Service-Dominant logic of marketing

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1 Umeå School of Business Umeå University, SE Umeå, Sweden Phone: Ref. no. Date Page 1 (5) Service-Dominant logic of marketing Tjänstelogiken i marknadsföring Credit points: 7.5 hp Responsible department: Umeå School of Business Main field of study: Social Sciences, Business Administration Level: PhD-studies Specialisation in relation to degree requirements: Licentiate and doctoral degree Subject area: Business Administration, Marketing Grading scale: Fail, Pass Any programme affiliation: This course is given as a research course at the Faculty of Social Sciences, Umeå University and is open to all doctoral students. Confirmation The syllabus was confirmed by the Board of Umeå School of Business on May 25, The syllabus is valid from September 1, Contents The Service-Dominant (S-D) logic of marketing (Vargo and Lusch, 2004) asserts that service experience is what customers aim to buy, anywhere, anytime. There is still service interaction in the tradition of the Nordic School but in addition, and this is the key to the new logic, the goods purchased are seen as service appliances and through interaction, service experience is derived. In effect, service is exchanged for service. The S-D logic shifts strategic marketing attention away from point-of-sale transactions to focus on service and post-sales relationships, and in so doing, it has the potential to encourage innovation and rearrange marketers' notions of efficient resource allocations. The service-dominant logic is a service marketing orientation that has the potential to challenge and change the way marketing is conducted. It is constantly evolving. Umea School of Business is well placed to take a lead role in developing this topic as the first doctoral colloquium in the world on service-dominant logic was held here in Expected learning outcomes The purpose of this research course is to provide participants with an understanding of the fundamental propositions supporting the new S-D logic, their origins, and its evolving logic and practical potential today

2 Page 2 (5) Upon successful completion of the course, the student should be able to: evaluate the historical background and recent developments within the evolving field of Service-Dominant logic of marketing and use the knowledge gained to compare, contrast and analyze the dominant theories and research within the field examine and analyse the S-D logic impact on key marketing issues, especially strategic marketing, branding, communication modes, service support, product development, pricing and distribution apply S-D logic to different business segments raise and discuss any complexities in the S-D logic thesis from the point of view of ongoing student research aims and methodologies Required knowledge Applicants are required to be registered as a PhD-student with Umeå University or any other University. The course is also offered as a series of seminars and is as such open to any member of the academic staff at Umea University. Form of instruction The learning method combines theory, interaction and reflection. There will be lecture and discussion sessions to examine key points. Also participants will be organized in small groups to consider and comment on different dilemmas raised by the S-D logic perspective. Students will be required to demonstrate their capacity to integrate marketing and other aspects of business thought and practice. Examination modes The course leader will facilitate two discussion seminars over five days in all which will permit the development of key themes. More specifically, three written papers about 3, 000 to 4, 000 words are required, one of which will be a small-group based assignment and the other two will be take home individual assignments. The themes for the papers and the format of their presentation will be decided upon together with the supervisor/course leader. Participants who attend all sessions and complete all assessments satisfactorily will be entitled to 7.5 doctoral credit points. If, in exceptional circumstances, a student cannot attend all sessions s/he will need to substitute extra private reading and assessments to make up the gap. There will only be pass/fail grades of assessment. Assessment will comprise the following: 1. Group assignment developed in class 33 1/3% 2. Take-home individual assignment /3% 3. Take-home individual assignment /3%

3 Page 3 (5) Academic credit transfer Academic credit transfers are reviewed individually. The University s rules and academic credit transfer regulations apply. Course literature Essential pre-reading 12 articles (in this order) Shostack, Lynn G. (1977), Breaking free from product marketing", Journal of Marketing, Vol. 44 (April), pp Bitner, M-J. (1992), Servicescapes: The impact of physical surroundings on customers and employees', Journal of Marketing, Vol. 56, April, pp Fisk, R. P., Brown, S. W. and Bitner, M-J. (1993), Tracking the evolution of the services marketing literature, Journal of Retailing, Vol. 69, Spring, pp Grönroos, Christian (1998), Marketing services: The case of the missing product, Journal of Business and Industrial Marketing, Vol. 13, No. 4-5, pp Gummesson, Evert (2002), Relationship marketing and the new economy: it s time for deprogramming, Journal of Services Marketing, Vol. 16, No. 7, pp Ballantyne, D. (2006). Three perspectives on service management and marketing: Rival logics or part of a bigger picture? Journal of Services Marketing, 20 (1): Lovelock, Christopher and Gummesson, Evert (2004), Whither services marketing? In search of a new paradigm and fresh perspectives, Journal of Service Research, Vol. 7, No. 1, pp Prahalad, C. K. and Ramaswamy, V. (2004), Co-creating unique value with customers, Strategy and Leadership, Vol. 32, No 3, pp Vargo, Stephen L. and Robert F. Lusch (2004a), "Evolving to a new dominant logic for marketing", Journal of Marketing, Vol. 68, January, pp.1-17 Aitken, Robert, Ballantyne, David, Osborne, Phil and Williams, John (2006), Editorial for the special issue on the service-dominant logic of marketing: Insights from The Otago Forum, Marketing Theory, Vol. 6, No. 3, pp Lusch, Robert F. and Vargo, Stephen L. (2006), Service-dominant logic: reactions, reflections and refinements, Marketing Theory, Vol. 6, No. 3, pp Vargo, Stephen L. and Lusch F., Robert (2008), From goods to service(s): Divergences and convergences of logics, Industrial Marketing Management, Vol. 37, pp

