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This​ ​paper​ ​is​ ​a​ ​comparative​ ​in-depth​ ​analysis​ ​of​ ​two​ ​articles,​ ​which​ ​were​ ​introduced​ ​to​ ​us​

​during
the​ ​course​ ​on​ ​Service​ ​Innovation.​ ​I​ ​have​ ​reviewed​ ​the​ ​two​ ​articles​ ​on​ ​Service​ ​Dominant​ ​logic
(S-D):​ ​continuing​ ​the​ ​evolution​ ​(Vargo​ ​and​ ​Lusch​ ​2008)​ ​and​ ​Institutions,​ ​and​ ​axioms:​ ​an
extension​ ​and​ ​update​ ​of​ ​service-dominant​ ​logic​ ​(Vargo​ ​and​ ​Lusch,​ ​2016).

1)​ ​the​ ​general​ ​objective​ ​of​ ​the​ ​two​ ​chosen​ ​articles

The​ ​first​ ​article​ ​essentially​ ​modifies​ ​the​ ​preliminary​ ​ ​fundamental​ ​premises​ ​described​ ​in​ ​the
initial​ ​S-D​ ​logic​ ​article​ ​published​ ​in​ ​2004.​ ​While​ ​G-D​ ​logic​ ​was​ ​the​ ​primary​ ​lexicon​ ​used​ ​for
elaborating​ ​the​ ​introductory​ ​article,​ ​this​ ​one​ ​critically​ ​emphasizes​ ​on​ ​the​ ​utility​ ​of​ ​pursuing​ ​a​ ​S-D
logic.​ ​It​ ​further​ ​articulates​ ​that​ ​goods-dominant​ ​logic​ ​for​ ​classification​ ​of​ ​businesses​ ​is
inadequate​ ​for​ ​explaining​ ​several​ ​economics​ ​concepts​ ​like​ ​operant​ ​resources,​ ​customer​ ​focus
and​ ​value​ ​co-creation.​ ​Discussing​ ​S-D​ ​logic​ ​in​ ​an​ ​industrial​ ​context​ ​is​ ​undoubtedly​ ​very
interesting​ ​as​ ​it​ ​takes​ ​into​ ​account​ ​the​ ​importance​ ​of​ ​services​ ​and​ ​“product/service​ ​systems”
(PSS)​ ​for​ ​manufacturing​ ​firms​ ​(Gebauer,​ ​2008;​ ​Kindström,​ ​2009;​ ​Sakao​ ​and​ ​Lindahl,​ ​2009).
G-D​ ​logic​ ​(Vargo​ ​and​ ​Lusch​ ​2004)​ ​is​ ​built​ ​on​ ​the​ ​assumption​ ​that​ ​economic​ ​value​ ​is​ ​added
through​ ​industrial​ ​processes,​ ​embedded​ ​in​ ​goods,​ ​distributed,​ ​and​ ​then​ ​realized​ ​in​ ​exchange​ ​in
a​ ​transactional​ ​manner;​ ​that​ ​is,​ ​value-in-exchange.​ ​Under​ ​S-D​ ​logic​ ​(Vargo​ ​and​ ​Lusch​ ​2008)​ ​,​ ​in
contrast,​ ​goods​ ​are​ ​seen​ ​as​ ​distribution​ ​mechanisms​ ​for​ ​service​ ​provision.​ ​ ​S-D​ ​logic​ ​has​ ​been
identified​ ​as​ ​an​ ​appropriate​ ​philosophical​ ​foundation​ ​for​ ​the​ ​development​ ​of​ ​service​ ​science
(Maglio​ ​et​ ​al.​ ​2009).

