Service Transformation and Its Impact on Marketing: A Comparison Between Service Logic and Service-Dominant Logic
Main Article Content
Abstract
The purpose of this conceptual piece is to investigate the consequences of the service viewpoint within the framework of marketing. This article uncovers direct and indirect marketing consequences through a conceptual study of two ways to understanding the service perspective: Service Dominant Logic (SDL) and Service Logic (SL). Value co-creation is conceptualised by SDL as a process in which the company, customers, and other stakeholders work together to create value for the customers. The company is in charge of this strategy, and the service provider is essential to creating value. The idea of co-creation may become mired in metaphor, and the management implications of SDL are not only dependent on the service viewpoint. On the other hand, SL provides an analytical method together with the co-creation idea that has the potential to drastically transform marketing from a service standpoint. The customer is the one who drives value creation in the customer process. This research yields eleven management principles of SL, which have the potential to transform marketing through their theoretical and practical implications. Researchers and managers may focus their attention on the intricate process of value generation by using SDL. Meanwhile, SL can analyze this process at the managerial level, to derive opportunities for customer-focused and service perspectives to revolutionize marketing. The resulting analysis and principles help marketing to move beyond simply offering a value proposition and become the responsibility of the entire organization. Beyond traditional marketing, companies must adopt service-influenced marketing and instill a customer-focused mindset in all staff members. New customer-centric and service-influenced marketing strategies may be discovered by academics and managers thanks to the service viewpoint in business, which also has significant management consequences.
Article Details
References
Ahmed, P.K. and Rafiq, M. (2003), “Internal marketing issues and challenges”, European Journal of Marketing, Vol. 37 No. 9, pp. 1177-1186.
Alderson, W. (1957), Marketing Behavior and Executive Action, Richard D. Irwin, Homewood, IL.
Anderson, J.C., Narus, J.A. and van Rossum, W. (2006), “Customer value propositions in business markets”, Harvard Business Review, Vol. 84 No. 3, pp. 90-99.
Ballantyne, D. (2000), “Internal relationship marketing: a strategy for knowledge renewal”, International Journal of Bank Marketing, Vol. 18 No. 6, pp. 274-286.
Bastiat, F. (1848), in Huszar, G.B. (Ed.), Selected Essays on Political Economy, Van Nordstrand, Princeton, NJ, (English translation).
Berry, L.L. (1981), “The employee as customer”, Journal of Retail Banking, Vol. 3 No. 1, pp. 33-40.
Berry, L.L. and Parasuraman, A. (1991), Marketing Services: Competing through Quality, The Free Press, New York, NY.
Bitner, M.J. (1992), “Servicescapes: the impact of physical surroundings on customers and employees”, Journal of Marketing, Vol. 56 No. 2, pp. 57-71.
Booms, B.H. and Bitner, M.J. (1982), “Marketing structures and organization structures for service firms”, in Donnelly, J.H. and George, W.R. (Eds), Marketing of Services, American Marketing Association, Chicago, IL, pp. 47-51.
Calonius, H. (2006), “A market behaviour framework”, Marketing Theory, Vol. 6 No. 4, pp. 419-428.
Carlzon, J. (1987), Moments of Truth, Ballinger, Cambridge, MA.
Collins English Dictionary (1999), Millennium ed., Harper & Row, Glasgow.
Cornelissen, J.P. (2004), “What are we playing at? Theatre, organization and the use of metaphor”, Organization Studies, Vol. 25 No. 5, pp. 705-726.
Echeverri, P. and Skale n, P. (2011), “Co-creation and co-destruction: a practice-theory based study of interactive value formation”, Marketing Theory, Vol. 11 No. 3, pp. 351-373.
Edvardsson, B., Gustafsson, A. and Roos, I. (2005), “Service portraits in service research: a critical review”, International Journal of Service Industry Management, Vol. 16 No. 1, pp. 107-121.
Edvardsson, B., Tronvoll, B. and Gruber, T. (2011), “Expanding understanding of service exchange and value co-creation: a social construction approach”, Journal of the Academy of Marketing Science, Vol. 39 No. 2, pp. 327-339.
Eiglier, P. and Langeard, E. (1975), “An approche nouvelle pour le marketing des services”, Revue Francaise de Gestion, Vol. 2, pp. 97-114.
Eiglier, P. and Langeard, E. (1976), “Principe de politique marketing pour les enterprises de service”, working paper, Institute d’Administration des Enterprises, Universites d’Aix-Marseille.
