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Journal cover: European Journal of Marketing

European Journal of Marketing

ISSN: 0309-0566

Online from: 1967

Subject Area: Marketing

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Dynamics of value propositions: insights from service-dominant logic

Document Information:
Title:Dynamics of value propositions: insights from service-dominant logic
Author(s):Christian Kowalkowski, (Department of Management and Engineering, Linköping University, Linköping, Sweden)
Citation:Christian Kowalkowski, (2011) "Dynamics of value propositions: insights from service-dominant logic", European Journal of Marketing, Vol. 45 Iss: 1/2, pp.277 - 294
Keywords:Research, Value-in-use pricing
Article type:Conceptual paper
DOI:10.1108/03090561111095702 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Acknowledgements:The author wishes to thank Per-Olof Brehmer, Daniel Kindström and Fredrik Nordin for many helpful comments on early drafts. The trenchant comments of Stephen Vargo and three anonymous reviewers on previous versions of this article were immensely helpful, and the author is much indebted to them. The author also gratefully acknowledges the financial support of the Jan Wallander and Tom Hedelius Foundation.

Purpose – This paper aims to examine the notion of value propositions (promises of reciprocal value between service providers and their customers), value-in-exchange and value-in-use, all within the conceptual context of service-dominant (S-D) logic.

Design/methodology/approach – Responding to calls in the recent literature for an academic critique of S-D logic, its key constructs, and its application in marketing situations of varying complexity, the paper presents a conceptual analysis of the determinants of value emphasis in value propositions from the S-D perspective.

Findings – Four guiding principles are derived from a rigorous analysis of the relevant literatures. Ways are discussed in which firms might achieve greater flexibility in designing their market offerings, and thus manage different customer segments using different value propositions. The general conclusion is that the ability to communicate a firm's value propositions strategically and effectively is a new area for the development of competence at the core of competitive advantage.

Research limitations/implications – The findings pave the way for empirical research into the dynamics of value propositions. Since the main focus of the conceptual framework is on the customer-provider dyad, future studies should broaden coverage to multilateral settings and networked environments.

Practical implications – Factors that determine the relative emphasis in value propositions between value-in-exchange and value-in-use are discussed, and the management implications derived from each of the four principles identified.

Originality/value – The paper elaborates the application of S-D logic in marketing by investigating the determinants of relative emphasis of value propositions.

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