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Book part
Publication date: 10 November 2010

Stephen L. Vargo, Robert F. Lusch, Melissa Archpru Akaka and Yi He

Abstract

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Review of Marketing Research
Type: Book
ISBN: 978-0-85724-728-5

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Article
Publication date: 24 October 2018

Tale Skjølsvik

While goods- and service-dominant logics are separated in most research as alternative and often incompatible paradigms, this paper aims to show how these logics can be…

Abstract

Purpose

While goods- and service-dominant logics are separated in most research as alternative and often incompatible paradigms, this paper aims to show how these logics can be and are combined in purchasing strategies in organizations. The paper also illustrates that multiple logics exist in addition to purely goods- or service-based logics.

Design/methodology/approach

The paper is based on empirical data on the purchasing of management consulting services, which represent an extreme context for understanding the combination and intersection of goods- and service-dominant logics. In particular, four in-depth case studies and interviews with 51 sellers and 30 buyers of management consulting services are used to develop a typology of purchasing approaches that combines goods- and service-dominant logics.

Findings

The study shows that goods- and service-dominant logics are combined in two main purchasing phases: supplier set selection and assignment selection. In both these phases, parallel and knowledge-based, embedded and experience-based approaches were identified as ways of combining goods- and service-dominant logics in the purchasing context.

Research limitations/implications

The research presented in the following adds to our existing understanding of possible purchasing strategies under multiple logics in buying organizations. Future research should explore the conditions under which different strategies are and should be applied in organizations.

Practical implications

This paper gives practitioners alternative approaches to choose from in their purchasing and sales of knowledge-intensive services, in addition to transactional and relational strategies.

Originality/value

The research adds to existing research on business and industrial marketing by identifying particular purchasing strategies on a continuum between goods- and service-dominant logics.

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Journal of Business & Industrial Marketing, vol. 33 no. 8
Type: Research Article
ISSN: 0885-8624

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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…

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.

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

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Article
Publication date: 10 August 2010

Kristina Heinonen, Tore Strandvik, Karl‐Jacob Mickelsson, Bo Edvardsson, Erik Sundström and Per Andersson

The paper seeks to introduce to a new perspective on the roles of customers and companies in creating value by outlining a customer‐based approach to service. The…

Abstract

Purpose

The paper seeks to introduce to a new perspective on the roles of customers and companies in creating value by outlining a customer‐based approach to service. The customer's logic is examined in‐depth as being the foundation of a customer‐dominant (CD) marketing and business logic.

Design/methodology/approach

The authors argue that both the goods‐ and servicedominant logic are provider‐dominant. Contrasting the provider‐dominant logic with CD logic, the paper examines the creation of service value from the perspectives of value‐in‐use, the customer's own context, and the customer's experience of service.

Findings

Moving from a provider‐dominant logic to a CD logic uncovered five major challenges to service marketers: company involvement, company control in co‐creation, visibility of value creation, scope of customer experience, and character of customer experience.

Research limitations/implications

The paper is exploratory. It presents and discusses a new perspective and suggests implications for research and practice.

Practical implications

Awareness of the mechanisms of customer logic will provide businesses with new perspectives on the role of the company in their customers' lives. It is proposed that understanding the customer's logic should represent the starting‐point for the company's marketing and business logic.

Originality/value

The paper increases the understanding of how the customer's logic underpins the CD business logic. By exploring consequences of applying a CD logic, further directions for theoretical and empirical research are suggested.

Details

Journal of Service Management, vol. 21 no. 4
Type: Research Article
ISSN: 1757-5818

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Article
Publication date: 26 March 2018

Jukka Ojasalo and Katri Ojasalo

The purpose of this study is to develop a service logic oriented framework for business model development. “Service logic” covers the basic principles of the three…

Abstract

Purpose

The purpose of this study is to develop a service logic oriented framework for business model development. “Service logic” covers the basic principles of the three contemporary customer value focused business logics: service-dominant logic, service logic and customer-dominant logic.

Design/methodology/approach

This study is based on an empirical qualitative research and deployed the focus group method. The data are generated in a series of interactive co-creative focus group workshops involving both practitioners and academics.