2)​ ​which​ ​research​ ​questions​ ​are​ ​raised,

The​ ​idea​ ​behind​ ​SD​ ​-​ ​Logic​ ​is​ ​built​ ​upon​ ​how​ ​value​ ​is​ ​(or​ ​benefits)​ ​uniquely​ ​experienced​ ​by
each​ ​customer​ ​when​ ​they​ ​use​ ​a​ ​service​ ​–​ ​not​ ​in​ ​how​ ​creatively​ ​we​ ​'package'​ ​it​ ​or​ ​persuasively
‘sell​ ​it.’​ ​The​ ​S-D​ ​logic​ ​proposes​ ​that,​ ​“marketing​ ​has​ ​moved​ ​from​ ​a​ ​goods-dominant​ ​view,​ ​in
which​ ​tangible​ ​output​ ​and​ ​discrete​ ​transactions​ ​were​ ​central,​ ​to​ ​a​ ​service-dominant​ ​view,​ ​in
which​ ​intangibility,​ ​exchange​ ​processes,​ ​and​ ​relationships​ ​are​ ​central”​ ​(Vargo​ ​&​ ​Lusch​ ​2008).

3)​ ​explain​ ​the​ ​central​ ​idea​ ​and​ ​line​ ​of​ ​reasoning,​ ​conceptual​ ​models​ ​or​ ​something​ ​similar,

In​ ​FP​ ​#1,​ ​Vargo​ ​and​ ​Lusch​ ​(2008)​ ​stated​ ​that​ ​service​ ​is​ ​the​ ​fundamental​ ​basis​ ​of​ ​exchange,
rather​ ​than​ ​goods.​ ​This​ ​fundamental​ ​premise​ ​is​ ​a​ ​complete​ ​paradigm​ ​shift​ ​from​ ​traditional
marketing​ ​philosophy.​ ​ ​Vargo​ ​stated​ ​“the​ ​application​ ​of​ ​operant​ ​resources​ ​(knowledge​ ​and
skills),​ ​“service,”​ ​is​ ​the​ ​basis​ ​for​ ​all​ ​exchange.​ ​ ​The​ ​modified​ ​foundational​ ​premises​ ​are
explained​ ​with​ ​examples:​ ​ ​Knowledge​ ​and​ ​skills,“service”​ ​is​ ​the​ ​basis​ ​for​ ​all​ ​exchange,​ ​(e.g.
Bank​ ​teller,​ ​customs​ ​duty​ ​personnel,​ ​electronics​ ​engineer).​ ​As​ ​service​ ​providers​ ​we​ ​tend​ ​to
internalize​ ​are​ ​special​ ​skills​ ​and​ ​knowledge.​ ​We​ ​can​ ​only​ ​determine​ ​value​ ​by​ ​using​ ​the​ ​product,
this​ ​then​ ​determines​ ​the​ ​degree​ ​of​ ​service,​ ​e.g.​ ​Night’s​ ​stay​ ​at​ ​a​ ​hotel.​ ​The​ ​more​ ​knowledge​ ​and
skills​ ​we​ ​acquire​ ​the​ ​greater​ ​the​ ​competitive​ ​advantage,​ ​e.g.​ ​customs​ ​duty​ ​personnel​ ​learning
newest​ ​tracking​ ​system.​ ​Insurance​ ​agents​ ​know​ ​all​ ​new​ ​product​ ​offerings.​ ​5.​ ​The​ ​more
knowledge​ ​and​ ​skills​ ​we​ ​acquire​ ​the​ ​greater​ ​the​ ​competitive​ ​advantage,​ ​e.g.​ ​customs​ ​duty
personnel​ ​learning​ ​newest​ ​tracking​ ​system.​ ​Insurance​ ​agents​ ​know​ ​all​ ​new​ ​product​ ​offerings.
Service​ ​(singular)​ ​is​ ​a​ ​process—distinct​ ​from​ ​“services”—particular​ ​types​ ​of​ ​goods,​ ​e.g.​ ​Inbound
customer​ ​service,​ ​outsourced​ ​to​ ​a​ ​foreign​ ​country,​ ​India.​ ​Implied​ ​value​ ​creation​ ​is​ ​interactional.
Firms​ ​do​ ​not​ ​create​ ​value,​ ​customers​ ​do.,​ ​e.g.​ ​HP​ ​computers​ ​offer​ ​special​ ​customization​ ​of
components​ ​to​ ​their​ ​customers.​ ​The​ ​firm​ ​can​ ​only​ ​offer​ ​its​ ​resources​ ​collaboratively,​ ​it​ ​is​ ​the
customer​ ​who​ ​must​ ​be​ ​active​ ​in​ ​the​ ​process​ ​for​ ​value​ ​to​ ​occur,​ ​e.g.​ ​A​ ​travel​ ​website​ ​is​ ​only
effective​ ​when​ ​customer​ ​accepts​ ​its​ ​value​ ​and​ ​transacts.​ ​Insurance​ ​quotes.​ ​ ​The​ ​customer
determines​ ​whether​ ​the​ ​service​ ​is​ ​valuable​ ​not​ ​the​ ​firm.​ ​This​ ​relates​ ​to​ ​the​ ​value​ ​chain,​ ​each
member​ ​works​ ​in​ ​network​ ​with​ ​another​ ​constantly​ ​collaborating​ ​and​ ​integrating​ ​to​ ​produce​ ​the
most​ ​effective​ ​product​ ​or​ ​service,​ ​e.g.​ ​insurance​ ​agents​ ​and​ ​their​ ​brokers.​ ​Value​ ​is​ ​idiosyncratic,
which​ ​means​ ​a​ ​structural​ ​or​ ​behavioral​ ​characteristic​ ​peculiar​ ​to​ ​an​ ​individual​ ​or​ ​group​ ​are
different,​ ​e.g.​ ​The​ ​value​ ​of​ ​air​ ​travel​ ​derived​ ​for​ ​one​ ​person​ ​may​ ​not​ ​be​ ​the​ ​same​ ​for​ ​another.

