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Article
Publication date: 13 April 2015

Thomas Boysen Anker, Leigh Sparks, Luiz Moutinho and Christian Grönroos

The purpose of this paper is to provide an analysis of the ontological and semantic foundations of consumer-dominant value creation to clarify the extent to which the call…

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6249

Abstract

Purpose

The purpose of this paper is to provide an analysis of the ontological and semantic foundations of consumer-dominant value creation to clarify the extent to which the call for a distinct consumer-dominant logic (CDL) is justified. This paper discusses consumer-driven value creation (value-in-use) across three different marketing logics: product-dominant logic (PDL), service-dominant logic (SDL) and CDL. PDL conceptualises value as created by firms and delivered to consumers through products. SDL frames consumer value as a function of direct provider-consumer interaction, or consumer-driven chains of action indirectly facilitated by the provider. Recently, the research focus has been turning to consumer-dominant value creation. While there is agreement on the significance of this phenomenon, there is disagreement over whether consumer-dominant value creation is an extension of SDL or calls for a distinct CDL.

Design/methodology/approach

This is a conceptual paper, which is informed by five cases of consumer dominance. The cases are used to clarify rather than verify the analysis of the ontological and semantic underpinnings of consumer-dominant value creation.

Findings

The ontological and semantic analysis demonstrates that PDL and SDL have insufficient explanatory power to accommodate substantial aspects of consumer-dominant value creation. By implication, this supports the call for a distinct CDL.

Originality/value

This paper contributes to the ongoing theoretical debate over the explanatory power of SDL by demonstrating that SDL is unable to accommodate important ontological and semantic aspects of consumer-driven value creation.

Details

European Journal of Marketing, vol. 49 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

Content available
Article
Publication date: 23 March 2021

Marco Tregua, Danilo Brozovic and Anna D'Auria

The purpose of this article was to provide an outline of the citation practices of “Evolving to a new dominant logic for marketing” by Vargo and Lusch (2004) to identify…

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1253

Abstract

Purpose

The purpose of this article was to provide an outline of the citation practices of “Evolving to a new dominant logic for marketing” by Vargo and Lusch (2004) to identify and discuss the most prominent research topics in which citations were used and to suggest future research based on the results of the analysis.

Design/methodology/approach

The authors used a comprehensive framework of citation practices based on iterations of previous literature to analyze the relevant literature, which they identified by accessing, systematically and rigorously, every available contribution matching a set of criteria. The authors then categorized these contributions and highlighted the main topics of research interest in each category.

Findings

The findings identify some of the factors in the continuous development of SDL, the way this new marketing logic permeated the scientific debate, the infusion of Vargo and Lusch (2004) into several contributions framed in the new logic or justified through it, and a general perception of a default reference. Additionally, the findings highlight the main topics of research interest in each category.

Research limitations/implications

The analysis enabled the detection of the original paper's influence through advances in service studies, pollination into other fields of research and continuous scientific debate. The authors have highlighted several avenues for research and proposed future research directions.

Originality/value

This research analyzed the effects of the spread of the SDL cornerstone article and emphasized the advantage of using an in-depth approach to the analysis of studies through a framework applied to more than 4,600 studies.

Details

Journal of Service Theory and Practice, vol. 31 no. 4
Type: Research Article
ISSN: 2055-6225

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Article
Publication date: 26 July 2018

Frederick Ng and Zack Wood

This paper aims to problematise critiques raised against customer accounting’s numeric focus, which risks controlling and simplifying customers rather than facilitating…

Abstract

Purpose

This paper aims to problematise critiques raised against customer accounting’s numeric focus, which risks controlling and simplifying customers rather than facilitating closer engagement. This analysis suggests ways to better account for what it is that customers buy, why they do so and how to better serve them.

Design/methodology/approach

Service-dominant logic (SDL) is a marketing ideology that recognises the active role of customers in value creation. Seven customer accounting techniques are appraised against SDL principles to identify strengths and shortfalls in logic and application.

Findings

Customer accounting techniques align with SDL’s beneficiary-oriented and relational view of customers. Weaker alignment is found regarding a focus on outputs rather than outcomes, silence about the customer’s role in co-creating value and failure to recognise contextual circumstances.

Research limitations/implications

The analysis uses prototypical descriptions of customer accounting techniques. Actual applications could offset weaknesses or raise other shortfalls.

Practical implications

For each area of SDL, the authors suggest avenues for integrating SDL into customer accounting using related literature and building on concepts within customer accounting techniques.

