Goods-Dominant Logic vs. Service-Dominant Logic - easily explained

The so called Goods-Dominant Logic (G-D Logic or GDL) deals with products of a tangible (goods) and intangible nature (services). A distinction is made between services and tangible goods based on certain criteria: Immateriality, integration of an external factor, inseparability of production and consumption, lack of storage and transportability. In GDL companies fulfill the purpose of economically producing and selling goods (and services). Value is added to these products during the manufacturing process, making the product more attractive to the potential customer and more marketable. The price a consumer is willing to pay reflects the value of the transaction and this is the only value which is relevant for a manufacturer.
The Service-Dominant Logic (S-D Logic or SDL) represents a new way of thinking. Unlike in the G-D Logic, not goods, but service (SINGULAR!) are in the center of consideration. Service is considered to be a process in which something useful is created for someone else or with someone else. Differentiation of goods and services is therefore superfluous, because goods serve as vehicle to offer a service, for example a lawn robot for the condition of an English lawn.
If we look at value creation from the perspective of S-D Logic, the prevailing view is expanded. The classic dual supplier-customer relationship (B2B or B2C) becomes a complex network of relationships. In the service-centric logic, value is constantly co-created between all actors. Thus, in this network, all actors are simultaneously providers of resources as well as recipients of services.
Every interaction with an actor is determined by the network behind it.
This video uses different models and management approaches such as Porter’s value chain, the value shop by Stabell and Fjeldstad and the value network to further explain the differences between Goods-Dominant Logic and Service-Dominant Logic.
For more information about Service-Dominant Logic, feel free to subscribe to this channel and visit our website: www.professor-... (in German)
#Marketing #DigitalMarketing #GoodsDominantLogic #ServiceDominantLogic #easilyexplained #GDL #G-D Logic #SDL #S-D Logic #Porter #Stabell #Fjeldstad #network #value #ecosystem #service #mobility #future #technology #sustainability #management #ProfRaab
____________________________
Content: Prof. Dr. Andrea Raab
Implementation: Juliane Lodermeyer