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Service as Business Logic: Implications for Value Creation and Marketing
Abstract and Figures
Purpose
The purpose of this article is to analyze the scope, content and nature of value co‐creation in a service logic‐based view of value creation, addressing the customer's perspective in a supplier‐customer relationship. The nature of the activities and the roles of the supplier and the customer in value creation and co‐creation are analyzed. Furthermore, the purpose is to discuss what implications for marketing can be derived from this analysis.
Design/methodology/approach
The article analyzes the marketing implications that follow from the pivotal role of interactions in service provision. The article, thus, builds on a long history in service marketing research pointing at the impact on the content and scope of marketing of customer‐supplier interactions.
Findings
In this article, it is concluded that creating customer value is a multilaned process consisting of two conceptually distinct subprocesses. These are the supplier's process of providing resources for customer's use and the customer's process of turning service into value. The article results in five service logic theses which provide an understanding of the process of value creation and its implications for marketing. The theses offer a terminology that helps researchers and practitioners to understand the various roles of suppliers and customers in value creation and to analyze opportunities for co‐creation of value.
Originality/value
The findings of this article challenge some of the salient propositions of the emerging service‐dominant logic, i.e. customers as co‐creators of value, and firms can only make value propositions. The role of marketing is reframed beyond its conventional borders.
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... Traditional value creation emphasizes an autonomous process or core competency of corporations. In the further development of Grönroos and Ravald (2010), a broadened understanding of value creation impacting the aspects of aesthetics is provided. The rise and fall of brands as social movements emphasize the power of mutual observation, which is able to change the values of brands and, thus, the product and its organization. ...
... Teacher-student value co-creation is a cyclical and interactive process that involves three dimensions. First, the knowledge production and consumption behaviors of participants in the system provide the context for value co-creation [12]. Second, educational value is generated through the knowledge interaction between teachers and students. ...
... They place value creation in the context of services, understanding that co-creating value with customer participation can be confusing. With this, the authors suggest that companies conform to the values created by customers, instead of making them follow the processes they have determined [14]. ...
This study aims to analyze the perceived value of services provided by the Brazilian Company of Research and Industrial Innovation (EMBRAPII) to its contracting ministries and institutional partners. It utilizes the theory of value perception analysis and Constructivist Multi-criteria Decision Analysis to identify critical elements for evaluating EMBRAPII’s contracting organizations. Brainstorming sessions with experts led to the identification of five criteria and 14 sub-criteria. These criteria include a relationship with EMBRAPII, a signed agreement, EMBRAPII’s reputation, technical capacity, and the ability to adapt to changes. Data were entered into the second version of the MyMCDA-C software for value perception analysis. The findings showed a positive perceived value, with the best-performing sub-criteria relating to the organization’s reputation and the agreement signed. The study concludes that EMBRAPII needs to improve in areas such as adapting to change, the adequacy of its proposals for distinct types of partnership, and social media positioning. However, the contracting organizations generally support EMBRAPII’s direction and proposed solutions.
Successful implementation of the Sustainable Development Goals (SDGs) requires proper identification of the needs of the people with multi-stakeholder partnerships. Local governments are suitable mechanisms that have the potential to articulate the needs of the local community. If the people are satisfied with the public service, that ensures peace, justice, and strong institutions promoting effective and accountable public service at the community level. Improving the effectiveness of public service delivery has been a challenge for most developing countries both at the local and national levels. There is no exception to Sri Lanka. Local governments’ service delivery in the country is seriously subject to criticism. This study examines the significant factors affecting effective public service delivery in local governments in the Western Province of Sri Lanka. The study found that employees’ commitment and people’s participation significantly affect the effective public service delivery in the local governments and proposed policy measures to improve the effectiveness of the public service delivery in the local governments of Sri Lanka.
Purpose
This paper aims to introduce the experience-dominant (Ex-D) logic model, which synthesizes the creation, perceptions and outcomes of Ex-D logic. It is designed to offer valuable insights for strategic managerial applications and future research directions.
Design/methodology/approach
Employing a qualitative approach by using eight selected product launch events from reviewed 100 event videos and 55 in-depth interviews with industrial managers to develop an Ex-D logic model, and data were coded and analysed via NVivo.
