The paper "How Context Frames Exchange" is an outstanding example of marketing coursework. The service-dominant (SD) logic is a concept that emphasizes on services. The service-dominant logic looks beyond the use of goods in the market to a service dominated market. The main tools in the service-dominant logic are skills and knowledge as opposed to the logic of the good which looks at physical resources. In service-dominant logic, skills and knowledge are vital for co-creation. Service dominant market involves doing something for and as well as with another4. Goods in the service-dominant logic are viewed as tools and appliances in providing services to the customers.
The supply chains help in supporting the customers in playing the role of value co-creating. This is through offering goods or services. The main purpose of service-dominant logic is to do something for another party and with them. The service-dominant logic involves the firm being capable to provide and satisfy the customer’ s needs through continuous communication between the two parties. Service dominant logic involves the firm shifting the mindset from the tangible to intangible, creating and using the dynamic operands and shifting to conversation dialogue1.
The service-dominant logic sees the customer as buying the service flow rather than the goods. This report will analyze critically the article by Chandler and Vargo from a theoretical perspective and look at the practical implication it has on Apples’ iPhone by looking at social media as a co-creation tool. This will be supported by two articles by Lusch, Vargo & Tanniru2 and Akaka & Vargo3. Analysis Chandler and Vargo4 look at the role of context in providing service, especially in the market co-creation.
The article shifts its focus from the individual actor to the market. This is from the micro level to the macro level. According to the article, this enables to reveal the meso level which is between the two levels. The three market levels are portrayed to influence each other according to the authors. The main purpose of exchanging is obtaining value through resources with higher value4. The role of services in value creation is supported by Akaka and Vargo3. These authors explore the role that is played by value in co-creation.
Technology service is influenced by human and it also influences human3. One of the technology platforms is social media. Social media is highly associated with the service-dominant market. Social media acts as both technology and methodology that is vital in executing service-dominant logic3. Apple’ s iPhone is an example of a product that is used by consumers in different ways. One of the major uses is social media access. While some of the consumers of the products may be using the iPhone for games, others will be using it to read e-books and also access social sites.
The applications developers use the iPhone to discover what the consumers are attracted to. This may be through monitoring downloads and through social media forums. This is a device that has the capability to offer different services to different actors. Different actors are brought together by the device and forms different contexts. This leads to value co-creation by the involved actors who are the customers and the developers. The fact that the iPhone can access social media leads to the connection of different actors who are able to exchange their experiences and ideas.
Once Apple releases a product, the social media reaction helps the developers to know what they should incorporate by understanding the consumers’ likes and their products flaws9. The consumers are also able to connect with others and inform about the products through reviews and forums. This is an example of value co-creation in a service-dominant logic1.
Akaka, M. A. & S. L. Vargo. ‘Technology As an Operant Resource in Service (eco) systems,’ Information Systems and E-Business Management, 2013.
Akaka, M. A., S. L. Vargo, & R. F. Lusch, ‘The Complexity of Context: A Service Ecosystems Approach for International Marketing’, Journal of International Marketing, Vol. 21, No. 4, 2013, pp. 1-20.
Jennifer D. C. & S. L. Vargo, ‘Contextualization and value-in-context: How context frames exchange’, Marketing Theory, Vol. 11, No. 1, 2011, pp. 35–49.
Lusch, R. F. & S. L. Vargo. The Service-Dominant Logic of Marketing: Dialog, Debate, and Directions. Armonk, N.Y: M.E. Sharpe, 2006.
Lusch, R.F., & S. L. Vargo & M. Tanniru, ‘Service, value networks and learning’, Journal of the Academic Marketing Science, Vol. 38, No1. 2010, pp.19-31.
McColl-Kennedy, J.R, Kasteren Y. van, S.L Vargo, T.S Dagger & J.C Sweeney, ‘Health Care Customer Value Cocreation Practice Styles,’ Journal of Service Research, Vol.15, No.4 2012, pp.370-389.
Nie, Y., K. Shirahada, and M. Kosaka. ‘Value Co-Creation Oriented Leadership for Promoting
Service-Centric Business,’ Intercultural Communication Studies.Vol. 22, no. 1, 2013,pp. 216-228.
Vargo, S. L., & R.F. Lusch, ‘Service-Dominant Logic: Continuing the Evolution’, Journal of the Academy of Marketing Science, Vol.36, No. 1, 2008, pp. 1-10.
Williams, John, & R. Aitken. ‘The Service-Dominant Logic of Marketing and Marketing Ethics,’ Journal of Business Ethics. Vol.102, No. 3, 2011, pp.439-454.