Findings

As the outcome, a new tool was developed, called Service Logic Business Model Canvas. The new canvas is a modified version of the original Business Model Canvas (Osterwalder and Pigneur, 2010).

Research limitations/implications

This study adopts service logic in business model thinking and increases knowledge on how to keep the customer needs in the centre of business model development.

Practical implications

The developed canvas makes the theory of service-dominant logic tangible and easily applicable in practice. It enables service innovation truly based on customer value by ensuring that the customer is in the centre of all the elements of a business model. It can function both as a rapid prototype of a new business model and as a communication tool that quickly illustrates the company’s current business model. It can also help in creating a customer-centred business culture. It is designed to be applied to each customer profile separately, thus enabling a deeper understanding of the customer logic of each relevant profile.

Originality/value

Earlier business model frameworks tend to be provider-centric and goods-dominant, and require further development and adaptation to service logic. This study adopts service logic in business model thinking. It embeds the true and deep customer understanding and customer value in each element of the business model, and contributes to both business model and service-dominant logic literature.

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Journal of Research in Marketing and Entrepreneurship, vol. 20 no. 1
Type: Research Article
ISSN: 1471-5201

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Article
Publication date: 1 March 2013

Kristina Heinonen, Tore Strandvik and Päivi Voima

The purpose of this paper is to extend current discussions of value creation and propose a customer dominant value perspective. The point of origin in a customer‐dominant

Abstract

Purpose

The purpose of this paper is to extend current discussions of value creation and propose a customer dominant value perspective. The point of origin in a customer‐dominant marketing logic (C‐D logic) is the customer, rather than the service provider, interaction or the system. The focus is shifted from the company's service processes involving the customer, to the customer's multi‐contextual value formation, involving the company.

Design/methodology/approach

Value formation is contrasted to earlier views on the company's role in value creation in a conceptual analysis focusing on five central aspects. Implications of the proposed characteristics of value formation compared to earlier approaches are put forward.

Findings

The paper highlights earlier hidden aspects on the role of a service for the customer. It is proposed that value is not always an active process of creation; instead, value is embedded and formed in the highly dynamic and multi‐contextual reality and life of the customer. This leads to a need to look beyond the line of visibility focused on visible customer‐company interactions, to the invisible and mental life of the customer. From this follows a need to extend the temporal scope, from exchange and use even further to accumulated experiences in the customer's life and ecosystem.

Research limitations/implications

This paper is conceptual. It discusses and presents a customer‐dominant value perspective and suggests implications for empirical research and practice.

Practical implications

Awareness of the mechanism of the customer value formation process provides companies with new insight on the service strategy, service design and new service innovations.

Originality/value

The paper contributes by extending the value construct through a new customer dominant value perspective, recognizing value as multi‐contextual and dynamic based on customers' life and ecosystem. The findings mark out new avenues for future research.

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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…

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

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Article
Publication date: 26 July 2011

Robert F. Lusch and Stephen L. Vargo

The purpose of this paper is to respond to the criticism O'Shaughnessy and O'Shaughnessy made of servicedominant logic in EJM, on behalf of both the paper and the…

Abstract

Purpose

The purpose of this paper is to respond to the criticism O'Shaughnessy and O'Shaughnessy made of servicedominant logic in EJM, on behalf of both the paper and the worldwide community of scholars that have embraced S‐D logic as historically informed, integrative, transcending and rich in its potential to generate theoretical and practical contributions.

Design/methodology/approach

The paper is a critical, conceptual analysis of the fallacious arguments that O'Shaughnessy and O'Shaughnessy developed to argue against the emerging and rapidly developing servicedominant logic.

Findings

The paper shows that, contrary to the claims of O'Shaughnessy and O'Shaughnessy, S‐D logic: is neither regressive nor intended to displace all other marketing perspectives; is not advocating technology at the expense of explanatory theory; and is pre‐theoretic and intended to be soundly grounded in a manner to assist theory construction.

Research limitations/implications

Theory advancement is critical to marketing and S‐D logic puts special emphasis on the development of theory. It begins to do this by proposing ten foundational premises, which some may wish to refer to as axioms. From these axioms, considerable theoretical work and related empirical research can develop.

