Goods-dominant Logic Research Articles

Examining Customer Value Cocreation Behavior in Boutique Hotels: Hospitableness, Perceived Value, Satisfaction, and Citizenship Behavior

Distinguished from the goods-dominant logic, service-dominant logic has suggested customers are value cocreators. However, in boutique hotels where services are highly individualized and interactive between hotel staff and customers, the role of customer value cocreating might be different compared to a normal service encounter. Yet limited studies have demonstrated whether customers’ value cocreation behaviors have changed in boutique hotels and its corresponding mechanism. This study aims to fulfill this gap by examining customer value cocreation behavior (i.e., citizenship behavior via feedback, advocacy, helping and tolerance) from the impact of hospitableness (personalization, warm welcome, deeper connection, and comfort), perceived value, and satisfaction. Data were obtained in China via an online marketing research panel. Results from confirmatory factor analysis (CFA) and structural equation modelling (SEM) showed that both hospitableness and perceived value positively affect satisfaction, while perceived value also partially mediates the relationship between hospitableness and satisfaction. An interesting finding indicates that satisfaction impacts citizenship behavior in a following descending order: advocacy, feedback, helping, and tolerance. Two demographic variables (i.e., marital status, household incomes) were found to moderate the relationship between satisfaction and citizenship behavior. This study contributes to the literature on service-dominant logic, value cocreation, and boutique guest experiences. Managerial implications for facilitating the value cocreation process are also discussed.

Managing Innovation From an S-D Logic Perspective

Innovation has traditionally been studied under a goods-dominant (G-D) logic perspective, focusing on product designs and innovations in production, manufacturing, and traditional value chain functions. However, with the development of information technologies and the increasingly competitive business service environment, a services-dominant (S-D) logic has emerged, emphasizing relational interactions among network stakeholders (e.g. partners, suppliers, and customers). Using a services-dominant (S-D) logic perspective coupled with a resource-based perspective, this study examines how resources and capabilities influence innovative strategy, leading to enhanced innovative performance. Employing 200 valid survey data using questionnaires from firms located in Vietnam, this study confirms that basic operant resources and dynamic capabilities significantly affect firms’ innovation performance either directly or indirectly through a mediation effect of S-D logic orientation.

Model of Decision to Choose a Private Higher Education on Accreditation, Brand Image and Integrated Marketing Communication with Trust as a mediating variable

Private Higher Education is an alternative choice for students in continuing their education to the next level. Various variables such as university accreditation, brand image and integrated marketing communications are considered by students in making their choices. The purpose of this study was to identify and analyze the effect of accreditation on trust, the effect of brand image on trust, the effect of integrated marketing communications on trust, and the effect of accreditation, brand image and integrated marketing communications on trust, the effect of accreditation on the decision to choose a private university, the effect of brand image on the decision to choose a private university, the effect of integrated marketing communications on the decision to choose a private university, the effect of trust on the decision to choose a private university and the effect of accreditation, brand image, integrated marketing communications and mutual trust on the decision to choose a private university . The theory used in this review paper is Service Dominant Logic (SDL) is a marketing concept formulated by Stephen L. Vargo and Robert F. Lusch in 2004. According to Vargo and Lusch, SDL replaces the goods-dominant logic) centered on the exchange of physical goods with a service-dominant logic focused on value exchange and value creation through customer engagement. In SDL, marketing is defined as a social and economic process in which value is created through interaction between service providers and customers. The dimensions of the student's decision to choose are explained by Hadiyati (2016) Consists of Attention, Interest, Desire and Action (AIDA). Modern marketing theory can be shown in the AIDA Model is the basis of marketing, movement, organizing advertisements resulting from customer perceptions. AIDA explains that in building an effective communication program, the most important aspect is understanding the process by which consumers respond, for example when consumers make purchases at a certain products and services, it is necessary to understand the promotional efforts that can influence the consumer's response.

