Competing Through Service: Insights From Service-Dominant Logic

Foster College of Business Administration, Bradley University, 1501 West Bradley Avenue, Peoria, IL 61625, United States
Journal of Retailing (Impact Factor: 2.75). 01/2007; 83(1):5-18. DOI: 10.1016/j.jretai.2006.10.002


Service-dominant logic (S-D logic) is contrasted with goods-dominant (G-D) logic to provide a framework for thinking more clearly about the concept of service and its role in exchange and competition. Then, relying upon the nine foundational premises of S-D logic [Vargo, Stephen L. and Robert F. Lusch (2004). “Evolving to a New Dominant Logic for Marketing,” Journal of Marketing, 68 (January) 1–17; Lusch, Robert F. and Stephen L. Vargo (2006), “Service-Dominant Logic as a Foundation for Building a General Theory,” in The Service-Dominant Logic of Marketing: Dialog, Debate and Directions. Robert F. Lusch and Stephen L. Vargo (eds.), Armonk, NY: M.E. Sharpe, 406–420] nine derivative propositions are developed that inform marketers on how to compete through service.

Download full-text


Available from: Stephen L. Vargo, Oct 01, 2015
203 Reads
    • "dynamics of consumers' experience as a pattern emerging from a context. Fifth, although service-dominant logic emphasizes the primacy of operant resources as the fundamental source of a competitive advantage (Lusch et al., 2007), resources are valuable only within a particular socio-demographic context. Customers differ in many socio-demographic factors, such as educational background, Internet experience, or ethnic group, and different customers tend to use and assess resources in different ways (Edvardsson et al., 2011). "
    [Show abstract] [Hide abstract]
    ABSTRACT: Purpose This exploratory research intends to extend the research on customer co-creation behavior into an emerging market. To this end, it empirically examines the influence of e-service quality dimensions on customers’ willingness to participate in online co-creation experience, in conjunction with customer attitude and intention. Design/methodology/approach Data from a sample of 215 customers from the Egyptian telecommunication sector were collected and analyzed using structural equation modeling technique. Findings The findings suggest that, whereas five e-service quality dimensions (efficiency, system availability, privacy, responsiveness and compensation) affect the attitude toward the website, another set of the dimensions (efficiency, fulfillment, compensation and contact) affects customers’ willingness to participate in the co-creation experience. The findings also support that customers’ attitudes toward the website affect the intention to use the website, which in turn affects customers’ willingness to participate in the online co-creation experience. Practical implications In their move toward mass customization, companies face the challenge of engaging a huge number of users. Deep and engaging interactions with customers could be one of the differentiators a company might cultivate to serve the market better. Thus, online co-creation activities might broaden the horizon for a cost-effective approach striving for close ties and a high level of customer engagement. Originality/value Despite the intensive use of the Internet in distributing e-services, little attention has been paid thus far to extend e-service quality models to incorporate customer participation in the online co-creation experience. In particular, this exploratory study identifies the important dimensions of e-service quality that influence customers’ willingness to participate in the online co-creation experience.
    Journal of Research in Interactive Marketing 10/2015; 9(4). DOI:10.1108/JRIM-06-2014-0038
  • Source
    • "One of these antecedents can be related to the design and novelty of a firm's business model (Nenonen & Storbacka, 2010; Storbacka, Frow, Nenonen, & Payne, 2012). Lusch et al. (2007) highlight that the perception of potential value is a key rationale to decide for co-creation. Furthermore, Heidenreich and Handrich (2015) show that the willingness to co-create is related to innovation characteristics. "
    19. Interdisziplinäre Jahreskonferenz zu Entrepreneurship, Innovation und Mittelstand, Kassel; 10/2015
  • Source
    • "Value can only be created when there exists a deep understanding of customers, markets and matching supply chain capabilities. Companies must develop under the logic of service dominance, which requires them to focus on using their operant resources to achieve sustainable competitive advantage via their service offerings in conjunction with their suppliers (Lusch et al., 2007). "
    [Show abstract] [Hide abstract]
    ABSTRACT: The purpose of this study was to explore the servitization approach in order to understand the development of this trend among small Italian companies. In doing so, this study adopted a qualitative method and data were collected via in-depth interviews with managers of firms belonging to the footwear industry – an important sector for the Italian economy. Data analysis was realised through NVivo software, thereby providing a first understanding of the drivers that lead these companies to become ‘servitized’, as well as the main obstacles they face when considering providing services beyond their core offering. This study suggests important implications both for managers and marketing scholars. For academics, it extends the existing knowledge of the factors that influence this organisational and managerial change, and enriches the body of knowledge of the main drivers of and barriers to servitization. For practitioners, it helps understandings of the main advantages and potential obstacles to developing a servitization process.
    International Journal of Entrepreneurship and Small Business 10/2015; 26(3):2015.
Show more