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

Question

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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 overcome the disadvantages of the goods-centered logic and rapidly improve the quality of services through the involvement of customers as co-producers and co-creators of value.

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

The goods-centered view focuses on operand resources; its goal is to make and sell tangible goods. However, 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 customers' individual and changing needs. In the former, goods are end products, while in the latter, they are intermediate products customers use as appliances in value-creation processes.

What factors contribute to the service-centered view becoming the 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 a co-creator of value.

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

They are similar. First, this article says that a service-centered view is customer-oriented and relational. Moreover, even 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.

The article discusses 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. However, 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) must be made by companies adopting this view?

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