Role of brand engagement and co-creation experience in online brand community continuance: A service-dominant logic perspective

Value creation and acquisition are pivotal for continuous participation in online communities and thus have become goals that brand companies strive to develop in online brand communities (OBCs). Prior studies, however, predominately adopted the goods-dominant logic to assess the role of OBC members’ value perceptions in their value experiences. Such an approach overlooks the fact that one's value experiences in OBCs manifest in the co-creation with the brand and with other OBC members, benefiting from technology platforms and one's community motives. We thus draw on the service-dominant logic to formulate a research model with seven research hypotheses. These hypotheses depict relationships among five research constructs, in which (1) OBC continuance intention serves as the ultimate dependent variable, (2) brand engagement and co-creation experience represent OBC members’ value experiences in consumer-to-brand and consumer-to-consumer interactions, respectively, and (3) social media affordances and members’ OBC identification serve as the antecedents of OBC members’ value experiences. We used the Amazon MTurk platform to collect 246 valid samples worldwide that represent general OBC members. We adopted PLS-SEM to assess the measurement model and test the proposed hypotheses. Our findings indicate that co-creation experience and brand engagement are pivotal value experiences that can increase OBC continuance intention. In addition, social media affordances and OBC identification are instrumental to both value experiences through their facilitation of technology-mediated and communal interactions for resource integration and service exchange among OBC members and the brand. This study sheds light on OBC research by identifying the central role of brand engagement and co-creation experience in OBC continuance. We also discuss theoretical and practical implications and provide future research suggestions.

Building-as-a-Service: The opportunities of service-dominant logic for construction

Construction as one of the largest industries worldwide is not necessarily a frontrunner in the application of digital technologies, tools, procedures, and processes. This has been demonstrated in innumerable reports and scholarly work. The industry has a reputation for delivering projects late, over budget and with improvable quality; all of this combined with a certain digital ignorance. Moreover, it is known for having a Goods-Dominant Logic, which is focused on distribution and management of tangible units of output. This is combined with Taylorism resulting in separation of the role of managing the work from the actual execution of work. The planning and erection of a building is cross-cultural, cross-country project setting due to the diverse nature of the industry and its globalised value chain. Building Information Modelling (BIM), a three-dimensional representation of information including its corresponding management in asset’s life cycle is considered as one of the enablers for the digital future of construction. However, the development of service-dominant logic within the construction industry has not kept pace with technological and technical possibilities or is not discernible. This is based on a very traditional approach of money for goods which in this case means money for planned and built assets. Service as a unit of exchange is very rarely considered in the sector. As has been shown in other sectors, this can lead to further (more profitable) business models and further increases in efficiency and effectiveness. The aim of the paper is to show the opportunities that exist if buildings are not considered as amalgamation of materials and goods but as a service model. The paper shows what Service-Dominant Logic (SDL) in combination with BIM could offer to the industry and discusses the term Building-as-a-Service (BaaS) from an SDL perspective.

A Goods-Dominant—Service-Dominant Perspective on Counterfeiting

Extant research is equivocal on the positive and negative implications of counterfeits and is unable to offer an explanation for why purchase and use of counterfeits evoke mixed and contentious responses. We argue that the unreconciled claims about counterfeits are partially rooted in the divided logics of value, as articulated by the goods-dominant logic (GDL) versus service-dominant logic (SDL). We develop a conceptual understanding of non-deceptive counterfeits (NDCs) atop SDL axioms, along key extant research debates. Our examination of the theoretical GDL-SDL views of NDCs with a synthesis of 132 extant academic works, informs the adversarial orientation towards such products. We address extant debates using a content analysis of studies on NDCs. We offer propositions that link the theoretical relevance of evaluating outcomes of NDCs from an SDL perspective and provide foci for future research on this subject.

The Comparison of Two Different Organizational Mechanisms to Facilitate the Value Co-Creation

With the transformation of economic change, companies have gradually transformed their mode from the traditional one-way of goods-dominant logic to interactive two-way of service-dominant logic, which is known as value co-creation. It gives us a good opportunity to answer the basic research question of corporate change: Why are the employees willing to participate in value co-creation and facilitate the corporate change? We design a research framework which reflects the two contradictory theoretical assumptions–self-actualizing theory and rational organizational theory; and to explore the influence of two extremely different leadership styles:servant leadership and authoritarian leadership on value co-creation. Additionally, based on social exchange theory, the variables of implicit reciprocity (collective strategic vision) and extrinsic rewards (perceived organizational justice) were selected as two moderators to further investigate the relationship between leadership style and value co-creation under different situations. A total of 397 valid questionnaires from 91 groups were collected and hierarchical linear regressions were adopted for statistical analyses. The results showed a positive association between servant leadership and value co-creation and a negative relationship between authoritarian leadership and value co-creation, which demonstrated the impact of value co-creation on organizations from different leadership styles. Moreover, based on social exchange theory, this study identified implicit reciprocity and extrinsic rewards as two distinct moderators of the relationship between leadership styles and value co-creation; and finally, this study underscored the particularly interesting finding that the negative relationship between authoritarian leadership and value co-creation is weakened when supervisors adopt authoritarian leadership styles and employees perceive lower organizational justice.