Flipo, J.-P. (1986), “Service firms: interdependence of external and internal marketing strategies”, European Journal of Marketing, Vol. 20 No. 8, pp. 5-14.
George, W.R. (1990), “Internal marketing and organizational behaviour: a partnership in developing customer-conscious employees at every level”, Journal of Business Research, Vol. 20 No. 1, pp. 63-70.
Gronroos, C. (1978), “A service-oriented approach to marketing of services”, European Journal of Marketing, Vol. 12 No. 8, pp. 588-601.
Gronroos, C. (1981), “Internal marketing – an integral part of marketing theory”, in Donnelly, J.H. and George, W.R. (Eds), Marketing of Services, American Marketing Association, Chicago, IL, pp. 236-238.
Gronroos, C. (1984), “A service quality model and its marketing implications”, European Journal of Marketing, Vol. 18 No. 4, pp. 36-44.
Gronroos, C. (1999), “Relationship marketing: challenges for the organization”, Journal of Business Research, Vol. 46 No. 3, pp. 327-335.
Gronroos, C. (2007), Service Management and Marketing, 3rd ed., John Wiley & Sons, Chichester.
Gronroos, C. (2009), “Promise management: regaining customer management for marketing”, Journal of Business & Industrial Marketing, Vol. 24 Nos 5/6, pp. 351-359.
Gronroos, C. (2011), “Value co-creation in service logic: a critical analysis”, Marketing Theory, Vol. 11 No. 3, pp. 279-301.
Gronroos, C. (2012), “Conceptualising value co-creation: a journey to the 1970s and back to the future”, Journal of Marketing Management, Vol. 28 Nos 13-14, pp. 1520-1534.
Gronroos, C. and Helle, P. (2010), “Adopting a service logic in manufacturing: conceptual foundation and metrics for mutual value creation”, Journal of Service Management, Vol. 21 No. 5, pp. 564-590.
Gronroos, C. and Ravald, A. (2011), “Service business logic: implications for value creation and marketing”, Journal of Service Management, Vol. 22 No. 1, pp. 5-22.
Gronroos, C. and Voima, P. (2013), “Critical service logic: making sense of value creation and co-creation”, Journal of the Academy of Marketing Science, Vol. 41 No. 2, pp. 133-150.
Gummerus, J. and Pihlstro¨m, M. (2011), “Context and mobile services’ value-in-use”, Journal of Retailing and Consumer Services, Vol. 18 No. 6, pp. 521-533.
Gummesson, E. (1979), “The marketing of professional services – an organizational dilemma”, European Journal of Marketing, Vol. 13 No. 5, pp. 308-318.
Gummesson, E. (1987), “The new marketing – developing long-term interactive relationships”, Long Range Planning, Vol. 20 No. 4, pp. 10-20.
Gummesson, E. (1991), “Marketing revisited: the crucial role of the part-time marketer”, European Journal of Marketing, Vol. 25 No. 2, pp. 60-67.
Gummesson, E. (1995), “Relationship marketing: its role in the service economy”, in Glynn, W.J. and Barnes, J.G. (Eds), Understanding Services Management, Wiley, New York, NY, pp. 244-268.
Gupta, S. and Lehman, D.R. (2005), Managing Customers as Investments, Wharton School Publishing, Upper Saddle River, NJ.
Heinonen, K., Strandvik, T., Mickelsson, K-J., Edvardsson, B., Sundstro¨m, E. and Andersson, P. (2010), “A customer dominant logic of service”, Journal of Service Management, Vol. 21 No. 4, pp. 531-538.
Heinonen, K., Strandvik, T. and Voima, P. (2013), “Customer dominant value generation in service”, European Business Review, Vol. 25 No. 2, pp. 104-123.
Heracleous, L. and Jacobs, C.D. (2008), “Crafting strategy: the role of embodied metaphors”, Long Range Planning, Vol. 41 No. 3, pp. 309-325.
Langeard, E. and Eiglier, P. (1987), Servuction: Le Marketing des Services, Wiley, Paris.
Lannings, M.J. and Michaels, G. (1988), “A business as a value delivery system”, McKinsey Paper No. 4, New York, NY.
Lusch, R.F., Vargo, S.L. and Wessels, G. (2008), “Toward a conceptual foundation for service science: contributions from service-dominant logic”, IBM Systems Journal, Vol. 47 No. 1, pp. 5-14.
