This website uses cookies to ensure you have the best experience. Learn more

Overview Of Service Dominant Logic Essay

2324 words - 9 pages

Companies today are interested in gaining the lifetime value of the consumer. In this dynamic world of information technology, organizational strategies are focusing on customer service as a competitive advantage. Where lean manufacturing, low price, and cost cutting logic was once a primary approach of operation managers, these same firms have determined that by utilizing a Service Dominated Logic approach or (SDL), they are gaining competitive advantages that prove to have a longer lasting effect on the consumer, and maintaining a lifetime loyalty from these customers. These loyal customers then provide the number one form of marketing which is “word of mouth”. Brand awareness is also heightened and return on investment (ROI) is gained by shareholders.
This paper will first discuss an overview of SDL, describing the overall theory and components, while providing a brief historical background of SDL. Next, it will identify critical foundational literature in the development of service theory. This document will then compose a timeline analyzing changes in service theory linking these changes to important developments in service industries. Finally, it will identify critical components of service theory.
Service Dominated Logic Theory and Historical Background
Adam Smith (1776/1904) who is commonly known as “the father of economic thought” developed modern day economics not by his intention.
According to Vargo, Lusch, & Morgan, 2004 Chapter 2:
Smith’s purpose was to integrate and explore the preceding views into a model of the normative economics of national wealth creation. In so accomplishing this objective, he created bifurcations in the treatment of the concepts of ‘productive’ services and ‘value’ that that would influence economies and its descendent disciplines for the next several hundred years. (pg.30)
Smith’s economic views were based on the division of labor which resulted in the necessity of exchange. This exchange was the beginning of the service industry as we know it today. Services were tangible goods, and the individual who was to perform these services should then receive some form of compensation from the person who was to gain from the use of another individual’s provision, whatever that may be. “Thus labor, the application of mental and physical skills (parties doing things for other parties-what both Smith and we call service), served as the foundation for exchange. (Vargo, Lusch, & Morgan, 2004)
Vargo, Lusch, & Morgan, 2004 chapter 2 states:
Smith went a step further to explain how some services (types of labor) could contribute to national well-being through production of surplus commodities that could be exported for trade. In effect, Smith, a moral philosopher, drew upon Aristotle’s theme of virtuous services and the physiocrats’ focus on agriculture and added the tangible products of the increasingly developing industry to derive a formula for productivity in terms of its...

Find Another Essay On Overview of Service Dominant Logic

Competitive Analysis - Car Wash Industry

2551 words - 10 pages competitors to analyze, this researcher will focus on an analysis between the two main categories of car wash ownership: full service vs. unattended operations. Industry Overview and Description The Car Wash industry began to start and grow across the U.S. after the conclusion of World War II. America’s economic rebirth and prosperity created a boom in the housing and automobile industry. What began as a business to satisfy Americans’ love of

The Mediatization of Politics in Western Democracies

2393 words - 10 pages continues to constitute the dominant source of information and channel of communication but because of the Medias upsurge in influence over politics the media has become largely independent of political or governmental bodies and so the media has begun to be governed by“media logic” rather than a “political logic”. Media logic means that politics is highly influenced by the media in terms of political activities and affairs. Media logic referrers

Functionality of MBTI

2448 words - 10 pages Extroverted Thinking (Te). Dominant Te types organize and apply logic and structure. They tend to be very decisive types. ISTP and INTP share Introverted Thinking (Ti). Dominant Ti types analyze, and evaluate by their inner principles. ESFJ and ENFJ share Extroverted Feeling (Fe). Dominant Fe types understand and try to fit the needs of the group. They tend to stand up for things that they figure are significant. Lastly, ISFP and INFP share

Teaching Argument Evaluation in An Introductory Philosophy Course

3617 words - 14 pages conclusion. For many students, the idea that an argument displays a structure which can be evaluated on its own terms is not very difficult to grasp. Unfortunately, the idea is grasped only in an abstract way, with insufficient appreciation of how structural problems manifest themselves in concrete arguments, and without the vocabulary for formulating structural criticisms. But this paper is not simply about teaching logic, it is about pedagogy

TransJakarta

1523 words - 7 pages ?page_id=3 (accessed 16 November 2013). UITP.(2010). Public Transport : The Smart Green Solution. Doubling market share worldwide by 2025. Available at:http://www.uitp.org/advocacy/pdf/UITP- PTstrategy_fullbrochure-EN.pdf (accessed 16 November 2013). Vargo, S.L. and Lusch, R.F. (2004), “Evolving to a new dominant logic of marketing”, Journal of Marketing, 68 (1) 1–17. Vargo, S.L. and Lusch, R.F. (2008), “Service-dominant logic: continuing the evolution”, Journal of the Academy of Marketing Science, 36 (1) 1-10.

