ABSTRACT
Stephen L. Vargo and Robert F. Lusch believe that people have passed the tipping point in the transition from a goods-centered to a service-dominant (S-D) logic for marketing. Many tributaries are feeding the 'new' dominant logic, including services marketing, market orientation, customer relationship management, networked markets, mass customization, and interactivity. New dominant logics usually assimilate what came before, claiming an insight that is more encompassing. The connected knowledge system enables the real-time coordination of dispersed organizational activities and groups, the management of cross-functional processes, and the synchronization of the myriad points of customer contact that are integral to the new dominant logic. The emphasis on operant resources within the new dominant logic is well grounded in the resource-based view of the firm. S-D logic implies that firms will increasingly compete with customized solutions, realized through interactions and relationships, and involving the customer as co-producer of the relational value.