Originality/value

SDL contrasts with the traditional, goods-dominant logic that underscores much of accounting. SDL is used to critically and constructively evaluate customer accounting techniques.

Details

Pacific Accounting Review, vol. 30 no. 3
Type: Research Article
ISSN: 0114-0582

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Article
Publication date: 9 August 2011

Bo Edvardsson, Gloria Ng, Choo Zhi Min, Robert Firth and Ding Yi

Few empirical studies have been conducted to explore the mechanisms and drivers of service exchange and value co‐creation. In particular, no study has compared a service

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4246

Abstract

Purpose

Few empirical studies have been conducted to explore the mechanisms and drivers of service exchange and value co‐creation. In particular, no study has compared a service system design informed by servicedominant logic (SDL) with a service system design informed by goods‐dominant logic (GDL). The purpose of this paper is to address this knowledge gap. The research question is: does a servicedominant system design result in a more favourable customer experience than a goods‐dominant service system?

Design/methodology/approach

An experiment was carried out on a group of habitual bus travellers. The subjects were asked to plan a specific journey using two online journey planning systems. Two hypotheses were tested: first, an SDL informed service system will evoke a better overall customer experience than a GDL informed service system. Second, this better customer experience arises out of seven service system design characteristics. Both objective and subjective data were gathered to compare the customers' experiences of using the two service systems.

Findings

The results show that a servicedominant service system outperforms a goods‐dominant service system in terms of both objective and subjective criteria. Moreover, the experiment elucidates the subjects' perceived importance of the characteristics of a servicedominant service system. Analysis of the subjects' perception of the two service systems reveals that certain characteristics set the servicedominant service system more distinctly apart from the goods‐dominant one.

Originality/value

The paper contributes by extending the empirical foundation for servicedominant logic, providing new knowledge on value co‐creation and design characteristics of service systems, and identifying the most important service system characteristics perceived by the customer.

Details

Journal of Service Management, vol. 22 no. 4
Type: Research Article
ISSN: 1757-5818

Keywords

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Article
Publication date: 2 October 2017

Ceren Altuntas Vural

This study aims to contribute to the scholarly fields of supply chain management (SCM) and service-dominant logic (SDL) by conducting a systematic literature review on…

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1711

Abstract

Purpose

This study aims to contribute to the scholarly fields of supply chain management (SCM) and service-dominant logic (SDL) by conducting a systematic literature review on business-to-business (B2B) marketing and SCM studies.

Design/methodology/approach

After the collection and refinement of 127 articles on SDL and SCM interface, descriptive and thematic analyses were applied to discover the current situation and the existing research streams in the literature.

Findings

The SDL-SCM literature focuses on five main research streams which are value co-creation and value-in-use, integration and relationship management, resource sharing, servitization and service supply chains. Each of them are explored in depth, and future research opportunities are proposed.

Research limitations/implications

The research is limited with the selected articles. Future scholarly attention to the intersection between SDL and SCM will enhance the knowledge on these fields.

Originality/value

The study contributes to both of these fields by summarizing the existing scholarly research and proposing research opportunities for scholars. It is one of the first efforts to systematically review the interface between SCM and SDL.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 8
Type: Research Article
ISSN: 0885-8624

Keywords

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Article
Publication date: 14 June 2013

Bo Edvardsson, Gloria Ng, Zhi Min Choo and Robert Firth

Research suggests that servicedominant designs are superior to goods‐dominant; but why? The purpose of this paper is to answer three questions. First, in what way is a…

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1161

Abstract

Purpose

Research suggests that servicedominant designs are superior to goods‐dominant; but why? The purpose of this paper is to answer three questions. First, in what way is a service system based on servicedominant logic (SDL) superior to one based on goods‐dominant logic (GDL)? Second, which characteristics of the service system facilitate the co‐creation of value‐in‐context as perceived by the customer? Third, how do customers describe the contents of these characteristics?

Design/methodology/approach

In an experiment, the authors compared two different service systems designed with different mindsets. The experiment was carried out with a group of habitual bus travellers to plan a specific journey using two online service systems by two different organizations; one exhibited a goods‐dominant mindset, and the other a servicedominant mindset. The subjects' opinions of the two systems were gathered, and sentiment analysis was performed on the opinions to uncover the rationale behind the operational superiority of an SDL‐based system in value co‐creation.

Findings

The sentiment analysis identified three key differentiators: intangibles; operant resources; and information symmetry as the reason why an SDL‐based service system is superior to a GDL‐based system. The study also identified specific attributes linked to the key differentiators that could be built into a service system design and verified during a review of that design.

