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

2014 ◽  
Vol 24 (3) ◽  
pp. 206-229 ◽  
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.

scholarly journals Consumer dominant value creation

2015 ◽  
Vol 49 (3/4) ◽  
pp. 532-560 ◽  
Author(s):  
Thomas Boysen Anker ◽  
Leigh Sparks ◽  
Luiz Moutinho ◽  
Christian Grönroos
Keyword(s):  
Value Creation ◽  
Design Methodology ◽  
Semantic Analysis ◽  
Explanatory Power ◽  
Service Dominant Logic ◽  
Research Focus ◽  
Content Type ◽  
Dominant Logic ◽  
Consumer Value ◽  
Conceptual Paper

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.

Studying customers’ resource integration by service employees in interactional value co-creation

2016 ◽  
Vol 30 (2) ◽  
pp. 152-164 ◽  
Author(s):  
Loïc Plé
Keyword(s):  
Conceptual Framework ◽  
Design Methodology ◽  
Customer Participation ◽  
Resource Integration ◽  
Service Dominant Logic ◽  
Content Type ◽  
Service Employees ◽  
Dominant Logic ◽  
Managerial Implications ◽  
Practical Implications

Purpose Noting that resource integration is a pivotal dimension of value co-creation in Service-Dominant logic, this paper aims to explore how service employees engaged in co-creation processes with customers integrate the latter’s resources. Design/methodology/approach To address the limitations of previous research on customer resources and their integration by service employees, this study turns to the concept of customer participation to identify the nature of customers’ resources. A conceptual framework of their integration by service employees underpins nine key propositions. This foundation leads to the development of theoretical contributions, managerial implications and avenues for research. Findings Customers can use 12 types of resources in value co-creation. Contrasting with earlier findings, the conceptual framework reveals that service employees may not only integrate these customers’ resources but also either misintegrate or not integrate them. Non-integration and misintegration may be intentional or accidental. Accordingly, value co-creation or co-destruction may result from interactions. Research limitations/implications This conceptual and exploratory text requires complementary theoretical and empirical investigations. It also does not adopt an ecosystems view of co-creation. Practical implications Knowing the different steps of resource integration and what influences them should increase the chances of value co-creation and limit the risks of value co-destruction. Originality/value Scant research has examined the nature of customer resources and how service employees integrate them. This paper also is the first to distinguish among resource integration, misintegration and non-integration.

Co-creation and higher order customer engagement in hospitality and tourism services

2016 ◽  
Vol 28 (2) ◽  
pp. 222-245 ◽  
Author(s):  
Prakash K. Chathoth ◽  
Gerardo R. Ungson ◽  
Robert J. Harrington ◽  
Eric S.W. Chan
Keyword(s):  
Value Creation ◽  
Higher Order ◽  
Customer Engagement ◽  
Service Dominant Logic ◽  
Content Type ◽  
Dominant Logic ◽  
Ex Post ◽  
Ex Ante ◽  
Experiential Value

Purpose – This paper aims to present a review of the literature associated with co-creation and higher-order customer engagement concepts and poses critical questions related to the current state of research. Additionally, the paper presents a framework for customer engagement and co-creation with relevance to hospitality transactions. Design/methodology/approach – Earlier research on co-production, co-creation, consumer engagement and service-dominant logic are discussed and synthesized. Based on this synthesis, links and contrasts of these varying research streams are presented providing an articulation of key characteristics of each and how these might be applied within a hospitality context. Findings – Modalities in service transactions vary among traditional production, co-production and co-creation based on changes in attitudes, enabling technologies and the logic or ideology supporting the change. Transaction characteristics vary among manufacturing, quasi-manufacturing and services based on several key categories including differences in boundary conditions, enablers, success requirements, sustainability requirements, the dominant logic used and key barriers/vulnerabilities. When creating experiential value for consumers, firms should consider several aspects ex-ante, in-situ and ex-post of the change and during the change process. Research limitations/implications – Firms need to move toward higher-order customer engagement using co-creative modalities to enhance value creation. Current practices in the hotel industry may not in their entirety support this notion. Ex-ante, in-situ and ex-post considerations for creating experiential value need to be used as part of a checklist of questions for firms to pose in order to move toward managing customer experiences using the service-dominant logic as part of the firm’s orientation toward its market. This would give it the required thrust to create superior engagement platforms that use co-creative modalities while addressing the barriers to higher-order customer engagement as identified in the literature. Originality/value – The hospitality and tourism literature on co-creation and higher-order customer engagement is still in its infancy. A synthesis of these early studies provides support for the need for future research on co-creation that more clearly articulates the modality firms could use to move toward co-creation. This paper develops a dynamic framework using characteristics of co-creation that integrate the various stages of value creation (i.e. input, throughput and output).

