Working Papers, Hanken School of Economics
Rethinking Service Companies’ Business Logic: Do We Need a Customer-Dominant Logic as a Guideline?
(), Tore Strandvik
(), Karl-Jacob Mickelsson
(), Bo Edvardsson
(), Erik Sundström
() and Per Andersson
Abstract: Purpose –This paper explores and expands the roles of
customers and companies in creating value by introducing a new a
customer-based approach to service. The customer’s logic is examined as
being the foundation of a customer-based marketing and business logic.
Design/methodology/approach – The authors argue that both goods-dominant
logics and service-dominant logics are provider-dominant. Contrasting the
customer-dominant logic with provider-dominant logics, the paper examines
the creation of service value from the perspectives of value-in-use, the
customer’s own context, and the customer’s experience of service. Findings
–Moving from a provider-dominant logic to a customer-dominant logic
uncovered five major challenges to service marketers: Company involvement,
company control in co-creation, visibility of value creation, locus of
customer experience, and character of customer experience. Research
limitations/implications – The paper is exploratory. It presents and
discusses a conceptual model and suggests implications for research and
practice. Practical implications –Awareness of the mechanisms of customer
logic will provide businesses with new perspectives on the role of the
company in their customer’s lives. We propose that understanding the
customer’s logic should represent the starting-point for the marketer’s
business logic. Originality/value – The paper increases the understanding
of how the customer’s logic underpins the customer-dominant business logic.
By exploring consequences of applying a customer-dominant logic, we suggest
further directions for theoretical and empirical research.
Keywords: service; customer-dominant logic; co-creation; value-in-use; customer experience; (follow links to similar papers)
18 pages, December 29, 2009
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