Service as business logic: implications for value creation and marketing

Service as business logic: implications for value creation and marketing Purpose – The purpose of this article is to analyze the scope, content and nature of value co‐creation in a service logic‐based view of value creation, addressing the customer's perspective in a supplier‐customer relationship. The nature of the activities and the roles of the supplier and the customer in value creation and co‐creation are analyzed. Furthermore, the purpose is to discuss what implications for marketing can be derived from this analysis. Design/methodology/approach – The article analyzes the marketing implications that follow from the pivotal role of interactions in service provision. The article, thus, builds on a long history in service marketing research pointing at the impact on the content and scope of marketing of customer‐supplier interactions. Findings – In this article, it is concluded that creating customer value is a multilaned process consisting of two conceptually distinct subprocesses. These are the supplier's process of providing resources for customer's use and the customer's process of turning service into value. The article results in five service logic theses which provide an understanding of the process of value creation and its implications for marketing. The theses offer a terminology that helps researchers and practitioners to understand the various roles of suppliers and customers in value creation and to analyze opportunities for co‐creation of value. Originality/value – The findings of this article challenge some of the salient propositions of the emerging service‐dominant logic, i.e. customers as co‐creators of value, and firms can only make value propositions. The role of marketing is reframed beyond its conventional borders. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Service Management Emerald Publishing

Service as business logic: implications for value creation and marketing

Journal of Service Management, Volume 22 (1): 18 – Mar 15, 2011

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1757-5818
D.O.I.
10.1108/09564231111106893
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this article is to analyze the scope, content and nature of value co‐creation in a service logic‐based view of value creation, addressing the customer's perspective in a supplier‐customer relationship. The nature of the activities and the roles of the supplier and the customer in value creation and co‐creation are analyzed. Furthermore, the purpose is to discuss what implications for marketing can be derived from this analysis. Design/methodology/approach – The article analyzes the marketing implications that follow from the pivotal role of interactions in service provision. The article, thus, builds on a long history in service marketing research pointing at the impact on the content and scope of marketing of customer‐supplier interactions. Findings – In this article, it is concluded that creating customer value is a multilaned process consisting of two conceptually distinct subprocesses. These are the supplier's process of providing resources for customer's use and the customer's process of turning service into value. The article results in five service logic theses which provide an understanding of the process of value creation and its implications for marketing. The theses offer a terminology that helps researchers and practitioners to understand the various roles of suppliers and customers in value creation and to analyze opportunities for co‐creation of value. Originality/value – The findings of this article challenge some of the salient propositions of the emerging service‐dominant logic, i.e. customers as co‐creators of value, and firms can only make value propositions. The role of marketing is reframed beyond its conventional borders.

Journal

Journal of Service ManagementEmerald Publishing

Published: Mar 15, 2011

Keywords: Servicing; Marketing theory

References

  • Service portraits in service research: a critical review
    Edvardsson, B.; Gustafsson, A.; Roos, I.
  • Marketing revisited: the crucial role of the part‐time marketer
    Gummesson, E.
  • Implementation requires a relationship marketing paradigm
    Gummesson, E.
  • International Marketing and Purchasing of Industrial Goods
  • Relationship quality and buyer‐seller interactions in channels of distributions
    Jap, S.D.; Manolis, C.; Weitz, B.A.
  • Managing the co‐creation of value
    Payne, A.F.; Storbacka, K.; Frow, P.
  • The value concept and relationship marketing
    Ravald, A.; Grönroos, C.
  • Service dominant logic: continuing the evolution
    Vargo, S.L.; Lusch, R.F.

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