Zooming-in value-in-use through basic individual values

2020 ◽  
Vol 19 (2) ◽  
pp. 97-125
Author(s):  
Paolo Stampacchia ◽  
Marco Tregua ◽  
Mariarosaria Coppola
Keyword(s):  
Social Psychology ◽  
Perceived Value ◽  
Service Dominant Logic ◽  
Individual Values ◽  
Dominant Logic ◽  
Value Propositions ◽  
Conceptual Paper ◽  
Micro Foundations ◽  
Set Value

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.

Unlocking customer accounting’s potential: a service-dominant logic approach

2018 ◽  
Vol 30 (3) ◽  
pp. 371-386 ◽  
Author(s):  
Frederick Ng ◽  
Zack Wood
Keyword(s):  
Value Creation ◽  
Design Methodology ◽  
Active Role ◽  
Service Dominant Logic ◽  
Content Type ◽  
Dominant Logic ◽  
Logic Approach ◽  
Practical Implications ◽  
Do So

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.

scholarly journals Discussing the potential of the institutional theory to leverage service-dominant logic advancements

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sara Martins Gonçalves ◽  
Rui Vinhas Silva
Keyword(s):  
Institutional Theory ◽  
Design Methodology ◽  
Support Service ◽  
Service Dominant Logic ◽  
Content Type ◽  
Dominant Logic ◽  
Fertile Ground ◽  
Conceptual Paper

Purpose Institutions play a central role in service-dominant logic. However, the discussion regarding how institutional theory supports service-dominant logic advancements is still insufficient. This paper aims to contribute to a discussion on the multiple service-dominant logic approaches to institutions. Design/methodology/approach This conceptual paper presents the characterization of the existing streams in the broad institutional literature, highlighting the differences among those streams and elaborates on how one of the discussed streams – neo-institutionalism – is suitable to support service-dominant researchers in understanding the role of institutions in markets and value co-creation. Findings The paper shows that the three institutional perspectives presented are used indistinctly by service-dominant logic and a greater fit between the service-dominant logic and the neo-institutionalism stands out. Originality/value The paper proposes that service-dominant researchers should look at the neo-institutional stream as a particularly fertile ground for furthering their research.

Service Logic Business Model Canvas

2018 ◽  
Vol 20 (1) ◽  
pp. 70-98 ◽  
Author(s):  
Jukka Ojasalo ◽  
Katri Ojasalo
Keyword(s):  
Focus Group ◽  
Business Model ◽  
Customer Value ◽  
Model Development ◽  
Service Dominant Logic ◽  
Content Type ◽  
Dominant Logic ◽  
Business Model Canvas ◽  
Service Logic ◽  
Business Model Development

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.

scholarly journals Reflections on student‐university interactions for next generation learning

2012 ◽  
Vol 24 (2) ◽  
pp. 328-342 ◽  
Author(s):  
David H. Wong
Keyword(s):  
Higher Education ◽  
Value Creation ◽  
Higher Education Institutions ◽  
Service Dominant Logic ◽  
Student Interactions ◽  
Content Type ◽  
Creation Process ◽  
Dominant Logic ◽  
E Learning ◽  
Value Creation Process

