The service dominant logic of marketing literature review and similarities

Perishability is a too simple notation regarding its multidimensionality. Lovelock and Gummesson argue that this condition is not fulfilled for the large group of separable services, like for example cargo transportation, laundry services, or house cleaning.

Examples of dominant logic

The renowned services marketing scholar Gummesson stated the following already in pp. The main problem is the consistency of service performance. Moreover, value co-creation with the customer is achieved in-use, by meeting customer needs as value-in-use. What needs to be done in the future in order toactually implement a service-centered thinking? Therefore, a significant reduction of the number of concepts was highly desirable to engage users in strategy design. The concept of inseparability also implies that direct distribution is the only possible sales channel for services since producer and seller are the same entity Upah Although some scholars may only mention two or three, the prevailing opinion names intangibility, heterogeneity, inseparability of production and consumption, and perishability IHIP as attributes which distinguish services from tangible goods. The focal points were production factors such as machines and land, whereas technology and knowledge was only seen as an instrument to convert operand resources into outputs. The discussion was crowned by a collection of essays from more than 50 scholars in the book The Service-Dominant Logic of Marketing: Dialog, Debate, and Directions of , edited by Lusch and Vargo themselves. A good alone has no value unless it is used and derives benefits for the customer. Many reasonable insights have been developed, be it relationship marketing, importance of service quality, or the concept of value in use. In our study, we focus on the perspective and position views of strategy. For Smith, services were not productive in terms of contributing to the national surplus.

The goal of this session was twofold. Vargo and Robert F.

Product dominant vs service dominant marketing

Using the S-DSC, the users were able to shift their thinking to the perspective of S-D logic, where the car is just one possible mechanism for mobility provision. The first one, Endogenous and Exogenous market relationships, is established by subclustering the market relationship elements with respect to their inside-out or outside-in nature in relation to the focal organization. They emphasize intangible resources, co-creation of value, and relationships rather than simple transactions. It is essential to be aware of how Vargo and Lusch define services. A third important point to consider is the inseparability of production and consumption that characterizes most service deliveries. The process orientation of the S-D logic is supported by this element, as service flows act as cross-organizational business processes to enable collaboration and service co-production Karpen and Bove They oppose heterogeneity as a general distinction between goods and services. In the s and s, more and more scholars found that the established paradigm did not fit the current trends and developments anymore. Since workers in the chain do not pay each other and do not deal directly with external customers, they can ignore quality and both internal and external customers Vargo and Lusch a, p. In a former, goods-centered marketing view, scholars were convinced that these characteristics pose special challenges to the marketing of services and require different normative strategies. In her opinion, the dominant thinking at that time was not appropriate to cover the particularities of services. Mintzberg identifies the five Ps of strategy, where the strategy can be seen as a plan, a ploy, a perspective, a pattern, or a position. The initiators of the service-dominant logic, Vargo and Lusch, described in their article The Four Service Marketing Myths b why IHIP is based on the wrong assumptions and leads to the wrong implications. Vargo and Lusch argue that it is time to bring these different mindsets together in order to rethink marketing as a whole. The empowerment element acknowledges the active role of the customers in the co-production of services.

Intangibility means services lack the tangible quality of goods; heterogeneity emerged because it is hardly possible to standardize services like goods are standardized; inseparability becomes an issue when the simultaneous service production and consumption is compared to the sequential production, purchase, and consumption of goods; and services are viewed as perishable because they are difficult to inventory compared to goods.

Vargo and Lusch remark further that in virtually all the literature concerning IHIP, the characteristics are seen as drawbacks of services that need to be overcome by marketers.

We classified ex-post the feedback received by users using four aspects: bridging, complexity, understandability, and Applicability.

product dominant or service dominant

For service consumption being inseparably connected with production, the customer must be directly involved. But productive capacity is persishable for both manufacturers and service providers.

Service dominant logic apple

In the s and s, more and more scholars found that the established paradigm did not fit the current trends and developments anymore. Table 1 shows a summary of the unique characteristics of services and their implications for marketing. For service consumption being inseparably connected with production, the customer must be directly involved. Obviously, the significance of the service-dominant logic for current marketing research cannot be denied. Too much of excess capacity is inefficient, but at the same time, too little supply will dissatisfy customers. Employees can learn about the customer preferences, which leads to a better understanding of the customer needs. The elements Contextually individuated and Empowerment are market relationships starting from inside the company and directed toward the outside world. Including the customer as a resource highlights the active role of the customer as producer—consumer in co-production. The nonhuman resources are included in the Infrastructures subcategory. They started to think of car leasing as a mobility means, rather than the end goal. By the end of the 20th century, more and more scholars were convinced that a new paradigm was needed Achrol and Kotler ; Day and Montgomery ; Sheth and Parvatiyar We argue that the plan, ploy, and pattern views of strategy are captured by the output of the utilization of our tool in a given organizational context and, therefore, should not be used to design the tool itself. For each category, in particular, we distinguish between pairs of complementary subcategories. However, external factors like the surroundings or even the weather can affect the perceived service outcome as well. In her opinion, the dominant thinking at that time was not appropriate to cover the particularities of services.

The same terms have been used interchangeably by other authors in the literature. As defined in S-D logic, an operant resource is a resource capable of acting on other resources. Several of them shared the standpoint that the explicit division between goods and services is outdated and that this realization should be recognized in further marketing research Rust

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The Service Dominant Logic of Marketing