Practical implications

O'Shaughnessy and O'Shaughnessy wish to prevent marketing scholars from adopting, advocating, and supporting servicedominant logic and, as they suggest, taking a backward step. They view the S‐D logic movement as primarily USA‐dominated (which it is not) and are firmly anti‐S‐D logic. The available evidence from around the world suggests that the S‐D logic movement has profound implications for the advancement of both marketing science and marketing practice.

Originality/value

It is critical that S‐D logic should not be viewed as being represented by a single paper but as a body of work that Lusch and Vargo have developed since their initial publication and also the work of a community of scholars working collaboratively to co‐create S‐D logic.

Details

European Journal of Marketing, vol. 45 no. 7/8
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 13 July 2018

Suvi Nenonen, Johanna Gummerus and Alexey Sklyar

Service-dominant logic acknowledges that actors can influence how service ecosystems evolve through institutional work, but empirical research is only nascent. This paper…

Abstract

Purpose

Service-dominant logic acknowledges that actors can influence how service ecosystems evolve through institutional work, but empirical research is only nascent. This paper advances understanding of ecosystem change by proposing that dynamic capabilities are a special type of operant resources enabling actors to conduct institutional work. Consequently, the purpose of this paper is to explore which dynamic capabilities are associated with proactively influencing service ecosystems.

Design/methodology/approach

Drawing on service-dominant logic, institutional work and dynamic capabilities, this exploratory study assumes an actor-centric perspective and proposes a conceptual model with a hierarchy of dynamic capabilities as the antecedents for successfully influencing service ecosystems. The research model was tested with survey data using partial least squares structural equation modeling.

Findings

Among the dynamic capabilities studied, “visioning” and “influencing explicit institutions” directly affect “success in influencing service ecosystems,” whereas “timing” does so indirectly through “influencing explicit institutions.” The other dynamic capabilities studied have no significant effect on “success in influencing service ecosystems.” “Success in influencing service ecosystems” positively affects the “increased service ecosystem size and efficiency.”

Practical implications

In addition to reactively positioning and competing at the marketplace, firms can choose to proactively influence their service ecosystems’ size and efficiency. Firms aiming to influence service ecosystems should particularly develop dynamic capabilities related to visioning, timing and influencing explicit institutions.

Originality/value

This research is the first service-dominant logic investigation of the linkage between the actors’ dynamic capabilities and their ability to influence service ecosystems.

Details

Journal of Service Management, vol. 29 no. 4
Type: Research Article
ISSN: 1757-5818

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Article
Publication date: 10 July 2017

Ralf Wilden and Siegfried Gudergan

The purpose of this paper is to investigate the effects of a firm’s service-dominant orientation on marketing and technological capabilities, and its performance. It…

Abstract

Purpose

The purpose of this paper is to investigate the effects of a firm’s service-dominant orientation on marketing and technological capabilities, and its performance. It outlines how a service-dominant orientation offers guidance for the development and deployment of ordinary capabilities, and indirectly affects performance. Additionally, it delineates how dynamic capabilities affect the impact of a service-dominant orientation on ordinary capabilities.

Design/methodology/approach

Partial least squares structural equation modeling drawing on data from 228 firms serves to assess hypotheses relating service-dominant orientation and dynamic capabilities with firm performance.

Findings

The results indicate that marketing and technological capabilities fully mediate the relationship between a firm’s service-dominant orientation and firm performance. Furthermore, the positive marginal effect of a firm’s service-dominant orientation on its marketing capabilities increases with the firm displaying a stronger service-dominant orientation. In addition, the positive effect of service-dominant orientation on marketing capabilities reduces the more the firm deploys dynamic capabilities.

Research limitations/implications

Because of the cross-sectional sample, future studies could adopt longitudinal research designs to explore the impact of a service-dominant orientation on ordinary capabilities and performance, or investigate the applicability of the findings in other contexts.

Practical implications

The findings imply that implementing a service-dominant orientation can be beneficial for firms. However, because the impact of such an orientation weakens the greater a firm’s dynamic capabilities, managers need to be mindful of this trade-off.

Originality/value

The study is the first to establish a link between the dynamic capability view, originating from strategy research, and service-dominant logic, stemming from marketing thinking.

Details

Journal of Service Theory and Practice, vol. 27 no. 4
Type: Research Article
ISSN: 2055-6225

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