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Journal ArticleDOI

Critical service logic: making sense of value creation and co-creation

01 Mar 2013-Journal of the Academy of Marketing Science (Springer US)-Vol. 41, Iss: 2, pp 133-150
TL;DR: The authors analyzes value creation and co-creation in service by analytically defining the roles of the customer and the firm, as well as the scope, locus, and nature of value and value creation.
Abstract: Because extant literature on the service logic of marketing is dominated by a metaphorical view of value co-creation, the roles of both service providers and customers remain analytically unspecified, without a theoretically sound foundation for value creation or co-creation. This article analyzes value creation and co-creation in service by analytically defining the roles of the customer and the firm, as well as the scope, locus, and nature of value and value creation. Value creation refers to customers’ creation of value-in-use; co-creation is a function of interaction. Both the firm’s and the customer’s actions can be categorized by spheres (provider, joint, customer), and their interactions are either direct or indirect, leading to different forms of value creation and co-creation. This conceptualization of value creation spheres extends knowledge about how value-in-use emerges and how value creation can be managed; it also emphasizes the pivotal role of direct interactions for value co-creation opportunities.
Citations
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Journal ArticleDOI
TL;DR: In this paper, an eleventh foundational premise (fifth axiom) is introduced, focusing on the role of institutions and institutional arrangements in systems of value cocreation: service ecosystems.
Abstract: Service-dominant logic continues its evolution, facilitated by an active community of scholars throughout the world. Along its evolutionary path, there has been increased recognition of the need for a crisper and more precise delineation of the foundational premises and specification of the axioms of S-D logic. It also has become apparent that a limitation of the current foundational premises/axioms is the absence of a clearly articulated specification of the mechanisms of (often massive-scale) coordination and cooperation involved in the cocreation of value through markets and, more broadly, in society. This is especially important because markets are even more about cooperation than about the competition that is more frequently discussed. To alleviate this limitation and facilitate a better understanding of cooperation (and coordination), an eleventh foundational premise (fifth axiom) is introduced, focusing on the role of institutions and institutional arrangements in systems of value cocreation: service ecosystems. Literature on institutions across multiple social disciplines, including marketing, is briefly reviewed and offered as further support for this fifth axiom.

2,225 citations


Cites background from "Critical service logic: making sens..."

  • ...As a positive concept, value cocreation has been criticized by some scholars (e.g., Gronroos and Voima 2013) on the grounds that we misstate its extent—that is, they argue that value is only cocreated in select instances, those in which there is direct, personal interaction between the provider and…...

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  • ...…2008)—what we call Bco- production^ (Vargo 2008)—or in the restricted meaning of direct, dyadic, one-on-one (i.e., business–customer) interaction (e.g., Gronroos and Voima 2013), but in the sense that it accommodates, if not necessitates, recognition of the full range of the cumulatively…...

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Journal ArticleDOI
TL;DR: In this paper, a consumer's positively valenced brand-related cognitive, emotional and behavioral activity during or related to focal consumer/brand interactions is analyzed in three different social media contexts, including cognitive processing, affection, and activation.

1,863 citations

Journal ArticleDOI
TL;DR: In this article, the authors identify three stages of digital transformation: digitization, digitalization, and digital transformation, and delineate growth strategies for digital firms as well as the assets and capabilities required in order to successfully transform digitally.

1,072 citations

Journal ArticleDOI
TL;DR: The concept of customer engagement (CE) aggregates the multiple ways customer engagement can be achieved as discussed by the authors, and it is used in marketing and service research to highlight the blurring of boundaries between firms and customers.
Abstract: Recent developments in marketing and service research highlight the blurring of boundaries between firms and customers. The concept of customer engagement (CE) aggregates the multiple ways customer...

876 citations

Journal ArticleDOI
TL;DR: In this paper, service-dominant (S-D) logic has taken a series of significant theoretical turns, and has had foundational premises modified and added and consolidated into a smaller set of core axioms.

828 citations


Cites methods from "Critical service logic: making sens..."

  • ...For example Wilkie & Moore (2006) described S-D logic as managerially focused whereas others (e.g.,Gronroos & Voima, 2013) have described it as purely macro-level focused, and thus not applicable to micro-level (managerial) phenomena....

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References
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Book
01 Jun 1980
TL;DR: In this paper, the authors present an analysis of knowledge in everyday life in the context of a theory of society as a dialectical process between objective and subjective reality, focusing particularly on that common-sense knowledge which constitutes the reality of everyday life for the ordinary member of society.
Abstract: A general and systematic account of the role of knowledge in society aimed to stimulate both critical discussion and empirical investigations. This book is concerned with the sociology of 'everything that passes for knowledge in society'. It focuses particularly on that 'common-sense knowledge' which constitutes the reality of everyday life for the ordinary member of society. The authors are concerned to present an analysis of knowledge in everyday life in the context of a theory of society as a dialectical process between objective and subjective reality. Their development of a theory of institutions, legitimations and socializations has implications beyond the discipline of sociology, and their 'humanistic' approach has considerable relevance for other social scientists, historians, philosophers and anthropologists.

