Column 10 · Service, Value, and Experience · Era 5, Assets and Accountability (2000s)
Service-Dominant Logic
Formulation, content · Landmark · Cluster IV, Customer and Brand Assets
Description
Vargo and Lusch argued that marketing is moving from a goods-dominant to a service-dominant logic in which service is the fundamental basis of exchange, operant resources are the primary source of advantage, and value is cocreated with the customer.
Managerial Implications
All firms are service providers; goods are vehicles for service, and value is co-created with customers in use, not delivered at the point of sale. Reframe the business around the outcome customers achieve with you. This shifts attention to the customer's processes, to relationships over transactions, and to knowledge and skills as the firm's core resources. Subscription and outcome-based models follow directly.