4 Page 4 (5) Other journal references Anderson, James C. and Narus, James A. (1990), A model of distributor firm and manufacturer firm working partnerships, Journal of Marketing, Vol. 54, January, pp Ballantyne, David (2003), A relationship mediated theory of internal marketing, European Journal of Marketing, Vol. 37, No. 9, pp Ballantyne, D, Christopher, M, and Payne, A (1995), Improving the quality of services marketing: service (re) design is the critical link, Journal of Marketing Management, Vol. 11, No's 1-3, January/February/April, pp Ballantyne, David, Christopher, Martin and Payne, Adrian (2003), Relationship marketing: Looking back, looking forward, Marketing Theory, Vol. 3, No. 1, pp Ballantyne, David (2004), Dialogue and its role in the development of relationship specific knowledge, Journal of Business and Industrial Marketing, Vol. 19, No. 2, pp Ballantyne, D. & Varey, R. J. (2006). Creating value-in-use through marketing interaction: The exchange logic of relating, communicating and knowing. Marketing Theory, 6 (3): Ballantyne, D. & Aitken, R. (2007). Branding in B2B markets: Insights from the Service-Dominant logic of marketing. Journal of Business and Industrial Marketing, 22 (6): Berry, Leonard L. (2000), Cultivating service brand equity, Journal of the Academy of Marketing Science, Vol. 28, No. 1, pp De Chernatony, Leslie, (1999), Brand management through narrowing the gap between brand identity and brand reputation, Journal of Marketing Management, Vol. 15, pp Duncan, T. and Moriarty, S. E. (1998) A communication-based marketing model for managing relationships, Journal of Marketing, Vol. 62, No. 2, pp Dwyer, F. R., Schurr, P. H. and Oh, S. (1987), Developing buyer-seller relationships, Journal of Marketing, Vol. 51, April, pp Edvardsson, Bo, Gustafsson, Anders and Roos, Inger (2006), Service portraits in service research: A critical review, International Journal of Service Industry Management, Vol. 16, No 1 pp Grönroos, C. and Lindberg-Repo, K. (1998), Integrated marketing communications: The communications aspect of relationship marketing, Integrated Marketing Communications Research Journal, Vol. 4, No.1, pp Hatch, Mary Jo and Schultz, Majken (2003), Bringing the corporation into corporate branding, European Journal of Marketing, Vol. 37, No. 7/8, pp

5 Page 5 (5) Inkpen, Andrew C. (1996), Creating knowledge through collaboration, California Management Review, Vol. 39, No. 1, pp Levy, Sidney J. (1959), Symbols for sale, Harvard Business Review, July-August, pp McAlexander, J. H., Schouten, J. W. and Koeing, H. G. (2002), Building Brand Community, Journal of Marketing, Vol. 66, pp Muniz, Albert M. Jnr. and O Guinn, Thomas C. (2001), Brand communities, Journal of Consumer Research, Vol. 27, March, pp Nonaka, Ikujiro (1991), The knowledge-creating company, Harvard Business Review, November- December, pp Normann, Richard and Ramirez, Rafael (1993) From value chain to value constellation: Designing interactive strategy, Harvard Business Review, Vol. 71, July-August), pp Payne, A., Ballantyne, D. and Christopher, M. (2005), A stakeholder approach to relationship marketing strategy: The development and use of the six markets model, European Journal of Marketing, Vol. 39, Nos. 7-8, pp Prahalad, C. K. (2004) 'The Cocreation of Value: Invited Commentaries on "Evolving to a New Dominant Logic for Marketing"', Journal of Marketing 68 (January): 23. Vargo, Stephen L. and Robert F. Lusch (2004b), "The four service marketing myths: Remnants of a goods-based manufacturing model", Journal of Service Research, Vol. 6, No. 4, pp Vargo, Stephen L. and Morgan, Fred W. (2005), Services in society and academic thought: An historical analysis, Journal of Macromarketing, Vol. 25, No. 1, pp Varey, Richard J. and Ballantyne, David (2005), Relationship marketing and the challenge of dialogical interaction, Journal of Relationship Marketing, Vol. 4, No. 3, pp Wilson, David T. and Jantrania, Swati (1994), Understanding the value of a relationship, Australasian Marketing Journal (formerly Asia-Australia Marketing Journal), Vol. 2, No. 1, pp ; also in Ford, D. (1997), Understanding Business Markets, 2 nd edit, Dryden, London.