Service-dominant Logic Of Marketing Research Articles

RESOURCE VALUE CO-CREATION IN RETAIL: INTEGRATING SERVICE DOMINANT LOGIC OF MARKETING AND CONSUMER CULTURE THEORY

To establish the framework for the research of the value co-creation process in the retail sector, the study merges the Service Dominant Logic of Marketing (S-DL) and Consumer Culture Theory (CCT). S-DL is widely adopted, criticized, developed, and coupled with many disciplines on a global scale. This logic heavily relies on the concept of value co-creation (VCoC), which outlines the overarching objective of marketing interactions and partnerships. S-DL offers a framework for actors' actions and reactions when they collaborate to integrate resources with the intention of creating experiences. Further, thirty-eight interviews were conducted to find out the type of resources that are part of cocreated retail process. The study found out two main resources hard skills and soft skills. The largest frequencies scored was by soft skills. Further, hard skills got four sub themes. They are availability of the stock and on logging it on e-live, smooth operations, marketing research, evaluation and comparison with other brands, and good understanding and knowledge about the products they are selling. However, soft skills depicted thirteen sub themes. They are selling, vision, see the picture in long term, innovative people, adaptable, fresh ideas and new way of doing things, communication, build relation, judge the psychology of customer, creating value, experience to co-create value, try to build a good relationship, and honesty and integrity.

Influence of Content on Consumer and Employee Brand Engagement in Facebook (Russian FMCG Retail Sector)

Social networks provide companies with great opportunities to build relationships with consumers. Currently, almost every company has their own brand page in social networks and is trying to enhance consumer engagement. Company posts are shown to brand community members. Most researchers believe that the brand community consists only of consumers. However, based on the service-dominant logic of marketing, the brand enters into relations not only with consumers, but also with other stakeholders, including employees of the company, who can be members of the brand community in the social networks. In this research, we focus on FMCG retailers brand community. The algorithm of Facebook social network ensures the dependence of consumer engagement on employee brand engagement. Retail marketers need to use content to influence not only consumer engagement, but also employee brand engagement, expressed in likes, comments and shares. The author analyzes 460 Facebook posts made by 5 Russian FMCG retailers’ brands during a 6-month period. A theory-based typology of content characteristics was made and it covers of what brands say and how they say it. This research sheds light on how content influence consumer and employee brand engagement in social networks.

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.

Climbing the down escalator

PurposeThis paper aims to examine the effect of customer-to-customer (C2C) interaction while using a service on the willingness of consumers to engage in altruistic customer participation (CP) or co-production efforts aimed at helping other customers. It further examines the role of consumer skepticism toward the service category in moderating the effects of C2C interaction on altruistic CP and customer satisfaction.Design/methodology/approachA survey methodology was used to collect data from 374 consumers of health-care services in India. The data collection involved interviews of patients visiting diabetes clinics and focused primarily on the interaction between customers and their willingness to participate in educating members of the community on diabetic self-care.FindingsThe analysis shows that C2C interaction positively affects customer satisfaction and willingness to engage in altruistic CP. Consumer category skepticism does not moderate the effect of C2C interaction on customer willingness to engage in altruistic CP. However, category skepticism does have the moderating effect of significantly reducing the positive effect of C2C interaction on customer satisfaction.Research limitations/implicationsData for this study were collected via interviews of consumers in India. Each consumer was interviewed by a trained interviewer. Although the authors do not detect any systematic influence in the results, the possibility of bias is acknowledged. Regarding the research implications, the finding that category skepticism does not moderate the effect of C2C interaction on willingness to engage in altruistic CP suggest that ultimately consumers may have stronger commitment and loyalty to themselves and that their relationships with the firm’s might be peripheral.Practical implicationsThe study finds that consumer skepticism toward a service category can have adverse effects for service co-creation. The authors advise managers in troubled industries not to focus exclusively on improving brand differentiation but to also consider working with major industry players and regulators to address the deepest fears of consumers.Originality/valueThe findings have implications for the service dominant logic of marketing in that it suggests that category skepticism is disruptive to the value integration process on which service co-creation relies for value creation. This has strong implications for how managers should structure their interaction processes with customers and for future research that seeks to them prove customer productivity.

