Service dominant logic Flashcards
(7 cards)
Vargo & Lusch
2004: The service-dominant logic
Traditionally: goods, tangible operand resources, embedded value, transactions
New dominant logic: services, intangible operant resources (skills and knowledge) producing effects, co-creation of value (e.g. Ralph Lauren shirts, networks), relationships, exchange processes
Customer orientation: value is always determined by the beneficiary - different to different people
Has S-D logic always existed? Seeing the same transactions from a different viewpoint.
Lusch
2007: Evolution of marketing
- To market
- Marketing to - stimulating demand, 4Ps
- Marketing with - collaboration, co-creation, service dominant
O’Shaughnessy & O’Shaughnessy
2009: Against Vargo & Lusch
There is not one best way - need multiple marketing perspectives
Definition of services is too broad - there’s a difference between a good and a service
Levitt
1975: Marketing myopia
Not about persuading people to buy things but about refocusing on customer needs (link to ‘latent needs’)
Don’t bank on longevity of product, lack of substitutes, or expanding population
Relationship marketing - five times more expensive to recruit a new custoemr as to retain an old one
Shostack
1977: Services are not products - can’t apply the same marketing techniques to both
Service =
- Inseparability of production and consumption
- Heterogeneity of outcome
- Intangibility of results
- Perishability
Proposition of molecule model, with a scale from ‘intangible dominant’ to ‘tangible dominant’, marketed through ‘tangible evidence’ to ‘intangible image’
Cars are equally physical objects and a service of transportation - all cars are over-specked and its about the service
Hanssens et al.
2009: The ultimate measure of a firm’s value is their customer equity, the sum of the lifetime values of current and future customers - but difficult to link the two together.
Slater & Narver
1998: Latent needs