Service Orientation and Innovation Results: Theoretical Development Based on Service-Dominant Logic

This article aims at differentiating service orientation as a service-dominant (S-D) concept from service orientation related to goods-dominant (G-D) logic. Grounded in the foundational premises of S-D logic, we argue that discussions about value cocreation with beneficiaries are lagging on service orientation studies applied to innovation. We propose a theoretical framework that explains how service and product innovation can be developed in service-oriented firms. We shed light on a neglected topic of S-D studies by explaining how product innovation can foster service innovation. The proposed framework contributes to the extant literature on service-dominant logic and innovation management.

Investigation Purchase Decision Through Brand Trust, Brand Image. Price. Quality of Product: A perspective Service Dominant Logic Theory

Logically, service dominant logic tends to be more integrative than goods dominant logic. This is related to the basic proposition related to co-creation which involves active customer involvement and interaction with suppliers in every aspect of product consumption and product design. This study aimed to analyze the factors that might affect the purchasing decision of Hotpot Haidilao restaurant. This study used five variables which are brand trust, brand image, price, quality og product, purchase decision.The phenomenon of the growing food service business in the city Jakarta, which also influences consumer purchasing decisions, especially on the selection of a place to eat is the background of this study. In specifically, this research was conducted by developing a model foranalyze consumer purchasing decisions for food products and drinks at the restaurant. The sampling technique used convenience sampling with 300 respondents. Data collection techniques using googleform. The data analysis technique used is PLS-SEM. The results of the analysis conclude the purchase decision of Hotpot Haidilao restaurant was affected by brand image, brand trust, quality of product and price.

The journey from goods-dominant logic to service-dominant logic: A case study with a global technology manufacturer

Using a single case study of a multinational industrial organization, this article examines the journey of a large technology manufacturer from goods-dominant logic to service-dominant logic. The findings indicate that four external factors – investors, competing forces in the market, customers and technological advancements – drive this reconfiguration. In addition, the study discusses four propositions that support the internal transformation process: First, a formal redefinition process of corporate cultural values facilitates the transformation to service-dominant logic. Second, new value creation practices in separate settings help transformation proceed more quickly. Third, restricting the transformation to deliberately selected markets and to complementary business models mitigates the risk of resistance. Fourth, setting the company in a pivotal position in the ecosystem leverages existing strengths. The results bring empirical insights to a research discussion that to date has been predominantly shaped by theoretical contributions. With this paper, we provide a contribution to the quest for more midrange theories in further developing the service-dominant logic of marketing.

Beyond Circularity—A Service-dominant (S-D) Logic Perspective

The idea of a circular economy, in which parts of discarded products are reused to create new products, has intuitive appeal for goals of sustainability. However, it also partially perpetuates a mental model of economic activity that is at the root of unsustainability. This make-buy-destroy-rebuy (products) mental model has been called “goods-dominant logic.” In this commentary, I advance an alternative mental model, called “service-dominant logic,” which lends itself to business models that can make circularity unnecessary.

