Service Dominant Logic and Future Marketing Essay

Service Dominant Logic and Future Marketing - Essay Example The service-dominant logic of marketing Service-dominant logic is a highly successful marketing approach that elucidates that the traditional products-oriented approach for marketing needs to be replaced by a service-dominant one. At the very heart of service-dominant logic is the concept that the customer doesn’t want or expect a product, but the service that the product offers to him. It has emerged to be a new paradigm shift in marketing approach as it emphasizes the necessity to interact with customers to provide the service and also that customer is not the ‘consumer of value’ but a ‘co-creator of values’ (Ardagna, Mecella and Yang, 2009, p. 654). The major difference between the two approaches is that the traditional approach gives greater emphasis on tangible resources whereas service-dominant logic gives emphasis on intangible resources. Ballantyne and Varey (2008) found that customers appraised the value of goods they purchase in use. While c ustomers buy certain products, the exchange value determination is provisional upon later experience of customers about the goods. Customers determine the value in terms of how and what they value-in-use of the goods. According to the traditional product-oriented marketing approach, marketers offer products in different size, volume, features, configuration, benefits etc and that the customers appraise the value of goods purely in terms of goods in these different attributes. Vargo and Lusch (2004) stressed that goods are service appliances because customers find values when goods are in-use and therefore service is the dominant logic for marketing. The logic behind service-dominant logic of marketin