Lusch Vargo And O Brien

Journal of Retailing 83 (1, 2007) 5–18

Competing through service: Insights from service-dominant logic
Robert F. Lusch a,∗ , Stephen L. Vargo b,1 , Matthew O’Brien c,2 a Eller College of Management, University of Arizona, 320 McClelland Hall, 1130 E. Helen Street, Tucson, AZ 85721, United States b College Of Business Administration, University of Hawaii at Manoa, 2402 Maile Way, Honolulu, HI 96822, United States c Foster College of Business Administration, Bradley University, 1501 West Bradley Avenue, Peoria, IL 61625, United States

Abstract
Service-dominant logic (S-D logic) is contrasted with goods-dominant (G-D) logic to provide a framework for thinking more clearly about the concept of service and its role in exchange and competition. Then, relying upon the nine foundational premises of S-D logic [Vargo,
Stephen L. and Robert F. Lusch (2004). “Evolving to a New Dominant Logic for Marketing,” Journal of Marketing, 68 (January) 1–17; Lusch,
Robert F. and Stephen L. Vargo (2006), “Service-Dominant Logic as a Foundation for Building a General Theory,” in The Service-Dominant
Logic of Marketing: Dialog, Debate and Directions. Robert F. Lusch and Stephen L. Vargo (eds.), Armonk, NY: M.E. Sharpe, 406–420] nine derivative propositions are developed that inform marketers on how to compete through service.
© 2006 New York University. Published by Elsevier Inc. All rights reserved.
Keywords: Service-dominant logic; Goods-dominant logic; Derivative propositions

Introduction
Business scholars and practitioners are aware that competitive advantage can be enhanced through service (Karmarkar
2004). It is also clear that there is a link between competitive advantage and superior performance (Barney 1991; Coyne
1985; Day and Wensley 1988; Hunt and Morgan 1995; Porter
1985). Yet, by almost any definition or measure, there is little evidence of significantly increasing service. In fact, it is often argued that service is actually on decline (Oliva and
Sterman 2001), at least

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