Service logic revisited: who creates value? And who co‐creates?

Author(s):

Christian Grönroos (Hanken Swedish School of Economics Finland, Helsinki, Finland)

Citation:

Christian Grönroos, (2008) "Service logic revisited: who creates value? And who co‐creates?", European Business Review, Vol. 20 Issue: 4, pp.298-314, doi: 10.1108/09555340810886585

DOI

http://dx.doi.org/10.1108/09555340810886585

Downloads:

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Acknowledgements:

The author would like to thank his colleagues Annika Ravald and Tore Strandvik for their insights and suggestions for developing this paper.

Abstract:

Purpose

– In the discussion on service‐dominant logic and its consequences for value creation and marketing the inner meaning of the value‐in‐use notion and the nature of service marketing have not been considered thoroughly. The purpose of this paper is to analyze the meaning of a service logic as a logic for consumption and provision, respectively, and explore the consequences for value creation and marketing.

Design/methodology/approach

– Being a research‐based paper, the topic is approached by theoretical analysis and conceptual development.

Findings

– Discussing the differences between value‐in‐exchange and value‐in‐use, the paper concludes that value‐in‐exchange in essence concerns resources used as a value foundation which are aimed at facilitating customers' fulfilment of value‐in‐use. When accepting value‐in‐use as a foundational value creation concept customers are the value creators. Adopting a service logic makes it possible for firms to get involved with their customers' value‐generating processes, and the market offering is expanded to including firm‐customer interactions. In this way, the supplier can become a co‐creator of value with its customers. Drawing on the analysis, ten concluding service logic propositions are put forward.

Research limitations/implications

– The analysis provides a foundation for further development of a service logic for customers and suppliers, respectively, (“service logic” is preferred over the normally used “service‐dominant logic”) as well for further analysis of the marketing consequences of adopting such a business and marketing logic.

Practical implications

– Marketing practitioners will find new ways of understanding customers' value creation and of developing marketing strategies with an aim to engage suppliers with their customers' consumption processes in order to enhance customer satisfaction.

Originality/value

– For a scholarly audience, the paper provides a more truly service‐centric understanding of value creation and of its marketing consequences. For a practitioner audience, it offers service‐based means of further developing marketing practices.

Keywords:

Services marketing, Marketing theory, Value analysis

Type:

Research paper

Publisher:

Emerald Group Publishing Limited

Copyright:

© Emerald Group Publishing Limited 2008
Published by Emerald Group Publishing Limited