Service-Dominant Logic

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Contacts

Robert F. Lusch 
University of Arizona 
Phone:(520) 621-7480 
Email: rlusch@sdlogic.net

Stephen L. Vargo
University of Hawaii
Phone:(808) 956-8167
Email:svargo@sdlogic.net

Links

www.openinnovation.com

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Center for Services Leadership

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Naples Forum on Service

Service Research Center

Foundational Premises and Concepts of S-D Logic

Service-dominant logic is captured in ten foundational premises (FPs), which were intended to establish a framework for the service-centered mindset (see first exhibit below). Many of the concepts (e.g. value co-production/co-creation, value propositions and experiences) underlying this mindset, and thus the FPs, are neither exclusive to nor invented by S-D logic itself (see second exhibit below). Rather, S-D logic captures shifting contemporary marketing thought, in which marketing is seen as a facilitator of ongoing processes of voluntary exchange through collaborative, value-creating relationships among actors (individuals and organizations for example).


Foundational Premises (FPs) of S-D Logic

FP1 Service is the fundamental basis of exchange.
FP2 Indirect exchange masks the fundamental basis of exchange.
FP3 Goods are a distribution mechanism for service provision.
FP4 Operant resources are the fundamental source of competitive advantage.
FP5 All economies are service economies.
FP6 The customer is always a co-creator of value.
FP7 The enterprise cannot deliver value, but only offer value propositions.
FP8 A service-centered view is inherently customer oriented and relational.
FP9 All social and economic actors are resource integrators.
FP10 Value is always uniquely and phenomenologically determined by the beneficiary.
Source: Vargo and Lusch (2004), “Evolving to a New Dominant Logic for Marketing” Journal of Marketing 68(January), 1-17. Vargo and Lusch (2008), “Service-Dominant Logic: Continuing the Evolution” Journal of the Academy of Marketing Science 36(Spring), 1-10. 

Underlying Conceptual Transitions to a S-D Logic

Goods Dominant Logic Concepts Transitional Concepts S-D Logic Concepts
Goods Services Services
Product OfferingsExperiences
Feature/Attribute Benefit Solution
Value-Added Co-ProductionCo-creation of value
Value-in-exchange Value-in-use Value-in-context
Profit Maximization Financial EngineeringFinancial feedback/learning
Price Value Delivery Value Proposition
Equilibrium Systems Dynamic SystemsComplex Adaptive Systems
Adapted from: Lusch and Vargo (2006), “Service Dominant Logic: Reactions, Reflections, Refinements” Marketing Theory 6(3), 281-288. 

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