16,935 citations


"Critical service logic: making sens..." refers background or methods in this paper

  • ...Following the meaning of the value-in-use notion, we adopt a phenomenological perspective and state that value creation is the customer’s creation of value-in-use during usage, where value is socially constructed through experiences (Berger and Luckmann 1966; Edvardsson et al. 2011; Ramaswamy 2011; Thompson et al. 1989)....

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  • ...…the value-in-use notion, we adopt a phenomenological perspective and state that value creation is the customer’s creation of value-in-use during usage, where value is socially constructed through experiences (Berger and Luckmann 1966; Edvardsson et al. 2011; Ramaswamy 2011; Thompson et al. 1989)....

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Journal ArticleDOI
TL;DR: The attainment of quality in products and services has become a pivotal concern of the 1980s as discussed by the authors, while quality in tangible goods has been described and measured by marketers, quality in services is la...
Abstract: The attainment of quality in products and services has become a pivotal concern of the 1980s. While quality in tangible goods has been described and measured by marketers, quality in services is la...

16,185 citations


"Critical service logic: making sens..." refers background in this paper

  • ...Just as service quality accumulates throughout the usage process (Grönroos 1984; Parasuraman et al. 1985), the experience of value and the value creation process accumulates as a dynamic process with both creative and destructive phases....

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Journal ArticleDOI
TL;DR: In this paper, evidence from past research and insights from an exploratory investigation are combined in a conceptual model that defines and relates price, perceived quality, and perceived value for a product.
Abstract: Evidence from past research and insights from an exploratory investigation are combined in a conceptual model that defines and relates price, perceived quality, and perceived value. Propositions ab...

13,713 citations


"Critical service logic: making sens..." refers methods in this paper

  • ...…et al. 2009; Woodall 2003), which generally conceptualize it on an individual level (Holbrook 1994, 1999), assess the trade-off between benefits and sacrifices (Day 1990; Woodruff and Gardial 1996; Zeithaml 1988), or use means-ends models (Gutman 1982; Howard 1977; Woodruff 1997; Zeithaml 1988)....

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Journal ArticleDOI
TL;DR: The authors argue that service provision rather than goods is fundamental to economic exchange and argue that the new perspectives are converging to form a new dominant logic for marketing, one in which service provision is fundamental for economic exchange.
Abstract: Marketing inherited a model of exchange from economics, which had a dominant logic based on the exchange of “goods,” which usually are manufactured output The dominant logic focused on tangible resources, embedded value, and transactions Over the past several decades, new perspectives have emerged that have a revised logic focused on intangible resources, the cocreation of value, and relationships The authors believe that the new perspectives are converging to form a new dominant logic for marketing, one in which service provision rather than goods is fundamental to economic exchange The authors explore this evolving logic and the corresponding shift in perspective for marketing scholars, marketing practitioners, and marketing educators

12,760 citations


"Critical service logic: making sens..." refers background in this paper

  • ...However, lately the importance of the customer sphere has been better recognized (Epp and Price 2011; Grönroos 2008; Heinonen et al. 2010; Voima et al. 2010; Vargo and Lusch 2004, 2008; cf. Holbrook 1994; Vandermerwe 1996; Woodruff and Gardial 1996)....

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  • ...…2004; Zeithaml 1990; for a discussion of the co-creation phenomenon, see Cova et al. 2011), where the role of the customer evolved from selfservice, through firm-scripted staging of customer experiences, to co-designing and finally co-production of service (Prahalad 2004; Vargo and Lusch 2004)....

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  • ...…contributions Role The customer is the value creator/ constructor Customer’s experience of value-in-use Customer’s role in value creation, customer dominance: Grönroos 2008; Grönroos and Ravald 2011; Voima et al. 2010, 2011a, b; Strandvik et al. 2012; Vargo and Lusch 2004, 2008 (value-in-use)...

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  • ...This provider emphasis first emerged in customer engagement literature (e.g., Berry and Parasuraman 1991; Heskett et al. 2002; Peppers and Rogers 1993; Pine and Gilmore 1999; Prahalad 2004; Rust et al. 1996; Vargo and Lusch 2004; Zeithaml 1990; for a discussion of the co-creation phenomenon, see Cova et al. 2011), where the role of the customer evolved from selfservice, through firm-scripted staging of customer experiences, to co-designing and finally co-production of service (Prahalad 2004; Vargo and Lusch 2004)....

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  • ...2011), where the role of the customer evolved from selfservice, through firm-scripted staging of customer experiences, to co-designing and finally co-production of service (Prahalad 2004; Vargo and Lusch 2004)....

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Journal ArticleDOI

8,129 citations


"Critical service logic: making sens..." refers background in this paper

  • ...Logically, the value-in-use concept also implies that value is created by the user during the process of using resources/processes/outcomes, as demonstrated by Becker (1965) with his theory of the household as a utilityproducing unit....

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  • ...Value-in-use is grounded in the view of value as a utility, which emerges for the user during a consumption process (see Becker 1965)....

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