Service-Dominant Logic (S-D Logic)

Overview

Service-Dominant Logic reframes marketing from goods-centered (value-in-exchange) to service-centered (value-in-use). Vargo and Lusch (2004, 2008, 2016) articulate foundational premises: service is the fundamental basis of exchange, value is always co-created with beneficiaries, and all economic actors are resource integrators.

When to Use

• Redesigning value propositions to emphasize service and outcomes
• Analyzing how value is co-created across actor networks
• Shifting organizational mindset from product-centric to service-centric
• Designing service ecosystems and platform strategies

When NOT to Use

• Operational cost optimization of existing manufacturing processes
• Short-term pricing decisions requiring goods-dominant accounting
• When stakeholders require traditional financial metrics without translation