Touristic destination image in light of the service dominant logic of marketing

This paper analyzes the composition and internal arrangement of touristic seaside destinations in Brazil, in light of three not-yet tested theories: the Means-End Chain (Gutman, 1982) , the Service Dominant Logic of Marketing (Vargo & Lusch, 2004), and the organizational triad for local development proposed by Vázquez-Barquero (1999). An internet-based survey was distributed and completed by 178 people. The answers concentrated in four (among eight possible) destinations: Balneário Camboriú (31.4%), Rio de Janeiro (28%), Torres (20%) and Natal (8%). The data were first submitted to Confirmatory Factor Analysis to identify and to validate the set of components representing the Tourism Destination Image – TDI. The TDI constituting factors, and variables representing the Personal Values (as ancestors) and the Consumer Behavior (as descendants), were submitted to a Structural Equation Model to evaluate the TDI internal arrangement and inter-construct relationships. Results indicate that values related to self-respect, security and excitement influence the assessment of some TDI components, and that the last four constructs influence the likelihood of individuals to visit or to recommend the destinations.

Aesthetic service quality – a study of a symphony orchestra

The purpose of this paper is to explore service quality in classical music, to relate the findings to the essence of Beauty that Kant, Plato and others describe and to discuss the implications for practice and research regarding aesthetical organisations. Some of the views of Beauty held by Plato and Kant are described and related to the theories of service quality, particularly the fundamental premises of the service dominant logic of marketing. An empirical study has been carried out at the Gothenburg Symphony Orchestra. In-depth interviews with members of the orchestra have provided qualitative data that have been analysed. The musicians’ views of quality in classical music are described. The findings are related to the philosophical theories of beauty and to the service quality theory. A model of quality dimensions in classical music is proposed. The findings of the study provide a vantage point for better understanding of the relationship between aesthetics and service quality. Service quality in music has not previously been studied and related to aesthetical theory. A limitation is that the study has only been carried out in one orchestra in one country. For managers of organisations with aesthetic activities, the study provides guidance into how service quality can be seen and handled.

Value-in-Use and Mobile Technologies

The increasing number of offerings that support consumers’ daily routines has led to a growing discussion in scientific research about consumers’ usage processes. A theoretical foundation for this discussion is offered by the service-dominant logic of marketing. The central idea is that value creation for a consumer is not based on mere product ownership but rather evolves through the usage of various offerings in terms of value-in-use. However, there is no universally accepted method to capture usage processes and analyze them with regard to value-in-use. The article therefore suggests a method for capturing value-in-use. For this purpose the repertory grid method is applied which is further adapted according to the underlying theoretical assumptions and empirically tested in a qualitative study on smartphone usage. On the basis of the findings, a specific value-in-use scale is then developed. Finally, this scale is validated in a quantitative study. The results indicate that the adapted repertory grid method is a promising approach to capture usage processes and the value-in-use created through these processes.

Destination marketing and the service-dominant logic: A resource-based operationalization of strategic marketing assets

Despite the popularity of the resource-based view of the firm as a theoretical mechanism for the explanation of organizational performance, this framework has received surprisingly little attention within the context of destination marketing organizations (DMOs). The purpose of this research is to enhance extant perspectives of destination competitiveness by considering the destination marketing function from the dual theoretical lenses of the resource-based view of the firm and the service-dominant logic of marketing. In particular, this research focuses on the resource classification schemas underpinning these two frameworks and proposes a conceptual extension of their core phenomena to the domain of destination marketing. Within this discussion, a conceptual and operational definition of competitive market-based assets is proposed. This multifaceted construct is discussed as a potential outcome of market-oriented destination marketing and as an antecedent to DMO performance.

Social media marketing in the wellness industry

Purpose – The advent of social media is dramatically changing the way marketing communication is conducted. This paper reports a study regarding the use of social media in the wellness industry. This industry is competitive and utterly dependent on creating mutually beneficial relationships with customers. The purpose of this paper is to investigate the use of social media marketing in the wellness industry. Design/methodology/approach – Qualitative methods have been used. In-depth interviews have been carried out with marketing communication professionals in seven leading Swedish spa-hotels. The data from the interviews were analysed utilising the constant comparative method from the grounded theory approach. Findings – Dimensions describing the activities, challenges and results of social media in the hotels have been defined. The findings are related to service quality theory, in particular the service dominant logic of marketing (SDL), and a comprehensive framework is proposed. Research limitations/implications – The findings should be useful for the scientific understanding of the effects of social media in marketing. The study is based entirely on qualitative data. Practical implications – The results of the study should be useful for managers trying to market their offers effectively through social media. Originality/value – The connections between social media and the SDL has not previously been studied in the wellness industry and such studies in other industries are rare.