Findings
Results show that the firm’s Ex-D logic is operationalized as the mentalizing of the three types of customer needs (service competence, hedonic excitations and meaning making), the materializing of three types of customer experiences and customer journeys (service experience, hedonic experience and brand experience) and the moderating of three types of customer values (service values, hedonic values and brand values).
Research limitations/implications
This study has implications for adding new insights into existing theory on dominant logic and customer experience management and also offers actionable recommendations for managerial applications.
Originality/value
This study sheds light on the importance of Ex-D logic from a strategic point of view and provides an organic view of the firm. It distinguishes firm perspective from customer perspective, firm experience from customer experience and firm journey from consumer journey.
In modern society, the application of the marketing concept becomes crucial, even in the nonprofit sector, including areas such as healthcare, education, and culture. Although marketing traditionally has not been prevalent in nonprofit organizations, changes in funding sources and increased competition encourage these organizations to reconsider their approach. Analyzing the roles of marketing in the healthcare sector, we emphasize the need for adaptable strategies due to dynamic circumstances and the necessity of embracing the marketing concept in the daily operations of healthcare institutions. Many healthcare institutions have not fully grasped the specificity of healthcare services compared to other service industries, nor the specificity and concept of patients compared to typical customers. Besides healthcare, staff should provide patients with so-called cognitive and emotional care. It is precisely from such specificities, such as patient participation in their treatment, that reasons for building loyalty or patient disengagement from a particular healthcare institution arise. By utilizing numerous studies in the field of relational marketing, this paper aims to highlight numerous shortcomings that healthcare institutions make in their relationships with current or prospective patients. A holistic marketing approach can ensure the influx of new patients, but only the creation and maintenance of quality relationships with them can provide healthcare institutions with patient loyalty, as well as the opportunity for long-term growth and development.
Cet article a pour objectif de déterminer les principaux facteurs qui influencent la cocréation de valeur sur les pages Facebook d’enseigne de restauration rapide au Maroc. Le modèle utilisé est inspiré des modèles DART et TAM. Un questionnaire administré a été envoyé en ligne à 384 personnes et a été traité selon la méthode PLS. Toutes les variables du modèle PLS ont prédit la cocréation de valeur. Le dialogue, l’accès à l’information, la gestion des risques, la transparence et l’utilité perçue ont influencé la cocréation de valeur. Un échantillon de convenance a été utilisé puisque des étudiants ont été interrogés. L’étude pourrait être reconduite avec d’autres types de cibles et de réseaux sociaux. La finalité managériale de ce travail serait de poser les questions stratégiques sur le community management dans le secteur de la restauration rapide.
This article proposes that the dyadic interaction between a service provider and a customer is an important determinant of the customer's global satisfaction with the service. Based on role theory, a theoretical framework is presented which abstracts some of the critical components of service encounters across industries.
The authors offer their personal interpretations as participant-observers together with a data-based analysis of the evolution of the services marketing literature. Bibliographic analysis of more than 1000 English-language, general services marketing publications spanning four decades provides the empirical base for the paper. Using an evolutionary metaphor as the framework, the authors trace the literature through three stages: Crawling Out (1953–79); Scurrying About (1980–85); and Walking Erect (1986-present). The discussion of the three stages shows how the literature has evolved from the early services-marketing-is-different debate to the maturation of specific topics (e.g., service quality, service encounters) and the legitimization of the services marketing literature by major marketing journals. A classification and summary of the publishing outlets where the literature has appeared is presented. The article closes with discussion and speculation on the future of the services marketing literature.
Marketing theory and practice have focused persistently on exchange between buyers and sellers. Unfortunately, most of the research and too many of the marketing strategies treat buyer-seller exchanges as discrete events, not as ongoing relationships. The authors describe a framework for developing buyer-seller relationships that affords a vantage point for formulating marketing strategy and for stimulating new research directions.
A typology of service organizations is presented and a conceptual framework is advanced for exploring the impact of physical surroundings on the behaviors of both customers and employees. The ability of the physical surroundings to facilitate achievement of organizational as well as marketing goals is explored. Literature from diverse disciplines provides theoretical grounding for the framework, which serves as a base for focused propositions. By examining the multiple strategic roles that physical surroundings can exert in service organizations, the author highlights key managerial and research implications.