Research Insights 8.2 Evolving to a New Dominant Logic for Marketing

New Proposition Development and Innovation

Source:Vargo, S.L. and Lusch, R.F. (2004), ‘Evolving to a new dominant logic for marketing’, Journal of Marketing, 68, 1 (January), 1–17

Abstract: Marketing inherited a model of exchange from economics, which had a dominant logic based on the exchange of "goods," which usually are manufactured output. The dominant logic focused on tangible resources, embedded value, and transactions. Over the past several decades, new perspectives have emerged that have a revised logic focused on intangible resources, the cocreation of value, and relationships. The authors believe that the new perspectives are converging to form a new dominant logic for marketing, one in which service provision rather than goods is fundamental to economic exchange. The authors explore this evolving logic and the corresponding shift in perspective for marketing scholars, marketing practitioners, and marketing educators.


This article introduces the ideas concerning service-dominant logic. It sets out the conceptual underpinning of the approach by tracking back and considering previous major marketing approaches, outlining eight foundational premises concerning how the proposition in marketing is inherently a service and affirming that this requires a reconsideration of how marketing should be undertaken.