The logical structure of the service-dominant logic of marketing

The Service-dominant (S-D) logic of marketing is currently comprised of ten foundational premises (FPs). The original statements of eight FPs have since been reworded and two additional FPs have been added. The proposers of S-D logic, Steven Vargo and Robert Lusch, have stated that S-D logic is neither complete nor owned by them: it is ‘Open Source’. However, despite the many articles that have been published on S-D logic, it seems that many scholars do not fully understand the fundamental ideas that underpin the logic. In particular, perusal of the FPs leaves many scholars confused. This is probably for two reasons: (1) the ideas are unfamiliar; (2) there are so many of them. Hence the purposes of this paper are to explain briefly the unfamiliar ideas, and, more importantly, to reduce the complexity of S-D logic by explicitly analysing the ontological content of the FPs and the logical structure of relationships between the FPs, as premises (or axioms) and conclusions or corollaries. The outcome of this analysis is that the core, essential, FPs are identified, as well as some gaps. In particular it seems clear that only two of the FPs are fundamental, or axiomatic: that service is the fundamental basis of exchange, and that value is co-created (by beneficiary and service-provider)

An Empirically Validated Framework for Measuring Business Innovation

The service-dominant logic of marketing suggests that customer-oriented innovation should be an essential focus for any firm; however, there is limited literature on the relative impact of customer-oriented innovation on firm performance in comparison with other dimensions of innovation. We integrate the service-dominant logic of marketing with the resource-based view of strategy to examine the relative importance of customer-oriented innovation on firm performance. By analyzing data from 765 managers from 52 business units of 19 large U.S. corporations, we find that customer-oriented innovation and offering-oriented innovation are both significantly associated with firm performance, while operations-oriented innovation is not. We discuss the implications of our findings for the service-dominant logic of marketing, resource-based view of strategy and measurement of innovation.

Critical perspectives on consumers’ role as ‘producers’: Broadening the debate on value co-creation in marketing processes

This special issue continues the critical engagement with the popular discourses of Prahalad’s value co-creation paradigm and Vargo and Lusch’s service-dominant logic of marketing. The intensity of the debate among marketing scholars over these two marketing and management concepts demonstrates how much is at stake — conceptually and politically — when the roles of consumer and producer become blurred. Economic concepts of value, ownership, consumption, and production need to be redefined, and political ideas of the relationship between the social and the economic require addressing in the age of cognitive, or as we call it, collaborative capitalism. In addition to these broad theoretical challenges, the contributions in this issue zoom in on what arguably constitutes the central question for our specific field: What are the implications of a collaborative capitalism for understanding the place of marketing techniques in value creation? As with all good scholarship, the essays in this issue do not provide definitive answers but instead lead to a more elaborate set of questions. By doing so, they broaden the critical engagement with value co-creation in marketing.

The Service-Dominant Logic of Marketing and Marketing Ethics

Abela and Murphy (J Acad Mark Sci 36(1):39–53, 2007) examined Service-Dominant (S-D) logic (Vargo and Lusch, J Mark 68(1):1–17, 2004) from the viewpoint of Marketing Ethics and concluded that whilst S-D logic does not have explicit ethical content, the Foundational Premises (FPs) of S-D logic do have implicit ethical content. They also conclude that what may be needed to make the implicit more explicit is the addition of another FP. The aim of this article is to explore whether S-D logic needs to be modified, if one wishes to construct a theoretical framework for analysis of Marketing that has ethical considerations fully integrated. We critically evaluate the claim that the FPs are inherently ethical and conclude that S-D logic should be modified. We offer an additional FP for consideration that relates to the role of personal and societal values in the co-creation of value. This FP is necessary because of the role that the ethical positions of actors play in exchange behaviour. However, it should be pointed out that whilst the article explores the ethical potential of S-D logic it does not privilege any particular ethical position or code. These concerns will be addressed in subsequent articles: the aim here is to establish the underlying rationale for including an explicit commitment to ethics in S-D logic.

