Rationalizing service logic, or understanding services as experience?

Abstract

This article discusses the argument put forward by Vargo and Lusch (2004) that a new service dominant logic is emerging within marketing. Taking on this new service logic means our understanding of marketing has developed from a focus on exchange of goods to a broader focus on exchange of services. However, in seeking to elaborate on Vargo and Lusch's argument, limitations are highlighted and consequently their eight foundational premises are challenged at an ontological level. While Vargo and Lusch recognize the evolution of marketing towards a service orientation, their understanding of this and what it means for marketing continues to be founded on the same rationalistic assumptions as the traditional goods-centred logic. In recognizing the emergent service orientation, marketers and researchers need to question their underlying assumptions and seek to understand services as constituted in the customer's experience.