In​ ​FP#2,​ ​Vargo​ ​and​ ​Lusch​ ​assert,​ ​“Indirect​ ​exchange​ ​masks​ ​the​ ​fundamental​ ​basis​ ​of
exchange”​ ​(Vargo,​ ​2009).​ ​A​ ​further​ ​explanation​ ​for​ ​this​ ​FP​ ​states,​ ​goods,​ ​money,​ ​and
institutions​ ​mask​ ​the​ ​service-for-service​ ​nature​ ​of​ ​the​ ​exchange.​ ​In​ ​FP#3,​ ​Vargo​ ​and​ ​Lusch
assert,​ ​“Goods​ ​are​ ​distribution​ ​mechanisms​ ​for​ ​service​ ​provision”.​ ​They​ ​further​ ​justify​ ​that
“goods​ ​(both​ ​durable​ ​and​ ​non-durable)​ ​derive​ ​their​ ​value​ ​through​ ​use​ ​–​ ​the​ ​service​ ​they
provide.”

For​ ​FD​ ​#4​ ​Vargo​ ​and​ ​Lusch​ ​asserted,​ ​“Knowledge​ ​and​ ​skills​ ​are​ ​the​ ​fundamental​ ​source​ ​of
competitive​ ​advantage”​ ​(Vargo,​ ​2009).​ ​This​ ​justification​ ​states​ ​the​ ​comparative​ ​ability​ ​to​ ​cause
derived​ ​change​ ​drives​ ​competition​ ​(Vargo,​ ​2009).​ ​ ​Vargo​ ​and​ ​Lusch’s​ ​fundamental​ ​premise​ ​#6
purports​ ​that​ ​the​ ​customer​ ​is​ ​always​ ​the​ ​co-creator​ ​of​ ​value.