Focus on Authors

Focus on Authors

The Value of Community-Brands

The success of brands and branding over the past 100 years is a strong sign for the value adding function and benefits of brands. However, seen from an evolutionary perspective, the value brands provide can only be understood in relation to both, time and place. Brands survive and are of value, because they fulfill a certain function in consumers lives. This value however is subject to change just as consumer behavior changes, and thus brands as well are forced to adapt and review their value adding function.The postmodern consumer is different! Heavily facilitated through technology, most notably the Internet, the postmodern consumer is not a silent consumer at the end of the chain anymore. Rather he wants to be respected, heard and integrated in the value creation process. He is willing to invest time and money, but he expects authenticity and respect in exchange. As a response new concepts in marketing arise, which help us to better understand not only the new consumer but also the producer-consumer relationship. Similarly brands will not be remain unaffected. The benefits brands provided might not only decrease in importance or even become obsolete, but besides the consumer demands more from brands than a few decades ago.The phenomenon of community-brands provides valuable insights into what consumers value and expect in regard of brands. It has been argued that brands will become an experience under the new service-dominant logic of marketing and indeed a lot of exciting opportunities arise from taking an experiential and community-centered view on brands and branding. Compared to traditional brands, community brands provide some unique and valuable benefits to consumers. The fact that there is a community, which constitutes the basis of every community brand, does not only distinguish it from many other, traditional brands but furthermore accounts for a large part of its value. There lies huge social capital in the social relations of community member which is transformed into benefits. Community brands enable their members to learn, develop, connect and actively co-create. Besides these communities of passion inspire people and in many cases give meaning to peoples lives. Benefits that many traditional, corporate brands are not willing or are not able to provide.The Apache brand constitutes an impressive example of such a community brand. The Apache community not only managed to survive and grow, while many other open source communities faced troubles or even disappeared, but furthermore Apache has become a real institution and is well-known and respected within the IT area. As a community brand, Apache offers many of the benefits described above. Community members do not only respond with high loyalty towards the brand, but furthermore serve as passionate brand evangelists.

Harry Potter and the Service-Dominant Logic of Marketing: a cautionary tale

Much has been written about Service-Dominant Logic, Vargo and Lusch's vaunted contention that service isn't an add-on to goods but goods are tangible reminders of service. Most of these writings are conceptual rather than empirical, however. This paper adds an empirical dimension to SDL by means of a qualitative study of the Harry Potter phenomenon. It shows that although Harry Potter can be successfully viewed through V&L's lens, the picture is not crystal clear. So vague is the resultant image, in fact, that SDL should be handled with considerable care and more than a modicum of caution.

Service innovation by SME

Service innovation is important in today's world economy. It is the current focus of many businesses. The reason is that services today represent 80% of most developed countries' GDP and a growing percentage of the developing countries' GDP. Organisations today can no longer compete solely on providing superior service on their core products, instead, they must move into customer relationship management through the co-evolution of memorable experiences with their customers. This means providing better services for their customers. SMEs are a breeding ground for service innovation. Currently there is very little literature existing concerning the role of SMEs in service innovation. This paper aims to shed some light on identifying the drivers for the application of service innovation for SMEs using a case study from Finland. The case study shows the processes that are important for an SME in service innovation. Central to this is the importance of co-creation of value between provider and customers based on the service dominant logic of marketing. In the paper, emphasis is put on the importance of sustaining relationship with customers by constantly focusing on the quality of customer interactive experiences with the provider to maintain the co-creation of value.

Consumers as resource integrators

Ongoing research on the service-dominant logic of marketing has identified consumers as integrators of operant resources (physical, social, cultural) as they actively immerse themselves in experiences. However, little is yet understood about how consumers integrate their operant resources and those of co-consumers in the course of defining experiences and creating value. Through exploration of a case study of a finite experiential episode (a consumer campaign to save a local, independent cinema), examples of the use and integration of consumer operant resources are highlighted, and characteristics of successful outcomes of consumer resource integration (the manner of consuming and co-consuming and the interaction with key elements of the external environment) are identified. Finally, a framework for systemised further studies of consumer resource integration is offered.

Advertising effectiveness from a consumer perspective

Communication effectiveness research is moving away from investigations of advertising’s forms, content and the degree and type of consumer involvement, to a greater focus on the process of reception and the social and cultural roles that advertising plays in society and in individual lives. This shift in emphasis has been influenced by communication and media studies, which have prioritised the psychological, social and cultural contexts within which consumers relate to commercial information and the roles that advertising media play in their lives. The focus on the ‘receiver’ as the key actor in the advertising communication process has also coincided with increasing interest in consumer culture theory, brand communities and the new service dominant logic of marketing. This paper provides a useful perspective from which to view contemporary developments in advertising effectiveness research, and has important implications for future studies.

The service-dominant logic and a hierarchy of operant resources: developing masterful operant resources and implications for marketing strategy

Marketing’s evolution toward a new dominant logic requires the focus of marketing to be on the intangible, dynamic, operant resources that are at the heart of competitive advantage and performance. First, building on resource-advantage theory’s notion of basic resources and higher-order resources, this article proposes a hierarchy of basic, composite, and interconnected operant resources. Second, reviewing research on business strategy and marketing strategy, several resources that correspond to the proposed hierarchy are identified and discussed. Third, the notion of developing masterful operant resources is introduced. Fourth, based on the proposed hierarchy and the notion of masterful operant resources, some exemplars of potential research avenues for marketing strategy are provided. Finally, the article concludes with the discussion of implications for marketing practitioners, researchers, and educators. In sum, this article extends and elaborates the concept of operant resources in the service-dominant logic of marketing.