PurposeThe purpose of this paper is to draw attention to the implications of an e‐learning strategy – a strategy that is increasingly employed with greater intensity by many higher education institutions, by re‐examining the value creation process from a service‐dominant logic perspective.Design/methodology/approachA model of student‐faculty and student‐student interactions using interactive Web 2.0 technologies in e‐learning is offered and explained using literature from service‐dominant logic research.FindingsThis perspective fundamentally alters the mindset of higher education institutions that have traditionally devised strategies to deliver value through its products and services. The new focus provided by service‐dominant logic is for higher education institutions to acknowledge that they can only facilitate the value creation process by fostering interactions, constructing learning activities that enable enriching learning experiences and creating structures to support these experiences.Practical implicationsKey challenges for higher education institutions are discussed that include implications for exclusion marketing, perceived value for money, and policy issues.Originality/valueThis paper provides a fresh perspective, and a new line of thinking with regard to how value is co‐created by both faculty and students through a set of experiences within student‐faculty and student‐student interactions. It therefore potentially directs a new path of research in the area.

scholarly journals Millennial cultural consumers: co-creating value through brand communities

2014 ◽  
Vol 4 (1/2) ◽  
pp. 119-135 ◽  
Author(s):  
Sue Vaux Halliday ◽  
Alexandra Astafyeva
Keyword(s):  
Design Methodology ◽  
Knowledge Development ◽  
Brand Community ◽  
Content Type ◽  
Brand Communities ◽  
Art And Culture ◽  
Managerial Implications ◽  
Community Theory ◽  
Conceptual Paper ◽  
Research Propositions

Purpose – The purpose of this paper is to conceptualise millennial cultural consumers (MCCs) to bring together strands of consumer theory with branding theory to consider how to attract and retain younger audiences in arts organisations. Within that the authors single out for attention how “brand community” theory might apply to MCCs. Design/methodology/approach – This paper is a conceptual paper that reviews and comments on concepts relevant to helping arts organisations develop strategies to attract and retain younger consumers in their audiences. Findings – Thoughtful conceptual insights and four research propositions for further work by academics and/or practitioners on Millennials and the art and culture world are derived from this review and commentary. Managerial implications are also drawn out. Originality/value – This paper contributes to the knowledge development of such concepts as value and brand communities. It also provides an explanation of these concepts conncecting academic thought on value with pressing management challenges for arts organisations, suggesting ways to apply brand community thinking to innovatiely conceptualised MCCs.

Project-based learning in human–computer interaction: a service‐dominant logic approach

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amela Karahasanović ◽  
Alma Leora Culén
Keyword(s):  
Human Computer Interaction ◽  
Real Life ◽  
Project Based Learning ◽  
Service Dominant Logic ◽  
Teaching Innovation ◽  
Content Type ◽  
Research Education ◽  
Dominant Logic ◽  
Service Ecosystem ◽  
Computer Interaction

Purpose This study aims to propose a service-dominant logic (S-DL)-informed framework for teaching innovation in the context of human–computer interaction (HCI) education involving large industrial projects. Design/methodology/approach This study combines S-DL from the field of marketing with experiential and constructivist learning to enable value co-creation as the primary method of connecting diverse actors within the service ecology. The approach aligns with the current conceptualization of central university activities as a triad of research, education and innovation. Findings The teaching framework based on the S-DL enabled ongoing improvements to the course (a project-based, bachelor’s-level HCI course in the computer science department), easier management of stakeholders and learning experiences through students’ participation in real-life projects. The framework also helped to provide an understanding of how value co-creation works and brought a new dimension to HCI education. Practical implications The proposed framework and the authors’ experience described herein, along with examples of projects, can be helpful to educators designing and improving project-based HCI courses. It can also be useful for partner companies and organizations to realize the potential benefits of collaboration with universities. Decision-makers in industry and academia can benefit from these findings when discussing approaches to addressing sustainability issues. Originality/value While HCI has successfully contributed to innovation, HCI education has made only moderate efforts to include innovation as part of the curriculum. The proposed framework considers multiple service ecosystem actors and covers a broader set of co-created values for the involved partners and society than just learning benefits.

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