Research Insights 1.2 Service-Dominant Logic

Marketing Principles and Practice

Source: Vargo, S.L. and Lusch, R.F. (2008), ‘Service-dominant logic: continuing the evolution’, Journal of the Academy of Marketing Science, 36, 1–10.

Abstract: Since the introductory article for what has become known as the “service-dominant (S-D) logic of marketing,” “Evolving to a New Dominant Logic for Marketing,” was published in the Journal of Marketing (Vargo, S. L., & Lusch, R. F. (2004a)), there has been considerable discussion and elaboration of its specifics. This article highlights and clarifies the salient issues associated with S-D logic and updates the original foundational premises (FPs) and adds an FP. Directions for future work are also discussed.

Insight: This article builds on, and updates, the authors’ original ground-breaking article (Vargo and Lusch, 2004) which redefined how marketers should think about offerings, arguing that it was necessary to move beyond the idea of tangible versus intangible goods, embedded value and transactions, and other outmoded concepts derived from economics towards the notion of intangible resources and the co-creation of value and relationships. The article asserts that service is the fundamental basis of all exchanges in marketing and that value is always determined by the beneficiary.