CUSTOMER DOMINANT LOGIC (CDL): FEATURES OF SUPPLIER INVOLVEMENT IN CUSTOMER ECOSYSTEMS IN E-COMMERCE

In the conditions of the active development of the digital economy and the emergence of new marketing approaches, the determination of the features of the involvement of suppliers in consumer ecosystems based on the customer dominant logic (CDL) is the starting point for the use of this logic in e-commerce and an actual direction of scientific, theoretical and practical research. The purpose of this study is to determine the features of the involvement of suppliers in customer ecosystems in e-commerce based on CDL. The theoretical and methodological basis of the research is modern scientific concepts, theoretical developments of leading domestic and foreign scientists regarding their essence, possibilities and features of their use in electronic commerce. The method of theoretical generalization, and logical analysis and the graphic method were used. The conducted research made it possible to obtain the following results: firstly, the author substantiated the use by companies of indicators characterizing thoughts, emotions, experience and possible models of customer relationships while auditing content and promoting products in social networks. Unlike the existing approach, which is based on the traditional account analysis metrics, this one will enable companies to gain real-time information about how, where and when a customer orders a product, what they want and who they are, and become an element of their ecosystem. Considering the fact that different companies use different types of logic (goods dominant logic (GDL), maintenance dominant logic (SL) and service dominant logic (SDL)), this work offers to distinguish two groups of indicators of content audit and promotion - specific and general - which will give companies a reason to focus on indicators that are more significant for them. Secondly, the article proposes the involvement of suppliers in customer ecosystems based on the assessment of business clients using the methodology of auditing the activities of the main competitors in social networks, which will make it possible to significantly simplify the company’s entry into client ecosystems. The results of the given research can be useful for companies seeking to establish long-term and effective relationships with customers based on the introduction of new marketing approaches and technologies.

From Goods-dominant logic to Service-dominant logic

In recent decades, the role of consumers in the marketing process has become more valuable to marketers. The previous theory – which focused only on the product itself and the services – has now become completely obsolete. This approach is called GDL, which is an acronym that stands for “Goods-dominant logic”. The need for a paradigm shift has also been recognized by professionals, so they have increasingly begun to develop theories that put customers at the center. This shift did not occur from one moment to the next. With the development of newer and newer theories, the theory that changed the basic direction of marketing appeared by the end of the 2000s. This new paradigm is linked to researchers Lusch and Vargo. Their study titled “Evolving to a New Dominant Logic for Marketing” was published in 2004 in a professional journal called Journal of Marketing. The new policy is now called Service-dominant logic, abbreviated SDL. However, this theory is still not fully accepted. In some cases, shortcomings can be identified, mainly in terms of practical implementation. Furthermore, some research show that some elements or tools of the previous theory - GDL - cannot be completely omitted due to their simple applicability.

From goods-dominant logic to service-dominant logic? Service, service capitalism and service socialism

Vargo and Lusch (V&L) have claimed that there was a movement from a goods-dominant logic to service-dominant logic in marketing. We problematise this narrative via attention to multiple strands of service discourse from the late 19th to mid-20th century. Our focus begins with the promotion of service in the economics literature. A close reading of a publication important to V&L’s account reveals the politics associated with the rise of service discourse. This is elided in their work. Our genealogy subsequently engages with the publications of A. F. Sheldon. His views are unpacked and links to the Rotary Club explicated. The evidence indicates that service discourse was relational in orientation and ethically driven, with the intertwined themes in Sheldon and Rotary’s publications generalised into an emergent ‘theory of society’ that had applicability around the world. We term this discursive formation ‘service capitalism’. This perspective was contested by a ‘counter manoeuvre’ labelled ‘service socialism’. Service socialism differed fundamentally from Sheldon’s axiology, Rotary’s service capitalism or the midpoint view detailed by Edward Filene due to its focus on the deleterious impact of the profit motive, the significance of ‘use value’, the reorientation from ownership to access-based consumption and attention to human welfare and economic security. Service socialism, we conclude, generates insights that require engagement today.

Service dominant logic of marketing in smart grids

This manuscript considers the smart grids through the lenses of service dominant (S-D) logic of marketing, which focuses on the service prevision rather than the traditional good dominant logic in the conventional power production. Different premises of the S-D logic have been presented and contrasted to the features of the smart grid. It has been studied that the attentions are being shifted from prioritizing cost reduction to innovation service provision methods to satisfy the demands.

Value Co-Creation in Travel Industry: Examining the Impact of Operand and Operant Resources on Actor Experience

Value creation has now transformed into customer-centric approach. Its focus has shifted towards the free will of customers and they are being engaged into value co-creation by means of different platforms. However within this research, experiential innovation and human experiences have received little attention and very few studies have empirically investigated resource integration. This study explains the value co-creation process within the travel industry by examining the impact of operand and operant resources on customer experiences. Data was collected from 215 customers who had previously used the services of travel agents. The results indicate that both operand and operant resources are important in managing customer experience. This study establishes the importance of human experience in creating value and guides modern firms to adopt service dominant logic instead of good dominant logic.

