Findings

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To me, what appears to be a reoccurring critique is that the Service Dominant Logic model is very similar to the Goods model and thus suggests that theory doesn’t really differ. However, it can be argued that the purpose of Service Dominant Logic is not to completely change the Goods model but instead, highlight the dominance service has in the model therefore changing the perspective. I also believe that this critique has been rebutted with some of Vargo and Lusch’s later works. In the 2011 presentation they compare the original goods model to their Service model. Despite some similarities, it proposes an alternative perspective focussing on service and its transference as opposed to the output of goods.


Despite not always being applicable to the theory, Dino Snores has been a great way of helping me understand the evolution of Service Dominant logic and putting some of the theoretical examples into context. Although I don’t think using this technique aided in furthering my understanding of Service Dominant Logic this could suggest the need for further critique. Let me know how this worked for you, or maybe try doing this with an Arts event you’ve visited recently!

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Key Foundational Premises

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In 2011 Vargo and Lusch’s presentation states that there was never a transition between the Goods and Service economies and thinking this “ reflects a flawed understanding on the market” (Vargo and Lusch 2011). The key foundational premises in this lecture are the below: “ FP1 Service is the fundamental basis of exchange - the application of operant resources (knowledge / skills) service exchanged for service - operant FP6 The customer is always a co-creation of value – implies value creation is interactional FP9 All economic and social actors are resource integrators – Implies the context of value creation is networks of networks (resource-integrators) FP10 Value is always uniquely and phenomenological determined by the beneficiary – value is idiosyncratic, experiential, contextual and meaning laden” (Vargo and Lusch 2011). Here you can see how Vargo and Lusch’s development of Service Dominant Logic focused more on a 2-way exchange of operant resources as a me...
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Service Dominant Logic

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Service Dominant logic is defined as: “the service-centred dominant logic represents a reoriented philosophy that is applicable to all marketing offerings, including those that involve tangible output (goods) in the process of service provision.” (Vargo and Lusch 2004, pp.1-17). Vargo and Lusch were the first to expand upon the theory and translate it to the modern theory we see today. Reading from ancient Greek up to modern day they identified that there had always been mentions of service. However, having reviewed goods dominant logic, they suggest that there has been an evolutionary shift to Service Dominant Logic. An important part of the theory that is commonly misunderstood is the concept of service as opposed to services. “ implying units of output as would be consistent with G-D logic.” (Lusch and Vargo 2006, pp.281-288) Vargo and Lusch wish to focus of the theme of service throughout the whole process from manufacturer to salesman to consumer and back again. ...
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