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Value-attenuation in distribution networks : Insights from a service dominant-logic perspective on retail out-of-stocks

2012-02-18 , Ehrenthal, Joachim C.F. , Gruen, Thomas W. , Hofstetter, Joerg S

This conceptual article examines the effects of out-of-stock items through the Service-Dominant (S-D) logic lens. Combining classic S-D logic research with recent applications of S-D logic in supply chains, this article examines the role that out-of-stock items play in value attenuation throughout the supply chain and its networks of actors. It presents a model of value co-creation where the brand manufacturer and customer demand meet in the retailer's realm for the "first moment of truth," and then develops a model of the total costs of a stock-out that are uncovered by the S-D logic perspective. It concludes with managerial implications showing how this perspective can bring previously misaligned incentives of supply chain actors into alignment.

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Publication

Value-attenuation in distribution networks : Insights from a service dominant-logic perspective on retail out-of-stocks

2012-02-18 , Ehrenthal, Joachim C.F. , Gruen, Thomas W. , Hofstetter, Joerg S

This conceptual article examines the effects of out- of-stock items through the Service-Dominant (S-D) logic lens. Combining classic S-D logic research with recent applications of S-D logic in supply chains, this article examines the role that out-of-stock items play in value attenuation throughout the supply chain and its networks of actors. It presents a model of value co-creation where the brand manufacturer and customer demand meet in the retailer's realm for the "first moment of truth," and then develops a model of the total costs of a stock-out that are uncovered by the S-D logic perspective. It concludes with managerial implications showing how this perspective can bring previously misaligned incentives of supply chain actors into alignment.

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Publication

The Relationship Marketing View of the Customer and the Service Dominant Logic Perspective

2010-12 , Gruen, Thomas W. , Hofstetter, Joerg S

Based on the concept of service-dominant logic as the emerging organizing logic of marketing that would replace the traditional goods-dominant view, Vargo and Lusch (2004) originally proposed that among several other approaches to research and marketing practice that had emerged, relationship marketing would be subsumed by this broader view. More recently, however, Vargo (2009) suggested that because relationship marketing focuses on increasing the series of on-going transactions with a customer, coupled with the goal of enhancing their long- term patronage, that relationship marketing extends the goods-dominant perspective, rather than transcending into the service-dominant logic. This article counters that the relationship marketing view of the customer has already transcended the goods-dominant view to the to service-dominant view based on the way that customers are brought into the relationship as active participants in the service creation, and act as "co-producers" of value. To address the apparent goods-dominant approach in two widely used relationship marketing practices and measures, customer relation- ship management and customer lifetime value, this article proposes that these tools can be used from a goods-dominant view, but they can also serve as essential steps towards the practice of relationship marketing from the service-dominant logic.