Service-Dominant Logic (SDL) is a theory in marketing and economics that shifts the focus from a goods-centric perspective to a customer-centric approach, emphasizing the co-creation of value between the service provider and the customer through services. SDL views economic exchange as the provision of services and highlights the importance of collaboration, relationships, and technology in creating value for customers. SDL can be seen as the opposite of traditional commerce, where value is thought of solely through the exchange of money and goods.

Figure 1. Service-Dominant Logic is a mindset where value is co-created with interaction partners. (CC BY 4.0 Super* Project)


Theory to be Learned: Service-Dominant Logic (SDL)
Field of Science: Economics, Marketing, Psychology, Computer Science
Prerequisites: Basic concepts of economics
Relations to Super* Theory: Related to value thinking, alignment of purpose values, etc.
Difficulty:
★★

Summary

Service-Dominant Logic (SDL) is a theory in marketing and economics that represents a significant paradigm shift from the traditional goods-centered perspective to a focus on services and value co-creation. SDL was first introduced by Stephen Vargo and Robert Lusch in the early 2000s and has since gained popularity in the marketing field.

The core idea of SDL is that all economic exchange is viewed as the provision of services. Unlike the traditional goods-dominant logic, which sees products as the primary outcome of economic activity, SDL emphasizes that customers do not merely buy products but seek to achieve value and desired outcomes through the use of products and services. 

Example: Previously, you bought a CD from a store, but nowadays you pay for a music experience from Spotify, where you contribute by creating playlists. The greater value of the service arises from interaction, not just from buying something.

In the SDL framework, value is created through collaboration between the service provider and the customer. Both parties bring unique resources, knowledge, and capabilities to the interaction, which contributes to the overall value proposition. This perspective highlights the importance of understanding customer needs and preferences to tailor offerings accordingly.

SDL also emphasizes the role of relationships and networks in value creation. Businesses are encouraged to develop strong connections with customers, suppliers, and other stakeholders, as these relationships can lead to co-creation of value and foster long-term customer loyalty.

Additionally, SDL recognizes technology as a key enabler of value co-creation. Digital advancements have significantly impacted how services are delivered and consumed, making the integration of technology an essential part of modern business strategies.

In summary, Service-Dominant Logic redefines our view of economic exchange and underscores the central role of services and value co-creation. It emphasizes customer-centricity, collaboration, and the importance of relationships for business success. By adhering to SDL principles, companies can better align their offerings with customer needs, leading to improved customer experiences and sustained competitive advantage in increasingly connected and service-oriented markets.

Connections to the Super* Project

The Super* Project uses an SDL-type mindset. The project has prepared value propositions for all stakeholders, and the project members have reflected on and aligned their own key values. In this way, a win-win-…-win type of ideal situation has been defined, where all parties win when the value propositions are realized. According to the Super* Theory, the "everyone wins" type of thinking can be described as a divine way of operating, where all members of humanity are entitled to pursue their purpose values, not selfishly, but together in harmony with others.

References

Ballantyne, D., Williams, J., & Aitken, R. (2011). Introduction to service-dominant logic: From propositions to practice. Industrial Marketing Management, 40(2), 179–180. https://doi.org/10.1016/j.indmarman.2010.06.025 

Indeed editorial team. (2022). What is service dominant logic? (plus benefits to business). Indeed. Retrieved February 28, 2023, from https://uk.indeed.com/career-advice/career-development/service-dominant-logic