From goods to service(s): Divergences and convergences of logics

  • Vargo S
  • Lusch R
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Abstract

There are two logics or mindsets from which to consider and motivate a transition from goods to service(s). The first, "goods-dominant (G-D) logic", views services in terms of a type of (e.g., intangible) good and implies that goods production and distribution practices should be modified to deal with the differences between tangible goods and services. The second logic, "service-dominant (S-D) logic", considers service - a process of using ones resources for the benefit of and in conjunction with another party - as the fundamental purpose of economic exchange and implies the need for a revised, service-driven framework for all of marketing. This transition to a service-centered logic is consistent with and partially derived from a similar transition found in the business-marketing literature - for example, its shift to understanding exchange in terms value rather than products and networks rather than dyads. It also parallels transitions in other sub-disciplines, such as service marketing. These parallels and the implications for marketing theory and practice of a full transition to a service-logic are explored. © 2008 Elsevier Inc. All rights reserved.

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Authors

  • Stephen L. Vargo

  • Robert F. Lusch

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