McColl-Kennedy, J.R., Vargo, S.L., Dagger, T.S., Sweeney, J.C. and van Kasteren, Y. (2012), “Health care customer value cocreation practice styles”, Journal of Service Research, Vol. 15 No. 4, pp. 370-389.
Macdonald, E.K., Wilson, H., Martinez, V. and Toossi, A. (2011), “Assessing value-in-use: a conceptual framework and exploratory study”, Industrial Marketing Management, Vol. 40 No. 5, pp. 671-682.
Martin, C.L. and Pranter, C.A. (1989), “Compatibility management: customer-to-customer relationships in service environments”, Journal of Services Marketing, Vol. 3 No. 3, pp. 5-15.
Morgan, G. (1980), “Paradigms, metaphors, and puzzle solving in organizational theory”, Administrative Science Quarterly, Vol. 25 No. 3, pp. 605-622.
Morgan, G. (1986), Images of Organizations, Sage, Thousand Oaks, CA.
Normann, R. (1984), Service Management, John Wiley& Sons, New York, NY.
Normann, R. and Ramı´rez, R. (1993), “Designing interactive strategy”, Harvard Business Review, Vol. 71, July-August, pp. 65-77.
Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1985), “A conceptual model of service quality and its implications for future research”, Journal of Marketing, Vol. 49, pp. 41-50.
Payne, A., Ballantyne, D. and Christopher, M. (2005), “A stakeholder approach to relationship marketing strategy: the development and use of the ‘six markets’ model”, European. Journal of Marketing, Vol. 39 Nos 7/8, pp. 855-871.
Rathmell, J.M. (1966), “What is meant by services?”, Journal of Marketing, Vol. 30, October, pp. 32-36.
Rathmell, J.M. (1974), Marketing in the Service Sector, Winthrop Publishers, Cambridge, MA.
Sasser, W.E. Jr and Arbeit, S.P. (1976), “Selling jobs in the service sector”, Business Horizon, Vol. 19 No. 3, pp. 61-65.
Sheth, J.N. and Uslay, C. (2007), “Implications of the revised definition of marketing: from exchange to value creation”, Journal of Public Policy & Marketing, Vol. 26 No. 2, pp. 302-307.
Skale ˚ ´n, P., Gummerus, J., von Koskull, C. and Magnusson, P. (2014) ‘ Exploring value propositions and service innovations: a service-dominant logic study”, Journal of the Academy of Marketing Science, (published online 2014).
Strandvik, T., Holmlund, M. and Edvardsson, B. (2012), “Customer needing: a challenge for the seller offer”, Journal of Business & Industrial Marketing, Vol. 27 No. 2, pp. 132-141.
Vargo, S.L. (2008), “Customer integration and value creation. Paradigmatic traps and perspectives”, Journal of Service Research, Vol. 11 No. 2, pp. 211-215.
Vargo, S.L. and Lusch, R.F. (2004), “Evolving to a new dominant logic for marketing”, Journal of Marketing, Vol. 68 No. 1, pp. 1-17.
Vargo, S.L. and Lusch, R.F. (2008a), “Service dominant logic: continuing the evolution”, Journal of the Academy of Marketing Science, Vol. 36 No. 1, pp. 1-10.
Vargo, S.L. and Lusch, R.F. (2008b), “Why ‘service’?”, Journal of the Academy of Marketing Science, Vol. 36 No. 1, pp. 25-38.
Vargo, S.L. and Lusch, R.F. (2011), “It’s all Bt2B y and beyond: toward a systems perspective of the market”, Industrial Marketing Management, Vol. 40 No. 2, pp. 181-187.
Vargo, S.L., Maglio, P.P. and Akaka, M.A. (2008), “On value and value co-creation: a services systems and service logic perspective”, European Management Journal, Vol. 26 No. 3, pp. 145-152.
Vargo, S.L. and Morgan, F.W. (2005), “Services in society and academic thought: an historical analysis”, Journal of Macromarketing, Vol. 25 No. 1, pp. 42-53.
Xia, L. and Suri, R. (2014), “Trading effort for money: consumers’ cocreation motivation and the pricing of service options”, Journal of Service Research, (published online October 2013).
Zimmermann, E. (1951), World Resources and Industries, 2d ed., Harper & Brothers, New York, NY.