to access, adapt, and integrate resources by establishing exchange relationships and shaping the social contexts through which value is experienced.

Research implications – This research suggests that value cocreation is a complex and multidimensional process that is best studied in the context of dynamic networks or ecosystems of service exchange.

Practical implications – This research suggests that networks mediate value cocreation, and thus, firms should consider the configurations of relationships and resources to develop more compelling value propositions.

Social implications – This research draws on the idea that exchange relationships are embedded within society and suggests that processes of value cocreation not only draw on but also contribute to the social contexts that frame market exchange.

Originality/value of essay – This research extends the value cocreation and S-D logic literature by exploring the role of networks in service ecosystems. In this framework, networks are mediators of value cocreation because they enable access to resources and help to (re)shape social contexts through which value is derived.

The purpose of this paper is to provide a conceptual analysis on value proposition tools to be used in future empirical research and in building managerial insight. The conceptual analysis focusses on a living lab framework and recent theoretical developments around the concept of value that are reflected in the context of three managerial tools for creating value propositions.

Using abductive reasoning, the descriptions of the tools were analysed as cultural texts, as language-in-use in a social context.

In the context of the living labs approach, the Value Proposition Builder™ (VPB) seems to conflict with the ideas and premises of user-centric innovation processes. In the Value Proposition Canvas (VPC), the co-creation aspect is rather vague, as the enterprise and its offerings are presented as creators of value for the customer. Thus, this tool somewhat contradicts the living lab approach. The People Value Canvas (PVC) is aligned with the service-dominant logic and the premises of living labs. However, all three tools largely neglect a deeper acknowledgement of the role of the wider context, the service ecosystem, and the role of networked actors as resource integrators. Moreover, none of the tools explicitly point out the role of enterprises as intermediaries in constructing invitations for value co-creation.

The paper contributes to the SDL and living labs literature by conceptual analysis on different value proposition tools; the VPB™, the PVC, and the VPC which are relevant for academics as well as practitioners creating new understanding and insights on the connectedness of the living labs framework and SDL as well as their relationship to managerial tools. By identifying the absent elements of S-D logic from managerial value proposition tools, the paper contributes to current discussions by giving attention from scholars towards investigating managerial tools and by providing a new conceptual analysis for future empirical research. The critical analysis of the managerial tools contributes to managerial practice by emphasising the need to consciously evaluate the benefits and failures of tools for developing their organisations.