Initially​ ​most​ ​of​ ​the​ ​companies​ ​like​ ​car​ ​producers,​ ​furniture​ ​manufacturers,​ ​manufacturing​ ​firms,
computer​ ​organizations​ ​started​ ​being​ ​product​ ​focussed​ ​but​ ​they​ ​are​ ​gradually​ ​moving​ ​towards
being​ ​more​ ​customer​ ​centric​ ​and​ ​creating​ ​economies​ ​of​ ​co-created​ ​value.​ ​We​ ​can​ ​take​ ​a​ ​look​ ​at
Apple​ ​and​ ​Ikea​ ​to​ ​understand​ ​the​ ​change​ ​in​ ​their​ ​product​ ​portfolio​ ​to​ ​take​ ​into​ ​consideration​ ​the
requirements​ ​of​ ​end​ ​customers​ ​and​ ​stakeholders.​ ​FMCG​ ​companies,​ ​sports​ ​equipment
manufacturers,​ ​tourism​ ​companies,​ ​video​ ​game​ ​producers,​ ​media​ ​and​ ​production​ ​companies
who​ ​were​ ​initially​ ​focussed​ ​on​ ​their​ ​customers,​ ​collaborators​ ​and​ ​end​ ​users​ ​are​ ​now​ ​moving​ ​into
co-creation.​ ​Disney,​ ​Nike,​ ​Pixar​ ​Animation​ ​studios​ ​are​ ​some​ ​of​ ​those​ ​companies​ ​who​ ​have
moved​ ​into​ ​co-creation​ ​from​ ​customer​ ​centricity.​ ​On​ ​the​ ​other​ ​hand​ ​some​ ​organizations​ ​such​ ​as
Uber,​ ​Ola,​ ​Airbnb,​ ​Netflix​ ​have​ ​embraced​ ​co-creation​ ​through​ ​innovation​ ​in​ ​the​ ​sharing
economy​ ​through​ ​which​ ​the​ ​actors​ ​evolve​ ​together.​ ​In​ ​a​ ​value​ ​co-creation​ ​ecosystem,
customers,​ ​competitors,​ ​collaborators,​ ​complementors​ ​and​ ​all​ ​other​ ​actors​ ​provide​ ​input​ ​and
everyone​ ​derives​ ​value​ ​out​ ​of​ ​it.

4)​ ​Eventual​ ​main​ ​findings.

S-D​ ​logic​ ​embraces​ ​the​ ​concepts​ ​of​ ​“value-in-use”​ ​and​ ​“co-creation​ ​of​ ​value”​ ​as​ ​opposed​ ​to
“value-in-exchange”​ ​and​ ​“embedded-value”,​ ​typical​ ​for​ ​G-D​ ​logic.​ ​Lusch​ ​and​ ​Vargo​ ​note,
“instead​ ​of​ ​firms​ ​being​ ​informed​ ​to​ ​market​ ​to​ ​customers,​ ​they​ ​are​ ​instructed​ ​to​ ​market​ ​with
customers​ ​(emphasis​ ​added),​ ​as​ ​well​ ​as​ ​other​ ​value-creation​ ​partners​ ​in​ ​the​ ​firm’s​ ​value
network”.

5)​ ​Similarities​ ​and​ ​differences​ ​between​ ​the​ ​two​ ​articles​ ​/written​ ​by​ ​the​ ​same​ ​authors,​ ​and​ ​how
have​ ​they​ ​developed​ ​their​ ​understanding,​ ​framework,​ ​concepts

My​ ​Phd​ ​project​ ​is​ ​concerned​ ​with​ ​an​ ​interpretation​ ​of​ ​the​ ​following​ ​topics:​ ​marketing​ ​innovation
through​ ​gamification​ ​and​ ​innovation​ ​processes​ ​followed​ ​during​ ​the​ ​production​ ​or​ ​creation​ ​of​ ​a
gamified​ ​application​ ​and​ ​interaction​ ​between​ ​the​ ​various​ ​players​ ​within​ ​the​ ​ecosystem.​ ​I​ ​will
also​ ​investigate​ ​about​ ​strategies​ ​of​ ​implementation​ ​of​ ​corporate​ ​gamification.​ ​Contemporary
mechanisms​ ​for​ ​utilizing​ ​gamification​ ​for​ ​online​ ​digital​ ​mobile​ ​marketing,​ ​advertising,​ ​experience
economy​ ​and​ ​branding​ ​industry​ ​are​ ​also​ ​very​ ​important​ ​in​ ​my​ ​project.​ ​Serious​ ​games​ ​is​ ​an
ingenious​ ​technique​ ​for​ ​educating​ ​and​ ​empowering​ ​people.​ ​I​ ​would​ ​try​ ​to​ ​frame​ ​research
questions​ ​from​ ​the​ ​articles​ ​outlined​ ​before​ ​about​ ​serious​ ​games.​ ​Fundamental​ ​premises​ ​of​ ​S-D
logic​ ​are​ ​an​ ​invaluable​ ​framework​ ​for​ ​the​ ​analysis​ ​of​ ​gamification​ ​as​ ​an​ ​ICT​ ​based​ ​service
innovation.

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