Dynamics of value propositions: insights from service‐dominant logic

To overcome the vagueness that Service-Dominant Logic (SDL) scholars have found in conceptualisations of value-in-use due to the existence of different denominations and perspectives, this conceptual paper analyses the SDL literature, finding both value-in-use proposed as a comprehensive denomination, and resources, institutions, and time proposed as its main elements.<br/> Focusing on individuals as beneficiaries of value-in-use, the paper infuses the theory of basic individual values from social psychology in SDL, leading to three propositions that stress the ways in which basic individual values affect individuals' perceptions of resources, institutions, and time. Therefore, basic individual values act as lenses through which beneficiaries perceive flows of resources, institutions, and the time during which use occurs, thereby clarifying why value-in-use is always uniquely and phenomenologically determined by the beneficiary.<br/> This conceptual paper proposes basic individual values as micro-foundations of value co-creation, reveals ways to define the perceived value of resources, and leads practitioners to set value propositions according to basic individual values.

Download Full-text

The service revolution and its marketing implications: service logic vs service-dominant logic

Managing Service Quality ◽

10.1108/msq-03-2014-0042 ◽

2014 ◽

Vol 24 (3) ◽

pp. 206-229 ◽

Cited By ~ 188

Author(s):

Christian Grönroos ◽

Johanna Gummerus

Keyword(s):

Value Creation ◽

Service Dominant Logic ◽

Content Type ◽

Dominant Logic ◽

Value Propositions ◽

Managerial Implications ◽

Service Logic ◽

Conceptual Paper ◽

Managerial Level ◽

Service Perspective

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.

Download Full-text

Value proposition test-driving for service innovation: how frontline employees innovate value propositions

Journal of Service Theory and Practice ◽

10.1108/jstp-10-2014-0242 ◽

2016 ◽

Vol 26 (3) ◽

Cited By ~ 22

Author(s):

Maria Åkesson ◽

Per Skålén ◽

Bo Edvardsson ◽

Anna Stålhammar

Keyword(s):

Design Methodology ◽

Service Innovation ◽

Innovation Process ◽

Frontline Employees ◽

Value Proposition ◽

Service Dominant Logic ◽

Dominant Logic ◽

Study Approach ◽

Value Propositions

Purpose This article investigates the role of frontline employees in service innovation from a service-dominant logic perspective. Frontline employees lack a formal innovation obligation. Service innovation is a resource integration process resulting in the creation of new value propositions. Design/methodology/approach A case study of service innovation projects that includes three different businesses in the IT sector and personal interviews with 25 frontline employees. Findings The findings suggest that frontline employees contribute to service innovation by test-driving potential value propositions. Three types of value proposition test-driving have been identified: cognitive, practical, and discursive. The findings suggest interdependencies between the different modes of value proposition test-driving, as well as specific phases of the service innovation process dominated by one form or another. Research limitations/implications Value proposition test-driving offers a fruitful context for managers to involve frontline employees and use their creativity and expertise. The case study approach, however, limits the statistical generalizability of the findings. Originality/value The study is novel in that it (a) introduces the notion of value proposition test-driving for service innovation; (b) provides a systematic empirical analysis of how frontline employees contribute to service innovation by test-driving value propositions; (c) offers a service innovation model informed by the service-dominant logic; and (d) contributes to the service-dominant logic by detailing how service innovation occurs in practice.

Download Full-text

Resource Integration, Value Co-Creation, and Service-dominant Logic in Music Marketing: The Case of the TikTok Platform

International Journal of Music Business Research ◽

10.2478/ijmbr-2021-0002 ◽

2021 ◽

Vol 0 (0) ◽

Author(s):

Benjamin Toscher

Keyword(s):

Music Industry ◽

Secondary Data ◽

Past Research ◽

Global Scale ◽

Research Approach ◽

Resource Integration ◽

Service Dominant Logic ◽

Social Challenges ◽

Dominant Logic ◽

Value Propositions

Abstract It is a fact that the past research has explored service-dominant logic (S-D logic) and value co-creation in music marketing (Choi & Burnes 2013; Gamble & Gilmorex 2013; Gamble 2018; Saragih 2019), yet a key aspect of S-D logic, namely resource integration, is an unexplored territory and a promising phenomenon of study. A scattering of evidence demonstrates how actors, whether individuals or organisations, in the music industry are making value propositions and providing operand resources to users of platforms (Poell, Nieborg, & Van Dijck 2019), which may result in resource integration and commercial success at a quick pace and on a global scale. Using secondary data in an archival research approach (Welch 2000), this paper examines TikTok, a rapidly growing platform where users integrate short (e.g., under 15 s) clips of commercial music into user generated video content in which users dance to, lip-sync with, accept social challenges, integrate hashtags and create memes based on musical content. Further, there is a discussion on evidence about how music is being used by actors on TikTok in order to argue that (a) S-D logic (Vargo & Lusch 2016) is an insightful perspective through which one is able to understand music marketing; (b) music providers essentially make value propositions with their music that other actors, such as music consumers, can integrate into their lives through platforms like TikTok; (c) changes in technology affect such resource integration and how actors in the music industry can adapt to such change; (d) value-in-social-context (Edvardsson, Tronvoll, & Gruber 2010) is a driver of resource integration by users on the platform; and (e) this example of value created by users on TikTok is just one example of the many types of value which guide action and interaction on today’s music platforms. The discussion and analysis is concluded with several implications for research and practice.

Download Full-text