Marketing’s Service-Dominant Logic and Customer Value

The Service-Dominant (S-D) logic has a strong explicit focus on the firm, but this may lead to difficulties for more aggregate conceptions of the field of marketing. The concept of an Aggregate Marketing System is (AGMS), a huge, powerful, yet intricate complex operating to serve the needs of its host society. The study of consumer behavior, as well as applied work within the public policy sphere of consumer protection, provides overwhelming evidence of a substantial disparity between the resources that marketers and consumers bring to the marketplace. Consumer's motivations are not always straightforward, which further complicates the challenge for S-D logic to achieve its goals in the consumer marketplace. The American Marketing Association (AMA) convened a process to update the definition of marketing. Marketing managers typically provide only partial information to customers, those inputs that reflect most positively on the offered alternative. The chapter explains that the S-D logic involves the customer as co-producer and relationship marketing.