A Career in Communication

593 words - 3 pages I am a communication strategist, who came from chemical science degree with the passion of developing exceptional product or service and bring them into the business. I always question myself and seek for the true reason behind every marketing movement that attracts my attention. I graduated in applied chemistry science, which gave me a strong fundamental to my analytic skills and excellent overview of industrial business. The

Why diversify

9140 words - 37 pages thinking: 1) diversification should be limited to those businesses with synergy; 2) the corporate focus should be on exploiting core competences across different businesses; and, 3) successful diversification depends on building a portfolio of businesses which fit with the managerial "dominant logic" of top executives and their management style. Synergy- Synergy occurs when the performance of a portfolio of businesses adds up to more than the sum of

Vitamix Revenue Recognition

1071 words - 4 pages will explain the transaction and explore the revenue recognition logic that is associated with each. Extended Warranty Sales Overview Vitamix customers are able to purchase extended warranty plans that extend their factory warranty from 7 year and additional 3 years for a total of 10 years of warranty coverage. They can purchase this product when the initially purchase the machine or at any time during the standard warranty period. In both

Defining Marketing

851 words - 3 pages or service, and an aggregate of functions involved in moving goods from producer to consumer”. (http://www.m-w.com) The Encyclopedia Britannica offers a similar definition with “ the sum of activities involved in directing the flow of goods and services from producers to consumers”. (http://www.search.eb.com.ezproxy.apollolibrary.com/eb/article-9109821)Ultimately, the marketing goal of a company is to anticipate consumer wants and

Trends In Wireless Technology

958 words - 4 pages Wireless Technology Industry Report •The forecast where a technology will be on the future of wireless LAN •The current level of wireless technology •The development of wireless networking •The influence on the future of wireless LAN •The trend of the time of wireless networking Background In June, 1997 the IEEE, the body that defined the dominant 802.3 Ethernet standard, released the 802.11 standard for wireless local area

Building a Case for Database Migration

1536 words - 6 pages forcing you to either upgrade or migrate. c)     Pressure to create a consistent face to a company’s customers following a corporate merger drives the migration of one company’s applications to the database platform of the other company in the merger. d)     Opportunities to leverage On-Demand or Service Oriented Architectures (SOA). e)     Pressure to more rapidly improve or

Similar Essays

“An Overview Of A Large Service Organization Of Bangladesh (Service Category –“Bank” – “Grameen Bank”)”

3415 words - 14 pages Assignment On:"An Overview of a Large Service Organization of Bangladesh (Service Category -"Bank" Bank Name - "Grameen Bank")"Prepared for:Shahriar KabirCourse InstructorMarketing Management (MKT 202)Prepared by:MD. Zahidul AlamClass ID: 1807Batch: 19thINSTITUTE OF BUSINESS ADMINISTRATIONJAHANGIRNAGAR UNIVERSITYDate of submission: September 11, 2011Introduction:Grameen Bank (GB) has reversed conventional banking practice by removing the need

Value Creation Essay

912 words - 4 pages transformed from goods to service scenery (Vargo and Lusch 2004). Where value be regarded as symptom or phenomenon part to obtain customer needs and expectation (Vargo and Lusch 2008a). Hence companies mapping more strategies on innovative offering, elaborate it with all stakeholders including suppliers and employee to increase the level of customer engagement (Vargo et al. 2008b). The service dominant logic stated the customer co-creating with the

The Value Co Creation Essay

1990 words - 8 pages marketing were transformed from goods to service scenery (Vargo and Lusch 2004). Where value be regarded as symptom or phenomenon part to obtain customer needs and expectation (Vargo and Lusch 2008a). Hence companies mapping more strategies on innovative offering, elaborate it with all stakeholders including suppliers and employee to increase the level of customer engagement (Vargo et al. 2008b). As service dominant logic perceive the co-creation value

How Does Jesper Stromback’s Four Dimension Concept Of Mediatisation Of Politics Help Us Better Understand Political Communication?

2372 words - 10 pages characterized by public good, can be another dominant logic in political communication. This public interest form of communication is ideal, though it once existed in the Netherlands, which cannot be easily overlooked (Brants and van Praag, 2006). Couldry’s (2008:377) another concern refers to the “linear nature” of changes brought by media. Mediatisation of politics, in Stromback’s work, seems to merely result from media intervention in