According to this Article, what Is a Service dominant Logic and why does Marketing Need to Adopt this Logic?



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What is a service-dominant logic and why does marketing need to adopt this logic

Service-dominant logic is a customer-oriented and relational view in which service provision rather than goods is fundamental to economic exchange and knowledge is the fundamental source of competitive advantage. By adopting this logic, marketing can do away with the disadvantages of the goods-centered logic, and rapidly improve the quality of services through the involvement of customers as co-producer and co-creator of value.

What are the differences between goods-centered versus service-centered views?

The goods-centered view focuses on operand resources and its goal is to make and sell tangible goods. But the service-centered view focuses on operant resources, skills, knowledge, and competencies that act upon operand resources and produce effects. The view offers customized solutions to the individual and changing needs of customers. Goods are end products in the former while they are intermediate products that are used by customers as appliances in value-creation processes.

What are the factors contributing to the service-centered view to becoming dominant marketing logic?

From the customer’s point of view, the factors that contributed to the dominance of the service-centered view are the shift of customer’s needs from acquiring goods to acquiring the benefits of specialized competencies. From the firms’ point of view, the factors are that operant resources like the use of knowledge and mental competencies are at the heart of competitive advantage and performance.

Explain the concept of the customer as a co-producer. Do you think that the authors meant co-creation of value?

By learning to use, maintain, repair, and adapt appliances to his or her unique needs, the customer gets involved in the consumption, value creation, and delivery processes. This means the customer becomes an operant resource acting upon operand resources and yes the authors meant the customer is co-creator of value.

How different or similar is the service-centered view from customer orientation? Explain.

They are similar. First of all, this article says that a service-centered view is customer-oriented and relational. Moreover, according to this article, even in cases when the firm does not want extended interaction, it is not freed from the normative goal of viewing the customer relationally. In addition, in the service-centered view collaborating with and learning from customers and being adaptive to their individual and dynamic needs is very important.

According to the article, discuss what companies need to adopt this view and what companies or industries are excluded. Is it restricted to some companies? Do you agree or disagree with the premise of the arguments made?

No company is excluded from the service-centered view. Companies that sell intangibles are the first ones that come to mind when one learns about the service-centered view. But the authors have proven that even those who make and sell stuff need to sense customers’ dynamic needs and respond accordingly by customizing products to the requirements of each consumer.

What kind of strategy adjustments (4Ps) need to be made by the companies who adopt this view?

Companies who adopt this view have to outsource their manufacturing functions and other activities and processes that they used to routinely perform as a single economic entity.

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