Originality/value

The paper contributes to research by: showing why an SDL based service system is superior to a GDL based one; proposing guidelines for service system design based on SDL to arrive at a favourable customer experience; and to managers by showing that customers have much to contribute in service development and realisation.

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Article
Publication date: 19 March 2018

Ulrika Westrup

The purpose of this paper is to analyse and discuss the potential of the service-dominant logic (SDL) as a tool for developing more effective public sector services in practice.

Abstract

Purpose

The purpose of this paper is to analyse and discuss the potential of the service-dominant logic (SDL) as a tool for developing more effective public sector services in practice.

Design/methodology/approach

One case concerning a public sector service organization has been studied – a contact centre in a Swedish municipality. The material consists of descriptions of managers’ and co-workers’ experiences of how day-to-day operations are performed to manage services provided to citizens. The material has been gathered via interviews and focus group interviews.

Findings

The study found that SDL has something to offer as a tool. SDL indicates that the distinctive features of different kinds of services, the exchange of knowledge and the dependency between actors do not have a high priority in the day-to-day work done at the contact centre. However, SDL cannot actually guarantee that public services will be more effective without including the politicians.

Research limitations/implications

The findings only originate from one organization. No service users have participated.

Practical implications

When using SDL as a tool for developing public sector services, the role of the politician is crucial. Public service managers must therefore find ways of including politicians in the service system as important and committed actors.

Originality/value

SDL, in the context of public sector services, has only previously been studied to a very limited degree empirically.

Details

International Journal of Quality and Service Sciences, vol. 10 no. 1
Type: Research Article
ISSN: 1756-669X

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Article
Publication date: 14 September 2015

Kristina Heinonen and Tore Strandvik

The purpose of this paper is to analyze the theoretical and practical implications of adopting customer-dominant logic (CDL) of service, focusing on how firms can become…

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6604

Abstract

Purpose

The purpose of this paper is to analyze the theoretical and practical implications of adopting customer-dominant logic (CDL) of service, focusing on how firms can become involved in the customers’ context.

Design/methodology/approach

Inspired by the conceptual discussion of service logic and service-dominant logic, this paper focuses on the conceptual underpinnings of CDL. CDL is contrasted with other service perspectives in marketing; CDL is a marketing and business perspective dominated by customer-related aspects instead of products, service, systems, costs or growth. It is grounded in understanding customer logic and how firms’ offerings can become embedded in customers’ lives/businesses.

Findings

The conceptual analysis challenges the prevailing assumptions of key phenomena in service research, including interaction, co-creation, service value and service. The paper presents five essential foundations of CDL: marketing as a business perspective, customer logic as the central concept, offering seen through the customer lens, value as formed and not created and the prevalence of customer ecosystems.

Research limitations/implications

The paper differentiates CDL from other marketing perspectives. Further empirical research is needed in different empirical settings to provide guidelines for adopting the perspective on a strategic and operational business level.

Practical implications

As a firm’s holistic and strategic foundation, marketing is based on understanding how providers participate, at a profit, in customers’ value formation. The paper suggests how firms can successfully conduct business in dynamic markets with empowered customers.

Originality/value

This paper expands marketing and business logic based on customer dominance. It accentuates the importance of understanding customer logic and stresses the presence of providers in the customer ecosystem.

Details

Journal of Services Marketing, vol. 29 no. 6/7
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 6 May 2014

Christian Grönroos and Johanna Gummerus

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

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12720

Abstract

Purpose

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

Design/methodology/approach

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

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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

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Article
Publication date: 31 December 2008

Chickery J. Kasouf, Jenny Darroch, Claes M. Hultman and Morgan P. Miles

This paper aims to explore the implications of service dominant logic (SDL) on the marketing/entrepreneurship interface.

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1427

Abstract

Purpose

This paper aims to explore the implications of service dominant logic (SDL) on the marketing/entrepreneurship interface.

Design/methodology/approach

This paper integrates research from co‐creation and service dominant logic with entrepreneurship to explore the value of SDL for entrepreneurial marketing organizations.

Findings

This paper offers insights on: the implications of SDL for entrepreneurship; the value of co‐creation in an entrepreneurial context; and an exploration of risk and co‐creation, mass customization, and scale production in an entrepreneurial marketing context.

Originality/value

This paper contributes to the work of both academics and executives attempting to better understand the concepts of SDL and co‐creation and how they might be leveraged to create advantage. In addition, a set of research implications is offered pertaining to co‐creation and SDL in an entrepreneurial marketing context.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 10 no. 1
Type: Research Article
ISSN: 1471-5201

Keywords

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