Applying ISPAR Model of Service Dominant Logic on Mentoring a Part of Training and Development Function of HRM Functions

This is a conceptual article written to apply I-S-P-A-R model which was presented in 2009 by research scholars Maglio, Vargo, Caswel and Spohrer on the Mentoring in Service Dominant Logic (SDL) perspective. The author has taken a deep insight of mentoring which is a part of training and development: a function of the Human Resource Management in Good Dominant Logic (GDL) perspective. For this research, a wide range of literatures is reviewed and many disciplines have been explored which include mentoring roles, need, responsibilities, and context. Here, it is worthy to mention that mentoring and supervision are two different terms and both have different roles, too. Roles of supervisors are: boss, teacher, evaluator, expert and counselor; whereas mentoring consisted of assisting, befriending, guiding, advising and counseling. In service science, all the service systems do not fulfill the requirement to be a service system. There is also presented I-S-P-A-R which stands for Interact-Serve-Propose-Agree-Realize model of service system interactions episodes. This model is applied on mentoring in SDL perspective. At the end of this article, a conclusion is drawn and areas for further research have been mentioned.

Servitization 2.0: The Significance of Product and Service Dominant Logics for Public Service Organisations

This conceptual paper explores servitization as significant to public service organisations (PSOs) within which there is a requirement to administer lean and sustainable provision. It specifically appreciates that the digital transformation of services has embraced customer processing machine technologies that facilitate volume growth alongside information sharing; thus, fostering co-operation within collaborative network systems whilst pro-actively operating as elements of the product-service system (PSS). It demonstrates the significance of good-dominant logic (GDL) and service-dominant logic (SDL) perspectives when considering servitization within specific PSOs, and therefore seeks to better understand the strategic and operational realities for the era of Servitization 2.0.

Service Dominant Logic, Co-production and Co-creation: Model Development and Specifications

This paper set forth to examine the Service Dominant Logic paradigm, which is developed as an alternative paradigm to the Goods Dominant Logic, explore the developments that have occurred since its appearance in the Vargo and Lusch (2004) publication and attempt to identify the variables in this SD logic, as well as, its propositions; service co-production and value co-creation with the aim of verifying whether, or otherwise, the associated marketing variables could be put into operational model-building. The study found that there were identified marketing variables and using the assumption of linear relationship established multiple regression equations, it was found that it is feasible for such models, even more complex ones, conceptually to be developed in the foreseeable future. The paper does not claim to be exhaustive or definitive, but asserts that its usefulness lies in its demonstration that the time has come to start extensive research in making operational the SD Logic, lending it to closer scrutiny and academic/practical marketing investigations and use. Keywords: Marketing, service dominant logic, service co-production, value co-creation, model-building DOI : 10.7176/JMCR/64-03 Publication date: January 31 st 2020

Coproducing Health Professions Education: A Prerequisite to Coproducing Health Care Services?

In 2016, Batalden et al proposed a coproduction model for health care services. Starting from the argument that health care services should demonstrate service-dominant rather than goods-dominant logic, they argued that health care outcomes are the result of the intricate interaction of the provider and patient in concert with the system, community, and, ultimately, society. The key notion is that the patient is as much an expert in determining outcomes as the provider, but with different expertise. Patients come to the table with expertise in their lived experiences and the context of their lives.The authors posit that education, like health care services, should follow a service-dominant logic. Like the relationship between patients and providers, the relationship between learner and teacher requires the integrated expertise of each nested in the context of their system, community, and society to optimize outcomes. The authors then argue that health professions learners cannot be educated in a traditional, paternalistic model of education and then expected to practice in a manner that prioritizes coproductive partnerships with colleagues, patients, and families. They stress the necessity of adapting the health care services coproduction model to health professions education. Instead of asking whether the coproduction model is possible in the current system, they argue that the current system is not sustainable and not producing the desired kind of clinicians.A current example from a longitudinal integrated clerkship highlights some possibilities with coproduced education. Finally, the authors offer some practical ways to begin changing from the traditional model. They thus provide a conceptual framework and ideas for practical implementation to move the educational model closer to the coproduction health care services model that many strive for and, through that alignment, to set the stage for improved health outcomes for all.