A Discussion Of Goods-Dominant Logic And Service Dominant Logic: A Synthesis And Application For Service Marketers

Abstract

Service-Dominant (S-D) Logic is a mindset for a unified understanding of the purpose and nature of organizations, markets, and society. The fundamental principle of S-D logic is that organizations, markets, and society are primarily concerned with exchange of servicethe applications of competencies (knowledge and skills) for the benefit of a consumer(s). Thus,service is exchanged for service; all firms that transact daily in numerous micro-industries are service based. Consequently, marketing thought and practice should be grounded in service logic, principles, and theories.S-D logic embraces concepts of value-in-use andco-creation of value rather than thevalue-in-exchange andembedded-value concepts of Goods-Dominant (G-D Logic. This study challenges several of the fundamental premises (FP) asserted by Vargo and Lusch by analyzing how customers are brought into the marketing relationship and play a central role in the development and success of tangible goods and as active participants in defining the need for service. A series of personal interviews with upper to middle management, along with an MS excel House of Quality (HoQ) assessment instrument was used to gather data for this study. The QFD, HoQ assessment instrument is used to expose correlations between the 10 premises advanced by V and L and the functional quality characteristics most sought by service practitioners today. This research study analyzed the existence of conceptual SD-Logic and its recognition among four different service businesses along with their various marketing strategies.